Olaplex (OLPX) 10-K 28 Feb 23 2022 FY Annual report Financial data

Cover

Cover - USD ($) $ in Billions	12 Months Ended
	Dec. 31, 2022	Feb. 21, 2023	Jun. 30, 2022
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2022
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	001-40860
Entity Registrant Name	Olaplex Holdings, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	87-1242679
City Area Code	310
Local Phone Number	691-0776
Title of 12(b) Security	Common stock, par value $0.001 per share
Trading Symbol	OLPX
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 1.9
Entity Common Stock, Shares Outstanding		651,896,249
Documents Incorporated by Reference	DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant’s Definitive Proxy Statement relating to its 2023 Annual Meeting of stockholders, to be filed with the Securities and Exchange Commission within 120 days after registrant’s fiscal year end of December 31, 2022, are incorporated by reference into Part III of this Annual Report.
Entity Central Index Key	0001868726
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Filer Category	Large Accelerated Filer

Audit Information

Audit Information	12 Months Ended
	Dec. 31, 2022
Audit Information [Abstract]
Auditor Name	Deloitte & Touche LLP
Auditor Location	Los Angeles, California
Auditor Firm ID	34

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Current Assets:
Cash and cash equivalents	$ 322,808	$ 186,388
Accounts receivable, net of allowances 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 assets	0	8,344
Other assets	11,089	4,500
Total assets	1,697,675	1,560,422
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	0
Related Party payable pursuant to Tax Receivable Agreement	205,675	225,122
Total liabilities	916,718	1,036,124
Contingencies (Note 14)
Stockholders’ equity (Notes 1 and 12):
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	0	0
Additional paid-in capital	312,875	302,866
Accumulated other comprehensive income	2,577	0
Retained earnings	464,856	220,784
Total stockholders’ equity	780,957	524,298
Total liabilities and stockholders’ equity	$ 1,697,675	$ 1,560,422

CONSOLIDATED BALANCE SHEETS - P

CONSOLIDATED BALANCE SHEETS - Parenthetical - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Accounts receivable, allowance for credit losses	$ 19,198	$ 8,231
Common stock, par value (in usd per share)	$ 0.001	$ 0.001
Common stock, shares authorized (shares)	2,000,000,000	2,000,000,000
Common stock, shares, issued (shares)	650,091,380	648,794,041
Common stock, shares, outstanding (shares)	650,091,380	648,794,041
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (shares)	25,000,000	25,000,000
Preferred stock, shares issued (shares)	0	0
Preferred stock, shares outstanding (shares)	0	0

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Statement of Comprehensive Income [Abstract]
Net sales	$ 704,274	$ 598,365	$ 282,250
Cost of sales:
Cost of product (excluding amortization)	177,221	116,554	96,611
Amortization of patented formulations	7,500	7,989	6,052
Total cost of sales	184,721	124,543	102,663
Gross profit	519,553	473,822	179,587
Operating expenses:
Selling, general, and administrative	113,877	98,878	37,170
Amortization of other intangibles	41,282	40,790	39,825
Acquisition costs	0	0	16,499
Total operating expenses	155,159	139,668	93,494
Operating income	364,394	334,154	86,093
Interest expense, net	(41,178)	(61,148)	(38,645)
Other (expense) income, net
Loss on extinguishment of debt	(18,803)	0	0
Tax receivable agreement liability adjustment	3,084	3,615	0
Other expense, net	(2,256)	(1,012)	(190)
Total other (expense) income, net	(17,975)	2,603	(190)
Income before provision for income taxes	305,241	275,609	47,258
Income tax provision	61,169	54,825	7,980
Net income	$ 244,072	$ 220,784	$ 39,278
Net income per share:
Net income per share: Basic (in usd per share)	$ 0.38	$ 0.34	$ 0.06
Net income per share: Diluted (in usd per share)	$ 0.35	$ 0.32	$ 0.06
Weighted average common shares outstanding:
Weighted average common shares outstanding: Basic (in shares)	649,092,846	648,166,472	635,386,219
Weighted average common shares outstanding: Diluted (in shares)	691,005,846	689,923,792	636,819,975
Other comprehensive income:
Unrealized gain on derivatives, net of income tax effect	$ 2,577	$ 0	$ 0
Total other comprehensive income	2,577	0	0
Comprehensive income	$ 246,649	$ 220,784	$ 39,278

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid in Capital	Accumulated Other Comprehensive Income	Retained Earnings
Beginning balance, shares outstanding (in shares) at Dec. 31, 2019		0
Beginning balance at Dec. 31, 2019	$ 0	$ 0	$ 0	$ 0	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)		647,888,387
Issuance of common stock	959,868	$ 648	959,220
Net income	39,278				39,278
Share-based compensation expense	1,527		1,527
Dividend payments	(470,000)		(430,722)		(39,278)
Unrealized gain on derivatives (net of taxes)	0
Ending balance, shares outstanding (in shares) at Dec. 31, 2020		647,888,387
Ending balance at Dec. 31, 2020	530,673	$ 648	530,025	0	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)		236,255
Issuance of common stock	633		633
Net income	220,784				220,784
Share-based compensation expense	3,963		3,963
Tax receivable agreement	(232,893)		(232,893)
Exercise of stock options (in shares)		669,399
Exercise of stock options	1,138		1,138
Unrealized gain on derivatives (net of taxes)	0
Ending balance, shares outstanding (in shares) at Dec. 31, 2021		648,794,041
Ending balance at Dec. 31, 2021	524,298	$ 648	302,866	0	220,784
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	244,072				244,072
Share-based compensation expense	7,275		7,275
Conversion of cash-settled units to stock-settled stock appreciation rights	1,632		1,632
Exercise of stock-settled stock appreciation rights (in shares)		214,380
Exercise of stock-settled stock appreciation rights	638		638
Shares withheld and retired on exercise of stock-settled stock appreciation rights (in shares)		(106,722)
Shares withheld and retired on exercise of stock-settled stock appreciation rights	(1,412)		(1,412)
Exercise of stock options (in shares)		1,189,681
Exercise of stock options	1,877	$ 1	1,876
Unrealized gain on derivatives (net of taxes)	2,577			2,577
Ending balance, shares outstanding (in shares) at Dec. 31, 2022		650,091,380
Ending balance at Dec. 31, 2022	$ 780,957	$ 649	$ 312,875	$ 464,856	$ 2,577

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash flows from operating activities:
Net income	$ 244,072	$ 220,784	$ 39,278
Adjustments to reconcile net income to net cash from operations provided by operating activities:
Amortization of patented formulations	7,500	7,989	6,052
Amortization of other intangibles	41,282	40,790	39,825
Inventory write-off and disposal	8,180	0	0
Depreciation of fixed assets	363	162	0
Amortization of fair value of acquired inventory	0	0	44,721
Amortization of debt issuance costs	1,543	2,830	1,752
Deferred taxes	9,179	2,486	(4,428)
Tax receivable agreement liability adjustment	(3,084)	(3,615)	0
Share-based compensation expense	7,275	3,963	1,527
Loss on extinguishment of debt	18,803	0	0
Other operating	412	0	0
Changes in operating assets and liabilities, net of effects of acquisition (as applicable):
Accounts receivable, net	(5,441)	(26,402)	(7,118)
Inventory	(52,640)	(63,724)	(14,242)
Other current assets	850	(7,199)	(2,094)
Accounts payable	(9,419)	2,352	14,865
Accrued expenses and other current liabilities	(7,322)	19,613	8,837
Other assets and liabilities	(6,229)	0	0
Net cash provided by operating activities	255,324	200,029	128,975
Cash flows from investing activities:
Purchase of property and equipment	(650)	(875)	(27)
Purchase of investment in nonconsolidated entity	0	(4,500)	0
Business acquisition, net of acquired cash	0	0	(1,381,582)
Purchase of software	(2,032)	(890)	0
Net cash used in investing activities	(2,682)	(6,265)	(1,381,609)
Cash flows from financing activities:
Dividend / distribution payments	0	0	(470,000)
Proceeds from the issuance of stock	0	633	959,868
Proceeds from exercise of stock options	1,876	1,138	0
Proceeds from Revolver	0	0	50,000
Principal payments of Term Loan	(780,380)	(20,111)	(10,653)
Payments for shares withheld and retired for taxes and exercise price for SARs	(774)	0	0
Payments of Revolver	0	0	(50,000)
Proceeds from the issuance of Term Loan	675,000	0	800,000
Payments of debt issuance costs	(11,944)	0	(15,617)
Net cash (used in) provided by financing activities	(116,222)	(18,340)	1,263,598
Net increase in cash and cash equivalents	136,420	175,424	10,964
Cash and cash equivalents - beginning of period	186,388	10,964	0
Cash and cash equivalents - end of period	322,808	186,388	10,964
Supplemental disclosure of cash flow information:
Cash paid for income taxes	59,922	33,812	9,914
Cash paid during the year for interest	41,226	58,316	34,566
Supplemental disclosure of noncash activities:
Offering and strategic transition costs included in accounts payable and accrued expenses	0	243	0
(Decrease) increase in Related Party payable pursuant to Tax Receivable Agreement	(3,084)	232,893	0
Cash Settled units liability reclassification to additional paid in capital	$ 1,632	$ 0	$ 0

NATURE OF OPERATIONS AND BASIS

NATURE OF OPERATIONS AND BASIS OF PRESENTATION	12 Months Ended
	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF OPERATIONS AND BASIS OF PRESENTATION	NATURE OF OPERATIONS AND BASIS OF PRESENTATION Olaplex Holdings, Inc. (“Olaplex Holdings,” and together with its subsidiaries, the “Company” or “we”) is a Delaware corporation that was incorporated on June 8, 2021 for the purpose of facilitating an initial public offering and to enter into other related Reorganization Transactions, as described below, in order to carry on the business of Penelope Holdings Corp. (“Penelope”), together with its subsidiaries. Olaplex Holdings is organized as a holding company and operates indirectly through its wholly owned subsidiaries, Penelope and Olaplex, Inc., which conducts business under the name “Olaplex”. Olaplex is an innovative, science-enabled, technology-driven beauty company that is focused on delivering its patent-protected prestige hair care products to professional hair salons, retailers and everyday consumers. Olaplex develops, manufactures and distributes a suite of haircare products strategically developed to address three key uses: treatment, maintenance and protection. On January 8, 2020 (the “Acquisition Date”), a group of third-party investors, through Penelope, acquired 100% of the Olaplex LLC business, including the intellectual property operations of another affiliated business, LIQWD, Inc. (the “Olaplex business”) from the owners of the Olaplex business (the “Sellers”) for $1,381,582 (the “Acquisition”). Subsequent to the Acquisition Date, all of the operations of Olaplex are comprised of the operations of Olaplex, Inc. In these financial statements, the term “Olaplex” is used to refer to either the operations of the business prior or after the Acquisition and prior to and after the initial public offering and Reorganization Transactions as discussed below, depending on the respective period discussed. Initial Public Offering On October 4, 2021, Olaplex Holdings completed an initial public offering of 73,700,000 shares of its common stock (the “IPO”). All shares sold in the IPO were sold by certain existing stockholders of Olaplex Holdings at a public offering price of $21 per share. The selling stockholders received net proceeds of approximately $1,466,446, after deducting underwriting discounts and commissions. On October 8, 2021, the selling stockholders sold 11,055,000 additional shares of common stock pursuant to the full exercise by the underwriters of the IPO of their option to purchase additional shares at the initial public offering price of $21 per share. The selling shareholders received net proceeds of approximately $219,967, after deducting underwriting discounts and commissions, for the sale of these additional shares. The Company did not receive any proceeds from the IPO. Reorganization Transactions Prior to the IPO, Penelope Group Holdings, L.P. was the direct parent of Penelope, which is the indirect parent of Olaplex, Inc., the Company’s primary operating subsidiary. In connection with the IPO, the Company completed the following transactions (collectively the “Reorganization Transactions”): • The limited partners of Penelope Group Holdings, L.P. including Advent International GPE IX, LP (“Fund IX”), who also held 100% of the equity interest in Penelope Group Holdings GP II, LLC (“Penelope Group Holdings GP II”), the general partner of Penelope Group Holdings, L.P., contributed 100% of their respective economic equity interests in Penelope Group Holdings, L.P. and Fund IX further contributed 100% of the equity interests in Penelope Group Holdings GP II to Olaplex Holdings in exchange for: ◦ an aggregate of 648,124,642 shares of common stock of Olaplex Holdings; and ◦ certain rights to payments under the Tax Receivable Agreement (as defined below); • outstanding options to purchase shares of common stock of Penelope and outstanding cash-settled units of Penelope were converted into options to purchase shares of Olaplex Holdings and cash-settled units of Olaplex Holdings as follows: ◦ outstanding vested time-based options to purchase shares of common stock of Penelope were converted into vested options to purchase an aggregate of 2,929,500 shares of common stock of Olaplex Holdings, with a corresponding adjustment to the exercise price that preserved the option’s spread value; ◦ outstanding unvested time-based options to purchase shares of common stock of Penelope were converted into time-based options to purchase an aggregate of 14,314,725 shares of common stock of Olaplex Holdings, with a corresponding adjustment to the exercise price that preserves the options’ spread value and the same time-based vesting schedule that applied to the options prior to the conversion; ◦ outstanding performance-based options to purchase shares of common stock of Penelope were converted into (i) vested options to purchase an aggregate of 4,315,275 shares of common stock of Olaplex Holdings, with a corresponding adjustment to the exercise price that preserved the options’ spread value, and (ii) time-based options to purchase an aggregate of 25,363,800 shares of common stock of Olaplex Holdings, with a corresponding adjustment to the exercise price that preserves the options’ spread value, that will be eligible to vest in equal installments on each of the first three anniversaries of the IPO ; ◦ outstanding time-based cash-settled units of Penelope were converted into an aggregate of 621,000 time-based cash-settled units of Olaplex Holdings, with a corresponding adjustment to the base price per unit that preserves the units’ spread value and the same time-based vesting schedule that applied to the unit prior to the conversion; and ◦ outstanding performance-based cash-settled units of Penelope were converted into (i) an aggregate of 318,600 time-based cash-settled units of Olaplex Holdings, with a corresponding adjustment to the base price per unit that preserves the units’ spread value, that will be eligible to vest in equal installments on each of the first three anniversaries of the IPO, subject to (A) the unit holder’s continued service through the applicable vesting date and (B) the weighted average closing price per share of Olaplex Holdings’ common stock over the thirty consecutive trading days ending on the day immediately prior to the applicable vesting date equaling or exceeding $21 per share on each applicable vesting date , and (ii) an aggregate of 159,300 vested cash-settled units of Olaplex Holdings with a corresponding adjustment to the base price per unit that preserves the units’ spread value; • The Company entered into an income tax receivable agreement (“the Tax Receivable Agreement”) under which the Company is required to pay to the former limited partners of Penelope Group Holdings, L.P. and holders of options to purchase shares of common stock of Penelope (collectively the “Pre-IPO Stockholders”) that were vested prior to the Reorganization Transactions, 85% of the cash savings, if any, in U.S. federal, state or local tax that the Company actually realizes on its taxable income following the IPO as specified in the Tax Receivable Agreement. • Olaplex Holdings and Olaplex Intermediate, Inc., which had received a portion of the equity interests of Penelope Group Holdings, L.P. from Olaplex Holdings, contributed 100% of the equity interests of Penelope Group Holdings, L.P. and 100% of the equity interests of Penelope Group Holdings GP II to Olaplex Intermediate II, Inc., a direct subsidiary of Olaplex Intermediate Inc.; and • Penelope Group Holdings, L.P. and Penelope Group Holdings GP II merged with and into Olaplex Intermediate II, Inc. with Olaplex Intermediate II, Inc. surviving each merger. Basis of Presentation The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP” or “U.S. GAAP”) with all intercompany balances and transactions eliminated. Any reference in these notes to applicable guidance is meant to refer to the authoritative United States (“U.S.”) generally accepted accounting principles as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”). The financial statements for prior periods give effect to the Reorganization Transactions discussed above, including the exchange of all 960,184 units of Penelope Group Holdings, L.P. for an aggregate of 648,124,642 shares of common stock of Olaplex Holdings, Inc., which is equivalent to an overall exchange ratio of one-for-675, and the conversion of options and cash-settled units of Penelope into options and cash-settled units of Olaplex Holdings at a conversion rate of one-for-675, with a corresponding adjustment to the exercise price and base price, respectively, as discussed above and in “Note 11. Share-Based Compensation”. All share and earnings per share amounts presented herein have been retroactively adjusted to give effect to the Reorganization Transactions as if they occurred in all prior periods presented. For the periods prior to the Reorganization Transactions, Penelope and its subsidiaries, including Olaplex, Inc., are consolidated in the consolidated financial statements of the Company.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation and Combination The 2022, 2021 and 2020 Consolidated Financial Statements cover Olaplex, Inc. and its wholly owned subsidiary, Olaplex UK Limited, a private limited company incorporated in England and Wales. The accompanying 2022, 2021 and 2020 Consolidated Financial Statements reflect the financial position, results of operations and comprehensive income, and cash flows of Olaplex Holdings, Inc. and its wholly owned subsidiaries on a consolidated basis. All intercompany account balances and transactions have been eliminated. Estimates and Assumptions Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. Examples of estimates and assumptions include: for revenue recognition, determining the nature and timing of satisfaction of performance obligations, variable consideration, and other obligations such as product returns and refunds; loss contingencies; the fair value of share-based options and stock settled stock appreciation rights (“SARs”); the fair value of and/or potential impairment of goodwill and intangible assets for our reporting unit; the fair value of our interest rate cap; useful lives of our tangible and intangible assets; allowance for promotions; estimated income tax and tax receivable payments; the net realizable value of, and demand for our inventory. Actual results and outcomes may differ from management’s estimates and assumptions due to risks and uncertainties. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with a maturity of three months or less to be cash equivalents. The Company maintains cash balances at several high credit quality financial institutions. Accounts at these institutions are secured by the Federal Deposit Insurance Corporation (the “FDIC”). At times, such cash balances may be in excess of the $250 FDIC insurance limit. As of December 31, 2022 and December 31, 2021, the Company has cash equivalents of $322,808 and $186,388, respectively. The Company has not experienced any losses in such account s. Accounts Receivable – net Accounts receivable are recorded at net realizable value. The Company has recorded an accrual for reductions to prices for agreed-upon deductions, including allowances for advertising, damages, promotions, and returns. As of December 31, 2022 and December 31, 2021, this allowance was $19,198 and $8,231 respectively. As of December 31, 2022 and December 31, 2021, the Company did not have an allowance for doubtful accounts. In arriving at this conclusion, the Company evaluated historical losses, and the likelihood of future losses, age of receivables, adverse situations that may affect a customer’s ability to repay and prevailing economic conditions in accordance with ASC 326. The Company has generally not experienced difficulties collecting from customers in a timely manner. Inventory Inventory includes inventory that is salable or usable in future periods and is stated at the lower of cost or net realizable value using the average cost method. Cost components include raw materials and finished goods. The finished goods are produced at third-party contract manufacturers. The Company allocates the amortized cost of its patented formulation to finished goods inventory. Management estimates an allowance for excess and obsolete inventory based on a calculation of excess on hand quantities of slow-moving inventory. As of December 31, 2022 and 2021 , there was no material allowance for excess and obsolete inventory. Business Combinations Business combinations are accounted for under the acquisition method of accounting in accordance with FASB ASC 805, Business Combinations. Under the acquisition method of accounting, the total consideration transferred in connection with the acquisition is allocated to the tangible and intangible assets acquired, liabilities assumed, and any noncontrolling interest in the acquiree based on their fair values. Goodwill acquired in connection with business combinations represents the excess of consideration transferred over the net tangible and identifiable intangible assets acquired. The acquired goodwill is deductible for income tax purposes. Certain assumptions and estimates are employed in evaluating the fair value of assets acquired and liabilities assumed. These estimates may be affected by factors such as changing market conditions, or changes in regulations governing the industry. The most significant assumptions requiring judgment involve identifying and estimating the fair value of intangible assets and the associated useful lives for establishing amortization periods. To finalize purchase accounting for significant acquisitions, the Company utilizes the services of independent valuation specialists to assist in the determination of the fair value of acquired tangible and intangible assets. The purchase price allocations for business combinations completed are prepared on a preliminary basis and changes to those allocations may occur as additional information becomes available about facts and circumstances that existed as of the acquisition date during the respective measurement period (up to one year from the respective acquisition date). Changes in the fair value of assets and liabilities recognized at fair value on the acquisition date that result from events that occur after the acquisition date are re-measured to fair value at future reporting dates with changes recognized in earnings. The Company includes the results of operations of the businesses acquired as of the acquisition dates. Costs that are incurred to complete the business combination such as legal and other professional fees are not considered part of consideration transferred and are charged to operating expenses as they are incurred. Goodwill and Intangible Assets Goodwill is calculated as the excess of the purchase consideration paid in the acquisition of a business over the fair value of the identifiable assets acquired and liabilities assumed. Goodwill is reviewed annually at the beginning of the fourth quarter for impairment, at the reporting unit level, or when there is evidence that events or changes in circumstances indicate that the Company’s carrying amount may not be recovered. A reporting unit is an operating segment or a component of an operating segment. When testing goodwill for impairment, the Company first assesses qualitative factors to evaluate whether it is more likely than not that the fair value of a reporting unit is less than the carrying amount. If factors indicate that the fair value of the asset is less than its carrying amount, the Company will perform a quantitative test by determining the fair value of the reporting unit. The estimated fair value of the reporting unit is based on a projected discounted cash flow model that includes significant assumptions and estimates, including discount rate, growth rate, and future financial performance. Valuations of similar public companies may also be evaluated when assessing the fair value of the reporting unit. If the carrying value of the reporting unit exceeds the fair value, then an impairment loss is recognized for the difference. The Company manages its business on the basis of three components of its operating segment that are aggregated into one reportable and operating segment given the components of the operating segment have similar economic characteristics, classes of consumers, products, production, distribution methods, and operate in the same regulatory environments. The reportable segment is used for the purposes of impairment testing. Definite-lived intangible assets are amortized over their estimated useful lives, which represents the period over which the Company expects to realize economic value from the acquired assets, using the economic consumption method if anticipated future net sales can be reasonably estimated. The straight-line method is used when future net sales cannot be reasonably estimated. The following provides a summary of the estimated useful lives by category of asset. Brand name 25 years Customer relationships 20 years Patented formulations 15 years Software 3 years Impairment of Long-Lived Assets The Company reviews long-lived tangible and intangible assets with definite lives for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Examples of such events include a significant disposal of a portion of such assets, an adverse change in the market involving the business employing the related asset, a significant decrease in the benefits realized from an acquired business, difficulties or delays in integrating the business, and a significant change in the operations of an acquired business. Recoverability of these assets is measured by comparison of their carrying amount to the future undiscounted cash flows the assets are expected to generate. Assets are grouped and evaluated at the lowest level for which there are identifiable cash flows that are largely independent of the cash flows of other groups of assets. The Company considers historical performance and future estimated results in its evaluation of impairment. If the carrying amount of the asset exceeds expected undiscounted future cash flows, the Company measures the amount of impairment by comparing the carrying amount of the asset to its fair value, generally measured by discounting expected future cash flows at the rate it utilizes to evaluate potential investments. No tangible and intangible asset impairment was recorded for fiscal years ended December 31, 2022 and December 31, 2021. Fair value measurements are based on significant inputs that are not observable in the market and therefore represent a Level 3 measurement. Significant changes in the underlying assumptions used to value long-lived assets could significantly increase or decrease the fair value estimates used for impairment assessments. Debt Issuance Costs Original issue discount costs and third-party issue costs incurred in connection with the issuance of long-term debt are deferred and amortized over the life of the associated debt instrument on a straight-line basis, in a manner that approximates the effective interest method. To the extent that the debt is outstanding, these amounts are reflected in the consolidated balance sheets as direct deductions from the long-term debt. As of December 31, 2022 and December 31, 2021, the Company had $10,402 and $11,033 of unamortized deferred financing costs related to its credit facilities. Property and Equipment Property and equipment are stated at historical cost net of accumulated depreciation. The cost of assets sold or retired, and the related accumulated depreciation, are removed from the accounts at the time of disposition, and any resulting gain or loss is reflected in operating results for the period. Estimated useful lives of the Company’s assets are as follows: Molds 3-5 years Equipment 5-10 years Furniture and fixtures 3-7 years Deferred Revenue Amounts received from international customers in the form of cash pre-payments to purchase goods are recorded as deferred revenue for contract liabilities until the goods are shipped, including unredeemed gift cards. The Company’s deferred revenue balance was $2,015 and $5,022 as of December 31, 2022 and December 31, 2021, respectively (see “Note 8. Accrued Expenses and Other Current Liabilities”). Customer pre-payments and gift cards are included as accrued expenses and other current liabilities. Deferred revenue is included as accrued expenses and other current liabilities on the accompanying Consolidated Balance Sheets. Foreign Currency Transactions Assets and liabilities denominated in foreign currencies are converted to the functional currency at the applicable current rates, including the Company’s subsidiary, Olaplex UK, whose functional currency is in US dollars. All revenues and expenses associated with foreign currencies are converted at the rates of exchange prevailing when such transactions occur. The resulting exchange loss or gain is reflected in foreign currency exchange loss or gain recorded in other expense, net in the accompanying Statements of Operations and Comprehensive Income. Foreign exchange losses were $2,025, $1,027 and $129 for the years ended December 31, 2022, 2021, and 2020, respectively. Activity for comprehensive income related to foreign currency activity is not applicable for periods presented. Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The authoritative guidance for fair value measurements established a framework for measuring fair value and established a three-level valuation hierarchy for disclosure of fair value measurements as follows: Level 1 —Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. The Company’s Level 1 assets consist of its marketable securities. Level 2 —Observable quoted prices for similar assets or liabilities in active markets and observable quoted prices for identical assets or liabilities in markets that are not active. Level 3 —Unobservable inputs that are not corroborated by market data. Cash and cash equivalents, accounts receivable, accounts payable and accrued expenses are reflected at carrying value, which approximates fair value due to the short-term maturity. The Company’s long-term debt is recorded at its carrying value in the Consolidated Balance Sheets, which may differ from fair value. The Company’s interest rate cap is recorded at its Level 3 fair value in the Consolidated Balance Sheets. Offering Costs During the third quarter of 2021, the Company completed the IPO. For the year ended December 31, 2021, the Company expensed offering and related strategic transition costs of $8,488 in the Statement of Operations and Comprehensive Income under Selling, general and administrative expenses. Segment Reporting Operating segments are components of an enterprise for which separate financial information is available that is evaluated by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Utilizing this criteria, the Company manages its business on the basis of three components of its operating segment that are aggregated into one reportable and operating segment given the components of the operating segment have similar economic characteristics, classes of consumers, products, production, distribution methods, and operate in similar regulatory environments. Revenue Recognition The Company derives its revenue through the sale of its prestige hair care products. The Company recognizes revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers, which provides a five-step model for recognizing revenue from contracts with customers as follows: • Identify the contract with a customer • Identify the performance obligations in the contract • Determine the transaction price • Allocate the transaction price to the performance obligations in the contract • Recognize revenue when or as performance obligations are satisfied The Company recognizes revenue in the amount that reflects the consideration that the Company expects that it will be entitled to in exchange for transferring goods to its customers. Net sales are comprised of the transaction price from sales of products less expected allowances, including allowances for advertising, damages, promotions, discounts, and return rights. These allowances are estimated based on agreed-upon terms and the Company’s historical experience and are recorded as a reduction to sales and accounts receivable in the same period the related sales are recorded. The Company experienced returns of $9,983 during the year ended December 31, 2022, primarily related to one-time items, and immaterial returns during the years ended December 31, 2021, and 2020. Revenue is recognized when performance obligations are satisfied through the transfer of control of promised goods to the customers based on the terms of sale. The transfer of control typically occurs at a point in time based on consideration of when the customer has an obligation to pay for the goods, and physical possession of, legal title to, and the risks and rewards of ownership of the goods has been transferred to the customer. Generally, revenue from sales of merchandise to customers are recognized at a point in time, based on customer agreements and is recorded in the period the product is shipped or delivered in accordance with the shipping terms. For the Company’s Olaplex.com website transactions, revenue is recognized upon delivery to customers. The Company’s professional and retail distributors consist of local and international customers. Payments from certain international customers are due in advance. The Company records deferred revenue for contract liabilities from contracts with customers in which the customer prepays for the order. Other international and U.S.-based customer billings are invoiced and typically due within a contractually specified term. During 2022 the Company did not have significant financing terms with its customers. The Company has elected to account for shipping and handling as fulfillment activities and not as a separate performance obligation. As of December 31, 2022 and December 31, 2021, other than accounts receivable, the Company has no material contract assets. The Company had contract liabilities of $2,015 and $5,022 as of December 31, 2022 and 2021, respectively, Opening contract liability balances of $5,022, as of January 1, 2022, and $2,314, as of January 1, 2021, were recognized as net sales during the years ended December 31, 2022 and 2021, respectively. Sales and value added taxes, when applicable, that are collected in connection with revenue transactions are withheld and remitted to the respective taxing authorities. Shipping and fulfillment costs charged to customers are included as revenue in total net sales. Shipping costs incurred by the Company to ship between third-party manufacturers and warehouses are capitalized to inventory and included in cost of sales. Shipping and fulfillment costs incurred by the Company to ship to customers are included in selling, general, and administrative expenses. The Company elected to record revenue net of sales and excise taxes collected by customers, all of which the Company has the primary responsibility to pay and remit to taxing authorities. Taxes are excluded from the transaction price. The Company elected not to disclose revenue related to remaining performance obligations for partially completed or unfulfilled contracts that are expected to be fulfilled within one year as such amounts are deemed to be insignificant. Cost of Sales Cost of sales includes the aggregate costs to procure the Company’s products, including the amounts invoiced by third-party contract manufacturers and suppliers for finished goods, as well as costs related to transportation to distribution centers, amortization of the patented formulations, and amortization of the fair value step-up of inventory. Selling, General and Administrative Expenses Selling, general, and administrative (“SG&A”) expenses primarily consist of personnel-related expenses, including salaries, bonuses, fringe benefits and share-based compensation expense, marketing and digital expenses, warehousing, fulfillment, and distribution costs, costs related to merchandising, product development costs, and depreciation of property and equipment. Income Taxes The Company uses the asset and liability approach for financial accounting and reporting for income taxes. The provision for income taxes includes Federal, and state income taxes currently payable or receivable and those deferred because of temporary differences between the financial statement and tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled. The Company recognizes deferred tax assets to the extent it believes the assets are more likely than not to be realized. Valuation allowances are established when necessary, to reduce deferred tax assets to the amount expected to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and the results of recent operations. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The Company recognizes interest and penalties, if any, associated with tax matters as part of the income tax provision and includes accrued interest and penalties with the related tax liability in the Company’s consolidated balance sheet. Concentrations of Risk Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash and cash equivalents. Although the Company deposits its cash with creditworthy financial institutions, its deposits, at times, may exceed federally insured limits. To date, the Company has not experienced any losses on it cash deposits. The Company extends credit to customers in certain industries which may be affected by changes in economic or other external conditions. During the years ended December 31, 2022, 2021, and 2020, respectively, the Company’s customers with net sales exceeding 10% of total net sales included one customer which represented 16%, two customers which represented 25% in aggregate, and three customers who represented 32% of total net sales in aggregate. The a ccounts receivable balance for these customers as a percentage of total account receivable was immaterial as of December 31, 2022 and 11% at December 31, 2021. The Company has not experienced material bad debt losses due to this concentration. The Company purchases its inventories for certain product categories from a small number of vendors. The Company’s largest vendor represented 49% and 59% of the Company’s inventory product purchases for the years ended December 31, 2022 and 2021, respectively. One vendor manufactures products that accounted for more than 77% of the Company’s net sales in the year ended December 31, 2022. In order to expand the Company’s manufacturing network and to mitigate the risks of relying on a limited number of manufacturers, the Company has amended its agreement with that vendor to permit the Company to engage other manufacturers of certain of our finished products. The term of the Company’s agreement with this vendor also was amended to expire on June 30, 2023. While we are currently negotiating a new agreement with this vendor and expect to be able to enter into a new agreement prior to the current agreement’s expiration, if we are unable to enter into this agreement by the expiration date of the current agreement or extend the term of the current agreement on favorable terms or at all, then we may be unable to source an adequate supply of finished products to meet demand. Marketing and Advertising The Company expenses marketing and advertising costs as incurred. Selling, general, and administrative expenses include non-employee marketing and advertising expenses of $24,864, $11,137, and $2,521 for the years ended December 31, 2022, 2021, and 2020, respectively, in the accompanying Consolidated statements of Operations and Comprehensive Income. Shipping and Fulfillment Shipping and fulfillment costs incurred by the Company to ship to customers are expensed as incurred and are included in selling, general, and administrative expenses. Shipping and fulfillment costs were $13,801, $12,183, and $4,126 for the years ended December 31, 2022, 2021, and 2020, respectively, in the accompanying Consolidated Statements of Operations and Comprehensive income. Share-Based Compensation Share-based compensation options granted to employees, non-employees and directors are measured at fair value at the respective grant dates and recognized as share-based compensation expense. Share-based compensation expense equal to the fair value of time-based service options that are expected to vest is estimated using the Black-Scholes model and recorded over the period the grants are earned, which is the requisite service period. The Company has previously used a Monte Carlo option-pricing model to estimate the fair value of performance-based options. This model requires the use of highly subjective and complex assumptions including volatility and expected option life. The costs relating to share-based compensation expense are recognized in selling, general, and administrative expenses in our consolidated statements of operations and comprehensive income, and forfeitures are recognized and accounted for as they occur. There were no performance-based options outstanding as of December 31, 2022, or 2021. Investment in Nonconsolidated Entity The Company uses the cost method to account for its equity investment for which these equity securities do not have readily determinable fair values and for which the Company does not have the ability to exercise significant influence. Under the cost method of accounting, the Company’s investment is carried at cost and is adjusted only for other-than-temporary declines in fair value, additional investments, plus or minus changes from observable price changes in orderly transactions or distributions deemed to be a return of capital. There are no earnings or fair value adjustments recorded to date. Tax Receivable Agreement As part of the IPO, we entered into the Tax Receivable Agreement under which generally we will be required to pay to the Pre-IPO Stockholders 85% of the cash savings, if any, in U.S. federal, state or local tax that we actually realize on our taxable income following the IPO (or are deemed to realize in certain circumstances) as a result of (i) certain existing tax attributes, including tax basis in intangible assets and capitalized transaction costs relating to taxable years ending on or before the date of the IPO (calculated by assuming the taxable year of the relevant entity closes on the date of the IPO), that are amortizable over a fixed period of time (including in tax periods beginning after the IPO) and which are available to us and our wholly-owned subsidiaries, and (ii) tax benefits attributable to payments made under the Tax Receivable Agreement, together with interest accrued at a rate equal to LIBOR (“London Interbank Offered Rate”) (or if LIBOR ceases to be published, a replacement rate with similar characteristics) plus 3% from the date the applicable tax return is due (without extension) until paid. Under the Tax Receivable Agreement, generally we will retain the benefit of the remaining 15% of the applicable tax savings. The tax liability is based on current tax laws and the assumption that the Company and its subsidiaries earn sufficient taxable income to realize the full tax benefits subject to the Tax Receivable Agreement. Updates to our blended state tax rate and allocation of U.S. versus foreign sourced income may impact the established liability and changes would be recorded to other (expense) income in the period we made the determination. We expect that future payments under the Tax Receivable Agreement relating to the Pre-IPO Tax Assets could aggregate to $222.1 million over the 13-year remaining period under the Tax Receivable Agreement. Payments under the Tax Receivable Agreement, which began in year ended December 31, 2022, are not conditioned upon the parties’ continued ownership of the Company. Reclassifications Certain amounts presented have been reclassified within the December 31, 2021 Consolidated Balance Sheet to conform with the current period presentation, including a prior year reclassification from Accrued expenses and other current liabilities to Sales and income taxes payable. The reclassifications had no effect on the Company’s Total current liabilities. Recently Adopted Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” This ASU provides an optional expedient and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. In response to the concerns about structural risks of interbank offered rates (“IBORs”) and, particularly, the risk of cessation of the LIBOR, regulators in several jurisdictions around the world have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable or transaction based and less susceptible to manipulation. The ASU provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. The ASU can be adopted no later than December 31, 2022 with early adoption permitted. The Company adopted this accounting standard on January 1, 2022. Adoption of this standard did not have a material impact on its Consolidated Financial Statements. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The amendments in this ASU, among other things, require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The FASB has issued multiple updates to ASU 2016-13 as codified in Topic 326, including ASUs 2019-04, 2019-05, 2019-10, 2019-11, 2020-02, and 2020-03. These ASUs have provided for various minor technical corrections and improvements to the codification as well as other transition matters. The amendments in the ASU are effective for the Company for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The Company adopted this accounting standard on July 1, 2022. Adoption of this standard did not have a material impact on its Consolidated Financial Statements.

NET SALES

NET SALES	12 Months Ended
	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
NET SALES	NET SALESThe Company distributes products in the U.S. and internationally through professional distributors in the salon channel, directly to retailers for sale in their physical stores and e-commerce sites, and direct-to-consumer (“DTC”) through sales to third party e- commerce customers and through its own Olaplex.com website. As such, the Company’s three business channels consist of professional, specialty retail and DTC as follows: For the Year Ended December 31, 2022 December 31, 2021 December 31, 2020 Net sales by Channel: Professional $ 300,472 $ 259,009 $ 156,199 Specialty retail 235,310 175,799 50,718 DTC 168,492 163,557 75,333 Total Net sales $ 704,274 $ 598,365 $ 282,250 Revenue by major geographic region is based upon the geographic location of customers who purchase the Company’s products. However, the majority of net sales are transacted in U.S. Dollars, the Company’s functional and reporting currency. During the years ended December 31, 2022, 2021, and 2020, the Company’s net sales to consumers in the U.S. and international regions were as follows: For the Year Ended December 31, 2022 December 31, 2021 December 31, 2020 Net sales by Geography: U.S. $ 397,564 $ 344,656 $ 149,272 International 306,710 253,709 132,978 Total Net sales $ 704,274 $ 598,365 $ 282,250

INVENTORY

INVENTORY	12 Months Ended
	Dec. 31, 2022
Inventory Disclosure [Abstract]
INVENTORY	INVENTORY Inventory as of December 31, 2022 and December 31, 2021 consisted of the following: December 31, 2022 December 31, 2021 Raw materials $ 36,194 $ 20,852 Finished goods 108,231 77,547 Inventory $ 144,425 $ 98,399

INVESTMENT IN NONCONSOLIDATED E

INVESTMENT IN NONCONSOLIDATED ENTITY	12 Months Ended
	Dec. 31, 2022
Equity Method Investments and Joint Ventures [Abstract]
INVESTMENT IN NONCONSOLIDATED ENTITY	INVESTMENT IN NONCONSOLIDATED ENTITY Our investment in and advances to our nonconsolidated entity as of December 31, 2022 and December 31, 2021 represents our investment in a limited liability company. We do not control or have significant influence over the operating and financial policies of this affiliate. We account for this investment using the cost method and adjust only for other than temporary declines in fair value, additional investments, plus or minus changes from observable price changes in orderly transactions or distributions deemed to be a return of capital. Our investment is classified as a long-term asset in our Consolidated Balance Sheets, and consists of the following: December 31, 2022 December 31, 2021 Capital contributions, net of distributions and impairments $ 4,500 $ 4,500 Total investments in and advances to nonconsolidated affiliate $ 4,500 $ 4,500

BUSINESS COMBINATIONS

BUSINESS COMBINATIONS	12 Months Ended
	Dec. 31, 2022
Business Combination and Asset Acquisition [Abstract]
BUSINESS COMBINATIONS	BUSINESS COMBINATIONSOn January 8, 2020, the Company completed the Acquisition to acquire the net assets of the Olaplex business and 100% of voting equity interests. The purchase price was $1,381,582 in net cash paid. Information regarding the net cash consideration paid and fair value of the assets and liabilities assumed at the Acquisition Date is as follows: January 8, 2020 Fair value of assets acquired $ 1,216,259 Goodwill 168,300 Fair value of liabilities assumed (2,977) Net cash paid for acquisition $ 1,381,582 Purchase price is comprised of: Cash, net of acquired cash $ 1,381,582 Net cash paid for acquisition $ 1,381,582 January 8, 2020 Allocation of purchase price: Net tangible assets (liabilities): Inventory $ 61,262 Accounts receivable and other current assets 7,595 Deferred tax assets 6,402 Liabilities (2,977) Net tangible assets $ 72,282 Identifiable intangible assets: Brand name $ 952,000 Product formulations 136,000 Customer relationships 53,000 Total identifiable intangible assets 1,141,000 Goodwill 168,300 Net assets acquired $ 1,381,582 For this Acquisition, brand name, product formulations, and customer relationships were assigned estimated useful lives of 25 years, 15 years, and 20 years, respectively, the weighted average of which is approximately 23.6 years. Costs related to the Acquisition were expensed as incurred. In connection with the Acquisition, the Company recorded transaction expenses totaling $16,499 for the year ended December 31, 2020, within the consolidated statements of operations and comprehensive income.

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND INTANGIBLE ASSETS	GOODWILL AND INTANGIBLE ASSETS Goodwill and intangible assets are comprised of the following: December 31, 2022 Estimated Gross Carrying Accumulated Net carrying amount Brand name 25 years $ 952,000 $ (113,394) $ 838,606 Product formulations 15 years 136,000 (26,998) 109,002 Customer relationships 20 years 53,000 (7,892) 45,108 Software 3 years 2,922 (610) 2,312 Total finite-lived intangibles 1,143,922 (148,894) 995,028 Goodwill Indefinite 168,300 — 168,300 Total goodwill and other intangibles $ 1,312,222 $ (148,894) $ 1,163,328 December 31, 2021 Estimated Gross Accumulated Net carrying amount Brand name 25 years $ 952,000 $ (75,314) $ 876,686 Product formulations 15 years 136,000 (17,932) 118,068 Customer relationships 20 years 53,000 (5,241) 47,759 Software 3 years 890 (59) 831 Total finite-lived intangibles 1,141,890 (98,546) 1,043,344 Goodwill Indefinite 168,300 — 168,300 Total goodwill and other intangibles $ 1,310,190 $ (98,546) $ 1,211,644 The amortization of the Company’s brand name, customer relationships and software is recorded to Amortization of other intangible assets in the Consolidated Statements of Operations and Comprehensive Income. A portion of Amortization of patented formulations is capitalized to Inventory in the Consolidated Balance Sheets, and the remainder is recorded to Amortization of patented formulations in the Consolidated Statements of Operations and Comprehensive Income. Amortization of the Company’s definite-lived intangible assets for the years ended December 31, 2022, 2021 and 2020 is as follows: For the Year Ended December 31, 2022 December 31, 2021 December 31, 2020 Amortization of patented formulations $ 7,500 $ 7,989 $ 6,052 Amortization expense, brand name and customer relationships 40,730 40,730 39,825 Amortization expense, software 552 59 — Amortization of other intangible assets 41,282 40,789 39,825 Amortization of patented formulations capitalized to inventory $ 1,566 $ 1,078 $ 2,813 The estimated future amortization expense related to the finite-lived intangible assets as of December 31, 2022 is as follows: Year ending December 31 2023 $ 50,770 2024 $ 50,709 2025 $ 50,221 2026 $ 49,797 2027 $ 49,797 Thereafter $ 743,733 Total $ 995,028

ACCRUED EXPENSES AND OTHER CURR

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	12 Months Ended
	Dec. 31, 2022
Payables and Accruals [Abstract]
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses as of December 31, 2022 and December 31, 2021 consisted of the following: December 31, 2022 December 31, 2021 Accrued professional fees $ 3,187 $ 2,132 Payroll liabilities 4,092 6,302 Accrued freight 3,283 636 Deferred revenue 2,015 5,022 Accrued interest 814 — Other accrued expenses and current liabilities 3,716 3,240 Accrued expenses and other current liabilities $ 17,107 $ 17,332

LONG-TERM DEBT

LONG-TERM DEBT	12 Months Ended
	Dec. 31, 2022
Debt Disclosure [Abstract]
LONG-TERM DEBT	LONG-TERM DEBT The Company’s Long-Term Debt as of December 31, 2022 and December 31, 2021 consisted of the following: December 31, 2022 December 31, 2021 Long-term debt Credit Agreement, dated as of February 23, 2022 (the “2022 Credit Agreement”) (1) $675 Million 7-Year Senior Secured Term Loan Facility (the “2022 Term Loan Facility”) $ 671,625 $ — $150 Million 5-Year Senior Secured Revolving Credit Facility (the “2022 Revolver”) (2) $ — $ — Credit Agreement, dated as of January 8, 2020, as amended (the “2020 Credit Agreement”) (1) $800 Million 6-Year Senior Secured Term Loan Facility, as amended (the “2020 Term Loan Facility”) $ — $ 769,235 $51 Million 5-Year Senior Secured Revolving Credit Facility, as amended (the “2020 Revolver”) (2) — — Debt issuance costs (8,854) (11,033) Total term loan debt 662,771 758,202 Less: Current portion (8,438) (20,112) Long-term debt, net of debt issuance costs and current portion $ 654,333 $ 738,090 (1) The 2022 Credit Agreement refinanced and replaced the 2020 Credit Agreement. (2) As of December 31, 2022 and December 31, 2021, the Company did not have any outstanding amounts drawn on the 2022 Revolver or 2020 Revolver, respectively, including letters of credit and swingline loan sub-facilities. As of December 31, 2022, the Company had $150 million of available borrowing capacity under the 2022 Revolver. The Company has $1.5 million of unamortized deferred financing fees related to the 2022 Revolver, which are capitalized and recorded as Other Assets on the balance sheet. The interest rate on outstanding debt under the 2022 Term Loan Facility was 7.9% per annum as of December 31, 2022. The interest rates for all facilities under the 2022 Credit Agreement are calculated based upon the Company’s election among (a) adjusted term SOFR plus an additional interest rate spread, (b) with respect to a borrowing in Euros under the 2022 Revolver, a euro interbank offered rate plus an additional interest rate spread, or (c) an “Alternate Base Rate” (as defined in the 2022 Credit Agreement) plus an additional interest rate spread. Interest expense, inclusive of debt amortization, for the year ended December 31, 2022, 2021, and 2020 was $41,178, $61,148, and $38,645, respectively, and was recorded in interest expense, net in the Consolidated Statements of Operations and Comprehensive Income. The fair value of the Company’s long-term debt is based on the market value of our long-term debt instrument. Based on the inputs used to value the long-term debt, the Company’s long-term debt is categorized within Level 2 in the fair value hierarchy. As of December 31, 2022 , the carrying amount of the Company’s long-term debt under the 2022 Credit Agreement was $662.8 million, and the fair value of the Company’s long-term debt was $624.6 million. As of December 31, 2021, the carrying amount of the Company’s long-term debt under the 2020 Credit Agreement approximated its fair value, as the stated rate approximated market rates for loans with similar terms. 2020 Credit Agreement On January 8, 2020, Olaplex, Inc., together with Penelope Intermediate Corp. acting as the parent guarantor, entered into a secured credit agreement (the “Original Credit Agreement”), consisting of a $450,000 term loan facility (the “2020 Term Loan Facility”) and a $50,000 revolving facility (the “2020 Revolver”), which included a $10,000 letter of credit sub-facility and a $5,000 swingline loan sub-facility. In addition, on December 18, 2020, Olaplex, Inc. entered into a First Incremental Amendment to the Original Credit Agreement (the “Amendment,” and together with the Original Credit Agreement, the “2020 Credit Agreement”) to increase the 2020 Term Loan Facility by $350,000 and increase the 2020 Revolver capacity by $1,000 to a revised $800,000 2020 Term Loan Facility and $51,000 2020 Revolver. The 2020 Credit Agreement was fully repaid and refinanced by the 2022 Credit Agreement. The unused balance of the 2020 Revolver as of December 31, 2021 was $51,000. Under the Original Credit Agreement, Olaplex, Inc. incurred original issue discount (“OID”) costs of $10,000, and $527 of third-party issuance costs. In connection with the incremental borrowing pursuant to the Amendment, Olaplex, Inc. incurred OID costs of $3,500 and $1,590 of third-party issue costs. The 2020 Credit Agreement included reporting, financial, and maintenance covenants that require, among other things, for Olaplex, Inc. to comply with certain maximum secured leverage ratios, which Olaplex, Inc. was in compliance with on December 31, 2021. Substantially all the assets of Olaplex, Inc. constitute collateral under the 2020 Term Loan Facility and 2020 Revolver facilities. 2022 Credit Agreement On February 23 , 2022, Olaplex, Inc., an indirect wholly owned subsidiary of Olaplex Holdings, Inc., together with Penelope Intermediate Corp. acting as the parent guarantor, entered into a Credit Agreement, dated as of February 23, 2022 (the “2022 Credit Agreement”), by and among Olaplex, Inc., Penelope Intermediate Corp, Goldman Sachs Bank USA (“Goldman Sachs”), as administrative agent (the “Administrative Agent”), collateral agent and swingline lender, and each lender and issuing bank from time to time party thereto (the “Lenders”) . The 2022 Credit Agreement refinanced and replaced the 2020 Credit Agreement with a seven-year $675,000 senior-secured term loan facility (the “2022 Term Loan Facility”) and a five-year $150,000 senior-secured revolving credit facility (the “2022 Revolver”), which includes a $25,000 letter of credit sub-facility and a $25,000 swingline loan sub-facility. The refinancing of the 2020 Credit Agreement 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 2020 Credit Agreement. We incurred costs directly related to the 2022 Credit Agreement of $11.9 million, consisting primarily of lender fees of $1.7 million and third-party fees of $10.2 million during the year ended December 31, 2022. These fees were allocated between the 2022 Revolver and the 2022 Term Loan Facility. 2022 Term Loan Facility fees are capitalized and recorded as a reduction of the carrying amount of non-current debt, and 2022 Revolver fees are capitalized and recorded as Other Assets on the balance sheet. The 2022 Term Loan Facility bears interest at a rate of one-month adjusted secured overnight financing rate (“SOFR”) (subject to a 0.50% floor) + initially 3.75% per annum (with a 0.25% leverage based step-down, tied to achieving a first lien net leverage ratio of 1.20x), and matures on February 23, 2029. The 2022 Revolver bears interest at a rate of adjusted SOFR for dollar denominated borrowings (subject to a 0% floor) + initially 3.75% (with a 0.25% leverage based step-down, tied to achieving a first lien net leverage ratio of 1.20x), and matures on February 23, 2027. The 2022 Term Loan Facility is repayable in mandatory quarterly installments equal to $1,688, with the balance payable at maturity. The 2022 Term Loan Facility and 2022 Revolver can each be prepaid at any time without any penalty or premium (subject to any applicable breakage costs). The 2022 Term Loan Facility is subject to customary mandatory prepayments with respect to excess cash flow, net proceeds from non-ordinary course asset dispositions and the issuance of additional non-permitted debt or certain refinancing debt, in each case as set forth in the 2022 Credit Agreement. The 2022 Credit Agreement contains a number of covenants that, among other things, restrict Olaplex, Inc.’s ability to (subject to certain exceptions) (i) pay dividends and distributions or repurchase its capital stock, (ii) prepay, redeem, or repurchase certain indebtedness, (iii) incur additional indebtedness and guarantee indebtedness, (iv) create or incur liens, (v) engage in mergers, consolidations, liquidations or dissolutions, (vi) sell, transfer or otherwise dispose of assets, (vii) make investments, acquisitions, loans or advances and (viii) enter into certain transactions with affiliates. The 2022 Credit Agreement also includes, among other things, customary affirmative covenants (including reporting covenants) and events of default (including a change of control) for facilities of this type. In addition, the 2022 Credit Agreement includes a springing first lien leverage ratio financial covenant, which is applicable only to the lenders under the 2022 Revolver. Such affirmative and negative covenants and events of default are substantially similar to those contained in the 2020 Credit Agreement, subject to certain exceptions and thresholds set forth in the 2022 Credit Agreement. The Company was in compliance with these affirmative and negative covenants on December 31, 2022. The maturity date of the 2022 Term Loan Facility is February 23, 2029. The maturity date of the 2022 Revolver is February 23, 2027. The 2022 Term Loan Facility and the 2022 Revolver are secured by substantially all of the assets of Olaplex, Inc. and the other guarantors, subject to certain exceptions and thresholds, which is substantially the same as the collateral that secured the obligations under the 2020 Credit Agreement. Olaplex, Inc. must pay the Administrative Agent, on account of the Lenders under the 2022 Revolver, a quarterly commitment fee based upon the product of (i) the applicable rate as described below and (ii) the average daily amount of the unused revolving commitments. Olaplex, Inc. also must pay the issuing banks customary fees based upon the amount available to be drawn under such letters of credit. The applicable rate for the commitment fee described in the immediately preceding paragraph is equal to (x) 0.50% if the First Lien Leverage Ratio is greater than 1.20:1.00, (y) 0.375% if the First Lien Leverage Ratio is less than or equal to 1.20:1.00 but greater than 0.70:1.00, and (z) 0.25% if the First Lien Leverage Ratio is less than or equal to 0.70:1.00. Interest Rate Cap Transaction The Company’s results are subject to risk from interest rate fluctuations on borrowings under the 2022 Credit Agreement, including the 2022 Term Loan Facility. The Company may, from time to time, utilize interest rate derivatives in an effort to add stability to interest expense and to manage its exposure to interest rate movements. On August 11, 2022, the Company entered into an interest rate cap transaction (the “interest rate cap”) in connection with the 2022 Term Loan Facility, with a notional amount of $400 million. Interest rate caps designated as cash flow hedges involve the receipt of variable amounts from a counterparty if interest rates rise above the strike rate applicable to the transaction, in exchange for an up-front premium paid by the Company. The Company has designated the interest rate cap as a cash-flow hedge for accounting purposes. For derivatives designated, and that qualify, as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in Accumulated Other Comprehensive Income and subsequently reclassified into interest expense in the same period(s) during which the hedged transaction affects earnings, as documented at hedge inception in accordance with the Company’s accounting policy election. The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of December 31, 2022 and December 31, 2021. Asset Derivatives December 31, 2022 December 31, 2021 Interest rate cap Balance Sheet Caption Other Assets $ 5,042 $ — During the year ended December 31, 2022, the Company’s interest rate cap generated an unrecognized pre-tax gain of $3.4 million, recorded in Accumulated Other Comprehensive Income on the Company’s Consolidated Balance Sheets. The Company also recognized Interest expense of $0.4 million related to amortization of the interest rate cap premium paid by the Company in connection with the interest rate cap. The Company did not have an interest rate cap agreement in place during the twelve months ended December 31, 2021. The Company performed an initial effectiveness assessment on the interest rate cap and determined it to be an effective hedge of the cash flows related to the interest rate payments on the 2022 Term Loan Facility. The hedge is evaluated qualitatively on a quarterly basis for effectiveness. Changes in fair value are recorded in Accumulated Other Comprehensive Income and periodic settlements of the interest rate cap will be recorded in interest expense along with the interest on amounts outstanding under the 2022 Term Loan Facility. Payment of the up-front premium of the interest rate cap is included within Other assets/liabilities within cash flows from operating activities on the Company’s Consolidated Statements of Cash Flows. The Company does not hold or issue derivative financial instruments for trading purposes, nor does it hold or issue leveraged derivative instruments. By using derivative financial instruments to hedge exposures to interest rate fluctuations, the Company exposes itself to counterparty credit risk. The Company manages exposure to counterparty credit risk by entering into derivative financial instruments with highly rated institutions that can be expected to fully perform under the terms of the applicable contracts.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The Company’s breakdown of its income before provision for income taxes for the years ended December 31, 2022, 2021 and 2020 is as follows: December 31, 2022 December 31, 2021 December 31, 2020 U.S. $ 305,192 $ 275,554 $ 47,221 Foreign 49 55 37 Total income before taxes $ 305,241 $ 275,609 $ 47,258 The components of the provision for (benefit from) income taxes were as follows: December 31, 2022 December 31, 2021 December 31, 2020 Current provision: Federal $ 44,063 $ 44,660 $ 11,314 State & Local 7,918 7,668 1,079 Foreign 9 11 15 Total current provision 51,990 52,339 12,408 Deferred provision: Federal 8,172 2,772 (4,204) State & Local 1,007 (286) (224) Foreign — — — Total deferred provision 9,179 2,486 (4,428) Total provision for income taxes $ 61,169 $ 54,825 $ 7,980 Significant components of the Company’s deferred tax assets and liabilities are as follows: Deferred Tax Assets: December 31, 2022 December 31, 2021 Inventory adjustments $ 1,289 $ 661 Capitalized transaction costs 2,667 3,016 Deferred revenue 424 1,061 Accrued expenses and other current liabilities 3,488 3,102 Capitalized research & development expense 1,273 — Share-based compensation 1,380 397 Intangible assets — 6,410 Total deferred tax assets $ 10,521 $ 14,647 Deferred tax liabilities: Goodwill $ 6,962 $ 4,675 Other current assets 1,141 1,256 Fixed assets 769 372 Unrealized gain on derivatives 787 — Intangible assets 2,484 — Total deferred tax liabilities 12,143 6,303 Net deferred tax (liabilities) assets $ (1,622) $ 8,344 The following table provides a reconciliation between the U.S. federal statutory rate and the Company’s effective tax rates for the years ended December 31, 2022, 2021 and 2020: December 31, 2022 December 31, 2021 December 31, 2020 U.S. federal statutory income tax rate 21.0 % 21.0 % 21.0 % Foreign derived intangible income deduction (2.9) % (3.0) % (5.2) % State and local income taxes, net of federal benefit 2.3 % 2.6 % 1.8 % Share-based compensation (0.4) % (1.2) % — % Other — % 0.5 % (0.7) % Effective Tax Rate 20.0 % 19.9 % 16.9 % In 2022, 2021 and 2020 the effective tax rate was lower than the U.S. federal statutory tax rate primarily due to the foreign derived intangible income deduction (“FDII”) and excess tax benefits associated with share-based compensation, partially offset by the effect of state and local income taxes. The FDII deduction results in income from the Company’s sales to foreign customers being taxed at a lower effective tax rate. The Company assesses positive and negative evidence for each jurisdiction to determine whether it is more likely than not that existing deferred tax assets will be realized. As of December 31, 2022 and 2021, no valuation allowance was recorded as the Company has concluded that its net deferred tax assets are more likely than not to be realized. The Company recognizes the tax benefit of an uncertain tax position only if it is more likely than not that the position is sustainable upon examination by the taxing authority based on the technical merits. The Company had no uncertain tax positions as of December 31, 2022 and 2021, and does not expect any significant change in its unrecognized tax benefits within the next 12 months. In the normal course of business, the Company and its subsidiaries may be examined by various taxing authorities, including the U.S, Internal Revenue Service. As of December 31, 2022, the Company remained subject to examination in the U.S. and the U.K. for the 2020 through 2022 tax years. Tax Receivable Agreement During the year ended December 31, 2022, the Company made a payment to the Pre-IPO Stockholders of $4.2 million as required pursuant to the terms of the Tax Receivable Agreement. The tax liability is based on current tax laws and the assumption that the Company and its subsidiaries earn sufficient taxable income to realize the full tax benefits subject to the Tax Receivable Agreement. Updates to our blended state tax rate and allocation of U.S. versus foreign sourced income may impact the established liability and changes would be recorded to other (expense) income in the period we made the determination. We expect that future payments under the Tax Receivable Agreement relating to the Pre-IPO Tax Assets could aggregate to $222.1 million over the 13-year remaining period under the Tax Receivable Agreement. Payments under the Tax Receivable Agreement, which began in fiscal year 2022, are not conditioned upon the parties’ continued ownership of the Company. The Tax Receivable payment obligation was recorded as of September 30, 2021 as a non-current liability of $232.9 million on the Consolidated Balance Sheet, with a corresponding decrease in Additional paid-in capital. During the fourth quarters of 2022 and 2021, the Company recognized other income of $3.1 million and $3.6 million, respectively, for a reduction to the liability for the Tax Receivable Agreement resulting primarily from an update to the blended state income tax rate used to measure the obligation. The adjusted liability as of December 31, 2022 is recorded as $222.1 million, of which $205.7 million was recorded in long term liabilities and $16.4 million was recorded in current liabilities.

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	12 Months Ended
	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
SHARE-BASED COMPENSATION	SHARE-BASED COMPENSATION On September 17, 2021, the Company adopted the Olaplex Holdings 2021 Omnibus Equity Incentive Plan (the “2021 Plan”), which provides for the grant of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, unrestricted stock, stock units, including restricted stock units, performance awards, and other stock-based awards to employees, directors and consultants of the Company and its subsidiaries. The number of shares of common stock available for issuance under the 2021 Plan (subject to adjustment as described below) is 45,421,197 shares of common stock, plus the number of shares of common stock underlying awards granted under the Penelope Holdings Corp. 2020 Omnibus Equity Incentive Plan (the “2020 Plan”) that on or after September 17, 2021 expire or become unexercisable, are forfeited to, or repurchased for cash by, the Company, are settled in cash, or otherwise become available again for grant. The total number of shares of common stock of the Company available for issuance under the 2021 Plan will increase automatically on January 1 of each year beginning in 2023 and continuing through and including 2031 by the lesser of (i) three percent (3%) of the number of shares of common stock outstanding as of such date and (ii) the number of shares of common stock determined by the Company’s Board of Directors on or prior to such date for such year. The number of shares available for issuance under the 2021 Plan will not be increased by any shares of common stock delivered under the 2021 Plan that are subsequently repurchased using proceeds directly attributable to stock option exercises. Prior to the IPO and the Reorganization Transactions, Penelope previously granted share-based options to purchase common stock of Penelope under the 2020 Plan with vesting based on either service or market (performance) conditions. Immediately prior to the Reorganization Transactions, each option to purchase shares of common stock of Penelope was converted into an option to purchase 675 shares of common stock of Olaplex Holdings, with a corresponding adjustment to the option’s exercise price to preserve its spread value, and each cash-settled unit of Penelope was converted to 675 cash-settled units of Olaplex Holdings, with a corresponding adjustment to the unit’s base price to preserve its spread value, as further described in this Note 11. No further awards will be made under the 2020 Plan. Conversion of Shared-Based Options in Reorganization Transactions As a result of the Reorganization Transactions, the options to purchase shares of common stock of Penelope were converted into options to purchase an aggregate of 46,923,300 shares of common stock of Olaplex Holdings, in each case with a corresponding adjustment to the exercise price that preserved the option’s spread value, as follows: • outstanding vested time-based options to purchase shares of common stock of Penelope were converted into vested options to purchase an aggregate of 2,929,500 shares of common stock of Olaplex Holdings; • outstanding unvested time-based options to purchase shares of common stock of Penelope were converted into time-based options to purchase an aggregate of 14,314,725 shares of common stock of Olaplex Holdings that will be eligible to vest as described under “Converted Time-Based Options” below; • outstanding performance-based options to purchase shares of common stock of Penelope were converted into (i) time-based options to purchase an aggregate of 25,363,800 shares of common stock of Olaplex Holdings that will be eligible to vest as described under “Converted Performance-Based Options” below, and (ii) vested options to purchase an aggregate of 4,315,275 shares of common stock of Olaplex Holdings; Converted Time-Based Options All converted outstanding time-based options are in the form of options to purchase common stock of Olaplex Holdings with vesting based on the option holder’s continued service. The original time-based options that were converted are eligible to vest in five equal installments on the first five anniversaries from the vesting start date, subject to the option holder’s continued service through the applicable vesting date and are ratably expensed over a five-year service period from the original grant date. Converted Performance-Based Options The performance-based options that were converted to time-based options to purchase common stock of Olaplex Holdings are eligible to vest in three equal installments on the first three anniversaries of the consummation of the IPO, subject to the option holder’s continued service through the applicable vesting date and are ratably expensed over a three-year service period from the consummation of the IPO. Converted Cash-Settled Units On February 23, 2022 (the “modification date”), the Company modified the settlement terms of its outstanding unvested time- and performance-based cash-settled units from net cash settlement to net stock-settled stock appreciation rights (“SARs”). In addition, the vesting condition that the weighted average closing price per share over the thirty (30) consecutive trading days ending on the day immediately prior to the applicable vesting date equals or exceeds the IPO price of $21 on each applicable vesting date was removed for such SARs. Under the amended award agreements, the Company will settle all vested SARs with shares of Company common stock measured as the difference between the stock price on the date of settlement and the base price per share of $2.97. All performance conditions were removed concurrently with the modification of the settlement terms. Other terms of the SAR grants remain unchanged. The modification results in a change of the awards’ classification from liability to equity. The modified awards were accounted for as equity awards going forward from the modification date with a fair value measured on the modification date and recognized on a straight-line basis over the remaining requisite service period. The Company compared the fair value of the awards granted immediately before the modification date to the fair value of the modified awards and determined there was no change in the fair value at the modification date. Performance awards prior to the modification date were not expensed, given they were contingent upon achieving a market condition, until such market condition was achieved. Therefore, on the modification date, the Company reclassified the amounts previously recorded as a share-based compensation liability to a component of equity in the form of a credit to additional paid-in capital (“APIC”). As of the modification date, the Company converted 585,900 time-based and 301,050 market and performance-based cash-settled units into solely time-based stock-settled SARs. For the period through the modification date, the Company had recognized $1,632 as compensation expense in selling, general, and administrative expenses in the consolidated statements of operations and comprehensive income with a corresponding recording to liability which was reclassified to APIC on the modification date. On the modification date, the Company used the Black-Scholes valuation model in determining the fair value of the outstanding SARs, which required the application of certain assumptions, including the expected life of the SARs, stock price volatility, dividend rate and risk-free interest rate. The assumptions used in determining the fair value of the SARs on the modification date were as follows: Time-Based Market and Performance-Based Expected term (in years) 2.50 1.85 Expected volatility 30 % 30 % Risk-free interest rate 1.68 % 1.58 % Expected dividend yield — — Share price on valuation date $ 17.06 $ 17.06 These modified SARs are included in the weighted average diluted shares outstanding calculation set forth below in “Note 15 – Net Income Per Share”. Through the modification date, the Company recognized a recovery of cash-settled expense of $974 as a result of decline in the fair value of the awards since December 31, 2021. IPO Option Grants In connection with the IPO, the Company granted, under the 2021 Plan, time-based options to purchase an aggregate of 351,058 shares of common stock of the Company to certain employees. The options are eligible to vest in four equal installments on the first four anniversaries of the grant date, subject to the option holder’s continued service through the applicable vesting date and are ratably expensed over a four-year service period from the grant date. As of December 31, 2022, a total of 92,292,025 shares have been authorized for issuance under the 2020 Plan and 2021 Plan, with 45,421,197 shares available for grant under the 2021 Plan and no shares available for grant under the 2020 Plan. As of December 31, 2022, there were outstanding options to purchase an aggregate of 44,797,369 shares, with 2,072,510 shares outstanding issued under the 2021 Plan and 42,724,859 shares outstanding issued under the 2020 Plan. As of December 31, 2022, there were forfeited options to purchase an aggregate of 7,152,342 shares, with 2,450,480 options forfeited under the 2021 Plan and 4,701,862 options forfeited under the 2020 Plan. The following tables summarize the stock options, cash-settled units and stock-settled SARs activity for the years ended December 31, 2022 and 2021: Time-based options and stock-settled SARs Performance-based options Cash-settled units converted to stock-settled SARs Number of options and stock-settled SARs Weighted Average Aggregate Intrinsic Value Number of options Weighted Average Aggregate Intrinsic Value Time based Performance based Outstanding at December 31, 2021 42,687,518 $ 1.24 $ 798,404 3,979,461 $ 1.17 $ 111,278 596,700 306,450 Granted 1,030,000 8.83 — — — — Cancelled/Forfeited (2,382,500) 1.19 — — (10,800) (5,400) Converted Cash Settled Units 886,950 2.97 — — (585,900) (301,050) Options Exercised and Issued for Shares (984,095) 1.26 5,280 (205,585) 3.12 2,274 — — SARS Exercised (107,658) 2.97 2,243 — — — — SARs Repurchased and Cancelled (106,722) 2.97 — — — — Outstanding at December 31, 2022 41,023,493 1.46 162,748 3,773,876 1.06 15,034 — — Vested and Exercisable 13,595,012 $ 1.07 $ 58,178 3,773,876 $ 1.06 $ 15,034 Time-based options and stock-settled SARs Performance-based options Cash-settled units converted to stock-settled SARs Number of options and stock-settled SARs Weighted Average Aggregate Intrinsic Value Number of options Weighted Average Aggregate Intrinsic Value Time based Performance based Outstanding at December 31, 2020 15,997,500 $ 0.88 $ 26,780 28,732,050 $ 0.81 $ 50,183 — $ — Granted 3,077,783 6.17 1,959,525 3.19 684,450 526,500 Cancelled/Forfeited (1,417,980) 2.10 (1,012,500) 0.97 (87,750) (60,750) Converted Performance to Time-Based 25,363,800 0.92 (25,363,800) 0.92 — — Options Exercised and Issued for Shares (333,585) 1.49 8,138 (335,814) 1.91 8,686 — (159,300) Outstanding at December 31, 2021 42,687,518 1.24 798,404 3,979,461 1.17 111,278 596,700 306,450 Vested and Exerciseable 2,595,915 $ 0.80 $ 73,553 3,979,461 $ 1.17 $ 111,278 The total fair value of options vested during the year ended December 31, 2022 and 2021 was $3,367 and $1,483, respectively. The intrinsic value represents the difference between the fair value of the Company’s common stock on the date of exercise and the exercise price of each option. Time-Based Restricted Stock Units During the year ended December 31, 2022, the Company issued time-based restricted stock units (“RSUs”) to its non-employee directors in accordance with the Company’s non-employee director compensation policy and pursuant to the 2021 Plan. The RSUs granted to the Company’s non-employee directors vest on the first anniversary of the date of grant, subject to the non-employee director’s continued service through such date. Upon vesting, one share of the Company’s common stock is issued for each RSU. The fair value of each RSU granted is equal to the market price of the Company's stock at the date of grant, and expense is recognized straight line over the vesting period. The table below summarizes the status of the Company’s time-based RSUs as of December 31, 2022. The Company did not have any time-based RSUs outstanding as of December 31, 2021. Time-based restricted stock units Number of Awards Weighted Average Outstanding at December 31, 2021 — $ — Granted 83,964 17.27 Outstanding at December 31, 2022 83,964 17.27 The following table summarizes share-based compensation expense and the weighted average grant date fair value of options granted for the years ended December 31, 2022, 2021 and 2020: Year Ended December 31, December 31, December 31, Share-based compensation expense $ 7,275 $ 3,963 $ 1,527 Unrecognized compensation costs of stock options 17,968 11,638 9,625 Unrecognized compensation costs of restricted stock unit awards $ 795 $ — $ — Weighted average remaining recognition period, time-based options (years) 2.48 3.31 years 4.39 Weighted average remaining recognition period, performance-based options (years) 0.00 0.00 3.53 Weighted average remaining recognition period, RSU Awards (years) 0.55 0.00 0.00 The fair value of time-based options granted was calculated using the following assumptions during the years ended December 31, 2022 2021, and 2020: Year Ended December 31, December 31, December 31, Expected term (years) 6.25 6.25 - 7.00 6.50 Expected volatility (%) 37 - 42 25 - 30 30 Risk-free interest rate (%) 1.58 - 2.82 1.07 - 1.62 0.37 - 1.87 Expected dividend yield (%) — — — The Company did not grant any performance-based options during the year ended December 31, 2022. The fair value of performance-based options granted were calculated using the following assumptions during the years ended December 31 2021 and 2020: Year Ended December 31, December 31, December 31, Expected term (years) 0.00 0.40 4.00 Expected volatility (%) — 30 30 Risk-free interest rate (%) — 1.48 - 1.62 1.87 Expected dividend yield (%) — — — The assumptions used in the Black-Scholes option-pricing model to calculate value of stock options were: Expected term The expected term of the options represents the period of time that the options are expected to be outstanding. Options granted have a maximum contractual life of 10 years. Prior to the IPO, the Company estimated the expected term of the option based on the estimated timing of potential liquidity events. For grants upon or after the IPO, the Company estimated the expected term based upon the simplified method described in Staff Accounting Bulletin No. 107, as the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term due to the limited period of time its equity shares have been publicly traded. Expected volatility As the Company does not have sufficient trading history for its common stock, the expected stock price volatility for the common stock was estimated by taking the average historic price volatility for certain industry peers based on daily price observations over a period equivalent to the expected term of the stock option grants. Industry peers consist of several public companies within the same industry. The Company intends to continue to consistently apply this process using the same or similar set of industry peers until a sufficient amount of historical information regarding the volatility of its own share price becomes available, or unless circumstances change such that the identified companies are no longer similar to the Company, in which case, more suitable companies whose share prices are publicly available would be used in the calculation. Risk-free interest rate The risk-free interest rate was based on the U.S. Constant Maturity Treasury rate, with maturities similar to the expected term. Expected Dividend Yield The Company does not anticipate paying any dividends in the foreseeable future. As such, the Company uses an expected dividend yield of zero.

EQUITY

EQUITY	12 Months Ended
	Dec. 31, 2022
Equity [Abstract]
EQUITY	EQUITY In connection with the Reorganization Transactions, on September 29, 2021, Fund IX and the other former limited partners of Penelope Group Holdings, L.P. contributed 100% of their respective economic equity interests in Penelope Group Holdings, L.P. and Fund IX contributed 100% of its equity interests in Penelope Group Holdings GP II to Olaplex Holdings in exchange for an aggregate of 648,124,642 shares of common stock of Olaplex Holdings plus Tax Receivable Agreement payment rights. Penelope Group Holdings, L.P. directly held the shares of Penelope prior to the reorganization and following the mergers, Olaplex Intermediate II, Inc. currently holds the shares of Penelope. With regard to the Reorganization Transactions, including the issuance of 648,124,642 shares of Olaplex Holdings with a par value of $0.001 per share, the Company made a par value reclassification adjustment from Additional Paid in Capital in the consolidated statement of changes in equity to reflect the par value of the Company. As part of the Reorganization Transactions, the Company entered into the Tax Receivable Agreement with the Pre-IPO Stockholders. See further discussion in “Note 2. Summary of Significant Accounting Policies” and “Note 10. Income Taxes”. During the fiscal year ended December 31, 2022, an additional 1,297,339 shares were issued as a result of exercises of stock options and settlement of vested stock-settled SARs occurring during the same period.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2022
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONS The Company received $300 in the 2021 fiscal period from certain investment funds affiliated with Advent International Corporation (the “Advent Funds”), which are shareholders of the Company, to be expended as charitable donations of which $20 was unpaid as of December 31, 2021. In July 2020, the Company entered into an agreement with CI&T, an information technology and software company, in which the “Advent Funds hold a greater than 10% equity interest. During the fiscal years ended December 31, 2022, 2021 and 2020, the Company paid CI&T $367, $195, and $25 respectively, for services related to the development, maintenance and enhancement of the Olaplex professional application, as well as other digital marketing services, all of which were negotiated on an arm’s length basis and on market terms. Tax Receivable Agreement In connection with the Reorganization, the Company entered into the Tax Receivable Agreement with the Pre-IPO Stockholders. See further discussion in “Note 2 – Summary of Significant Accounting Policies – Tax Receivable Agreement”. During the year ended December 31, 2022, the Company made a payment to the Pre-IPO Stockholders of $4.2 million as required pursuant to the terms of the Tax Receivable Agreement.

CONTINGENCIES

CONTINGENCIES	12 Months Ended
	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
CONTINGENCIES	CONTINGENCIESFrom time to time, the Company is subject to various legal actions arising in the ordinary course of business. The Company cannot predict with reasonable assurance the outcome of these legal actions brought against us as they are subject to uncertainties. Accordingly, any settlement or resolution in these legal actions may occur and affect our net income in such period as the settlement or resolution. Pending Legal Proceedings: On November 17, 2022, a putative securities class action was filed against the Company and certain of its current and former officers and directors in the United States District Court for the Central District of California, captioned Lilien v. Olaplex Holdings, Inc. et al., No. 2:22-cv-08395. The action is brought on behalf of a putative class of purchasers of the Company’s common stock in or traceable to the Company’s IPO and asserts claims under Sections 11 and 15 of the Securities Act of 1933. The action seeks certification of the putative class, compensatory damages, attorneys’ fees and costs, and any other relief that the court determines is appropriate. The Company intends to vigorously defend the pending lawsuit. On February 9, 2023, a complaint alleging personal and economic injury, and asserting claims for breach of warranty, negligence/gross negligence, products liability, unjust enrichment, and violations of California False Advertising Law and Unfair Competition Law, was filed against the Company and Cosway Company, Inc., the Company’s primary contract manufacturer, in the United States District Court for the Central District of California. The case, which was filed by twenty-eight plaintiff consumers on February 9, 2023, is captioned Albahae, et al. v. Olaplex Holdings, Inc., et al., No. 2:23-cv-00982. The plaintiffs allege that certain ingredients used in some Company products have purportedly caused irritation or posed a hazard to consumers, and that the Company engaged in misrepresentation with respect to those products. The plaintiffs seek actual and consequential damages, punitive damages, restitution in the form of disgorgement of profits, attorneys’ fees and costs, and any other relief that the court determines is appropriate. The Company intends to vigorously defend the pending lawsuit. Any potential loss associated with these pending legal proceedings is not probable or reasonably estimable at this time. Settlement Matter in 2021 Year: Pursuant to the purchase agreement between the Sellers, the Advent Funds and the other purchasers of the Olaplex business, the Company was required to pay the Sellers certain amounts in connection with the final settlement of certain litigation and contingency matters involving LIQWD, Inc., a predecessor entity to the Company substantially all of whose assets and liabilities were purchased as part of the Acquisition (the “LIQWD Matters”). During April 2021, the Company and the Sellers commenced negotiations concerning the amount to be paid to the Sellers by the Company in connection with a potential settlement of the LIQWD Matters and, in May 2021, the Company reached agreement with the Sellers on the amount to be paid by the Company to the Sellers in full satisfaction of the contingency provisions in the purchase agreement related to the LIQWD Matters. Accordingly, the Company expensed approximately $14,250 included in selling, general and administrative costs in the accompanying consolidated financial statements during the year ended December 31, 2021, associated with the amounts to be paid by the Company in connection with the final resolution of the LIQWD Matters. The amounts accrued, all of which were paid in May 2021, in connection with the final settlement of the LIQWD Matters, represent the total cost to the Company in resolving the LIQWD Matters. As a result of the foregoing agreement with the Sellers and the resulting approval by the Sellers of the settlement of the LIQWD Matters, all outstanding claims of the Sellers and the Company associated with the LIQWD Matters have been resolved. As of December 31, 2022 and December 31, 2021, the Company is not subject to any other currently pending legal matters or claims that could have a material adverse effect on its financial position, results of operations, or cash flows should such litigation be resolved unfavorably.

NET INCOME PER SHARE

NET INCOME PER SHARE	12 Months Ended
	Dec. 31, 2022
Earnings Per Share [Abstract]
NET INCOME PER SHARE	NET INCOME PER SHARE The following is a reconciliation of the numerator and denominator in the basic and diluted net income per common share computations: Year Ended December 31, December 31, December 31, Numerator: Net income $ 244,072 $ 220,784 $ 39,278 Denominator: Weighted average common shares outstanding – basic 649,092,846 648,166,472 635,386,219 Dilutive common equivalent shares from equity options and awards 41,913,000 41,757,320 1,433,756 Weighted average common shares outstanding – diluted 691,005,846 689,923,792 636,819,975 Net income per share: Basic $ 0.38 $ 0.34 $ 0.06 Diluted $ 0.35 $ 0.32 $ 0.06

CONDENSED PARENT COMPANY FINANC

CONDENSED PARENT COMPANY FINANCIAL INFORMATION	12 Months Ended
	Dec. 31, 2022
Condensed Financial Information Disclosure [Abstract]
CONDENSED PARENT COMPANY FINANCIAL INFORMATION	CONDENSED PARENT COMPANY FINANCIAL INFORMATION The Condensed Financial Statements of Olaplex Holdings, Inc. (parent company only) are presented below: OLAPLEX HOLDINGS, INC. SCHEDULE I - PARENT COMPANY CONDENSED BALANCE SHEET (amounts in thousands, except shares) December 31, December 31, 2022 2021 Assets Investment in subsidiaries $ 1,004,188 $ 761,076 Due from affiliates 3,041 — Deferred income tax asset 436 197 Total assets $ 1,007,665 $ 761,273 Liabilities and stockholders' equity Current Liabilities: Accrued expenses and other current liabilities $ 4,653 $ 6,011 Current portion of Related Party payable pursuant to Tax Receivable Agreement 16,380 4,157 Total current liabilities 21,033 10,168 Due to affiliates — 1,685 Related Party payable pursuant to Tax Receivable Agreement 205,675 225,122 Total liabilities 226,708 236,975 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 Additional paid-in capital 536,235 461,456 Retained Earnings 244,073 62,194 Total stockholders' equity 780,957 524,298 Total liabilities and stockholders' equity $ 1,007,665 $ 761,273 The accompanying notes are an integral part of Condensed Financial Information (Schedule I) OLAPLEX HOLDINGS, INC. SCHEDULE I- PARENT COMPANY CONDENSED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (amounts in thousands) Year Ended December 31, 2022 For the Period Ended June 8, 2021 - December 31, 2021 Operating expenses: Selling, general, and administrative expenses $ 4,723 $ 9,857 Stock compensation expenses 960 315 Total operating expenses 5,683 10,172 Other income Tax receivable agreement liability adjustment 3,084 3,615 Equity in undistributed earnings 245,001 67,531 Total other income 248,085 71,146 Income before benefit for income taxes 242,402 60,974 Income tax (expense) benefit 1,671 1,220 Net income 244,073 62,194 Comprehensive income $ 244,073 $ 62,194 The accompanying notes are an integral part of Condensed Financial Information (Schedule I) OLAPLEX HOLDINGS, INC. SCHEDULE I - PARENT COMPANY CONDENSED STATEMENT OF CASH FLOWS (amounts in thousands) Year Ended December 31, 2022 For the Period Ended June 8, 2021 - December 31, 2021 Cash flows from operating activities: Net income $ 244,073 $ 62,194 Adjustments to reconcile net income to net cash from operations provided by operating activities: Equity in undistributed earnings (245,001) (67,531) Tax receivable agreement liability adjustment (3,084) (3,615) Share-based compensation expense 960 315 Deferred income tax asset (436) (197) Changes in operating assets and liabilities, net of effects of acquisition: Accrued and other current liabilities 4,653 6,011 Net cash used in operating activities 1,165 (2,823) Cash flows from financing activities: (Due to) Advances from affiliates (3,041) 1,685 Proceeds from exercise of stock options 1,876 1,138 Net cash provided by financing activities (1,165) 2,823 Net increase (decrease) in cash and cash equivalents — — Cash and cash equivalents - beginning of period — — Cash and cash equivalents - end of period $ — $ — Supplemental disclosure of noncash activities: (Decrease) increase in Related Party payable pursuant to Tax Receivable Agreement $ (7,224) $ 232,893 The accompanying notes are an integral part of Condensed Financial Information (Schedule I) OLAPLEX HOLDINGS, INC. NOTES TO SCHEDULE 1. (amounts in thousands, except shares) 1. Basis of Presentation Olaplex Holdings, Inc. (“Olaplex Holdings”) was incorporated on June 8, 2021 as a Delaware corporation and is a holding company with no direct operations. Olaplex Holdings conducts substantially all of its operations through its investment in its wholly owned subsidiaries, Penelope and Olaplex, Inc. These statements should be read in conjunction with Olaplex Holdings Consolidated Financial Statements and notes included elsewhere in this Annual Report on Form 10-K. There are significant restrictions over Olaplex Holdings’ ability to obtain funds from its subsidiaries through dividends, loans or advances as contained in the 2022 Credit Agreement. These condensed parent company financial statements have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X, as the restricted net assets of Olaplex Holdings subsidiaries under the 2022 Credit Agreement exceeds 25 percent of the consolidated net assets of Olaplex Holdings. See Note 9 to the Company’s Consolidated Financial Statements included elsewhere in this Annual Report on Form 10-K. Olaplex Holdings’ financial statements give effect to the IPO Reorganization Transactions, as discussed in Note 1 of the Consolidated Financial Statements included elsewhere in this Annual Report on Form 10-K, reflecting the exchange of all 960,184 units of Penelope Group Holdings, L.P. for an aggregate of 648,124,642 shares of common stock of Olaplex Holdings. The exchange is recorded as Additional paid in capital of $459,885, net of the Tax Receivable Agreement amount of $232,893. Olaplex Holdings operations are reported from its for the fiscal year ended December 31, 2022, and from its June 8, 2021 inception date to December 31, 2021 and equity in undistributed earnings of Olaplex Holdings subsidiaries is reported in the Olaplex Holdings statement of operations and comprehensive income effective from the Reorganization Transactions dates. The fiscal year 2020 financial statements were not considered meaningful due to the formation of Olaplex Holdings on June 8, 2021. 2. Investment in subsidiaries Olaplex Holdings records its investment in subsidiaries under the equity method of accounting. Such investment is presented as “Investment in subsidiaries” on the condensed balance sheet, and Olaplex Holdings’ share of the subsidiaries profits is presented as “Equity in undistributed earnings” on the condensed Statement of Operations. 3. Restricted net assets Olaplex Holdings’ subsidiaries are restricted in their ability to transfer certain of their net assets to Olaplex Holdings in the form of dividends, loans or advances under the 2022 Credit Agreement. The restricted net assets of Olaplex Holdings’ subsidiaries amount to $668,657 and $601,073 as of December 31, 2022 and 2021, respectively. 4. Tax receivable agreement liability adjustment Tax Receivable Agreement liability adjustment reflects adjustments due to an update to the blended state income tax rate used to measure the related party payable pursuant to Tax Receivable Agreement. 5. Commitments and contingencies Olaplex Holdings is party to a Tax Receivable Agreement with the Pre-IPO Stockholders that provides for the payment by Olaplex Holdings to the Pre-IPO Stockholders of 85% of the amount of any tax benefits that Olaplex Holdings actually realizes, or in some cases are deemed to realize, as a result of certain transactions. See Note 10 to the Company’s Consolidated Financial Statements for more information regarding the tax receivable agreement. As of December 31, 2022 and 2021, liabilities under the Tax Receivable Agreement totaled $222.1 million and $229.3 million, of which $16.4 million and $4.2 million is a current liability, respectively. See Note 14 to the Company’s Consolidated Financial Statements for information regarding pending and threatened litigation.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Principles of Consolidation and Combination	Principles of Consolidation and Combination The 2022, 2021 and 2020 Consolidated Financial Statements cover Olaplex, Inc. and its wholly owned subsidiary, Olaplex UK Limited, a private limited company incorporated in England and Wales. The accompanying 2022, 2021 and 2020 Consolidated Financial Statements reflect the financial position, results of operations and comprehensive income, and cash flows of Olaplex Holdings, Inc. and its wholly owned subsidiaries on a consolidated basis. All intercompany account balances and transactions have been eliminated.
Estimates and Assumptions	Estimates and Assumptions Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. Examples of estimates and assumptions include: for revenue recognition, determining the nature and timing of satisfaction of performance obligations, variable consideration, and other obligations such as product returns and
Cash and Cash Equivalents	Cash and Cash EquivalentsThe Company considers all highly liquid investments purchased with a maturity of three months or less to be cash equivalents. The Company maintains cash balances at several high credit quality financial institutions. Accounts at these institutions are secured by the Federal Deposit Insurance Corporation (the “FDIC”). At times, such cash balances may be in excess of the $250 FDIC insurance limit.
Accounts Receivable - net	Accounts Receivable – net Accounts receivable are recorded at net realizable value. The Company has recorded an accrual for reductions to prices for agreed-upon deductions, including allowances for advertising, damages, promotions, and returns. As of December 31, 2022 and December 31, 2021, this allowance was $19,198 and $8,231 respectively. As of December 31, 2022 and December 31, 2021, the Company did not have an allowance for doubtful accounts. In arriving at this conclusion, the Company evaluated historical losses, and the likelihood of future losses, age of receivables, adverse situations that may affect a customer’s ability to repay and prevailing economic conditions in accordance with ASC 326. The Company has generally not experienced difficulties collecting from customers in a timely manner.
Inventory	Inventory Inventory includes inventory that is salable or usable in future periods and is stated at the lower of cost or net realizable value using the average cost method. Cost components include raw materials and finished goods. The finished goods are produced at third-party contract manufacturers. The Company allocates the amortized cost of its patented formulation to finished goods inventory. Management estimates an allowance for excess and obsolete inventory based on a calculation of excess on hand quantities of slow-moving inventory. As of December 31, 2022 and 2021 , there was no material allowance for excess and obsolete inventory.
Business Combinations	Business Combinations Business combinations are accounted for under the acquisition method of accounting in accordance with FASB ASC 805, Business Combinations. Under the acquisition method of accounting, the total consideration transferred in connection with the acquisition is allocated to the tangible and intangible assets acquired, liabilities assumed, and any noncontrolling interest in the acquiree based on their fair values. Goodwill acquired in connection with business combinations represents the excess of consideration transferred over the net tangible and identifiable intangible assets acquired. The acquired goodwill is deductible for income tax purposes. Certain assumptions and estimates are employed in evaluating the fair value of assets acquired and liabilities assumed. These estimates may be affected by factors such as changing market conditions, or changes in regulations governing the industry. The most significant assumptions requiring judgment involve identifying and estimating the fair value of intangible assets and the associated useful lives for establishing amortization periods. To finalize purchase accounting for significant acquisitions, the Company utilizes the services of independent valuation specialists to assist in the determination of the fair value of acquired tangible and intangible assets. The purchase price allocations for business combinations completed are prepared on a preliminary basis and changes to those allocations may occur as additional information becomes available about facts and circumstances that existed as of the acquisition date during the respective measurement period (up to one year from the respective acquisition date). Changes in the fair value of assets and liabilities recognized at fair value on the acquisition date that result from events that occur after the acquisition date are re-measured to fair value at future reporting dates with changes recognized in earnings. The Company includes the results of operations of the businesses acquired as of the acquisition dates. Costs that are incurred to complete the business combination such as legal and other professional fees are not considered part of consideration transferred and are charged to operating expenses as they are incurred.
Goodwill and Intangible Assets	Goodwill and Intangible Assets Goodwill is calculated as the excess of the purchase consideration paid in the acquisition of a business over the fair value of the identifiable assets acquired and liabilities assumed. Goodwill is reviewed annually at the beginning of the fourth quarter for impairment, at the reporting unit level, or when there is evidence that events or changes in circumstances indicate that the Company’s carrying amount may not be recovered. A reporting unit is an operating segment or a component of an operating segment. When testing goodwill for impairment, the Company first
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets The Company reviews long-lived tangible and intangible assets with definite lives for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Examples of such events include a significant disposal of a portion of such assets, an adverse change in the market involving the business employing the related asset, a significant decrease in the benefits realized from an acquired business, difficulties or delays in integrating the business, and a significant change in the operations of an acquired business. Recoverability of these assets is measured by comparison of their carrying amount to the future undiscounted cash flows the assets are expected to generate. Assets are grouped and evaluated at the lowest level for which there are identifiable cash flows that are largely independent of the cash flows of other groups of assets. The Company considers historical performance and future estimated results in its evaluation of impairment. If the carrying amount of the asset exceeds expected undiscounted future cash flows, the Company measures the amount of impairment by comparing the carrying amount of the asset to its fair value, generally measured by discounting expected future cash flows at the rate it utilizes to evaluate potential investments. No tangible and intangible asset impairment was recorded for fiscal years ended December 31, 2022 and December 31, 2021. Fair value measurements are based on significant inputs that are not observable in the market and therefore represent a Level 3 measurement. Significant changes in the underlying assumptions used to value long-lived assets could significantly increase or decrease the fair value estimates used for impairment assessments.
Debt Issuance Costs	Debt Issuance CostsOriginal issue discount costs and third-party issue costs incurred in connection with the issuance of long-term debt are deferred and amortized over the life of the associated debt instrument on a straight-line basis, in a manner that approximates the effective interest method. To the extent that the debt is outstanding, these amounts are reflected in the consolidated balance sheets as direct deductions from the long-term debt.
Property and Equipment	Property and Equipment Property and equipment are stated at historical cost net of accumulated depreciation. The cost of assets sold or retired, and the related accumulated depreciation, are removed from the accounts at the time of disposition, and any resulting gain or loss is reflected in operating results for the period.
Deferred Revenue	Deferred Revenue Amounts received from international customers in the form of cash pre-payments to purchase goods are recorded as deferred revenue for contract liabilities until the goods are shipped, including unredeemed gift cards. The Company’s deferred revenue balance was $2,015 and $5,022 as of December 31, 2022 and December 31, 2021, respectively (see “Note 8. Accrued Expenses and Other Current Liabilities”). Customer pre-payments and gift cards are included as accrued expenses and other current liabilities. Deferred revenue is included as accrued expenses and other current liabilities on the accompanying Consolidated Balance Sheets.
Foreign Currency Transactions	Foreign Currency TransactionsAssets and liabilities denominated in foreign currencies are converted to the functional currency at the applicable current rates, including the Company’s subsidiary, Olaplex UK, whose functional currency is in US dollars. All revenues and expenses associated with foreign currencies are converted at the rates of exchange prevailing when such transactions occur. The resulting exchange loss or gain is reflected in foreign currency exchange loss or gain recorded in other expense, net in the accompanying Statements of Operations and Comprehensive Income.
Fair Value of Financial Instruments	Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The authoritative guidance for fair value measurements established a framework for measuring fair value and established a three-level valuation hierarchy for disclosure of fair value measurements as follows: Level 1 —Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. The Company’s Level 1 assets consist of its marketable securities. Level 2 —Observable quoted prices for similar assets or liabilities in active markets and observable quoted prices for identical assets or liabilities in markets that are not active. Level 3 —Unobservable inputs that are not corroborated by market data. Cash and cash equivalents, accounts receivable, accounts payable and accrued expenses are reflected at carrying value, which approximates fair value due to the short-term maturity. The Company’s long-term debt is recorded at its carrying value in the Consolidated Balance Sheets, which may differ from fair value. The Company’s interest rate cap is recorded at its Level 3 fair value in the Consolidated Balance Sheets.
Segment Reporting	Segment Reporting Operating segments are components of an enterprise for which separate financial information is available that is evaluated by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Utilizing this criteria, the Company manages its business on the basis of three components of its operating segment that are aggregated into one reportable and operating segment given the components of the operating segment have similar economic characteristics, classes of consumers, products, production, distribution methods, and operate in similar regulatory environments.
Revenue Recognition, Cost of Sales, Marketing and Advertising and Shipping and Fulfillment	Revenue Recognition The Company derives its revenue through the sale of its prestige hair care products. The Company recognizes revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers, which provides a five-step model for recognizing revenue from contracts with customers as follows: • Identify the contract with a customer • Identify the performance obligations in the contract • Determine the transaction price • Allocate the transaction price to the performance obligations in the contract • Recognize revenue when or as performance obligations are satisfied The Company recognizes revenue in the amount that reflects the consideration that the Company expects that it will be entitled to in exchange for transferring goods to its customers. Net sales are comprised of the transaction price from sales of products less expected allowances, including allowances for advertising, damages, promotions, discounts, and return rights. These allowances are estimated based on agreed-upon terms and the Company’s historical experience and are recorded as a reduction to sales and accounts receivable in the same period the related sales are recorded. The Company experienced returns of $9,983 during the year ended December 31, 2022, primarily related to one-time items, and immaterial returns during the years ended December 31, 2021, and 2020. Revenue is recognized when performance obligations are satisfied through the transfer of control of promised goods to the customers based on the terms of sale. The transfer of control typically occurs at a point in time based on consideration of when the customer has an obligation to pay for the goods, and physical possession of, legal title to, and the risks and rewards of ownership of the goods has been transferred to the customer. Generally, revenue from sales of merchandise to customers are recognized at a point in time, based on customer agreements and is recorded in the period the product is shipped or delivered in accordance with the shipping terms. For the Company’s Olaplex.com website transactions, revenue is recognized upon delivery to customers. The Company’s professional and retail distributors consist of local and international customers. Payments from certain international customers are due in advance. The Company records deferred revenue for contract liabilities from contracts with customers in which the customer prepays for the order. Other international and U.S.-based customer billings are invoiced and typically due within a contractually specified term. During 2022 the Company did not have significant financing terms with its customers. The Company has elected to account for shipping and handling as fulfillment activities and not as a separate performance obligation. As of December 31, 2022 and December 31, 2021, other than accounts receivable, the Company has no material contract assets. The Company had contract liabilities of $2,015 and $5,022 as of December 31, 2022 and 2021, respectively, Opening contract liability balances of $5,022, as of January 1, 2022, and $2,314, as of January 1, 2021, were recognized as net sales during the years ended December 31, 2022 and 2021, respectively. Sales and value added taxes, when applicable, that are collected in connection with revenue transactions are withheld and remitted to the respective taxing authorities. Shipping and fulfillment costs charged to customers are included as revenue in total net sales. Shipping costs incurred by the Company to ship between third-party manufacturers and warehouses are capitalized to inventory and included in cost of sales. Shipping and fulfillment costs incurred by the Company to ship to customers are included in selling, general, and administrative expenses. The Company elected to record revenue net of sales and excise taxes collected by customers, all of which the Company has the primary responsibility to pay and remit to taxing authorities. Taxes are excluded from the transaction price. The Company elected not to disclose revenue related to remaining performance obligations for partially completed or unfulfilled contracts that are expected to be fulfilled within one year as such amounts are deemed to be insignificant. Cost of Sales Cost of sales includes the aggregate costs to procure the Company’s products, including the amounts invoiced by third-party contract manufacturers and suppliers for finished goods, as well as costs related to transportation to distribution centers, amortization of the patented formulations, and amortization of the fair value step-up of inventory.
Selling, General and Administrative Expenses	Selling, General and Administrative Expenses Selling, general, and administrative (“SG&A”) expenses primarily consist of personnel-related expenses, including salaries, bonuses, fringe benefits and share-based compensation expense, marketing and digital expenses, warehousing, fulfillment, and distribution costs, costs related to merchandising, product development costs, and depreciation of property and equipment.
Income Taxes	Income Taxes The Company uses the asset and liability approach for financial accounting and reporting for income taxes. The provision for income taxes includes Federal, and state income taxes currently payable or receivable and those deferred because of temporary differences between the financial statement and tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled. The Company recognizes deferred tax assets to the extent it believes the assets are more likely than not to be realized. Valuation allowances are established when necessary, to reduce deferred tax assets to the amount expected to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and the results of recent operations. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The Company recognizes interest and penalties, if any, associated with tax matters as part of the income tax provision and includes accrued interest and penalties with the related tax liability in the Company’s consolidated balance sheet.
Concentrations of Risk	Concentrations of Risk Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash and cash equivalents. Although the Company deposits its cash with creditworthy financial institutions, its deposits, at times, may exceed federally insured limits. To date, the Company has not experienced any losses on it cash deposits.
Share-Based Compensation	Share-Based Compensation Share-based compensation options granted to employees, non-employees and directors are measured at fair value at the respective grant dates and recognized as share-based compensation expense. Share-based compensation expense equal to the fair value of time-based service options that are expected to vest is estimated using the Black-Scholes model and recorded over the period the grants are earned, which is the requisite service period. The Company has previously used a Monte Carlo option-pricing model to estimate the fair value of performance-based options. This model requires the use of highly subjective and complex assumptions including volatility and expected option life. The costs relating to share-based compensation expense are recognized in selling, general, and administrative expenses in our consolidated statements of operations and comprehensive income, and forfeitures are recognized and accounted for as they occur. There were no performance-based options outstanding as of December 31, 2022, or 2021.
Investment in Nonconsolidated Entity	Investment in Nonconsolidated Entity The Company uses the cost method to account for its equity investment for which these equity securities do not have readily determinable fair values and for which the Company does not have the ability to exercise significant influence. Under the cost method of accounting, the Company’s investment is carried at cost and is adjusted only for other-than-temporary declines in fair value, additional investments, plus or minus changes from observable price changes in orderly transactions or distributions deemed to be a return of capital. There are no earnings or fair value adjustments recorded to date.
Tax Receivable Agreement	Tax Receivable Agreement As part of the IPO, we entered into the Tax Receivable Agreement under which generally we will be required to pay to the Pre-IPO Stockholders 85% of the cash savings, if any, in U.S. federal, state or local tax that we actually realize on our taxable income following the IPO (or are deemed to realize in certain circumstances) as a result of (i) certain existing tax attributes, including tax basis in intangible assets and capitalized transaction costs relating to taxable years ending on or before the date of the IPO (calculated by assuming the taxable year of the relevant entity closes on the date of the IPO), that are amortizable over a fixed period of time (including in tax periods beginning after the IPO) and which are available to us and our wholly-owned subsidiaries, and (ii) tax benefits attributable to payments made under the Tax Receivable Agreement, together with interest accrued at a rate equal to LIBOR (“London Interbank Offered Rate”) (or if LIBOR ceases to be published, a replacement rate with similar characteristics) plus 3% from the date the applicable tax return is due (without extension) until paid. Under the Tax Receivable Agreement, generally we will retain the benefit of the remaining 15% of the applicable tax savings. The tax liability is based on current tax laws and the assumption that the Company and its subsidiaries earn sufficient taxable income to realize the full tax benefits subject to the Tax Receivable Agreement. Updates to our blended state tax rate and allocation of U.S. versus foreign sourced income may impact the established liability and changes would be recorded to other (expense) income in the period we made the determination. We expect that future payments under the Tax Receivable Agreement relating to the Pre-IPO Tax Assets could aggregate to $222.1 million over the 13-year remaining period under the Tax Receivable Agreement. Payments under the Tax Receivable Agreement, which began in year ended December 31, 2022, are not conditioned upon the parties’ continued ownership of the Company.
Reclassifications	Reclassifications Certain amounts presented have been reclassified within the December 31, 2021 Consolidated Balance Sheet to conform with the current period presentation, including a prior year reclassification from Accrued expenses and other current liabilities to Sales and income taxes payable. The reclassifications had no effect on the Company’s Total current liabilities.
Recently Adopted Accounting Pronouncements and Recent Accounting Guidance Not Yet Adopted	Recently Adopted Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” This ASU provides an optional expedient and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. In response to the concerns about structural risks of interbank offered rates (“IBORs”) and, particularly, the risk of cessation of the LIBOR, regulators in several jurisdictions around the world have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable or transaction based and less susceptible to manipulation. The ASU provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. The ASU can be adopted no later than December 31, 2022 with early adoption permitted. The Company adopted this accounting standard on January 1, 2022. Adoption of this standard did not have a material impact on its Consolidated Financial Statements. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The amendments in this ASU, among other things, require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The FASB has issued multiple updates to ASU 2016-13 as codified in Topic 326, including ASUs 2019-04, 2019-05, 2019-10, 2019-11, 2020-02, and 2020-03. These ASUs have provided for various minor technical corrections and improvements to the codification as well as other transition matters. The amendments in the ASU are effective for the Company for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The Company adopted this accounting standard on July 1, 2022. Adoption of this standard did not have a material impact on its Consolidated Financial Statements.

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Schedule of Finite-Lived Intangible Assets	The following provides a summary of the estimated useful lives by category of asset. Brand name 25 years Customer relationships 20 years Patented formulations 15 years Software 3 years
Property, Plant and Equipment	Estimated useful lives of the Company’s assets are as follows: Molds 3-5 years Equipment 5-10 years Furniture and fixtures 3-7 years

NET SALES (Tables)

NET SALES (Tables)	12 Months Ended
	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	As such, the Company’s three business channels consist of professional, specialty retail and DTC as follows: For the Year Ended December 31, 2022 December 31, 2021 December 31, 2020 Net sales by Channel: Professional $ 300,472 $ 259,009 $ 156,199 Specialty retail 235,310 175,799 50,718 DTC 168,492 163,557 75,333 Total Net sales $ 704,274 $ 598,365 $ 282,250 For the Year Ended December 31, 2022 December 31, 2021 December 31, 2020 Net sales by Geography: U.S. $ 397,564 $ 344,656 $ 149,272 International 306,710 253,709 132,978 Total Net sales $ 704,274 $ 598,365 $ 282,250

INVENTORY (Tables)

INVENTORY (Tables)	12 Months Ended
	Dec. 31, 2022
Inventory Disclosure [Abstract]
Schedule of Inventory, Current	Inventory as of December 31, 2022 and December 31, 2021 consisted of the following: December 31, 2022 December 31, 2021 Raw materials $ 36,194 $ 20,852 Finished goods 108,231 77,547 Inventory $ 144,425 $ 98,399

INVESTMENT IN NONCONSOLIDATED_2

INVESTMENT IN NONCONSOLIDATED ENTITY (Tables)	12 Months Ended
	Dec. 31, 2022
Equity Method Investments and Joint Ventures [Abstract]
Equity Securities without Readily Determinable Fair Value	Our investment is classified as a long-term asset in our Consolidated Balance Sheets, and consists of the following: December 31, 2022 December 31, 2021 Capital contributions, net of distributions and impairments $ 4,500 $ 4,500 Total investments in and advances to nonconsolidated affiliate $ 4,500 $ 4,500

BUSINESS COMBINATIONS (Tables)

BUSINESS COMBINATIONS (Tables)	12 Months Ended
	Dec. 31, 2022
Business Combination and Asset Acquisition [Abstract]
Schedule of Business Acquisitions, by Acquisition	Information regarding the net cash consideration paid and fair value of the assets and liabilities assumed at the Acquisition Date is as follows: January 8, 2020 Fair value of assets acquired $ 1,216,259 Goodwill 168,300 Fair value of liabilities assumed (2,977) Net cash paid for acquisition $ 1,381,582 Purchase price is comprised of: Cash, net of acquired cash $ 1,381,582 Net cash paid for acquisition $ 1,381,582
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	January 8, 2020 Allocation of purchase price: Net tangible assets (liabilities): Inventory $ 61,262 Accounts receivable and other current assets 7,595 Deferred tax assets 6,402 Liabilities (2,977) Net tangible assets $ 72,282 Identifiable intangible assets: Brand name $ 952,000 Product formulations 136,000 Customer relationships 53,000 Total identifiable intangible assets 1,141,000 Goodwill 168,300 Net assets acquired $ 1,381,582

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets and Goodwill	Goodwill and intangible assets are comprised of the following: December 31, 2022 Estimated Gross Carrying Accumulated Net carrying amount Brand name 25 years $ 952,000 $ (113,394) $ 838,606 Product formulations 15 years 136,000 (26,998) 109,002 Customer relationships 20 years 53,000 (7,892) 45,108 Software 3 years 2,922 (610) 2,312 Total finite-lived intangibles 1,143,922 (148,894) 995,028 Goodwill Indefinite 168,300 — 168,300 Total goodwill and other intangibles $ 1,312,222 $ (148,894) $ 1,163,328 December 31, 2021 Estimated Gross Accumulated Net carrying amount Brand name 25 years $ 952,000 $ (75,314) $ 876,686 Product formulations 15 years 136,000 (17,932) 118,068 Customer relationships 20 years 53,000 (5,241) 47,759 Software 3 years 890 (59) 831 Total finite-lived intangibles 1,141,890 (98,546) 1,043,344 Goodwill Indefinite 168,300 — 168,300 Total goodwill and other intangibles $ 1,310,190 $ (98,546) $ 1,211,644
Schedule of Finite-Lived Intangible Assets Amortization Expense	Amortization of the Company’s definite-lived intangible assets for the years ended December 31, 2022, 2021 and 2020 is as follows: For the Year Ended December 31, 2022 December 31, 2021 December 31, 2020 Amortization of patented formulations $ 7,500 $ 7,989 $ 6,052 Amortization expense, brand name and customer relationships 40,730 40,730 39,825 Amortization expense, software 552 59 — Amortization of other intangible assets 41,282 40,789 39,825 Amortization of patented formulations capitalized to inventory $ 1,566 $ 1,078 $ 2,813
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	The estimated future amortization expense related to the finite-lived intangible assets as of December 31, 2022 is as follows: Year ending December 31 2023 $ 50,770 2024 $ 50,709 2025 $ 50,221 2026 $ 49,797 2027 $ 49,797 Thereafter $ 743,733 Total $ 995,028

ACCRUED EXPENSES AND OTHER CU_2

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)	12 Months Ended
	Dec. 31, 2022
Payables and Accruals [Abstract]
Schedule of Accrued Expenses and Other Current Liabilities	Accrued expenses as of December 31, 2022 and December 31, 2021 consisted of the following: December 31, 2022 December 31, 2021 Accrued professional fees $ 3,187 $ 2,132 Payroll liabilities 4,092 6,302 Accrued freight 3,283 636 Deferred revenue 2,015 5,022 Accrued interest 814 — Other accrued expenses and current liabilities 3,716 3,240 Accrued expenses and other current liabilities $ 17,107 $ 17,332

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)	12 Months Ended
	Dec. 31, 2022
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments	The Company’s Long-Term Debt as of December 31, 2022 and December 31, 2021 consisted of the following: December 31, 2022 December 31, 2021 Long-term debt Credit Agreement, dated as of February 23, 2022 (the “2022 Credit Agreement”) (1) $675 Million 7-Year Senior Secured Term Loan Facility (the “2022 Term Loan Facility”) $ 671,625 $ — $150 Million 5-Year Senior Secured Revolving Credit Facility (the “2022 Revolver”) (2) $ — $ — Credit Agreement, dated as of January 8, 2020, as amended (the “2020 Credit Agreement”) (1) $800 Million 6-Year Senior Secured Term Loan Facility, as amended (the “2020 Term Loan Facility”) $ — $ 769,235 $51 Million 5-Year Senior Secured Revolving Credit Facility, as amended (the “2020 Revolver”) (2) — — Debt issuance costs (8,854) (11,033) Total term loan debt 662,771 758,202 Less: Current portion (8,438) (20,112) Long-term debt, net of debt issuance costs and current portion $ 654,333 $ 738,090 (1) The 2022 Credit Agreement refinanced and replaced the 2020 Credit Agreement. (2) As of December 31, 2022 and December 31, 2021, the Company did not have any outstanding amounts drawn on the 2022 Revolver or 2020 Revolver, respectively, including letters of credit and swingline loan sub-facilities. As of December 31, 2022, the Company had $150 million of available borrowing capacity under the 2022 Revolver. The Company has $1.5 million of unamortized deferred financing fees related to the 2022 Revolver, which are capitalized and recorded as Other Assets on the balance sheet.
Schedule of Derivative Assets at Fair Value	The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of December 31, 2022 and December 31, 2021. Asset Derivatives December 31, 2022 December 31, 2021 Interest rate cap Balance Sheet Caption Other Assets $ 5,042 $ —

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Schedule of Income before Income Tax, Domestic and Foreign	The Company’s breakdown of its income before provision for income taxes for the years ended December 31, 2022, 2021 and 2020 is as follows: December 31, 2022 December 31, 2021 December 31, 2020 U.S. $ 305,192 $ 275,554 $ 47,221 Foreign 49 55 37 Total income before taxes $ 305,241 $ 275,609 $ 47,258
Schedule of Components of Income Tax Expense (Benefit)	The components of the provision for (benefit from) income taxes were as follows: December 31, 2022 December 31, 2021 December 31, 2020 Current provision: Federal $ 44,063 $ 44,660 $ 11,314 State & Local 7,918 7,668 1,079 Foreign 9 11 15 Total current provision 51,990 52,339 12,408 Deferred provision: Federal 8,172 2,772 (4,204) State & Local 1,007 (286) (224) Foreign — — — Total deferred provision 9,179 2,486 (4,428) Total provision for income taxes $ 61,169 $ 54,825 $ 7,980
Schedule of Deferred Tax Assets and Liabilities	Significant components of the Company’s deferred tax assets and liabilities are as follows: Deferred Tax Assets: December 31, 2022 December 31, 2021 Inventory adjustments $ 1,289 $ 661 Capitalized transaction costs 2,667 3,016 Deferred revenue 424 1,061 Accrued expenses and other current liabilities 3,488 3,102 Capitalized research & development expense 1,273 — Share-based compensation 1,380 397 Intangible assets — 6,410 Total deferred tax assets $ 10,521 $ 14,647 Deferred tax liabilities: Goodwill $ 6,962 $ 4,675 Other current assets 1,141 1,256 Fixed assets 769 372 Unrealized gain on derivatives 787 — Intangible assets 2,484 — Total deferred tax liabilities 12,143 6,303 Net deferred tax (liabilities) assets $ (1,622) $ 8,344
Schedule of Effective Income Tax Rate Reconciliation	The following table provides a reconciliation between the U.S. federal statutory rate and the Company’s effective tax rates for the years ended December 31, 2022, 2021 and 2020: December 31, 2022 December 31, 2021 December 31, 2020 U.S. federal statutory income tax rate 21.0 % 21.0 % 21.0 % Foreign derived intangible income deduction (2.9) % (3.0) % (5.2) % State and local income taxes, net of federal benefit 2.3 % 2.6 % 1.8 % Share-based compensation (0.4) % (1.2) % — % Other — % 0.5 % (0.7) % Effective Tax Rate 20.0 % 19.9 % 16.9 %

SHARE-BASED COMPENSATION (Table

SHARE-BASED COMPENSATION (Tables)	12 Months Ended
	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions	The assumptions used in determining the fair value of the SARs on the modification date were as follows: Time-Based Market and Performance-Based Expected term (in years) 2.50 1.85 Expected volatility 30 % 30 % Risk-free interest rate 1.68 % 1.58 % Expected dividend yield — — Share price on valuation date $ 17.06 $ 17.06 The fair value of time-based options granted was calculated using the following assumptions during the years ended December 31, 2022 2021, and 2020: Year Ended December 31, December 31, December 31, Expected term (years) 6.25 6.25 - 7.00 6.50 Expected volatility (%) 37 - 42 25 - 30 30 Risk-free interest rate (%) 1.58 - 2.82 1.07 - 1.62 0.37 - 1.87 Expected dividend yield (%) — — — Year Ended December 31, December 31, December 31, Expected term (years) 0.00 0.40 4.00 Expected volatility (%) — 30 30 Risk-free interest rate (%) — 1.48 - 1.62 1.87 Expected dividend yield (%) — — —
Share-based Payment Arrangement, Option, Activity	The following tables summarize the stock options, cash-settled units and stock-settled SARs activity for the years ended December 31, 2022 and 2021: Time-based options and stock-settled SARs Performance-based options Cash-settled units converted to stock-settled SARs Number of options and stock-settled SARs Weighted Average Aggregate Intrinsic Value Number of options Weighted Average Aggregate Intrinsic Value Time based Performance based Outstanding at December 31, 2021 42,687,518 $ 1.24 $ 798,404 3,979,461 $ 1.17 $ 111,278 596,700 306,450 Granted 1,030,000 8.83 — — — — Cancelled/Forfeited (2,382,500) 1.19 — — (10,800) (5,400) Converted Cash Settled Units 886,950 2.97 — — (585,900) (301,050) Options Exercised and Issued for Shares (984,095) 1.26 5,280 (205,585) 3.12 2,274 — — SARS Exercised (107,658) 2.97 2,243 — — — — SARs Repurchased and Cancelled (106,722) 2.97 — — — — Outstanding at December 31, 2022 41,023,493 1.46 162,748 3,773,876 1.06 15,034 — — Vested and Exercisable 13,595,012 $ 1.07 $ 58,178 3,773,876 $ 1.06 $ 15,034 Time-based options and stock-settled SARs Performance-based options Cash-settled units converted to stock-settled SARs Number of options and stock-settled SARs Weighted Average Aggregate Intrinsic Value Number of options Weighted Average Aggregate Intrinsic Value Time based Performance based Outstanding at December 31, 2020 15,997,500 $ 0.88 $ 26,780 28,732,050 $ 0.81 $ 50,183 — $ — Granted 3,077,783 6.17 1,959,525 3.19 684,450 526,500 Cancelled/Forfeited (1,417,980) 2.10 (1,012,500) 0.97 (87,750) (60,750) Converted Performance to Time-Based 25,363,800 0.92 (25,363,800) 0.92 — — Options Exercised and Issued for Shares (333,585) 1.49 8,138 (335,814) 1.91 8,686 — (159,300) Outstanding at December 31, 2021 42,687,518 1.24 798,404 3,979,461 1.17 111,278 596,700 306,450 Vested and Exerciseable 2,595,915 $ 0.80 $ 73,553 3,979,461 $ 1.17 $ 111,278
Schedule of Nonvested Restricted Stock Units Activity	The table below summarizes the status of the Company’s time-based RSUs as of December 31, 2022. The Company did not have any time-based RSUs outstanding as of December 31, 2021. Time-based restricted stock units Number of Awards Weighted Average Outstanding at December 31, 2021 — $ — Granted 83,964 17.27 Outstanding at December 31, 2022 83,964 17.27
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award	The following table summarizes share-based compensation expense and the weighted average grant date fair value of options granted for the years ended December 31, 2022, 2021 and 2020: Year Ended December 31, December 31, December 31, Share-based compensation expense $ 7,275 $ 3,963 $ 1,527 Unrecognized compensation costs of stock options 17,968 11,638 9,625 Unrecognized compensation costs of restricted stock unit awards $ 795 $ — $ — Weighted average remaining recognition period, time-based options (years) 2.48 3.31 years 4.39 Weighted average remaining recognition period, performance-based options (years) 0.00 0.00 3.53 Weighted average remaining recognition period, RSU Awards (years) 0.55 0.00 0.00

NET INCOME PER SHARE (Tables)

NET INCOME PER SHARE (Tables)	12 Months Ended
	Dec. 31, 2022
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following is a reconciliation of the numerator and denominator in the basic and diluted net income per common share computations: Year Ended December 31, December 31, December 31, Numerator: Net income $ 244,072 $ 220,784 $ 39,278 Denominator: Weighted average common shares outstanding – basic 649,092,846 648,166,472 635,386,219 Dilutive common equivalent shares from equity options and awards 41,913,000 41,757,320 1,433,756 Weighted average common shares outstanding – diluted 691,005,846 689,923,792 636,819,975 Net income per share: Basic $ 0.38 $ 0.34 $ 0.06 Diluted $ 0.35 $ 0.32 $ 0.06

CONDENSED PARENT COMPANY FINA_2

CONDENSED PARENT COMPANY FINANCIAL INFORMATION (Tables)	12 Months Ended
	Dec. 31, 2022
Condensed Financial Information Disclosure [Abstract]
Condensed Balance Sheet	SCHEDULE I - PARENT COMPANY CONDENSED BALANCE SHEET (amounts in thousands, except shares) December 31, December 31, 2022 2021 Assets Investment in subsidiaries $ 1,004,188 $ 761,076 Due from affiliates 3,041 — Deferred income tax asset 436 197 Total assets $ 1,007,665 $ 761,273 Liabilities and stockholders' equity Current Liabilities: Accrued expenses and other current liabilities $ 4,653 $ 6,011 Current portion of Related Party payable pursuant to Tax Receivable Agreement 16,380 4,157 Total current liabilities 21,033 10,168 Due to affiliates — 1,685 Related Party payable pursuant to Tax Receivable Agreement 205,675 225,122 Total liabilities 226,708 236,975 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 Additional paid-in capital 536,235 461,456 Retained Earnings 244,073 62,194 Total stockholders' equity 780,957 524,298 Total liabilities and stockholders' equity $ 1,007,665 $ 761,273
Condensed Income Statement	SCHEDULE I- PARENT COMPANY CONDENSED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (amounts in thousands) Year Ended December 31, 2022 For the Period Ended June 8, 2021 - December 31, 2021 Operating expenses: Selling, general, and administrative expenses $ 4,723 $ 9,857 Stock compensation expenses 960 315 Total operating expenses 5,683 10,172 Other income Tax receivable agreement liability adjustment 3,084 3,615 Equity in undistributed earnings 245,001 67,531 Total other income 248,085 71,146 Income before benefit for income taxes 242,402 60,974 Income tax (expense) benefit 1,671 1,220 Net income 244,073 62,194 Comprehensive income $ 244,073 $ 62,194
Condensed Cash Flow Statement	SCHEDULE I - PARENT COMPANY CONDENSED STATEMENT OF CASH FLOWS (amounts in thousands) Year Ended December 31, 2022 For the Period Ended June 8, 2021 - December 31, 2021 Cash flows from operating activities: Net income $ 244,073 $ 62,194 Adjustments to reconcile net income to net cash from operations provided by operating activities: Equity in undistributed earnings (245,001) (67,531) Tax receivable agreement liability adjustment (3,084) (3,615) Share-based compensation expense 960 315 Deferred income tax asset (436) (197) Changes in operating assets and liabilities, net of effects of acquisition: Accrued and other current liabilities 4,653 6,011 Net cash used in operating activities 1,165 (2,823) Cash flows from financing activities: (Due to) Advances from affiliates (3,041) 1,685 Proceeds from exercise of stock options 1,876 1,138 Net cash provided by financing activities (1,165) 2,823 Net increase (decrease) in cash and cash equivalents — — Cash and cash equivalents - beginning of period — — Cash and cash equivalents - end of period $ — $ — Supplemental disclosure of noncash activities: (Decrease) increase in Related Party payable pursuant to Tax Receivable Agreement $ (7,224) $ 232,893

NATURE OF OPERATIONS AND BASI_2

NATURE OF OPERATIONS AND BASIS OF PRESENTATION - Narrative (Details)						12 Months Ended
	Oct. 08, 2021 USD ($) $ / shares shares	Oct. 04, 2021 USD ($) $ / shares shares	Oct. 03, 2021 day shares	Sep. 29, 2021 shares	Jan. 08, 2020 USD ($)	Dec. 31, 2022 shares	Feb. 23, 2022 $ / shares	Dec. 31, 2021 shares
Nature of Operations and Basis of Presentation [Line Items]
Reorganization share issuance (Note 12) (shares)			648,124,642	648,124,642
Options converted in period, number of shares			46,923,300
Tax receivable agreement, percent of savings for holders		85%	85%
Reorganization, conversion ratio						0.00148
Common stock, shares, outstanding (shares)			648,124,642			650,091,380		648,794,041
Time-Based Cash-Settled Units Converted Into Time-Based Cash-Settled Units
Nature of Operations and Basis of Presentation [Line Items]
Deferred compensation arrangement with individual, converted in period, number of units			621,000
Performance-Based Cash-Settled Units Converted Into Time-Based Cash-Settled Units
Nature of Operations and Basis of Presentation [Line Items]
Deferred compensation arrangement with individual, converted in period, number of units			318,600
Time-based cash settled units
Nature of Operations and Basis of Presentation [Line Items]
Threshold consecutive trading days | day			30
Performance-Based Cash-Settled Units Converted Into Vested Cash-Settled Units
Nature of Operations and Basis of Presentation [Line Items]
Deferred compensation arrangement with individual, converted in period, number of units			159,300
Share-based Payment Arrangement, Tranche One | Performance-Based Cash-Settled Units Converted Into Time-Based Cash-Settled Units
Nature of Operations and Basis of Presentation [Line Items]
Vesting percentage						33.33%
Share-based Payment Arrangement, Tranche One | Time-based cash settled units
Nature of Operations and Basis of Presentation [Line Items]
Vesting percentage						20%
Share-based Payment Arrangement, Tranche Two | Performance-Based Cash-Settled Units Converted Into Time-Based Cash-Settled Units
Nature of Operations and Basis of Presentation [Line Items]
Vesting percentage						33.33%
Share-based Payment Arrangement, Tranche Two | Time-based cash settled units
Nature of Operations and Basis of Presentation [Line Items]
Vesting percentage						20%
Share-based Payment Arrangement, Tranche Three | Performance-Based Cash-Settled Units Converted Into Time-Based Cash-Settled Units
Nature of Operations and Basis of Presentation [Line Items]
Vesting percentage						33.33%
Share-based Payment Arrangement, Tranche Three | Time-based cash settled units
Nature of Operations and Basis of Presentation [Line Items]
Vesting percentage						20%
Limited Partners Of Penelope Group Holdings, L.P | Penelope Group Holdings GP II
Nature of Operations and Basis of Presentation [Line Items]
Ownership interest, percentage			100%
Limited Partners Of Penelope Group Holdings, L.P | Penelope Group GP II
Nature of Operations and Basis of Presentation [Line Items]
Reorganization, equity interests contributed, percent			100%
Limited Partners Of Penelope Group Holdings, L.P | Penelope Group Holdings, L.P
Nature of Operations and Basis of Presentation [Line Items]
Reorganization, equity interests contributed, percent			100%
Olaplex Holdings and Olaplex Intermediate, Inc. | Penelope Group GP II
Nature of Operations and Basis of Presentation [Line Items]
Reorganization, equity interests contributed, percent			100%
Olaplex Holdings and Olaplex Intermediate, Inc. | Penelope Group Holdings, L.P
Nature of Operations and Basis of Presentation [Line Items]
Reorganization, equity interests contributed, percent			100%
Penelope Group Holdings
Nature of Operations and Basis of Presentation [Line Items]
Conversion of stock, shares converted			960,184
Vested Time-Based Options Converted Into Vested Options
Nature of Operations and Basis of Presentation [Line Items]
Options converted in period, number of shares			2,929,500
Vested Time-Based Options Converted Into Time-Based Options
Nature of Operations and Basis of Presentation [Line Items]
Options converted in period, number of shares			14,314,725
Vested Performance-Based Options Converted Into Vested Options
Nature of Operations and Basis of Presentation [Line Items]
Options converted in period, number of shares			4,315,275
Performance Based Options Converted Into Time-Based Option
Nature of Operations and Basis of Presentation [Line Items]
Options converted in period, number of shares			25,363,800
IPO
Nature of Operations and Basis of Presentation [Line Items]
Sale of stock, number of shares issued in transaction		73,700,000
Sale of stock, price per share (usd per share) | $ / shares		$ 21					$ 21
Sale of stock, consideration received on transaction | $		$ 1,466,446,000
Over-Allotment Option
Nature of Operations and Basis of Presentation [Line Items]
Sale of stock, number of shares issued in transaction	11,055,000
Sale of stock, price per share (usd per share) | $ / shares	$ 21
Sale of stock, consideration received on transaction | $	$ 219,967,000
Olaplex LLC.
Nature of Operations and Basis of Presentation [Line Items]
Business acquisition, percentage of voting interests acquired					100%
Business combination, consideration transferred | $					$ 1,381,582,000

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) $ in Thousands			3 Months Ended	12 Months Ended
	Oct. 04, 2021	Oct. 03, 2021	Sep. 30, 2021 USD ($)	Dec. 31, 2022 USD ($) segment	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Summary of Significant Accounting Policies [Line Items]
Cash and cash equivalents				$ 322,808	$ 186,388
Accounts receivable, allowance for credit losses				$ 19,198	8,231
Number of operating segments | segment				3
Number of reportable segments | segment				1
Unamortized debt issuance costs				$ 10,402	11,033
Deferred revenue				2,015	5,022
Contract with customer, liability, revenue recognized				5,022	2,314
Foreign exchange losses				2,025	1,027	$ 129
Stock issuance costs			$ 8,488
Contract with customer, liability, returns				(9,983)	0	0
Marketing and advertising expense				24,864	11,137	2,521
Cost of product (excluding amortization)				177,221	116,554	96,611
Tax receivable agreement, percent of savings for holders	85%	85%
Tax receivable agreement, percent of tax benefits retained by company	15%
Long-term debt				$ 222,100
Related party transaction, term of agreement				13 years
Shipping and Fulfillment
Summary of Significant Accounting Policies [Line Items]
Cost of product (excluding amortization)				$ 13,801	$ 12,183	$ 4,126
Revenue Benchmark | Customer Concentration Risk | One Customer
Summary of Significant Accounting Policies [Line Items]
Concentration risk, percentage				16%
Revenue Benchmark | Customer Concentration Risk | Two Customer
Summary of Significant Accounting Policies [Line Items]
Concentration risk, percentage					25%
Revenue Benchmark | Customer Concentration Risk | Three Customer
Summary of Significant Accounting Policies [Line Items]
Concentration risk, percentage						32%
Revenue Benchmark | Supplier Concentration Risk | One Vendor
Summary of Significant Accounting Policies [Line Items]
Concentration risk, percentage					77%
Accounts Receivable | Customer Concentration Risk | Three Customer
Summary of Significant Accounting Policies [Line Items]
Concentration risk, percentage				0%	11%
Inventory Benchmark | Supplier Concentration Risk | One Vendor
Summary of Significant Accounting Policies [Line Items]
Concentration risk, percentage				49%	59%
London Interbank Offered Rate (LIBOR)
Summary of Significant Accounting Policies [Line Items]
Tax receivable agreement, variable rate on basis spread	3%

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Finite Lived Intangible Assets (Details)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Brand name
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life	25 years	25 years
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life	20 years	20 years
Product formulations
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life	15 years	15 years
Software
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life	3 years	3 years

SUMMARY OF SIGNIFICANT ACCOUN_6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Useful Life of Property and Equipment (Details)	12 Months Ended
	Dec. 31, 2022
Molds | Minimum
Finite-Lived Intangible Assets [Line Items]
Property and equipment, useful life	3 years
Molds | Maximum
Finite-Lived Intangible Assets [Line Items]
Property and equipment, useful life	5 years
Equipment | Minimum
Finite-Lived Intangible Assets [Line Items]
Property and equipment, useful life	5 years
Equipment | Maximum
Finite-Lived Intangible Assets [Line Items]
Property and equipment, useful life	10 years
Furniture and fixtures | Minimum
Finite-Lived Intangible Assets [Line Items]
Property and equipment, useful life	3 years
Furniture and fixtures | Maximum
Finite-Lived Intangible Assets [Line Items]
Property and equipment, useful life	7 years

NET SALES - Disaggregation of R

NET SALES - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Disaggregation of Revenue [Line Items]
Net sales	$ 704,274	$ 598,365	$ 282,250
U.S.
Disaggregation of Revenue [Line Items]
Net sales	397,564	344,656	149,272
International
Disaggregation of Revenue [Line Items]
Net sales	306,710	253,709	132,978
Professional
Disaggregation of Revenue [Line Items]
Net sales	300,472	259,009	156,199
Specialty retail
Disaggregation of Revenue [Line Items]
Net sales	235,310	175,799	50,718
DTC
Disaggregation of Revenue [Line Items]
Net sales	$ 168,492	$ 163,557	$ 75,333

NET SALES - Narrative (Details)

NET SALES - Narrative (Details)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
United Kingdom | Geographic Concentration Risk | Revenue Benchmark
Disaggregation of Revenue [Line Items]
Concentration risk, percentage	10%	14%	17%

INVENTORY (Details)

INVENTORY (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Raw materials	$ 36,194	$ 20,852
Finished goods	108,231	77,547
Inventory	$ 144,425	$ 98,399

INVESTMENT IN NONCONSOLIDATED_3

INVESTMENT IN NONCONSOLIDATED ENTITY - Schedule of Investments in and Advances to Affiliates, Schedule of Investments (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Equity Method Investments and Joint Ventures [Abstract]
Capital contributions, net of distributions and impairments	$ 4,500	$ 4,500
Total investments in and advances to nonconsolidated affiliate	$ 4,500	$ 4,500

BUSINESS COMBINATIONS - Narrati

BUSINESS COMBINATIONS - Narrative (Details) - USD ($) $ in Thousands		12 Months Ended
	Jan. 08, 2020	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Business Acquisition [Line Items]
Payments to acquire business, net of cash acquired		$ 0	$ 0	$ 1,381,582
Acquisition costs		$ 0	$ 0	$ 16,499
Olaplex LLC.
Business Acquisition [Line Items]
Business acquisition, percentage of voting interests acquired	100%
Payments to acquire business, net of cash acquired	$ 1,381,582
Acquired finite-lived intangible assets, weighted average useful life	23 years 7 months 6 days
Olaplex LLC. | Brand name
Business Acquisition [Line Items]
Acquired finite-lived intangible assets, weighted average useful life	25 years
Olaplex LLC. | Product formulations
Business Acquisition [Line Items]
Acquired finite-lived intangible assets, weighted average useful life	15 years
Olaplex LLC. | Customer relationships
Business Acquisition [Line Items]
Acquired finite-lived intangible assets, weighted average useful life	20 years

BUSINESS COMBINATIONS - Schedul

BUSINESS COMBINATIONS - Schedule of Business Acquisitions (Details) - USD ($) $ in Thousands		12 Months Ended
	Jan. 08, 2020	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Business Acquisition [Line Items]
Goodwill		$ 168,300	$ 168,300
Net cash paid for acquisition		$ 0	$ 0	$ 1,381,582
Olaplex LLC.
Business Acquisition [Line Items]
Fair value of assets acquired	$ 1,216,259
Goodwill	168,300
Fair value of liabilities assumed	(2,977)
Net cash paid for acquisition	1,381,582
Net cash paid for acquisition	$ 1,381,582

BUSINESS COMBINATIONS - Allocat

BUSINESS COMBINATIONS - Allocation of Purchase Price (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Jan. 08, 2020
Identifiable intangible assets:
Goodwill	$ 168,300	$ 168,300
Olaplex LLC.
Net tangible assets (liabilities):
Inventory			$ 61,262
Accounts receivable and other current assets			7,595
Deferred tax assets			6,402
Liabilities			(2,977)
Net tangible assets			72,282
Identifiable intangible assets:
Total identifiable intangible assets			1,141,000
Goodwill			168,300
Net cash paid for acquisition			1,381,582
Olaplex LLC. | Brand name
Identifiable intangible assets:
Total identifiable intangible assets			952,000
Olaplex LLC. | Product formulations
Identifiable intangible assets:
Total identifiable intangible assets			136,000
Olaplex LLC. | Customer relationships
Identifiable intangible assets:
Total identifiable intangible assets			$ 53,000

GOODWILL AND INTANGIBLE ASSET_2

GOODWILL AND INTANGIBLE ASSETS - Schedule of Intangible Assets and Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 1,143,922	$ 1,141,890
Accumulated amortization	(148,894)	(98,546)
Net carrying amount	995,028	1,043,344
Goodwill	168,300	168,300
Gross Carrying Amount	1,312,222	1,310,190
Net carrying amount	$ 1,163,328	$ 1,211,644
Brand name
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life	25 years	25 years
Gross Carrying Amount	$ 952,000	$ 952,000
Accumulated amortization	(113,394)	(75,314)
Net carrying amount	$ 838,606	$ 876,686
Product formulations
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life	15 years	15 years
Gross Carrying Amount	$ 136,000	$ 136,000
Accumulated amortization	(26,998)	(17,932)
Net carrying amount	$ 109,002	$ 118,068
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life	20 years	20 years
Gross Carrying Amount	$ 53,000	$ 53,000
Accumulated amortization	(7,892)	(5,241)
Net carrying amount	$ 45,108	$ 47,759
Software
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life	3 years	3 years
Gross Carrying Amount	$ 2,922	$ 890
Accumulated amortization	(610)	(59)
Net carrying amount	$ 2,312	$ 831

GOODWILL AND INTANGIBLE ASSET_3

GOODWILL AND INTANGIBLE ASSETS - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Product formulations
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 7,500	$ 7,989	$ 6,052
Amortization of intangible assets, amount capitalized	1,566	1,078	2,813
Brand Name and Customer Relationships
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	40,730	40,730	39,825
Software
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	552	59	0
Other Intangible Assets
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 41,282	$ 40,789	$ 39,825

GOODWILL AND INTANGIBLE ASSET_4

GOODWILL AND INTANGIBLE ASSETS - Amortization of Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
2023	$ 50,770
2024	50,709
2025	50,221
2026	49,797
2027	49,797
Thereafter	743,733
Net carrying amount	$ 995,028	$ 1,043,344

ACCRUED EXPENSES AND OTHER CU_3

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Payables and Accruals [Abstract]
Accrued professional fees	$ 3,187	$ 2,132
Payroll liabilities	4,092	6,302
Accrued freight	3,283	636
Deferred revenue	2,015	5,022
Accrued interest	814	0
Other accrued expenses and current liabilities	3,716	3,240
Accrued expenses and other current liabilities	$ 17,107	$ 17,332

LONG-TERM DEBT - Schedule of Lo

LONG-TERM DEBT - Schedule of Long Term Debt Instruments (Details) - USD ($)	Dec. 31, 2022	Feb. 23, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Debt issuance costs	$ (8,854,000)
Total term loan debt	662,771,000		$ 758,202,000
Less: Current portion	(8,438,000)		(20,112,000)
Long-term debt	654,333,000		738,090,000
2020 Credit Agreement | Line of Credit | Secured Debt
Debt Instrument [Line Items]
Long-term debt, gross	0		769,235,000
Maximum borrowing capacity		$ 800,000,000
Long-term debt, term		6 years
2020 Credit Agreement | Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Long-term debt, gross	0		0
Maximum borrowing capacity		$ 51,000,000
Long-term debt, term		5 years
2022 Credit Agreement | Line of Credit | Secured Debt
Debt Instrument [Line Items]
Long-term debt, gross	671,625,000		0
Maximum borrowing capacity		$ 675,000,000
Long-term debt, term		7 years
2022 Credit Agreement | Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Long-term debt, gross	0		$ 0
Maximum borrowing capacity	150,000,000	$ 150,000,000
Unamortized deferred financing fees	$ (1,500,000)
Long-term debt, term		5 years

LONG-TERM DEBT - Narrative (Det

LONG-TERM DEBT - Narrative (Details) - USD ($)		12 Months Ended
	Feb. 23, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 18, 2020	Jan. 08, 2020
Debt Instrument [Line Items]
Interest expense, debt		$ 41,178,000	$ 61,148,000	$ 38,645,000
Long-term debt		662,771,000	758,202,000
Long-term debt, fair value		624,600,000
Loss on extinguishment of debt		18,803,000	0	0
Interest expense, net		41,178,000	61,148,000	$ 38,645,000
Interest Rate Cap | Designated as Hedging Instrument
Debt Instrument [Line Items]
Derivative, notional amount		400,000,000
Interest Rate Cap | Designated as Hedging Instrument | Accumulated Other Comprehensive Income | Fair Value, Inputs, Level 3
Debt Instrument [Line Items]
Unrealized gain (loss) on derivatives		(3,400,000)
Interest expense, net		$ 400,000
Term Loan Facility | Secured Debt
Debt Instrument [Line Items]
Debt instrument, interest rate, effective percentage		7.90%
2022 Credit Agreement | First Lien Leverage Ratio Greater Than 1.20
Debt Instrument [Line Items]
Debt instrument, covenant, leverage ratio	1.20
Line of credit facility, commitment fee percentage	0.50%
2022 Credit Agreement | First Lean Leverage Ratio Between 0.70 And 1.20
Debt Instrument [Line Items]
Line of credit facility, commitment fee percentage	0.375%
2022 Credit Agreement | First Lien Leverage Ratio Less Than Or Equal To 0.70
Debt Instrument [Line Items]
Debt instrument, covenant, leverage ratio	0.70
Line of credit facility, commitment fee percentage	0.25%
2022 Credit Agreement | Minimum | First Lean Leverage Ratio Between 0.70 And 1.20
Debt Instrument [Line Items]
Debt instrument, covenant, leverage ratio	0.70
2022 Credit Agreement | Maximum | First Lean Leverage Ratio Between 0.70 And 1.20
Debt Instrument [Line Items]
Debt instrument, covenant, leverage ratio	1.20
2022 Credit Agreement | Secured Debt
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 675,000,000
Long-term debt, term	7 years
Loss on extinguishment of debt	$ 18,800,000
Write off of deferred debt issuance cost	11,000,000
Payment for debt extinguishment or debt prepayment cost	$ 7,800,000
Payments of Derivative Issuance Costs		$ 11,900,000
Lender fees		1,700,000
Payment to Third Party Fees		10,200,000
Basis spread on variable rate, leverage based step-down	0.25%
Debt instrument, covenant, leverage ratio	1.20
Quarterly payment	$ 1,688,000
2022 Credit Agreement | Secured Debt | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Basis spread on variable rate, floor	0.50%
Basis spread on variable rate	3.75%
2022 Credit Agreement | Secured Debt | Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 150,000,000
Long-term debt, term	5 years
Basis spread on variable rate, leverage based step-down	0.25%
Debt instrument, covenant, leverage ratio	1.20
2022 Credit Agreement | Secured Debt | Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Basis spread on variable rate, floor	0%
Basis spread on variable rate	3.75%
2022 Credit Agreement | Secured Debt | Letter of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 25,000,000
2022 Credit Agreement | Secured Debt | Bridge Loan
Debt Instrument [Line Items]
Maximum borrowing capacity	25,000,000
2022 Credit Agreement | Line of Credit | Secured Debt
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 675,000,000
Long-term debt, term	7 years
2022 Credit Agreement | Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 150,000,000	$ 150,000,000
Long-term debt, term	5 years
2020 Credit Agreement | Secured Debt
Debt Instrument [Line Items]
Maximum borrowing capacity						$ 450,000,000
Original issue discount						10,000,000
Third party issue costs						527,000
2020 Credit Agreement | Secured Debt | Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity						50,000,000
2020 Credit Agreement | Secured Debt | Letter of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity						10,000,000
2020 Credit Agreement | Secured Debt | Bridge Loan
Debt Instrument [Line Items]
Maximum borrowing capacity						$ 5,000,000
2020 Credit Agreement | Line of Credit | Secured Debt
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 800,000,000
Long-term debt, term	6 years
2020 Credit Agreement | Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 51,000,000
Long-term debt, term	5 years
December 2020 Amendment | Secured Debt
Debt Instrument [Line Items]
Maximum borrowing capacity					$ 800,000,000
Maximum borrowing capacity, increase					350,000,000
Original issue discount					3,500,000
Third party issue costs					1,590,000
December 2020 Amendment | Secured Debt | Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity					51,000,000
Maximum borrowing capacity, increase					$ 1,000,000
Remaining borrowing capacity			$ 51,000,000

LONG-TERM DEBT - Schedule of De

LONG-TERM DEBT - Schedule of Derivative Assets at Fair Value (Details) - Interest Rate Cap - Designated as Hedging Instrument - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, notional amount	$ 400,000
Other Assets | Fair Value, Inputs, Level 3
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, notional amount	$ 5,042	$ 0

INCOME TAXES - Income Before In

INCOME TAXES - Income Before Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
U.S.	$ 305,192	$ 275,554	$ 47,221
Foreign	49	55	37
Income before provision for income taxes	$ 305,241	$ 275,609	$ 47,258

INCOME TAXES - Provision for In

INCOME TAXES - Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Current provision:
Federal	$ 44,063	$ 44,660	$ 11,314
State & Local	7,918	7,668	1,079
Foreign	9	11	15
Income tax provision	51,990	52,339	12,408
Deferred provision:
Federal	8,172	2,772	(4,204)
State & Local	1,007	(286)	(224)
Foreign	0	0	0
Deferred taxes	9,179	2,486	(4,428)
Total provision for income taxes	$ 61,169	$ 54,825	$ 7,980

INCOME TAXES - Schedule of Defe

INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Deferred Tax Assets:
Inventory adjustments	$ 1,289	$ 661
Capitalized transaction costs	2,667	3,016
Deferred revenue	424	1,061
Accrued expenses and other current liabilities	3,488	3,102
Capitalized research & development expense	1,273	0
Share-based compensation	1,380	397
Intangible assets	0	6,410
Total deferred tax assets	10,521	14,647
Deferred tax liabilities:
Goodwill	6,962	4,675
Other current assets	1,141	1,256
Fixed assets	769	372
Unrealized gain on derivatives	787	0
Intangible assets	2,484	0
Total deferred tax liabilities	12,143	6,303
Net deferred tax (liabilities) assets	$ (1,622)
Net deferred tax (liabilities) assets		$ 8,344

INCOME TAXES - Schedule of Effe

INCOME TAXES - Schedule of Effective Tax Rate (Details)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
U.S. federal statutory income tax rate	21%	21%	21%
Foreign derived intangible income deduction	(2.90%)	(3.00%)	(5.20%)
State and local income taxes, net of federal benefit	2.30%	2.60%	1.80%
Share-based compensation	(0.40%)	(1.20%)	0%
Other	0%	0.50%	(0.70%)
Effective income tax rate, percent	20%	19.90%	16.90%

INCOME TAXES - Narrative (Detai

INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Payments for tax receivable agreement			$ 4,200
Related party payable pursuant to tax receivable agreement	$ 222,100		$ 222,100
Related party transaction, term of agreement			13 years
Related Party payable pursuant to Tax Receivable Agreement	205,675	$ 225,122	$ 205,675	$ 232,900
Other income	3,100	3,600
Current portion of Related Party payable pursuant to Tax Receivable Agreement	$ 16,380	$ 4,157	$ 16,380

SHARE-BASED COMPENSATION - Narr

SHARE-BASED COMPENSATION - Narrative (Details) $ / shares in Units, $ in Thousands				2 Months Ended	12 Months Ended
	Feb. 23, 2022 USD ($) day $ / shares shares	Oct. 04, 2021 $ / shares shares	Oct. 03, 2021 shares	Feb. 23, 2022 USD ($) day $ / shares	Dec. 31, 2022 USD ($) shares	Dec. 31, 2021 USD ($) shares	Dec. 31, 2020 USD ($) shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options converted in period, number of shares			46,923,300
Base share price | $ / shares	$ 2.97			$ 2.97
Share-based compensation expense | $					$ 7,275	$ 3,963	$ 1,527
Outstanding options (shares)					44,797,369
Forfeited (shares)					7,152,342
Common stock, ratio					1
Selling, General and Administrative Expenses
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense | $	$ 1,632
IPO
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Sale of stock, price per share (usd per share) | $ / shares	$ 21	$ 21		$ 21
Vested Time-Based Options Converted Into Vested Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options converted in period, number of shares			2,929,500
Vested Time-Based Options Converted Into Time-Based Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options converted in period, number of shares			14,314,725
Performance Based Options Converted Into Time-Based Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options converted in period, number of shares			25,363,800
Vested Performance-Based Options Converted Into Vested Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options converted in period, number of shares			4,315,275
Time-Based Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Recognition period (years)			5 years
Options vested in period, fair value | $					$ 3,367	$ 1,483
Time-Based Options | Share-based Payment Arrangement, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage					20%
Time-Based Options | Share-based Payment Arrangement, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage					20%
Time-Based Options | Share-based Payment Arrangement, Tranche Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage					20%
Time-Based Options | Share-based Payment Arrangement, Tranche Four
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage					20%
Time-Based Options | Share-based Payment Arrangement, Tranche Five
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage					20%
Performance-based Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options converted in period, number of shares					0	(25,363,800)
Recognition period (years)			3 years
Granted (shares)					0	1,959,525
Outstanding options (shares)					3,773,876	3,979,461	28,732,050
Expected term (years)					0 years	4 months 24 days	4 years
Expected dividend yield (%)					0%	0%	0%
Performance-based Options | Share-based Payment Arrangement, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage					33.33%
Performance-based Options | Share-based Payment Arrangement, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage					33.33%
Performance-based Options | Share-based Payment Arrangement, Tranche Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage					33.33%
Stock Appreciation Rights (SARs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Threshold consecutive trading days | day	30			30
Share-based payment arrangement, cash used to settle award | $				$ 974
Time-based Stock Settled Stock Appreciation Rights
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options converted in period, number of shares	585,900
Expected term (years)					2 years 6 months
Expected dividend yield (%)					0%
Market and Performance-Based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options converted in period, number of shares	301,050
Expected term (years)					1 year 10 months 6 days
Expected dividend yield (%)					0%
Share-based Payment Arrangement, Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (shares)					92,292,025
Expected term (years)					10 years
Expected dividend yield (%)					0%
Performance-based Cash-Settled Units | Share-based Payment Arrangement, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage					33.33%
Performance-based Cash-Settled Units | Share-based Payment Arrangement, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage					33.33%
Performance-based Cash-Settled Units | Share-based Payment Arrangement, Tranche Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage					33.33%
Time-based cash settled units | Share-based Payment Arrangement, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage					20%
Time-based cash settled units | Share-based Payment Arrangement, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage					20%
Time-based cash settled units | Share-based Payment Arrangement, Tranche Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage					20%
Time-based cash settled units | Share-based Payment Arrangement, Tranche Four
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage					20%
Time-based cash settled units | Share-based Payment Arrangement, Tranche Five
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage					20%
2021 Omnibus Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant (shares)					45,421,197
Award vesting rights, percentage					3%
Outstanding options (shares)					2,072,510
Forfeited (shares)					4,701,862
2021 Omnibus Equity Incentive Plan | Time-Based Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Recognition period (years)					4 years
Granted (shares)		351,058
2021 Omnibus Equity Incentive Plan | Time-Based Options | Share-based Payment Arrangement, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage					25%
2021 Omnibus Equity Incentive Plan | Time-Based Options | Share-based Payment Arrangement, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage					25%
2021 Omnibus Equity Incentive Plan | Time-Based Options | Share-based Payment Arrangement, Tranche Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage					25%
2021 Omnibus Equity Incentive Plan | Time-Based Options | Share-based Payment Arrangement, Tranche Four
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage					25%
2021 Omnibus Equity Incentive Plan | Share-based Payment Arrangement, Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant (shares)					45,421,197
2020 Omnibus Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Converted performance to time-based (shares)			675,000
Outstanding options (shares)					42,724,859
Forfeited (shares)					2,450,480
2020 Omnibus Equity Incentive Plan | Cash Settled Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Deferred compensation arrangement with individual, reorganization transactions, conversion ratio			675

SHARE-BASED COMPENSATION - Valu

SHARE-BASED COMPENSATION - Valuation Assumptions (Details) - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Time-Based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (years)	2 years 6 months
Expected volatility (%)	30%
Risk-free interest rate (%)	1.68%
Expected dividend yield (%)	0%
Share price (in usd per share)	$ 17.06
Market and Performance-Based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (years)	1 year 10 months 6 days
Expected volatility (%)	30%
Risk-free interest rate (%)	1.58%
Expected dividend yield (%)	0%
Share price (in usd per share)	$ 17.06
Time-based options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (years)	6 years 3 months		6 years 6 months
Expected volatility (%)			30%
Expected dividend yield (%)	0%	0%	0%
Time-based options | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (years)		6 years 3 months
Expected volatility (%)	37%	25%
Risk-free interest rate (%)	158%	1.07%	0.37%
Time-based options | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (years)		7 years
Expected volatility (%)	42%	30%
Risk-free interest rate (%)	282%	1.62%	1.87%
Performance-based Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (years)	0 years	4 months 24 days	4 years
Expected volatility (%)	0%	30%	30%
Risk-free interest rate (%)	0%		187%
Expected dividend yield (%)	0%	0%	0%
Performance-based Options | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate (%)		1.48%
Performance-based Options | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate (%)		1.62%

SHARE-BASED COMPENSATION - Opti

SHARE-BASED COMPENSATION - Options, Cash Settle Units, and SARs Activity (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended	12 Months Ended
	Oct. 03, 2021	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Number of options
Converted cash settled units to SAR's (shares)	46,923,300
Options Exercised and Issued for Shares (shares)		(669,399)
Outstanding at end of period (shares)			44,797,369
Time-based
Cash-settled units
Outstanding at beginning of period			596,700	0
Granted (shares)			0	684,450
Cancelled/Forfeited (shares)			(10,800)	(87,750)
Converted cash settled units to SAR's			(585,900)
Outstanding at end of period		596,700	0	596,700
Performance-based
Cash-settled units
Outstanding at beginning of period			306,450	0
Granted (shares)			0	526,500
Cancelled/Forfeited (shares)			(5,400)	(60,750)
Converted cash settled units to SAR's			(301,050)
Options Exercised and Issued for Shares (shares)				(159,300)
Outstanding at end of period		306,450	0	306,450
Time-based options and stock-settled SARs
Number of options
Outstanding at beginning of period (shares)			42,687,518	15,997,500
Granted (shares)			1,030,000	3,077,783
Cancelled/Forfeited (shares)			(2,382,500)	(1,417,980)
Converted cash settled units to SAR's (shares)			886,950	25,363,800
Options Exercised and Issued for Shares (shares)			(984,095)	(333,585)
SARS Exercised (shares)			(107,658)
SARs Repurchased and Cancelled (shares)			(106,722)
Outstanding at end of period (shares)		42,687,518	41,023,493	42,687,518
Weighted Average Exercise Price Per Share
Outstanding at beginning of period (in usd per share)			$ 1.24	$ 0.88
Granted (in usd per share)			8.83	6.17
Cancelled/Forfeited (in usd per share)			1.19	2.10
Converted cash settled units to SAR's (shares)			2.97	0.92
Options Exercised and Issued for Shares (in usd per share)			1.26	1.49
SARS Exercised (in usd per share)			2.97
SARs Repurchased and Cancelled (in usd per share)			2.97
Outstanding at end of period (in usd per share)		$ 1.24	$ 1.46	$ 1.24
Aggregate Intrinsic Value
Aggregate intrinsic value, at beginning of period			$ 798,404	$ 26,780
Aggregate intrinsic value, exercised			5,280	8,138
Aggregate intrinsic value, SARS exercised			2,243
Aggregate intrinsic value, at end of period		$ 798,404	$ 162,748	$ 798,404
Cash-settled units
Vested and exercisable at end of period (in shares)		2,595,915	13,595,012	2,595,915
Vested and exercisable at end of period (in usd per share)		$ 0.80	$ 1.07	$ 0.80
Aggregate intrinsic value, vested and exercisable		$ 73,553	$ 58,178	$ 73,553
Performance-based Options
Number of options
Outstanding at beginning of period (shares)			3,979,461	28,732,050
Granted (shares)			0	1,959,525
Cancelled/Forfeited (shares)			0	(1,012,500)
Converted cash settled units to SAR's (shares)			0	(25,363,800)
Options Exercised and Issued for Shares (shares)			(205,585)	(335,814)
SARS Exercised (shares)			0
SARs Repurchased and Cancelled (shares)			0
Outstanding at end of period (shares)		3,979,461	3,773,876	3,979,461
Weighted Average Exercise Price Per Share
Outstanding at beginning of period (in usd per share)			$ 1.17	$ 0.81
Granted (in usd per share)			0	3.19
Cancelled/Forfeited (in usd per share)			0	0.97
Converted cash settled units to SAR's (shares)			0	0.92
Options Exercised and Issued for Shares (in usd per share)			3.12	1.91
SARS Exercised (in usd per share)			0
SARs Repurchased and Cancelled (in usd per share)			0
Outstanding at end of period (in usd per share)		$ 1.17	$ 1.06	$ 1.17
Aggregate Intrinsic Value
Aggregate intrinsic value, at beginning of period			$ 111,278	$ 50,183
Aggregate intrinsic value, exercised			2,274	8,686
Aggregate intrinsic value, at end of period		$ 111,278	$ 15,034	$ 111,278
Cash-settled units
Vested and exercisable at end of period (in shares)		3,979,461	3,773,876	3,979,461
Vested and exercisable at end of period (in usd per share)		$ 1.17	$ 1.06	$ 1.17
Aggregate intrinsic value, vested and exercisable		$ 111,278	$ 15,034	$ 111,278

SHARE-BASED COMPENSATION - Summ

SHARE-BASED COMPENSATION - Summary of Time-Based RSUs (Details) - Time-based restricted stock units	12 Months Ended
	Dec. 31, 2022 $ / shares shares
Number of Awards
Outstanding at beginning of period (in shares) | shares	0
Granted (in shares) | shares	83,964
Outstanding at end of period (in shares) | shares	83,964
Weighted Average Grant Date Fair Value Per Share
Outstanding, Weighted average grant date fair value at December 31, 2021 (in usd per share) | $ / shares	$ 0
Granted, Weighted average grant date fair value (in usd per share) | $ / shares	17.27
Outstanding, Weighted average grant date fair value at December 31, 2022 (in usd per share) | $ / shares	$ 17.27

SHARE-BASED COMPENSATION - Su_2

SHARE-BASED COMPENSATION - Summarizes Share-Based Compensation Expense and the Weighted Average Grant Date Fair Value of Options Granted (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 7,275	$ 3,963	$ 1,527
Unrecognized compensation costs of stock options	17,968	11,638	9,625
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation costs of restricted stock unit awards	$ 795	$ 0	$ 0
Weighted average remaining recognition period (in years)	6 months 18 days	0 years	0 years
Time-Based Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average remaining recognition period (in years)	2 years 5 months 23 days	3 years 3 months 21 days	4 years 4 months 20 days
Performance-based Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average remaining recognition period (in years)	0 years	0 years	3 years 6 months 10 days

EQUITY - Narrative (Details)

EQUITY - Narrative (Details)			3 Months Ended	12 Months Ended
	Oct. 03, 2021 shares	Sep. 29, 2021 $ / shares shares	Dec. 31, 2021 $ / shares shares	Dec. 31, 2022 $ / shares shares
Equity [Line Items]
Reorganization share issuance (Note 12) (shares)	648,124,642	648,124,642
Common stock, par value (in usd per share) | $ / shares		$ 0.001	$ 0.001	$ 0.001
Reorganization, conversion ratio				0.00148
Option exercises (shares)			669,399
Exercises of Stock Options and Stock-Settled Stock Appreciation Rights
Equity [Line Items]
Option exercises (shares)				1,297,339
Fund IX And Other Former Partners Of Penelope Group Holdings, L.P | Penelope Group Holdings, L.P
Equity [Line Items]
Reorganization, equity interests contributed, percent		100%
Fund IX | Penelope Group Holdings GP II
Equity [Line Items]
Reorganization, equity interests contributed, percent		100%

RELATED PARTY TRANSACTIONS - Na

RELATED PARTY TRANSACTIONS - Narrative (Details) - USD ($) $ in Thousands		12 Months Ended
	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Related Party Transaction [Line Items]
Payments for tax receivable agreement		$ 4,200
Affiliated Entity
Related Party Transaction [Line Items]
Expenses from transaction with related party		$ 367	$ 195	$ 25
Affiliated Entity | Advent Funds | Funds Received To Be Used For Charitable Donation
Related Party Transaction [Line Items]
Related party transaction, amounts of transaction			$ 300
Affiliated Entity | Advent Funds | Related Party Transactions to Funds Received To Be Used For Charitable Donations, Unpaid
Related Party Transaction [Line Items]
Related party transaction, amounts of transaction	$ 20

CONTINGENCIES - Narrative (Deta

CONTINGENCIES - Narrative (Details) $ in Thousands		12 Months Ended
	Feb. 09, 2023 plaintiff	Dec. 31, 2021 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Number of plaintiffs | plaintiff	28
Litigation settlement, expense | $		$ 14,250

NET INCOME PER SHARE (Details)

NET INCOME PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Numerator:
Net income	$ 244,072	$ 220,784	$ 39,278
Denominator:
Weighted average common shares outstanding: Basic (in shares)	649,092,846	648,166,472	635,386,219
Dilutive common equivalent shares from equity options and awards	41,913,000	41,757,320	1,433,756
Weighted average common shares outstanding: Diluted (in shares)	691,005,846	689,923,792	636,819,975
Net income per share:
Net income per share: Basic (in usd per share)	$ 0.38	$ 0.34	$ 0.06
Net income per share: Diluted (in usd per share)	$ 0.35	$ 0.32	$ 0.06

CONDENSED PARENT COMPANY FINA_3

CONDENSED PARENT COMPANY FINANCIAL INFORMATION - Balance Sheet (Details) - USD ($) $ / shares in Units, $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Oct. 03, 2021	Sep. 30, 2021	Sep. 29, 2021	Dec. 31, 2020	Dec. 31, 2019
Assets
Deferred tax assets	$ 0	$ 8,344
Total assets	1,697,675	1,560,422
Current Liabilities:
Accrued expenses and other current liabilities	17,107	17,332
Current portion of Related Party payable pursuant to Tax Receivable Agreement	16,380	4,157
Total current liabilities	55,088	72,912
Related Party payable pursuant to Tax Receivable Agreement	205,675	225,122		$ 232,900
Total liabilities	916,718	1,036,124
Stockholders’ equity (Notes 1 and 12):
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
Additional paid-in capital	312,875	302,866
Retained earnings	464,856	220,784
Total stockholders’ equity	780,957	524,298				$ 530,673	$ 0
Total liabilities and stockholders’ equity	$ 1,697,675	$ 1,560,422
Common stock, par value (in usd per share)	$ 0.001	$ 0.001			$ 0.001
Common stock, shares authorized (shares)	2,000,000,000	2,000,000,000
Common stock, shares, outstanding (shares)	650,091,380	648,794,041	648,124,642
Common stock, shares, issued (shares)	650,091,380	648,794,041
Parent Company
Assets
Investment in subsidiaries	$ 1,004,188	$ 761,076
Due from affiliates	3,041	0
Deferred tax assets	436	197
Total assets	1,007,665	761,273
Current Liabilities:
Accrued expenses and other current liabilities	4,653	6,011
Current portion of Related Party payable pursuant to Tax Receivable Agreement	16,380	4,157
Total current liabilities	21,033	10,168
Due to affiliates	0	1,685
Related Party payable pursuant to Tax Receivable Agreement	205,675	225,122	$ 232,893
Total liabilities	226,708	236,975
Stockholders’ equity (Notes 1 and 12):
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
Additional paid-in capital	536,235	461,456	$ 459,885
Retained earnings	244,073	62,194
Total stockholders’ equity	780,957	524,298
Total liabilities and stockholders’ equity	$ 1,007,665	$ 761,273
Common stock, shares, outstanding (shares)			648,124,642

CONDENSED PARENT COMPANY FINA_4

CONDENSED PARENT COMPANY FINANCIAL INFORMATION - Income Statement (Details) - USD ($) $ in Thousands	7 Months Ended	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Operating expenses:
Share-based compensation expense		$ 7,275	$ 3,963	$ 1,527
Total operating expenses		155,159	139,668	93,494
Other (expense) income, net
Tax receivable agreement liability adjustment		3,084	3,615	0
Total other (expense) income, net		(17,975)	2,603	(190)
Income before provision for income taxes		305,241	275,609	47,258
Income tax (expense) benefit		(61,169)	(54,825)	(7,980)
Net income		244,072	220,784	39,278
Comprehensive income		246,649	$ 220,784	$ 39,278
Parent Company
Operating expenses:
Selling, general, and administrative	$ 9,857	4,723
Share-based compensation expense	315	960
Total operating expenses	10,172	5,683
Other (expense) income, net
Tax receivable agreement liability adjustment	3,615	3,084
Equity in undistributed earnings	67,531	245,001
Total other (expense) income, net	71,146	248,085
Income before provision for income taxes	60,974	242,402
Income tax (expense) benefit	1,220	1,671
Net income	62,194	244,073
Comprehensive income	$ 62,194	$ 244,073

CONDENSED PARENT COMPANY FINA_5

CONDENSED PARENT COMPANY FINANCIAL INFORMATION - Cash Flow (Details) - USD ($) $ in Thousands	7 Months Ended	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash flows from operating activities:
Net income		$ 244,072	$ 220,784	$ 39,278
Adjustments to reconcile net income to net cash from operations provided by operating activities:
Tax receivable agreement liability adjustment		(3,084)	(3,615)	0
Share-based compensation expense		7,275	3,963	1,527
Changes in operating assets and liabilities, net of effects of acquisition (as applicable):
Accrued expenses and other current liabilities		(7,322)	19,613	8,837
Net cash provided by operating activities		255,324	200,029	128,975
Cash flows from financing activities:
Proceeds from exercise of stock options		1,876	1,138	0
Net cash (used in) provided by financing activities		(116,222)	(18,340)	1,263,598
Net increase in cash and cash equivalents		136,420	175,424	10,964
Cash and cash equivalents - beginning of period		186,388
Cash and cash equivalents - end of period	$ 186,388	322,808	186,388
Supplemental disclosure of noncash activities:
(Decrease) increase in Related Party payable pursuant to Tax Receivable Agreement		(3,084)	232,893	$ 0
Parent Company
Cash flows from operating activities:
Net income	62,194	244,073
Adjustments to reconcile net income to net cash from operations provided by operating activities:
Equity in undistributed earnings	(67,531)	(245,001)
Tax receivable agreement liability adjustment	(3,615)	(3,084)
Share-based compensation expense	315	960
Deferred income tax asset	(197)	(436)
Changes in operating assets and liabilities, net of effects of acquisition (as applicable):
Accrued expenses and other current liabilities	6,011	4,653
Net cash provided by operating activities	(2,823)	1,165
Cash flows from financing activities:
(Due to) Advances from affiliates		(3,041)
(Due to) Advances from affiliates	1,685
Proceeds from exercise of stock options	1,138	1,876
Net cash (used in) provided by financing activities	2,823	(1,165)
Net increase in cash and cash equivalents	0	0
Cash and cash equivalents - beginning of period		0
Cash and cash equivalents - end of period	0	0	$ 0
Supplemental disclosure of noncash activities:
(Decrease) increase in Related Party payable pursuant to Tax Receivable Agreement	$ 232,893	$ (7,224)

CONDENSED PARENT COMPANY FINA_6

CONDENSED PARENT COMPANY FINANCIAL INFORMATION - Narrative (Details) - USD ($) $ in Thousands	Oct. 04, 2021	Oct. 03, 2021	Dec. 31, 2022	Dec. 31, 2021	Sep. 30, 2021
Condensed Balance Sheet Statements, Captions [Line Items]
Common stock, shares, outstanding (shares)		648,124,642	650,091,380	648,794,041
Additional paid-in capital			$ 312,875	$ 302,866
Related Party payable pursuant to Tax Receivable Agreement			205,675	225,122	$ 232,900
Tax receivable agreement, percent of savings for holders	85%	85%
Long-term debt			222,100
Current portion of Related Party payable pursuant to Tax Receivable Agreement			16,380	4,157
Penelope Group Holdings
Condensed Balance Sheet Statements, Captions [Line Items]
Conversion of stock, shares converted		960,184
Parent Company
Condensed Balance Sheet Statements, Captions [Line Items]
Common stock, shares, outstanding (shares)		648,124,642
Additional paid-in capital		$ 459,885	536,235	461,456
Related Party payable pursuant to Tax Receivable Agreement		$ 232,893	205,675	225,122
Investment in subsidiaries			668,657	601,073
Tax receivable agreement, percent of savings for holders		85%
Long-term debt				229,300
Current portion of Related Party payable pursuant to Tax Receivable Agreement			$ 16,380	$ 4,157
Parent Company | Penelope Group Holdings
Condensed Balance Sheet Statements, Captions [Line Items]
Conversion of stock, shares converted		960,184

Uncategorized Items - olpx-2022

Label	Element	Value
Parent Company [Member]
Cash and Cash Equivalents, at Carrying Value	us-gaap_CashAndCashEquivalentsAtCarryingValue	$ 0