Olaplex (OLPX) 10-Q 2 May 24 2024 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2024	Apr. 26, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
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
Entity Address, Address Line One	432 Park Avenue South
Entity Address, Address Line Two	Third Floor
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10016
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 Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		661,762,749
Entity Central Index Key	0001868726
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false
Current Fiscal Year End Date	--12-31

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current Assets:
Cash and cash equivalents	$ 507,506	$ 466,400
Accounts receivable, net of allowances of $19,079 and $21,465	25,807	40,921
Inventory	94,643	95,922
Other current assets	11,541	9,953
Total current assets	639,497	613,196
Property and equipment, net	1,241	930
Intangible assets, net	935,917	947,714
Goodwill	168,300	168,300
Other assets	8,416	10,198
Total assets	1,753,371	1,740,338
Current Liabilities:
Accounts payable	17,222	7,073
Sales and income taxes payable	4,923	9,067
Accrued expenses and other current liabilities	18,156	20,576
Current portion of long-term debt	6,750	6,750
Current portion of Related Party payable pursuant to Tax Receivable Agreement	12,675	12,675
Total current liabilities	59,726	56,141
Long-term debt	647,695	649,023
Deferred tax liabilities	2,678	3,016
Related Party payable pursuant to Tax Receivable Agreement	185,496	185,496
Other liabilities	2,065	1,694
Total liabilities	897,660	895,370
Contingencies (Note 11)
Stockholders’ equity (Notes 1 and 9):
Common stock, $0.001 par value per share; 2,000,000,000 shares authorized, 661,283,677 and 660,731,935 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively	675	671
Preferred stock, $0.001 par value per share; 25,000,000 shares authorized and no shares issued and outstanding	0	0
Additional paid-in capital	319,843	316,489
Accumulated other comprehensive income	1,004	1,365
Retained earnings	534,189	526,443
Total stockholders’ equity	855,711	844,968
Total liabilities and stockholders’ equity	$ 1,753,371	$ 1,740,338

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Accounts receivable, allowance for credit losses	$ 19,079	$ 21,465
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)	661,283,677	660,731,935
Common stock, shares, outstanding (shares)	661,283,677	660,731,935
Preferred stock, par value (in usd 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

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Comprehensive Income [Abstract]
Net sales	$ 98,906	$ 113,787
Cost of sales:
Cost of product (excluding amortization)	25,376	31,235
Amortization of patented formulations	2,187	1,742
Total cost of sales	27,563	32,977
Gross profit	71,343	80,810
Operating expenses:
Selling, general, and administrative	40,437	34,924
Amortization of other intangible assets	11,289	10,323
Total operating expenses	51,726	45,247
Operating income	19,617	35,563
Interest expense	(14,504)	(13,918)
Interest income	6,203	3,375
Other (expense) income, net	(947)	242
Income before provision for income taxes	10,369	25,262
Income tax provision	2,623	4,298
Net income	$ 7,746	$ 20,964
Net income per share:
Basic (in usd per share)	$ 0.01	$ 0.03
Diluted (in usd per share)	$ 0.01	$ 0.03
Weighted average common shares outstanding:
Basic (in shares)	660,821,930	651,730,993
Diluted (in shares)	663,565,291	683,485,182
Other comprehensive loss:
Unrealized loss on derivatives, net of income tax effect	$ (361)	$ (557)
Total other comprehensive loss	(361)	(557)
Comprehensive income	$ 7,385	$ 20,407

CONDENSED CONSOLIDATED STATEM_2

CONDENSED 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, 2022		650,091,380
Beginning balance at Dec. 31, 2022	$ 780,957	$ 649	$ 312,875	$ 2,577	$ 464,856
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 20,964				20,964
Exercise of stock options (in shares)	3,659,267	3,659,267
Exercise of stock options	$ 3,299	$ 4	3,295
Share-based compensation expense	2,018		2,018
Exercise of stock-settled stock appreciation rights (in shares)		109,620
Exercise of stock-settled stock appreciation rights	326		326
Shares withheld and retired on exercise of stock-settled stock appreciation rights (in shares)		(83,501)
Shares withheld and retired on exercise of stock-settled stock appreciation rights	(390)		(390)
Unrealized loss on derivatives (net of taxes)	(557)			(557)
Ending balance, shares outstanding (in shares) at Mar. 31, 2023		653,776,766
Ending balance at Mar. 31, 2023	$ 806,617	$ 653	318,124	2,020	485,820
Beginning balance, shares outstanding (in shares) at Dec. 31, 2023	660,731,935	660,731,935
Beginning balance at Dec. 31, 2023	$ 844,968	$ 671	316,489	1,365	526,443
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 7,746				7,746
Issuance of shares upon exercise of stock options and vesting of restricted stock units (in shares)	551,742	551,742
Issuance of shares upon exercise of stock options and vesting of restricted stock units	$ 175	$ 4	171
Exercise of stock options (in shares)	225,566
Share-based compensation expense	$ 3,183		3,183
Unrealized loss on derivatives (net of taxes)	$ (361)			(361)
Ending balance, shares outstanding (in shares) at Mar. 31, 2024	661,283,677	661,283,677
Ending balance at Mar. 31, 2024	$ 855,711	$ 675	$ 319,843	$ 1,004	$ 534,189

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities:
Net income	$ 7,746	$ 20,964
Adjustments to reconcile net income to net cash from operations provided by operating activities:
Amortization of patent formulations	2,187	1,742
Amortization of other intangibles	11,289	10,323
Inventory write-off and disposal	863	2,610
Depreciation of fixed assets	149	116
Amortization of debt issuance costs	453	453
Deferred taxes	(231)	847
Share-based compensation expense	3,183	2,018
Other operating	265	265
Changes in operating assets and liabilities:
Accounts receivable, net	15,114	704
Inventory	552	10,407
Other current assets	1,507	(7,108)
Accounts payable	9,553	(340)
Accrued expenses, sales tax and income tax payable	(6,929)	5,116
Other assets and liabilities	(1,994)	(28)
Net cash provided by operating activities	43,707	48,089
Cash flows from investing activities:
Purchase of property and equipment	(451)	(107)
Purchase of software	(633)	(524)
Net cash used in investing activities	(1,084)	(631)
Cash flows from financing activities:
Proceeds from exercise of stock options	171	2,513
Payments related to shares withheld and retired to cover tax withholding obligation for SARs	0	(64)
Principal payments of Term Loan	(1,688)	(3,375)
Net cash used in financing activities	(1,517)	(926)
Net increase in cash and cash equivalents	41,106	46,532
Cash and cash equivalents - beginning of period	466,400	322,808
Cash and cash equivalents - end of period	507,506	369,340
Supplemental disclosure of cash flow information:
Cash paid for income taxes	4,998	91
Cash paid during the year for interest	14,990	13,853
Supplemental disclosure of noncash activities:
Assets acquired under operating lease	742	0
Increase in related party payable related to the tax receivable agreement	587	0
Property and equipment non cash transaction	$ 9	$ 0

NATURE OF OPERATIONS AND BASIS

NATURE OF OPERATIONS AND BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2024
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”) is a Delaware corporation that was incorporated on June 8, 2021. Olaplex Holdings is organized as a holding company and operates indirectly through Olaplex, Inc., its wholly owned indirect subsidiary, 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 line of hair care products developed to address three key uses: treatment, maintenance and protection. Basis of Presentation The accompanying unaudited interim Condensed Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X promulgated by the U.S. Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited interim Condensed Consolidated Financial Statements furnished reflect all adjustments which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. The results of operations of any interim period are not necessarily indicative of the results of operations to be expected for the full fiscal year. The unaudited interim Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and accompanying footnotes included in the Company’s 2023 Form 10-K.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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, allowance for promotions, 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 the Company’s reporting unit; the fair value of the Company’s interest rate cap; useful lives of the Company’s tangible and intangible assets; estimated income tax expense and tax payments; future payment obligations under the Tax Receivable Agreement; the net realizable value of, and demand for the Company’s inventory. Actual results and outcomes may differ from management’s estimates and assumptions due to risks and uncertainties. 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 Condensed Consolidated Balance Sheets, which may differ from fair value. The Company’s interest rate cap is recorded at its Level 2 fair value in the Condensed Consolidated Balance Sheets. Accounting Policies There have been no material changes in significant accounting policies as described in the Company’s Consolidated Financial Statements for the year ended December 31, 2023. Constructive Retirement of Common Stock Repurchases When the Company's common stock is retired or purchased for constructive retirement for net share settlement of stock options, any excess purchase price over par value is allocated between additional paid-in-capital, to the extent that previous net gains from sales or retirements are included therein, and the remainder to retained earnings. Tax Receivable Agreement In connection with the Reorganization Transactions, the Company entered into the Tax Receivable Agreement under which the Company will be required to pay to the Pre-IPO Stockholders 85% of the federal, state or local tax cash savings that the Company actually realizes on its taxable income following the IPO, as a result of the amortization of intangible assets and capitalized transaction costs that existed as of the date of the IPO. Under the Tax Receivable Agreement, generally the Company will retain the benefit of the remaining 15% of the applicable tax savings. The Tax Receivable Agreement liability is calculated based on current tax laws and the assumption that the Company and its subsidiaries will earn sufficient taxable income to realize the full tax benefits subject to the Tax Receivable Agreement. Updates to the Company’s blended state tax rate, allocation of U.S. versus foreign sourced income and changes in tax rules on the amortization and depreciation of assets may significantly impact the established liability and changes to that established liability would be recorded to other (expense) income in the period the Company made the determination regarding the applicable change. The Company expects that future payments under the Tax Receivable Agreement relating to the Pre-IPO Tax Assets could aggregate to $198.2 million over the 11-year remaining period under the Tax Receivable Agreement. Payments under the Tax Receivable Agreement, which began in the year ended December 31, 2022, are not conditioned upon the parties’ continued ownership of equity in the Company. Recent Accounting Pronouncements Not Yet Adopted In November 2023, the FASB issued Accounting Standards Update No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The new guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and early adoption is permitted. The guidance is to be applied retrospectively to all prior periods presented in the financial statements. Upon transition, the segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption. The Company is currently evaluating the potential impact of adopting this new guidance on our consolidated financial statements and related disclosures. In December 2023, the FASB issued Accounting Standards Update No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign) and (3) income tax expense or benefit from continuing operations (separated by federal, state and foreign). This update also requires entities to disclose their income tax payments to international, federal, state and local jurisdictions, among other changes. The new guidance is effective for annual periods beginning after December 15, 2024. The Company is currently evaluating the potential impact of adopting this new guidance on its consolidated financial statements and related disclosures. In March 2024, the SEC adopted the final rule under SEC Release No. 33-11275, The Enhancement and Standardization of Climate-Related Disclosures for Investors. This rule will require registrants to disclose certain climate-related information in annual reports. On April 4, 2024, the SEC determined to voluntarily stay the final rules pending completion of a judicial review of certain legal challenges. The Company is currently evaluating the final rule to determine its impact on the Company's disclosures. Reclassifications Certain amounts presented have been reclassified within the “Condensed Consolidated Statements of Operations and Comprehensive Income” to conform with the current period presentation, including a prior year reclassification from Interest expense, net to Interest income for three months ended March 31, 2023. The reclassifications occurred as a result of an increase in the significance of the current year amount. There was no change to the Condensed Consolidated Balance Sheet, Statements of Operations and Comprehensive Income, and Statements of Cash Flows from the reclassification.

NET SALES

NET SALES	3 Months Ended
	Mar. 31, 2024
Revenue from Contract with Customer [Abstract]
NET SALES	NET SALES The Company distributes products in the U.S. and internationally through professional distributors in salons, 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 Three Months Ended March 31, 2024 March 31, 2023 Net sales by Channel: Professional $ 38,746 $ 48,397 Specialty retail 34,432 34,859 DTC 25,728 30,531 Total net sales $ 98,906 $ 113,787 Net sales by major geographic region is based on the shipping address on record for the customer purchasing the Company’s products. During the three months ended March 31, 2024 and March 31, 2023, the Company’s net sales to consumers in the United States and International regions were as follows: For the Three Months Ended March 31, 2024 March 31, 2023 Net sales by Geography: United States $ 48,845 $ 47,662 International 50,061 66,125 Total net sales $ 98,906 $ 113,787 U.S. net sales for the three months ended March 31, 2024 and March 31, 2023 included approximately $1.7 million and $2.2 million, respectively, of net sales to customers with U.S. shipping addresses who the Company expects will ultimately sell such products in international jurisdictions. No international country exceeded 10% of total net sales for the three months ended March 31, 2024 and March 31, 2023. Despite our customers’ geographic location, the majority of net sales are transacted in U.S. Dollars, the Company’s functional and reporting currency.

INVENTORY

INVENTORY	3 Months Ended
	Mar. 31, 2024
Inventory Disclosure [Abstract]
INVENTORY	INVENTORY Inventory as of March 31, 2024 and December 31, 2023 consisted of the following: March 31, 2024 December 31, 2023 Raw materials $ 30,044 $ 30,306 Finished goods 64,599 65,616 Inventory $ 94,643 $ 95,922

FAIR VALUE MEASUREMENT

FAIR VALUE MEASUREMENT	3 Months Ended
	Mar. 31, 2024
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENT	FAIR VALUE MEASUREMENT Fair value measurements are established utilizing a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets; Level 2, defined as 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; and Level 3, defined as unobservable inputs that are not corroborated by market data. The Company’s Level 1 assets consist of its marketable securities. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. 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. The interest rate cap was designated as a cash flow hedge. 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 interest rate cap asset is measured at fair value on a recurring basis. Although the Company has determined that the majority of the inputs used to value the interest rate cap fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with the interest rate cap utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparties. The Company has determined that the impact of the credit valuation adjustments made to the interest rate cap was not significant to the overall valuation. As a result, the interest rate cap as of March 31, 2024 and December 31, 2023 was classified as Level 2 of the fair value hierarchy. The Company’s assets measured at fair value on a recurring basis and subject to fair value disclosure requirements at March 31, 2024 and December 31, 2023 were as follows: Fair Value Measurements at Reporting Date Using Total Quoted Prices in Active Markets Significant Significant Assets: Interest rate cap at March 31, 2024 $ 1,661 $ — $ 1,661 $ — Interest rate cap at December 31, 2023 $ 2,391 $ — $ 2,391 $ —

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS	3 Months Ended
	Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND INTANGIBLE ASSETS	GOODWILL AND INTANGIBLE ASSETS Goodwill and intangible assets are comprised of the following: March 31, 2024 Estimated Gross Carrying Accumulated Net Carrying Amount Brand name 25 years $ 952,000 $ (160,994) $ 791,006 Product formulations 15 years 136,500 (38,357) 98,143 Customer relationships 20 years 53,000 (11,204) 41,796 Software 3-15 years 7,427 (2,455) 4,972 Total finite-lived intangibles 1,148,927 (213,010) 935,917 Goodwill Indefinite 168,300 — 168,300 Total goodwill and other intangibles $ 1,317,227 $ (213,010) $ 1,104,217 December 31, 2023 Estimated Gross Accumulated Net Carrying Amount Brand name 25 years $ 952,000 $ (151,475) $ 800,525 Product formulations 15 years 136,500 (36,082) 100,418 Customer relationships 20 years 53,000 (10,541) 42,459 Software 3 years 5,660 (1,348) 4,312 Total finite-lived intangibles 1,147,160 (199,446) 947,714 Goodwill Indefinite 168,300 — 168,300 Total goodwill and other intangibles $ 1,315,460 $ (199,446) $ 1,116,014 The amortization of the Company’s brand name, customer relationships and software is recorded to Amortization of other intangible assets in the Condensed Consolidated Statements of Operations and Comprehensive Income. A portion of Amortization of patented formulations is capitalized to Inventory in the Condensed Consolidated Balance Sheets, and the remainder is recorded to Amortization of patented formulations in the Condensed Consolidated Statements of Operations and Comprehensive Income. Amortization of the Company’s definite-lived intangible assets for the three months ended March 31, 2024 and March 31, 2023 was as follows: For the Three Months Ended March 31, 2024 March 31, 2023 Amortization of patented formulations $ 2,187 $ 1,742 Amortization expense, brand name and customer relationships 10,182 10,182 Amortization expense, software 1,107 141 Amortization of other intangible assets 11,289 10,323 Amortization of patented formulations capitalized to inventory $ 88 $ 525

ACCRUED EXPENSES AND OTHER CURR

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	3 Months Ended
	Mar. 31, 2024
Payables and Accruals [Abstract]
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses as of March 31, 2024 and December 31, 2023 consisted of the following: March 31, 2024 December 31, 2023 Accrued professional fees $ 4,102 $ 4,133 Payroll liabilities 4,162 4,639 Accrued freight 1,128 1,229 Accrued advertising 3,323 6,348 Deferred revenue 1,067 1,051 Accrued interest 588 431 Accrued inventory purchase 640 — Other accrued expenses and current liabilities 3,146 2,745 Accrued expenses and other current liabilities $ 18,156 $ 20,576

LONG-TERM DEBT

LONG-TERM DEBT	3 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
LONG-TERM DEBT	LONG-TERM DEBT The Company’s Long-Term Debt as of March 31, 2024 and December 31, 2023 consisted of the following: March 31, 2024 December 31, 2023 Long-term debt Credit Agreement, dated as of February 23, 2022 (the “2022 Credit Agreement”) $675 Million 7-Year Senior Secured Term Loan Facility (the “2022 Term Loan Facility”) $ 661,500 $ 663,188 $150 Million 5-Year Senior Secured Revolving Credit Facility (the “2022 Revolver”) (1) — — Debt issuance costs (7,055) (7,415) Total term loan debt 654,445 655,773 Less: Current portion (6,750) (6,750) Long-term debt, net of debt issuance costs and current portion $ 647,695 $ 649,023 (1) As of March 31, 2024 and December 31, 2023, the Company did not have outstanding amounts drawn on the 2022 Revolver, including letters of credit and swingline loan sub-facilities. As of March 31, 2024, the Company had $150 million of available borrowing capacity under the 2022 Revolver. The interest rate on outstanding debt under the 2022 Term Loan Facility was 8.9% per annum as of March 31, 2024. The interest rates for all facilities under the 2022 Credit Agreement are calculated based upon the Company’s election among (a) adjusted term secured overnight financing rate (“SOFR”) (subject to a 0.50% floor with respect to the 2022 Term Loan Facility, and a 0% floor with respect to the 2022 Revolver) plus an additional interest rate spread, (b) with respect to a borrowing in Euros under the 2022 Revolver, a euro interbank offered rate (subject to a 0% floor) plus an additional interest rate spread, or (c) an “Alternate Base Rate” (as defined in the 2022 Credit Agreement) (subject to a 1.50% floor with respect to the 2022 Term Loan Facility, and a 1.00% floor with respect to the 2022 Revolver) plus an additional interest rate spread. Interest expense, net of interest income and inclusive of debt amortization, for the three months ended March 31, 2024 and March 31, 2023 was $8.3 million and $10.5 million, respectively. The fair value of the Company’s long-term debt is based on the market value of its 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 March 31, 2024, the carrying amount of the Company’s long-term debt under the 2022 Credit Agreement was $654.4 million, and the fair value of the Company’s long-term debt was $613.5 million. As of December 31, 2023, the carrying amount of the Company’s long-term debt under the 2022 Credit Agreement was $655.8 million, and the fair value of the Company’s long-term debt was $615.1 million. The 2022 Credit Agreement includes, among other things, customary negative and affirmative covenants (including reporting, financial and maintenance 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. The Company was in compliance with these affirmative and negative covenants on March 31, 2024 and December 31, 2023. 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. 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 the interest rate cap in connection with the 2022 Term Loan Facility. The interest rate cap expires on July 31, 2024. Fair value and the related classification of the Company’s interest rate cap is discussed in “Note 5 - Fair Value Measurement”. During the three months ended March 31, 2024, the Company’s interest rate cap generated an unrecognized pre-tax loss of $0.5 million recorded in Accumulated other comprehensive income on the Company’s Condensed Consolidated Balance Sheets. During the same period, the Company also recognized a $1.4 million reduction in interest expense related to the Company’s receipt of funds as a result of an interest rate cap settlement with the Company’s counterparty, partially offset by $0.3 million of interest expense related to amortization of the interest rate cap premium paid by the Company in connection with the interest rate cap. During the three months ended March 31, 2023, the Company’s interest rate cap generated an unrecognized pre-tax loss of $0.7 million recorded in Accumulated other comprehensive income on the Company’s Condensed Consolidated Balance Sheets. The Company also recognized a $0.6 million reduction in interest expense related the Company’s receipt of funds as a result of an interest rate cap settlement with the Company’s counterparty, partially offset by $0.3 million related to amortization of the interest rate cap premium paid by the Company in connection with the interest rate cap. 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, net 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 and liabilities within cash flows from operating activities on the Company’s Condensed 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.

EQUITY

EQUITY	3 Months Ended
	Mar. 31, 2024
Equity [Abstract]
EQUITY	EQUITY During the three months ended March 31, 2024, the Company issued 551,742 shares of its common stock, of which 225,566 shares were issued as a result of stock options exercised and 326,176 shares were issued upon vesting of restricted stock units. During the three months ended March 31, 2023, the Company issued 109,620 shares of its common stock upon vesting and settlement of net stock-settled SARs. The Company withheld 83,501 of such shares of its common stock for the net settlement payment of exercise price and taxes related to such SARs, which were accounted for as a share retirement.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2024
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONS In August 2023, the Company entered into an agreement with Pacvue Corporation, an e-commerce advertising and software company, in which certain investment funds affiliated with Advent International L.P., the holder of a majority of the Company’s common stock (collectively the “Advent Funds”), hold a greater than 10% equity interest. During the three months ended March 31, 2024, the Company paid Pacvue Corporation $172. No payments were made to Pacvue Corporation for the three months ended March 31, 2023. Tax Receivable Agreement

CONTINGENCIES

CONTINGENCIES	3 Months Ended
	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
CONTINGENCIES	CONTINGENCIES From 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 the Company as they are subject to uncertainties. Accordingly, any settlement or resolution in these legal actions may occur and affect the Company’s 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. A consolidated complaint was filed on April 28, 2023, which names as additional defendants the underwriters for the Company’s IPO and various stockholders that sold shares of common stock of the Company in the IPO. 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, 12, 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 defendants moved to dismiss the consolidated complaint on July 19, 2023. The court held a hearing on the defendants’ motions to dismiss on October 16, 2023, and a decision has yet to be issued. The underwriter defendants have notified the Company of their intent to seek indemnification from the Company pursuant to the IPO underwriting agreement regarding the claims asserted in this action. The Company intends to vigorously defend the pending lawsuit. On November 15, 2023, a purported derivative action was filed against the Company, Advent International Corporation, and certain of the Company’s current and former officers and directors in the United States District Court for the Central District of California, captioned Ciuffo v. Dagousset, et al ., No. 2:23-cv-09712-SVW-SK. This action is premised on allegations similar to those asserted in the Lilien federal securities litigation. On February 1, 2024, the parties filed a joint stipulation to stay the purported derivative action pending a decision on the motions to dismiss filed in the Lilien federal securities action. On March 22, 2024, a second purported derivative action was filed against the Company, Advent International Corporation, and certain of the Company’s current and former officers and directors in the United States District Court for the Central District of California, captioned Hutchinson v. Advent International Corporation, et al ., No. 2:24-cv-02364. This action is premised on allegations similar to those asserted in the Lilien federal securities litigation and in the Ciuffo federal derivative action. On April 19, 2024, the parties in both purported derivative actions filed a joint stipulation to consolidate the two derivative actions and to stay proceedings in the consolidated case. On February 9, 2023, twenty-eight plaintiffs filed Albahae, et al. v. Olaplex Holdings, Inc., et al., No. 2:23-cv-00982, 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, 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. On March 2, 2023, the plaintiffs amended the complaint to include seventy-three additional plaintiffs. 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. On April 17, 2023, the Company moved to dismiss and to sever the plaintiffs’ claims. On July 11, 2023, the Court granted the Company’s motion to sever and dismissed all but the first named plaintiff. The Court also dismissed the operative complaint with leave to re-file on the grounds that it now contained allegations that were not relevant to the claims of the one, remaining plaintiff. On July 24, 2023, the remaining plaintiff filed a notice, voluntarily dismissing her claims without prejudice. As of the date of issuance of these condensed consolidated financial statements, none of the plaintiffs have re-filed their claims. Any potential loss associated with these pending legal proceedings is not probable or reasonably estimable at this time. As of March 31, 2024 and December 31, 2023, the Company was 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	3 Months Ended
	Mar. 31, 2024
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: Three Months Ended March 31, March 31, Numerator: Net income $ 7,746 $ 20,964 Denominator: Weighted average common shares outstanding – basic 660,821,930 651,730,993 Dilutive common equivalent shares from common stock equivalents 2,743,361 31,754,189 Weighted average common shares outstanding – diluted 663,565,291 683,485,182 Net income per share: Basic $ 0.01 $ 0.03 Diluted $ 0.01 $ 0.03 Options to purchase 8,455,797 and 1,430,590 shares of the Company’s common stock for the three months ended March 31, 2024 and March 31, 2023, respectively, were not included in the computation of diluted net income per share because the exercise prices of these options were greater than the average market price per share of the Company’s common stock for the applicable period, and therefore would have been anti-dilutive.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net income	$ 7,746	$ 20,964

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited interim Condensed Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X promulgated by the U.S. Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited interim Condensed Consolidated Financial Statements furnished reflect all adjustments which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. The results of operations of any interim period are not necessarily indicative of the results of operations to be expected for the full fiscal year. The unaudited interim Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and accompanying footnotes included in the Company’s 2023 Form 10-K.
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, allowance for promotions, 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 the Company’s reporting unit; the fair value of the Company’s interest rate cap; useful lives of the Company’s tangible and intangible assets; estimated income tax expense and tax payments; future payment obligations under the Tax Receivable Agreement; the net realizable value of, and demand for the Company’s inventory. Actual results and outcomes may differ from management’s estimates and assumptions due to risks and uncertainties.
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 Condensed Consolidated Balance Sheets, which may differ from fair value. The Company’s interest rate cap is recorded at its Level 2 fair value in the Condensed Consolidated Balance Sheets.
Constructive Retirement of Common Stock Repurchases	Constructive Retirement of Common Stock Repurchases When the Company's common stock is retired or purchased for constructive retirement for net share settlement of stock options, any excess purchase price over par value is allocated between additional paid-in-capital, to the extent that previous net gains from sales or retirements are included therein, and the remainder to retained earnings.
Tax Receivable Agreement	Tax Receivable Agreement In connection with the Reorganization Transactions, the Company entered into the Tax Receivable Agreement under which the Company will be required to pay to the Pre-IPO Stockholders 85% of the federal, state or local tax cash savings that the Company actually realizes on its taxable income following the IPO, as a result of the amortization of intangible assets and capitalized transaction costs that existed as of the date of the IPO. Under the Tax Receivable Agreement, generally the Company will retain the benefit of the remaining 15% of the applicable tax savings. The Tax Receivable Agreement liability is calculated based on current tax laws and the assumption that the Company and its subsidiaries will earn sufficient taxable income to realize the full tax benefits subject to the Tax Receivable Agreement. Updates to the Company’s blended state tax rate, allocation of U.S. versus foreign sourced income and changes in tax rules on the amortization and depreciation of assets may significantly impact the established liability and changes to that established liability would be recorded to other (expense) income in the period the Company made the determination regarding the applicable change. The Company expects that future payments under the Tax Receivable Agreement relating to the Pre-IPO Tax Assets could aggregate to $198.2 million over the 11-year remaining period under the Tax Receivable Agreement. Payments under the Tax Receivable Agreement, which began in the year ended December 31, 2022, are not conditioned upon the parties’ continued ownership of equity in the Company.
Recent Accounting Pronouncements Not Yet Adopted	Recent Accounting Pronouncements Not Yet Adopted In November 2023, the FASB issued Accounting Standards Update No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The new guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and early adoption is permitted. The guidance is to be applied retrospectively to all prior periods presented in the financial statements. Upon transition, the segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption. The Company is currently evaluating the potential impact of adopting this new guidance on our consolidated financial statements and related disclosures. In December 2023, the FASB issued Accounting Standards Update No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign) and (3) income tax expense or benefit from continuing operations (separated by federal, state and foreign). This update also requires entities to disclose their income tax payments to international, federal, state and local jurisdictions, among other changes. The new guidance is effective for annual periods beginning after December 15, 2024. The Company is currently evaluating the potential impact of adopting this new guidance on its consolidated financial statements and related disclosures. In March 2024, the SEC adopted the final rule under SEC Release No. 33-11275, The Enhancement and Standardization of Climate-Related Disclosures for Investors. This rule will require registrants to disclose certain climate-related information in annual reports. On April 4, 2024, the SEC determined to voluntarily stay the final rules pending completion of a judicial review of certain legal challenges. The Company is currently evaluating the final rule to determine its impact on the Company's disclosures.
Reclassifications	Reclassifications Certain amounts presented have been reclassified within the “Condensed Consolidated Statements of Operations and Comprehensive Income” to conform with the current period presentation, including a prior year reclassification from Interest expense, net to Interest income for three months ended March 31, 2023. The reclassifications occurred as a result of an increase in the significance of the current year amount. There was no change to the Condensed Consolidated Balance Sheet, Statements of Operations and Comprehensive Income, and Statements of Cash Flows from the reclassification.

NET SALES (Tables)

NET SALES (Tables)	3 Months Ended
	Mar. 31, 2024
Revenue from Contract with Customer [Abstract]
Schedule of Disaggregation of Revenue	As such, the Company’s three business channels consist of professional, specialty retail and DTC as follows: For the Three Months Ended March 31, 2024 March 31, 2023 Net sales by Channel: Professional $ 38,746 $ 48,397 Specialty retail 34,432 34,859 DTC 25,728 30,531 Total net sales $ 98,906 $ 113,787 For the Three Months Ended March 31, 2024 March 31, 2023 Net sales by Geography: United States $ 48,845 $ 47,662 International 50,061 66,125 Total net sales $ 98,906 $ 113,787

INVENTORY (Tables)

INVENTORY (Tables)	3 Months Ended
	Mar. 31, 2024
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventory as of March 31, 2024 and December 31, 2023 consisted of the following: March 31, 2024 December 31, 2023 Raw materials $ 30,044 $ 30,306 Finished goods 64,599 65,616 Inventory $ 94,643 $ 95,922

FAIR VALUE MEASUREMENT (Tables)

FAIR VALUE MEASUREMENT (Tables)	3 Months Ended
	Mar. 31, 2024
Fair Value Disclosures [Abstract]
Schedule of Assets Measured at Fair Value on a Recurring Basis	The Company’s assets measured at fair value on a recurring basis and subject to fair value disclosure requirements at March 31, 2024 and December 31, 2023 were as follows: Fair Value Measurements at Reporting Date Using Total Quoted Prices in Active Markets Significant Significant Assets: Interest rate cap at March 31, 2024 $ 1,661 $ — $ 1,661 $ — Interest rate cap at December 31, 2023 $ 2,391 $ — $ 2,391 $ —

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS (Tables)	3 Months Ended
	Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets and Goodwill	Goodwill and intangible assets are comprised of the following: March 31, 2024 Estimated Gross Carrying Accumulated Net Carrying Amount Brand name 25 years $ 952,000 $ (160,994) $ 791,006 Product formulations 15 years 136,500 (38,357) 98,143 Customer relationships 20 years 53,000 (11,204) 41,796 Software 3-15 years 7,427 (2,455) 4,972 Total finite-lived intangibles 1,148,927 (213,010) 935,917 Goodwill Indefinite 168,300 — 168,300 Total goodwill and other intangibles $ 1,317,227 $ (213,010) $ 1,104,217 December 31, 2023 Estimated Gross Accumulated Net Carrying Amount Brand name 25 years $ 952,000 $ (151,475) $ 800,525 Product formulations 15 years 136,500 (36,082) 100,418 Customer relationships 20 years 53,000 (10,541) 42,459 Software 3 years 5,660 (1,348) 4,312 Total finite-lived intangibles 1,147,160 (199,446) 947,714 Goodwill Indefinite 168,300 — 168,300 Total goodwill and other intangibles $ 1,315,460 $ (199,446) $ 1,116,014
Schedule of Finite-Lived Intangible Assets Amortization Expense	Amortization of the Company’s definite-lived intangible assets for the three months ended March 31, 2024 and March 31, 2023 was as follows: For the Three Months Ended March 31, 2024 March 31, 2023 Amortization of patented formulations $ 2,187 $ 1,742 Amortization expense, brand name and customer relationships 10,182 10,182 Amortization expense, software 1,107 141 Amortization of other intangible assets 11,289 10,323 Amortization of patented formulations capitalized to inventory $ 88 $ 525

ACCRUED EXPENSES AND OTHER CU_2

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)	3 Months Ended
	Mar. 31, 2024
Payables and Accruals [Abstract]
Schedule of Accrued Expenses and Other Current Liabilities	Accrued expenses as of March 31, 2024 and December 31, 2023 consisted of the following: March 31, 2024 December 31, 2023 Accrued professional fees $ 4,102 $ 4,133 Payroll liabilities 4,162 4,639 Accrued freight 1,128 1,229 Accrued advertising 3,323 6,348 Deferred revenue 1,067 1,051 Accrued interest 588 431 Accrued inventory purchase 640 — Other accrued expenses and current liabilities 3,146 2,745 Accrued expenses and other current liabilities $ 18,156 $ 20,576

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)	3 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments	The Company’s Long-Term Debt as of March 31, 2024 and December 31, 2023 consisted of the following: March 31, 2024 December 31, 2023 Long-term debt Credit Agreement, dated as of February 23, 2022 (the “2022 Credit Agreement”) $675 Million 7-Year Senior Secured Term Loan Facility (the “2022 Term Loan Facility”) $ 661,500 $ 663,188 $150 Million 5-Year Senior Secured Revolving Credit Facility (the “2022 Revolver”) (1) — — Debt issuance costs (7,055) (7,415) Total term loan debt 654,445 655,773 Less: Current portion (6,750) (6,750) Long-term debt, net of debt issuance costs and current portion $ 647,695 $ 649,023 (1) As of March 31, 2024 and December 31, 2023, the Company did not have outstanding amounts drawn on the 2022 Revolver, including letters of credit and swingline loan sub-facilities. As of March 31, 2024, the Company had $150 million of available borrowing capacity under the 2022 Revolver.

NET INCOME PER SHARE (Tables)

NET INCOME PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2024
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: Three Months Ended March 31, March 31, Numerator: Net income $ 7,746 $ 20,964 Denominator: Weighted average common shares outstanding – basic 660,821,930 651,730,993 Dilutive common equivalent shares from common stock equivalents 2,743,361 31,754,189 Weighted average common shares outstanding – diluted 663,565,291 683,485,182 Net income per share: Basic $ 0.01 $ 0.03 Diluted $ 0.01 $ 0.03

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) $ in Millions		3 Months Ended
	Oct. 04, 2021	Mar. 31, 2024
Accounting Policies [Abstract]
Tax receivable agreement, percent of savings for holders	85%
Tax receivable agreement, percent of tax benefits retained by company	15%
Tax receivable agreement		$ 198.2
Related party transaction, term of agreement		11 years

NET SALES - Narrative (Details)

NET SALES - Narrative (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($) business_channel	Mar. 31, 2023 USD ($)
Disaggregation of Revenue [Line Items]
Number of business channels | business_channel	3
Net sales	$ 98,906	$ 113,787
United States
Disaggregation of Revenue [Line Items]
Net sales	48,845	47,662
United States | Geographic Concentration Risk | Revenue Benchmark
Disaggregation of Revenue [Line Items]
Net sales	$ 1,700	$ 2,200

NET SALES - Schedule of Disaggr

NET SALES - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Disaggregation of Revenue [Line Items]
Total net sales	$ 98,906	$ 113,787
United States
Disaggregation of Revenue [Line Items]
Total net sales	48,845	47,662
International
Disaggregation of Revenue [Line Items]
Total net sales	50,061	66,125
Professional
Disaggregation of Revenue [Line Items]
Total net sales	38,746	48,397
Specialty retail
Disaggregation of Revenue [Line Items]
Total net sales	34,432	34,859
DTC
Disaggregation of Revenue [Line Items]
Total net sales	$ 25,728	$ 30,531

INVENTORY (Details)

INVENTORY (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Inventory Disclosure [Abstract]
Raw materials	$ 30,044		$ 30,306
Finished goods	64,599		65,616
Inventory	94,643		$ 95,922
Inventory write-off and disposal	$ 900	$ 2,600

FAIR VALUE MEASUREMENT - Narrat

FAIR VALUE MEASUREMENT - Narrative (Details) $ in Millions	Aug. 11, 2022 USD ($)
Interest Rate Cap | Designated as Hedging Instrument
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Derivative, notional amount	$ 400

FAIR VALUE MEASUREMENT - Schedu

FAIR VALUE MEASUREMENT - Schedule of Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Mar. 31, 2024
Assets:
Derivative Asset Statement Of Financial Position Extensible Enumeration Not Disclosed Flag	Interest rate cap at December 31, 2023
Fair Value, Recurring | Interest Rate Swap
Assets:
Interest rate cap	$ 2,391	$ 1,661
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets Level 1 | Interest Rate Swap
Assets:
Interest rate cap	0	0
Fair Value, Recurring | Significant Other Observable Inputs Level 2 | Interest Rate Swap
Assets:
Interest rate cap	2,391	1,661
Fair Value, Recurring | Significant Unobservable Inputs Level 3 | Interest Rate Swap
Assets:
Interest rate cap	$ 0	$ 0

GOODWILL AND INTANGIBLE ASSET_2

GOODWILL AND INTANGIBLE ASSETS - Schedule of Intangible Assets and Goodwill (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 1,148,927	$ 1,147,160
Accumulated Amortization	(213,010)	(199,446)
Net Carrying Amount	935,917	947,714
Goodwill	168,300	168,300
Gross Carrying Amount	1,317,227	1,315,460
Net Carrying Amount	$ 1,104,217	$ 1,116,014
Brand name
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life	25 years	25 years
Gross Carrying Amount	$ 952,000	$ 952,000
Accumulated Amortization	(160,994)	(151,475)
Net Carrying Amount	$ 791,006	$ 800,525
Product formulations
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life	15 years	15 years
Gross Carrying Amount	$ 136,500	$ 136,500
Accumulated Amortization	(38,357)	(36,082)
Net Carrying Amount	$ 98,143	$ 100,418
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life	20 years	20 years
Gross Carrying Amount	$ 53,000	$ 53,000
Accumulated Amortization	(11,204)	(10,541)
Net Carrying Amount	41,796	$ 42,459
Software
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life		3 years
Gross Carrying Amount	7,427	$ 5,660
Accumulated Amortization	(2,455)	(1,348)
Net Carrying Amount	$ 4,972	$ 4,312
Software | Minimum
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life	3 years
Software | Maximum
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life	15 years

GOODWILL AND INTANGIBLE ASSET_3

GOODWILL AND INTANGIBLE ASSETS - Schedule of Amortization of Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Product formulations
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 2,187	$ 1,742
Amortization of patented formulations capitalized to inventory	88	525
Brand Name and Customer Relationships
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	10,182	10,182
Software
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	1,107	141
Other Intangible Assets
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 11,289	$ 10,323

ACCRUED EXPENSES AND OTHER CU_3

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Payables and Accruals [Abstract]
Accrued professional fees	$ 4,102	$ 4,133
Payroll liabilities	4,162	4,639
Accrued freight	1,128	1,229
Accrued advertising	3,323	6,348
Deferred revenue	1,067	1,051
Accrued interest	588	431
Accrued inventory purchase	640	0
Other accrued expenses and current liabilities	3,146	2,745
Accrued expenses and other current liabilities	$ 18,156	$ 20,576

LONG-TERM DEBT - Schedule of Lo

LONG-TERM DEBT - Schedule of Long-term Debt Instruments (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023	Feb. 23, 2022
Debt Instrument [Line Items]
Debt issuance costs	$ (7,055,000)	$ (7,415,000)
Total term loan debt	654,445,000	655,773,000
Less: Current portion	(6,750,000)	(6,750,000)
Long-term debt, net of debt issuance costs and current portion	647,695,000	649,023,000
2022 Credit Facility | Line of Credit | Secured Debt
Debt Instrument [Line Items]
Maximum borrowing capacity			$ 675,000,000
Long-term debt, term (in years)			7 years
Long-term debt, gross	661,500,000	663,188,000
2022 Credit Facility | Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity	150,000,000		$ 150,000,000
Long-term debt, term (in years)			5 years
Long-term debt, gross	$ 0	$ 0

LONG-TERM DEBT - Narrative (Det

LONG-TERM DEBT - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Debt Instrument [Line Items]
Interest expense, debt	$ 8,300	$ 10,500
Long-term debt	654,445		$ 655,773
Long-term debt, fair value	613,500		$ 615,100
Interest expense, net	14,504	13,918
Interest Rate Cap | Significant Unobservable Inputs Level 3 | Designated as Hedging Instrument | Accumulated Other Comprehensive Income
Debt Instrument [Line Items]
Unrealized gain (loss) on derivatives	(500)	700
Reduction in interest expenses	1,400	600
Interest expense, net	$ 300	$ 300
2022 Credit Facility | Line of Credit | Secured Debt
Debt Instrument [Line Items]
Debt instrument, interest rate, effective percentage	8.90%
2022 Credit Facility | Line of Credit | Secured Debt | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Basis spread on variable rate, floor	0.50%
2022 Credit Facility | Line of Credit | Secured Debt | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate, floor	1.50%
2022 Credit Facility | Line of Credit | Revolving Credit Facility | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Basis spread on variable rate, floor	0%
2022 Credit Facility | Line of Credit | Revolving Credit Facility | Euro Interbank Offered Rate
Debt Instrument [Line Items]
Basis spread on variable rate, floor	0%
2022 Credit Facility | Line of Credit | Revolving Credit Facility | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate, floor	1%

EQUITY - Narrative (Details)

EQUITY - Narrative (Details) - shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Equity [Line Items]
Issuance of shares upon exercise of stock options and vesting of restricted stock units (in shares)	551,742
Options exercised (in shares)	225,566	3,659,267
Restricted Stock Units (RSUs)
Equity [Line Items]
Issuance of shares upon exercise of stock options and vesting of restricted stock units (in shares)	326,176
Stock Appreciation Rights (SARs)
Equity [Line Items]
Exercise of stock-settled stock appreciation rights (in shares)		109,620
Shares withheld and retired for taxes on exercise of stock settled appreciation rights (in shares)		83,501

RELATED PARTY TRANSACTIONS - Na

RELATED PARTY TRANSACTIONS - Narrative (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($)
Pacvue
Related Party Transaction [Line Items]
Related party transaction, amounts of transaction	$ 172

CONTINGENCIES - Narrative (Deta

CONTINGENCIES - Narrative (Details) - plaintiff	Jul. 11, 2023	Mar. 02, 2023	Feb. 09, 2023
Commitments and Contingencies Disclosure [Abstract]
Number of plaintiffs	1	73	28

NET INCOME PER SHARE - Schedule

NET INCOME PER SHARE - Schedule of Computation Basic and Diluted Net Income Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Numerator:
Net income	$ 7,746	$ 20,964
Denominator:
Weighted average common shares outstanding - basic (in shares)	660,821,930	651,730,993
Dilutive common equivalent shares from common stock equivalents (in shares)	2,743,361	31,754,189
Weighted average common shares outstanding – diluted (in shares)	663,565,291	683,485,182
Net income per share:
Basic (in usd per share)	$ 0.01	$ 0.03
Diluted (in usd per share)	$ 0.01	$ 0.03

NET INCOME PER SHARE - Narrativ

NET INCOME PER SHARE - Narrative (Details) - shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Earnings Per Share [Abstract]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	8,455,797	1,430,590