0001628280-26-006288
SEC filingNotes highlight $100M new buyback authorization, $11.2M capex, and segment profit losses in Sun & Skin Care.
As of December 31, 2025, the company held $223.3M in cash and equivalents. Total debt stood at $1,553.3M ($32.5M notes payable + $1,520.8M long-term debt), up from $1,412.8M at September 30, 2025. The increase was driven by $292.0M in debt issuance (primarily draws on the U.S. Revolving Credit Facility) partially offset by $155.0M in repayments. Shareholders' equity declined to $1,486.2M from $1,553.1M, mainly due to net loss and dividends. Inventory increased to $461.2M, reflecting seasonal build and supply chain actions.
No material purchase commitments were disclosed in the Notes. Note 18 covers legal proceedings and contingencies but does not quantify potential liabilities beyond existing accruals. The company maintains accounts receivable facilities and supply chain financing programs; outstanding confirmed obligations under SCF were $16.2M as of December 31, 2025.
The Board authorized a new $100M share repurchase program on November 13, 2025, superseding the prior authorization. No shares were repurchased in Q1 fiscal 2026. Dividends remained at $0.15 per share quarterly, with $7.0M declared and $7.4M paid. Capital expenditures totaled $11.2M, down from $15.4M in the prior year quarter, reflecting lower spending in both segments.
Net sales from continuing operations were $422.8M, with Wet Shave contributing $291.3M (68.9%) and Sun & Skin Care $131.5M (31.1%). Segment profit: Wet Shave $42.2M (14.5% of segment sales), Sun & Skin Care loss of $3.6M. Geographic mix: U.S. $191.9M (45.4%), International $230.9M (54.6%). Wet Shave restructuring charges were excluded from segment results but totaled $24.4M in the quarter.
Operating cash flow remained negative at -$125.9M, worse than -$115.6M a year ago, primarily due to a net loss of -$65.7M (vs -$2.1M) and a working capital outflow of -$137.5M. The net loss was impacted by $37.4M impairment charges and $3.8M loss on assets held for sale, signaling non-cash charges that weakened reported earnings. Depreciation and amortization of $21.3M and share-based compensation of $3.4M provided partial offset.
Capital expenditures of $11.6M were low relative to historical levels (down from $16.8M), representing only 9.2% of operating cash outflow (absolute). Combined with minimal investing outflows, the company preserved cash despite operational strain.
Share repurchases were absent in the quarter (nil vs $30.3M), conserving cash. Dividends paid of $7.4M were slightly lower year-over-year. Financing activities generated $133.4M net inflow, largely from debt proceeds ($292.0M) partially offset by repayments ($155.0M). The company funded operating shortfalls and capex through external financing.
Impairment charges of $37.4M and loss on assets held for sale of $3.8M are one-time items that inflated net loss but did not affect cash. The working capital swing of -$137.5M is significant and likely reflects inventory build or receivable increases. Deferred compensation payments and deferred income taxes had minimal impact.