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Prestige Consumer Healthcare news and analysis covering Clear Eyes, Breathe Right, earnings, acquisitions, cash flow and debt.
Prestige Consumer Healthcare Inc. markets and distributes over-the-counter consumer-health products, including Clear Eyes, TheraTears, Dramamine, Compound W, Breathe Right and Hydralyte. It also owns manufacturing operations, including Pillar5 in Canada. Common shares trade as PBH on the New York Stock Exchange. Its fiscal year ends March 31.
| Measure | FY2026 Q2 | FY2027 Q2 |
|---|---|---|
| Revenue | $274.1 | $336.3 |
| Operating income, GAAP | $79.7 | $80.7 |
| Net income, GAAP | $42.2 | $25.3 |
| Diluted EPS, GAAP | $0.86 | $0.53 |
| Adjusted diluted EPS | $1.07 | $1.13 |
| Adjusted EBITDA | $86.8 | $113.0 |
| Operating cash flow | $57.5 | $37.9 |
| Cash after capital spending | $55.4 | $34.2 |
Reported revenue grew 22.7%, including $65.1 million from Breathe Right and LaCorium. Organic revenue, excluding acquisitions and currency effects, declined 1.6%. Management cited weaker Clear Eyes sales and the timing of orders brought forward into Q1.
Adjusted net income was $53.8 million, versus $52.5 million. Its exclusions include acquisition inventory accounting, Pillar5 remediation, overhead and idle-capacity expense, idle-asset depreciation, acquisition fees, debt-extinguishment costs and associated tax adjustments. A discrete tax normalization also affects both years' adjusted comparisons. Quarterly interest expense rose to $30.0 million from $10.0 million.
Adjusted EBITDA excludes interest, taxes, depreciation and amortization, acquired-inventory step-up expense, facility remediation and idle-capacity costs, acquisition fees and debt-extinguishment costs. The $7.1 million facility adjustment reflects costs incurred while production was constrained.
| Measure | August 6 | November 5 |
|---|---|---|
| Revenue | $1,290 to $1,315 | $1,280 to $1,290 |
| Organic revenue growth | 1% to 3% | Approximately flat |
| Adjusted diluted EPS | $4.55 to $4.65 | $4.48 to $4.55 |
| Minimum adjusted free cash flow | $270 | $265 |
| Operating cash flow | $277 | $269 |
| Cash capital spending | $26 | $26 |
The August outlook already included Breathe Right and LaCorium. Their combined expected annual revenue contribution of approximately $190 million is unchanged. Clear Eyes production variability is the main reason for the lower current outlook; management expects about 2% organic growth in the rest of the portfolio.
Projected cash after capital spending is $243 million, down from $251 million. Adding back expected acquisition and other cash costs of $22 million produces the revised $265 million adjusted figure; August's equivalent addback was $19 million.
Prestige completed its $109.9 million purchase of Pillar5 on December 18, 2025. The Arnprior, Ontario manufacturer was one of its Clear Eyes suppliers. Production constraints continued after the acquisition, and the current forecast anticipates reduced second-half product availability. Management is investing in capacity and reliability.
The Breathe Right/OTC Wellness acquisition closed June 12, 2026 for $1.045 billion, and LaCorium closed July 1 for $152.1 million. Purchase-price allocations remain provisional. The deals were funded mainly through new term borrowing, with cash also used for LaCorium.
Breathe Right operations were largely consolidated by August. Management expects LaCorium's main integration by the end of fiscal Q3.
First-half operating cash flow was $108.7 million, compared with $136.5 million a year earlier. After $7.3 million of capital spending, $101.3 million remained, versus $133.6 million previously. The company's adjusted first-half figure of $123.0 million adds back $21.7 million of acquisition and other costs paid.
Weaker cash generation reflected lower income before noncash items and less favorable operating balances. Receivables absorbed $45.4 million during the half. Net cash spent on the Breathe Right and LaCorium acquisitions was $1.194 billion, a separate investing outflow.
Prestige repaid $30 million of term principal during Q2. It made no purchases under its public buyback program during the first half; approximately $92.2 million of authorization remained in September.
September principal debt was $2.11 billion, compared with $1.00 billion in March. Cash was $46.5 million, versus $63.9 million in March, leaving principal debt less cash of $2.063 billion. The $2.079 billion reported debt carrying amount instead deducts financing costs from principal.
Debt consisted of a $1.110 billion term loan due June 2033, $600 million of 3.75% notes due April 2031 and $400 million of 6.25% notes due July 2034. The July refinancing replaced $400 million of 5.125% notes previously due in 2028.
Following the voluntary term repayment, the next scheduled term installment is in March 2029. The undrawn revolving facility had a $225 million commitment and $202.4 million available. Operating and finance lease liabilities were separate obligations of $24.7 million and $19.3 million.
New brands lifted quarterly sales, but production trouble at the acquired Pillar5 plant has cut Prestige's annual outlook. Its cash forecast shows a bigger decline before adjustments.