OLAPLEX HOLDINGS, INC.OLPX

OLAPLEX HOLDINGS, INC. Segments Disclosure

10-KFiled Mar 5, 20262 min read
SEGMENT REPORTING
The Company sells haircare products through three sales channels: professional, specialty retail and DTC. The Company does not have intersegment revenues. See further discussion in “Note 3 - Net Sales” to the Company’s Consolidated Financial Statements of this Annual Report for more information. The Company manages its business on the basis of its three sales channels that are part of a single operating segment, and, therefore, a single reportable segment.
The accounting policies of the Company’s single reportable segment are the same as those described in “Note 2 - Summary of Significant Accounting Policies” to the Company’s Consolidated Financial Statements of this Annual Report.
The CODM assesses the Company’s performance and allocates resources based on net income that is also reported on the Consolidated Statement of Operations and Comprehensive (Loss) Income. The measure of the Company’s segment assets is reported on the Consolidated Balance Sheets as total assets.
The CODM uses net income to evaluate income generated from segment assets in deciding how to reinvest profits into the Company as well as in assessing performance of the segment.
Year Ended December 31,
202520242023
Net sales$422,960 $422,670 $458,300 
Less: (1)
Cost of product (excluding amortization) (2)
119,329 121,038 131,299 
Marketing expenses97,051 70,322 66,399 
Adjusted selling, general, and administrative (3)
109,579 96,372 83,283 
Depreciation and amortization53,912 53,497 50,291 
Interest expense41,342 59,585 57,954 
Interest income(14,828)(25,379)(18,828)
Tax Receivable Agreement liability adjustment(12,118)3,915 (7,404)
Income tax provision3,075 7,390 15,133 
Share-based compensation expense13,285 11,123 9,072 
Other segment items (4)
21,585 5,285 9,514 
Net (loss) income$(9,252)$19,522 $61,587 
(1) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
(2) For the year ended December 31, 2023, amount also excluded an inventory write off and disposal cost.
(3) Amounts exclude depreciation and amortization expense, marketing expenses, share-based compensation expense and the other costs described in footnote 4 to this table.
(4) For the year ended December 31, 2025, other segment items included certain litigation-related expenses, acquisition-related costs, research and development costs and Other (income) expense, net. For the year ended December 31, 2024, other segment items included research and development costs and Other (income) expense, net. For the year ended December 31, 2023, other segment items included research and development costs, Other (income) expense, net, and non-ordinary costs consisting of a one-time former distributor payment, inventory write off and disposal, executive reorganization costs and organizational realignment costs.

Historical Timeline

Fiscal YearFiled
2025Mar 5, 2026Showing above
2024Mar 4, 2025

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

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