Prestige Consumer Healthcare (PBH) Q1 2027 earnings summary

Executive summary

• Q1 revenue reached $265.7 million, up 6.5% year-over-year, with organic growth of 3.2%, driven by strong GI and Dermatological categories and supported by the Breathe Right® and LaCorium acquisitions.

• Adjusted EBITDA rose 5.5% to $84.1 million, and adjusted diluted EPS increased to $0.98 from $0.95, while reported EPS was $0.61 due to acquisition-related costs.

• Net income declined to $29.2 million from $47.5 million year-over-year, mainly due to higher acquisition and interest expenses.

• Record adjusted free cash flow of $83.7 million was generated, enhancing capital allocation flexibility and supporting rapid deleveraging.

• Breathe Right® and LaCorium acquisitions completed, expected to add over $190 million to annualized revenue.

Financial highlights

• Adjusted gross margin was 55.0%, down from 56.2% year-over-year, while GAAP gross margin declined to 51.3% due to acquisition-related costs.

• Adjusted EBITDA margin was 31.6%; operating income margin was 28.4%.

• Q1 net income was $29.2 million, with adjusted net income at $46.5 million.

• Diluted EPS was $0.61, while adjusted diluted EPS was $0.98.

• Net debt stood at approximately $2 billion as of June 30, 2026.

Outlook and guidance

• Fiscal 2027 revenue guidance raised to $1.290–$1.315 billion, reflecting acquisition contributions.

• Adjusted diluted EPS guidance increased to $4.55–$4.65.

• Adjusted free cash flow expected at $270 million or more; year-end leverage ratio targeted just below 4x.

• Organic revenue growth expected at 1%–3% for the year.

• Gross margin anticipated just above 57% due to acquisitions.