SANTA BARBARA, California – February 28, 2023 – Olaplex Holdings, Inc. (NASDAQ: OLPX) ("OLAPLEX" or the "Company") today announced financial results for the fourth quarter and full year ended December 31, 2022.

For fiscal year 2022 compared to fiscal year 2021:

For the fourth quarter of 2022 compared to the fourth quarter 2021:

(Dollars in $000’s, except per share data)
Full Year						2022						2021						% Change
Net Sales						$	704,274					$	598,365					17.7%
Gross Profit						$	519,553					$	473,822					9.7%
Gross Profit Margin						73.8		%				79.2		%
Adjusted Gross Profit						$	533,247					$	481,811					10.7%
Adjusted Gross Profit Margin						75.7		%				80.5		%
SG&A						$	113,877					$	98,878					15.2%
Adjusted SG&A						$	102,235					$	72,177					41.6%
Net Income						$	244,072					$	220,784					10.5%
Adjusted Net Income						$	311,776					$	275,650					13.1%
Adjusted EBITDA						$	429,120					$	408,784					5.0%
Adjusted EBITDA Margin						60.9		%				68.3		%
Diluted EPS						$	0.35					$	0.32					9.4%
Adjusted Diluted EPS						$	0.45					$	0.40					12.5%
Weighted Average Diluted Shares Outstanding						691,005,846						689,923,792

(Dollars in $000’s, except per share data)
						Q4 2022						Q4 2021						% Change
Net Sales						$	130,721		GL			$	166,498					(21.5)%
Gross Profit						$	92,090					$	132,213					(30.3)%
Gross Profit Margin						70.4		%				79.4		%
Adjusted Gross Profit						$	94,735					$	133,803					(29.2)%
Adjusted Gross Profit Margin						72.5		%				80.4		%
SG&A						$	34,645					$	23,555					47.1%
Adjusted SG&A						$	28,836					$	22,605					27.6%
Net Income						$	33,633					$	69,311					(51.5)%
Adjusted Net Income						$	48,325					$	71,393					(32.3)%
Adjusted EBITDA						$	67,626					$	110,678					(38.9)%
Adjusted EBITDA Margin						51.7		%				66.5		%
Diluted EPS						$	0.05					$	0.10					(50.0)%
Adjusted Diluted EPS						$	0.07					$	0.10					(30.0)%
Weighted Average Diluted Shares Outstanding						686,036,091						692,863,933

As of December 31, 2022, the Company had $322.8 million of cash and cash equivalents, compared to $186.4 million as of December 31, 2021. Inventory at the end of the fourth quarter of 2022 was $144.4 million, compared to $98.4 million at December 31, 2021. Long-term debt, net of current portion was $654.3 million as of December 31, 2022, compared to $738.1 million as of December 31, 2021.

For Fiscal 2023:
(Dollars in millions)			2023			2022 Actual			% change (based on mid-point)
Net Sales			$563-$634			$704			(15)%
Adjusted Net Income*			$176-$224			312			(36)%
Adjusted EBITDA*			$261-$322			$429			(32)%

(Expected decreases are approximate)						Q1 2023						Q1 2022
Change in Net Sales						(41)%						57.6%
Change in Sales by Channel
Professional						(43)%						62.6%
Specialty Retail						(47)%						102.5%
DTC						(28)%						15.1%

The Company plans to host an investor conference call and webcast to review fourth quarter and fiscal 2022 financial results at 9:00am ET/6:00am PT on February 28, 2023. The webcast can be accessed at https://ir.olaplex.com. The conference call can be accessed by calling (201) 689-8521 or (877) 407-8813 for a toll-free number. A replay of the webcast will remain available on the website for 90 days.

This press release includes certain forward-looking statements and information relating to the Company that are based on the beliefs of management as well as assumptions made by, and information currently available to, the Company. These forward-looking statements include, but are not limited to, statements about: the Company’s financial position and operating results, including financial guidance for the full fiscal year 2023, the first and second quarters of 2023 and the second half of 2023, including net sales, gross profit margin, adjusted EBITDA margin, interest expense and effective tax rate; uncertainty related to the macroeconomic environment; management’s expectation that trends will improve sequentially throughout fiscal 2023; customer demand for the Company’s products; inventory rebalancing across certain of the Company's customers, including the timing related thereto and the magnitude thereof; the impact of new product introductions; business plans and objectives, including the Company's plan to respond to moderating sales growth trends; the Company’s sales, marketing and education initiatives and related spending, and the impact thereof on net sales and customer demand; the Company's investments to support future growth and expansion opportunities; inventory pipeline sales; distribution gains and the growth and resiliency of the global prestige haircare industry; increases in warehousing and distribution costs; net interest expense, including net impacts from short-term investments of the Company's cash and cash equivalents balance; the Company's effective tax rate and other statements contained in this press release that are not historical or current facts. When used in this press release, words such as "may," "will," “could," "should," "intend," "potential," "continue," "anticipate," "believe," "estimate," "expect," "plan," "target," "predict," "project," "seek" and similar expressions as they relate to the Company are intended to identify forward-looking statements.

Forward-looking statements involve known and unknown risks, inherent uncertainties and other factors that are difficult to predict which may cause the Company’s actual results, performance, time frames or achievements to be materially different from any future results, performance, time frames or achievements expressed or implied by the forward-looking statements, including, without limitation: the Company’s ability to anticipate and respond to market trends and changes in consumer preferences and execute on its growth strategies and expansion opportunities, including with respect to new product introductions; the Company’s ability to develop, manufacture and effectively and profitably market and sell future products; the Company’s ability to accurately forecast customer and consumer demand for its products; competition in the beauty industry; the Company’s ability to effectively maintain and promote a positive brand image and expand its brand awareness; the Company’s dependence on a limited number of customers for a large portion of its net sales; the Company’s ability to attract new customers and consumers and encourage consumer spending across its product portfolio; the Company’s ability to successfully implement new or additional marketing efforts; the Company’s relationships with and the performance of its suppliers, manufacturers, distributors and retailers and the Company’s ability to manage its supply chain; impacts on the Company’s business from political, regulatory, economic, trade and other risks associated with operating internationally; the Company’s ability to attract and retain senior management and other qualified personnel; the Company’s reliance on its and its third-party service providers’ information technology; the Company’s ability to maintain the security of confidential information; the Company’s ability to establish and maintain intellectual property protection for its products, as well as the Company’s ability to operate its business without infringing, misappropriating or otherwise violating the intellectual property rights of others; the outcome of litigation and regulatory proceedings; the impact of changes in federal, state and international laws, regulations and administrative policy; the Company’s existing and any future indebtedness, including the Company’s ability to comply with affirmative and negative covenants under its credit agreement; the

Company’s ability to service its existing indebtedness and obtain additional capital to finance operations and its growth opportunities; volatility of the Company’s stock price; the Company’s “controlled company” status and the influence of investment funds affiliated with Advent International Corporation over the Company; the impact of an economic downturn and inflationary pressures on the Company’s business; fluctuations in the Company’s quarterly results of operations; changes in the Company’s tax rates and the Company’s exposure to tax liability; and the other factors identified under the heading “Risk Factors” in Company’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (the "SEC") and in the other documents that the Company files with the SEC from time to time.

In addition to the financial measures presented in this release in accordance with GAAP, the Company has included certain non-GAAP financial measures in this press release, including adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted gross profit, adjusted gross profit margin, adjusted SG&A and adjusted diluted EPS. Management believes these non-GAAP financial measures, when taken together with the Company’s financial results presented in accordance with GAAP, provide meaningful supplemental information regarding the Company’s operating performance and facilitate internal comparisons of its historical operating performance on a more consistent basis by excluding certain items that may not be indicative of its business, results of operations or outlook. In particular, management believes that the use of these non-GAAP measures may be helpful to investors as they are measures used by management in assessing the health of the Company’s business, determining incentive compensation and evaluating its operating performance, as well as for internal planning and forecasting purposes.

The Company calculates adjusted EBITDA as net income, adjusted to exclude: (1) interest expense, net; (2) income tax provision; (3) depreciation and amortization; (4) share-based compensation expense; (5) non-ordinary inventory adjustments; (6) non-ordinary costs and fees; (7) non-ordinary legal costs; (8) non-capitalizable initial public offering ("IPO") and strategic transition costs; (9) as applicable, Tax Receivable Agreement liability adjustments. The Company calculates adjusted EBITDA margin by dividing adjusted EBITDA by net sales. The Company calculates adjusted net income as net income, adjusted to exclude: (1) amortization of intangible assets (excluding software); (2) non-ordinary costs and fees; (3) non-ordinary legal costs; (4) non-ordinary inventory adjustments; (5) share-based compensation expense; (6) non-capitalizable IPO and strategic transition costs; (7) Tax Receivable Agreement liability adjustment; (8) tax effect of non-GAAP adjustments. The Company calculates adjusted gross profit as gross profit, adjusted to exclude: (1) non-ordinary inventory adjustments and (2) amortization of patented formulations pertaining to the acquisition of the Olaplex, LLC business in 2020 by certain investment funds affiliated with Advent International Corporation and other investors (the "Acquisition"). The Company calculates adjusted gross profit margin by dividing adjusted gross profit by net sales. The Company calculates adjusted SG&A as SG&A, adjusted to exclude: (1) share-based compensation expense; (2) non-ordinary legal costs, (3) non-capitalizable IPO and strategic transition costs; (4) non-ordinary costs and fees. The Company calculates adjusted basic and diluted EPS as adjusted net income divided by weighted average basic and diluted shares outstanding respectively.

This release includes forward-looking guidance for adjusted EBITDA, adjusted EBITDA margin and adjusted net income. The Company is not able to provide, without unreasonable effort, a reconciliation of the guidance for adjusted EBITDA, adjusted EBITDA margin and adjusted net income to the most directly comparable GAAP measure because the Company does not currently have sufficient data to accurately estimate the variables and individual adjustments included in the most directly comparable GAAP measure that would be necessary for such reconciliations, including (a) income tax related accruals in respect of certain one-time items, (b) costs related to potential debt or equity transactions, and (c) other non-recurring expenses that cannot reasonably be estimated in advance. These adjustments are inherently variable and uncertain and depend on various factors that are beyond the Company's control, and as a result, it is also unable to predict their probable significance. Therefore, because management cannot estimate on a forward-looking basis without unreasonable effort the impact these variables and individual adjustments will have on its reported results in accordance with GAAP, it is unable to provide a reconciliation of the non-GAAP measures included in its full fiscal year 2023 and first quarter 2023 guidance.

			December 31, 2022						December 31, 2021
Assets
Current Assets:
Cash and cash equivalents			$	322,808					$	186,388
Accounts receivable, net of allowance of $19,198 and $8,231			46,220						40,779
Inventory			144,425						98,399
Other current assets			8,771						9,621
Total current assets			522,224						335,187
Property and equipment, net			1,034						747
Intangible assets, net			995,028						1,043,344
Goodwill			168,300						168,300
Deferred tax asset			—						8,344
Other assets			11,089						4,500
Total assets			$	1,697,675					$	1,560,422
Liabilities and stockholders’ equity
Current Liabilities:
Accounts payable			$	9,748					$	19,167
Sales and income taxes payable			3,415						12,144
Accrued expenses and other current liabilities			17,107						17,332
Current portion of long-term debt			8,438						20,112
Current portion of Related Party payable pursuant to Tax Receivable Agreement			16,380						4,157
Total current liabilities			55,088						72,912
Long-term debt			654,333						738,090
Deferred tax liabilities			1,622						—
Related Party payable pursuant to Tax Receivable Agreement			205,675						225,122
Total liabilities			916,718						1,036,124
Contingencies
Stockholders’ equity
Common stock, $0.001 par value per share; 2,000,000,000 shares authorized, 650,091,380 and 648,794,041 shares issued and outstanding as of December 31, 2022 and 2021, respectively			649						648
Preferred stock, $0.001 par value per share; 25,000,000 shares authorized and no shares issued and outstanding as of December 31, 2022 and 2021, respectively			—						—
Additional paid-in capital			312,875						302,866
Accumulated other comprehensive income			2,577						—
Retained earnings			464,856						220,784
Total stockholders’ equity			780,957						524,298
Total liabilities and stockholders’ equity			$	1,697,675					$	1,560,422

			Three Months Ended December 31,												Year Ended December 31,
			2022						2021						2022						2021
Net sales			$	130,721					$	166,498					$	704,274					$	598,365
Cost of sales:
Cost of product (excluding amortization)			36,222						32,695						177,221						116,554
Amortization of patented formulations			2,409						1,590						7,500						7,989
Total cost of sales			38,631						34,285						184,721						124,543
Gross profit			92,090						132,213						519,553						473,822
Operating expenses:
Selling, general, and administrative			34,645						23,555						113,877						98,878
Amortization of other intangible assets			10,392						10,243						41,282						40,790
Total operating expenses			45,037						33,798						155,159						139,668
Operating income			47,053						98,415						364,394						334,154
Interest expense, net			(10,525)						(15,096)						(41,178)						(61,148)
Other income (expense), net
Loss on extinguishment of debt			—						—						(18,803)						—
Tax receivable agreement liability adjustment			3,084						3,615						3,084						3,615
Other expense			1,596						(595)						(2,256)						(1,012)
Total other income (expense), net			4,680						3,020						(17,975)						2,603
Income before provision for income taxes			41,208						86,339						305,241						275,609
Income tax provision			7,575						17,028						61,169						54,825
Net income			$	33,633					$	69,311					$	244,072					$	220,784
Net income per share:
Basic			$	0.05					$	0.11					$	0.38					$	0.34
Diluted			$	0.05					$	0.10					$	0.35					$	0.32
Weighted average common shares outstanding:
Basic			649,476,301						648,422,232						649,092,846						648,166,472
Diluted			686,036,091						692,863,933						691,005,846						689,923,792
Other comprehensive income:
Unrealized gain on derivatives, net of income tax effect			$	646					$	—					$	2,577					$	—
Total other comprehensive income			646						—						2,577						—
Comprehensive income			$	34,279					$	69,311					$	246,649					$	220,784

(Unaudited)

			Year Ended December 31,
			2022						2021
Cash flows from operating activities
Net income			$	244,072					$	220,784
Adjustments to reconcile net income to net cash provided by operating activities:			11,252						(20,755)
Net cash provided by operating activities			255,324						200,029
Net cash used in investing activities			(2,682)						(6,265)
Net cash used in financing activities			(116,222)						(18,340)
Net increase in cash and cash equivalents			136,420						175,424
Cash and cash equivalents - beginning of period			186,388						10,964
Cash and cash equivalents - end of period			$	322,808					$	186,388

			Three Months Ended December 31,												Year Ended December 31,
(in thousands)			2022						2021						2022						2021
Reconciliation of Net Income to Adjusted EBITDA
Net income			$	33,633					$	69,311					$	244,072					$	220,784
Income tax provision			7,575						17,028						61,169						54,825
Depreciation and amortization of intangible assets			12,932						11,908						49,146						48,941
Interest expense			10,525						15,096						41,178						61,148
Loss on extinguishment of debt(1)			—						—						18,803						—
Share-based compensation			1,821						844						7,275						3,963
Inventory write off and disposal(2)			249						—						4,573						—
Executive reorganization costs(7)			3,988						—						3,988						—
Non-recurring litigation costs(5)			—						—						—						14,250
Labelling stock write off and disposal(3)			(13)						—						1,621						—
Distribution start-up costs(4)			—						—						379						—
Non-capitalizable IPO and strategic transition costs (6)			—						106						—						8,488
Tax receivable agreement liability adjustment			(3,084)						(3,615)						(3,084)						(3,615)
Adjusted EBITDA			$	67,626					$	110,678					$	429,120					$	408,784
Adjusted EBITDA margin			51.7		%				66.5		%				60.9		%				68.3		%

			Three Months Ended December 31,												Year Ended December 31,
(in thousands)			2022						2021						2022						2021
Reconciliation of Gross Profit to Adjusted Gross Profit
Gross profit			$	92,090					$	132,213					$	519,553					$	473,822
Amortization of patented formulations			2,409						1,590						7,500						7,989
Inventory write off and disposal(2)			249						—						4,573						—
Labelling stock write off and disposal(3)			(13)						—						1,621						—
Adjusted gross profit			$	94,735					$	133,803					$	533,247					$	481,811
Adjusted gross profit margin			72.5		%				80.4		%				75.7		%				80.5		%

						Three Months Ended December 31,												Year Ended December 31,
(in thousands)						2022						2021						2022						2021
Reconciliation of SG&A to Adjusted SG&A
SG&A						$	34,645					$	23,555					$	113,877					$	98,878
Share-based compensation						(1,821)						(844)						(7,275)						(3,963)
Executive reorganization costs(7)						(3,988)						—						(3,988)						—
Non-recurring litigation costs(5)						—						—						—						(14,250)
Distribution start-up costs(4)						—						—						(379)						—
Non-capitalizable IPO and strategic transition costs (6)						—						(106)						—						(8,488)
Adjusted SG&A						$	28,836					$	22,605					$	102,235					$	72,177

			Three Months Ended December 31,												Year Ended December 31,
(in thousands, except per share data)			2022						2021						2022						2021
Reconciliation of Net Income to Adjusted Net Income
Net income			$	33,633					$	69,311					$	244,072					$	220,784
Amortization of intangible assets (excluding software)			12,593						11,774						48,232						48,720
Loss on extinguishment of debt(1)			—						—						18,803						—
Share-based compensation			1,821						844						7,275						3,963
Inventory write off and disposal(2)			249						—						4,573						—
Executive reorganization costs(7)			3,988						—						3,988						—
Labelling stock write off and disposal(3)			(13)						—						1,621						—
Distribution start-up costs(4)			—						—						379						—
Non-recurring litigation costs(5)			—						—						—						14,250
Non-capitalizable IPO and strategic transition costs (6)			—						106						—						8,488
Tax receivable agreement liability adjustment			(3,084)						(3,615)						(3,084)						(3,615)
Tax effect of adjustments			(862)						(7,027)						(14,083)						(16,940)
Adjusted net income			$	48,325					$	71,393					$	311,776					$	275,650
Adjusted net income per share:
Basic			$	0.07					$	0.11					$	0.48					$	0.43
Diluted			$	0.07					$	0.10					$	0.45					$	0.40

(1)On February 23, 2022, the Company refinanced its existing secured credit facility with a new credit agreement comprised of a $675 million senior secured term loan facility and a $150 million senior secured revolving credit facility. This refinancing resulted in recognition of loss on extinguishment of debt of $18.8 million which is comprised of $11.0 million in deferred financing fee write off, and $7.8 million of prepayment fees for the previously existing credit facility. Loss on extinguishment of debt is included as non-ordinary costs and fees in the reconciliations above.

(2)The inventory write-off and disposal costs relate to unused stock of a product that the Company reformulated in June 2021 as a result of regulation changes in the E.U. In the interest of having a single formulation for sale worldwide, the Company reformulated on a global basis and is now disposing of unused stock.

(3)Labelling stock write-off and disposal costs relate to disposal of unused product labels that the Company was required to update as a result of regulation changes in the E.U that become effective in the first quarter of 2023.

(4)The distribution start-up costs relate to one-time charges associated with the set-up of a new third party logistics provider.

(5)Represents costs incurred during the year ended December 31, 2021 related to the payment to LIQWD, Inc., a predecessor entity to the Company substantially all of whose assets and liabilities were purchased as part of the Acquisition ("LIQWD"), of certain amounts due in connection with the resolution of certain litigation and contingency matters involving LIQWD, which amounts were required to be paid pursuant to the purchase agreement for the Acquisition.

(6)Represents non-capitalizable professional fees and executive severance incurred in connection with the Company's initial public offering and the Company’s public company transition.

(7)Represents one-time costs associated with the departure of the Company's Chief Operating Officer during the year ended December 31, 2022.