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Waldencast completes Obagi sale, delists Nasdaq to focus on Milk Makeup

Sep 28, 2026, 4:57 PM EDT1 sourcesAI-analyzed

Why it may matterVerify against the original reporting

Delisting reduces liquidity and transparency for WALD, a common catalyst for multiple compression in small-cap names. While debt is repaid and proceeds improve balance sheet, near-term investors face reduced trading liquidity and potential re-rating as the company transitions to an OTC vehicle. Historical analogs show post-delisting downside risk despite long-term strategic improvements.

AI summary

What happened, with direct paths to the underlying reporting

Waldencast completed the Obagi Medical sale on July 30, 2026, with $149.9 million net proceeds after debt repayment and is moving to delist Nasdaq and trade OTC as MLKM. H1 2026 shows continuing revenue of $26.1 million and a $94.9 million continuing loss, with Milk Makeup posting $26.1 million in revenue and a $(14.8) million Adjusted EBITDA. The company commits to a Milk Makeup-led growth strategy, aggressive cost cuts, and a five-year target to double 2025 revenue and reach mid-20s Adjusted EBITDA margins.

Obagi Medical sale completed July 30, 2026. Discontinued-operations classification follows.
H1 2026 continuing revenue: $26.1m; net loss: $94.9m; Adjusted EBITDA: $(23.2)m.
Milk Makeup H1 2026 revenue: $26.1m; Adjusted EBITDA: $(14.8)m.
Nasdaq delisting approved; planned OTC listing under MLKM signals liquidity risk.
Overhead reductions: 80-90% of central HQ costs to be cut in 8–12 months.

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