Prestige Consumer Healthcare Inc.

Previous wording

Unless otherwise indicated by the context, all references in this Quarterly Report on Form 10-Q to “we,” “us,” “our,” the “Company” or “Prestige” refer to Prestige Consumer Healthcare Inc. and our subsidiaries. Similarly, references to a year (e.g., 2026) refers to our fiscal year ended March 31 of that year.

Current wording

Unless otherwise indicated by the context, all references in this Quarterly Report on Form 10-Q to “we,” “us,” “our,” the “Company” or “Prestige” refer to Prestige Consumer Healthcare Inc. and our subsidiaries. Similarly, references to a year (e.g., 2026) refer to our fiscal year ended March 31 of that year.

Previous wording

There has been economic uncertainty in the United States and globally due to several factors, including evolving fiscal policy, global supply chain constraints, changes in interest rates, a high inflationary environment, geopolitical events and evolving U.S. and international tariffs. We expect economic conditions will continue to be highly volatile and uncertain, put pressure on prices and supply, and could affect demand for our products. We have continued to see changes in the purchasing patterns of our end customers, including a shift in many markets to purchasing our products online, and could see changes in retailer purchasing patterns due to the uncertain economic environment.

Current wording

There has been economic uncertainty in the United States and globally due to several factors, including evolving fiscal policy, global supply chain constraints, changes in interest rates, a high inflationary environment, geopolitical events and evolving U.S. and international trade restrictions and tariffs. We expect economic conditions will continue to be highly volatile and uncertain, put pressure on prices and supply, and could affect demand for our products. We have continued to see changes in the purchasing patterns of our consumers, including a shift in many markets to purchasing our products online, and have and may continue to see changes in retailer purchasing patterns due to these consumer patterns and the uncertain economic environment.

Previous wording

Total revenues for the three months ended June 30, 2025 were $249.5 million, a decrease of $17.6 million, or 6.6%, versus the three months ended June 30, 2024.

Current wording

Total revenues for the three months ended September 30, 2025 were $274.1 million, a decrease of $9.7 million, or 3.4%, versus the three months ended September 30, 2024.

Previous wording

Gross profit for the International OTC Healthcare segment increased $0.7 million, or 3.5%, during the three months ended June 30, 2025 versus the three months ended June 30, 2024. As a percentage of International OTC Healthcare revenues, gross profit decreased to 53.9% during the three months ended June 30, 2025 from 55.3% during the three months ended June 30, 2024, primarily due to increased inflation costs.

Current wording

Gross profit for the International OTC Healthcare segment decreased $2.2 million, or 8.6%, during the three months ended September 30, 2025 versus the three months ended September 30, 2024. As a percentage of International OTC Healthcare revenues, gross profit decreased to 53.4% during the three months ended September 30, 2025 from 57.7% during the three months ended September 30, 2024, primarily due to increased inflation costs and product mix.

Previous wording

Contribution margin for the North American OTC Healthcare segment for the three months ended June 30, 2025 decreased $1.6 million, or 1.7%, when compared with the three months ended June 30, 2024. As a percentage of North American OTC Healthcare revenues, contribution margin increased to 43.0% during the three months ended June 30, 2025 from 40.0% during the three months ended June 30, 2024, primarily due to the increase in gross profit margin above and a decrease in advertising and marketing spend during the quarter attributable to timing.

Current wording

Contribution margin for the North American OTC Healthcare segment decreased $0.8 million, or 0.8%, during the three months ended September 30, 2025 versus the three months ended September 30, 2024. As a percentage of North American OTC Healthcare revenues, contribution margin increased to 41.8% during the three months ended September 30, 2025 from 40.5% during the three months ended September 30, 2024. The contribution margin increase as a percentage of revenues was primarily due to the increase in gross profit margin above and a decrease in advertising and marketing spend during the quarter attributable to timing.

Previous wording

Contribution margin for the International OTC Healthcare segment increased $0.3 million, or 2.2%, during the three months ended June 30, 2025 versus the three months ended June 30, 2024. As a percentage of International OTC Healthcare revenues, contribution margin decreased to 37.7% during the three months ended June 30, 2025 from 39.2% during the three months ended June 30, 2024. The contribution margin decrease as a percentage of revenues during the three months ended June 30, 2025 was primarily due to the decrease in gross profit margin above.

Current wording

Contribution margin for the International OTC Healthcare segment decreased $2.3 million, or 12.4%, during the three months ended September 30, 2025 versus the three months ended September 30, 2024. As a percentage of International OTC Healthcare revenues, contribution margin decreased to 38.1% during the three months ended September 30, 2025 from 42.8% during the three months ended September 30, 2024. The contribution margin decrease as a percentage of revenues was primarily due to the decrease in gross profit margin above.

Previous wording

Depreciation and amortization expenses were $5.2 million for the three months ended June 30, 2025 and $5.7 million for the three months ended June 30, 2024. The decrease in depreciation and amortization expenses was primarily due to a decrease in amortization expense due to impairment charges taken on finite-lived brands in fiscal 2025 as well as certain intangible assets being fully amortized during fiscal 2025.

Current wording

Depreciation and amortization expenses were $5.2 million for the three months ended September 30, 2025 and $5.6 million for the three months ended September 30, 2024. The decrease in depreciation and amortization expenses was primarily due to a decrease in amortization expense due to impairment charges taken on certain finite-lived brands in fiscal 2025, as well as certain intangible assets being fully amortized during fiscal 2025.

Previous wording

Interest expense, net was $10.2 million during the three months ended June 30, 2025 versus $13.1 million during the three months ended June 30, 2024. The average indebtedness during the three months ended June 30, 2025 decreased to $1.0 billion from $1.1 billion during the three months ended June 30, 2024. The average cost of borrowing decreased to 4.5% for the three months ended June 30, 2025 compared to 4.8% for the three months ended June 30, 2024.

Current wording

Interest expense, net was $10.0 million during the three months ended September 30, 2025 versus $12.3 million during the three months ended September 30, 2024. The average indebtedness decreased to $1.0 billion during the three months ended September 30, 2025 from $1.1 billion during the three months ended September 30, 2024. The average cost of borrowing decreased to 4.5% for the three months ended September 30, 2025 from 4.7% for the three months ended September 30, 2024.

Previous wording

The provision for income taxes during the three months ended June 30, 2025 was $14.3 million versus $9.3 million during the three months ended June 30, 2024. The effective tax rate during the three months ended June 30, 2025 was 23.2% versus 16.0% during the three months ended June 30, 2024. The increase in the effective tax rate for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 was primarily due to discrete items in the prior year pertaining to the release of a reserve for uncertain tax positions due to the statute of limitations expiring.

Current wording

The provision for income taxes during the three months ended September 30, 2025 was $26.9 million versus $17.3 million during the three months ended September 30, 2024. The effective tax rate during the three months ended September 30, 2025 was 38.9% versus 24.1% during the three months ended September 30, 2024. The increase in the effective tax rate for the three months ended September 30, 2025, compared to the three months ended September 30, 2024 was primarily due to establishing a taxable presence in a new state.

Previous wording

Revenues for the North American OTC Healthcare segment decreased $19.7 million, or 8.5%, during the three months ended June 30, 2025 versus the three months ended June 30, 2024. The $19.7 million decrease was primarily attributable to a decrease in sales in the Eye & Ear Care and Dermatologicals categories. The decrease in the Eye & Ear Care category was primarily due to limited ability to supply demand for Clear Eyes.

Current wording

Revenues for the North American OTC Healthcare segment decreased $28.8 million, or 6.1%, during the six months ended September 30, 2025 versus the six months ended September 30, 2024. The $28.8 million decrease was primarily attributable to a decrease in sales in the Eye & Ear Care category, due to limited ability to supply demand for Clear Eyes.

Previous wording

Revenues for the International OTC Healthcare segment increased $2.1 million, or 6.1%, during the three months ended June 30, 2025 versus the three months ended June 30, 2024. The $2.1 million increase was mainly attributable to increases in sales in the Women's Health and Dermatologicals categories.

Current wording

Revenues for the International OTC Healthcare segment increased $1.5 million, or 1.9%, during the six months ended September 30, 2025 versus the six months ended September 30, 2024. The $1.5 million increase was mainly attributable to increases in sales in the Dermatologicals and Analgesics categories, partly offset by a decrease in sales in the Eye & Ear Care category.

Previous wording

Gross profit for the three months ended June 30, 2025 decreased $5.7 million, or 3.9%, when compared with the three months ended June 30, 2024. As a percentage of total revenues, gross profit increased to 56.2% during the three months ended June 30, 2025 from 54.7% during the three months ended June 30, 2024, primarily due to favorable product mix and lower air freight.

Current wording

Gross profit for the six months ended September 30, 2025 decreased $11.5 million, or 3.8%, when compared with the six months ended September 30, 2024. As a percentage of total revenues, gross profit increased to 55.7% during the six months ended September 30, 2025 from 55.1% during the six months ended September 30, 2024, primarily due to favorable product mix.

Previous wording

General and administrative expenses were $28.5 million for the three months ended June 30, 2025 and $28.9 million for the three months ended June 30, 2024. General and administrative expenses decreased $0.4 million due to a decrease in legal expense, partially offset by an increase in compensation costs.

Current wording

General and administrative expenses were $56.5 million for the six months ended September 30, 2025 and $55.0 million for the six months ended September 30, 2024. The $1.5 million increase in general and administrative expenses was primarily due to increases in compensation costs and acquisition costs, partially offset by a decrease in professional fees.

Previous wording

As of June 30, 2025, we had cash and cash equivalents of $139.5 million, an increase of $41.6 million from March 31, 2025. The following table summarizes the change:

Current wording

As of September 30, 2025, we had cash and cash equivalents of $119.1 million, an increase of $21.2 million from March 31, 2025. The following table summarizes the change:

Previous wording

Net cash provided by operating activities was $79.0 million for the three months ended June 30, 2025, compared to $54.8 million for the three months ended June 30, 2024. The $24.2 million increase was due to the timing of working capital and increased net income before non-cash items.

Current wording

Net cash provided by operating activities was $136.5 million for the six months ended September 30, 2025, compared to $124.6 million for the six months ended September 30, 2024. The $11.9 million increase was due to the timing of working capital and increased net income before non-cash items.

Previous wording

Net cash used in investing activities was $1.9 million for the three months ended June 30, 2025, compared to $2.1 million for the three months ended June 30, 2024.

Current wording

Net cash used in investing activities was $4.9 million for the six months ended September 30, 2025, compared to $4.2 million for the six months ended September 30, 2024. The $0.7 million increase in net cash used in investing activities was primarily due to changes in a short-term loan receivable.

Previous wording

Net cash used in financing activities was $36.3 million for the three months ended June 30, 2025, compared to $65.5 million for the three months ended June 30, 2024. The $29.2 million decrease in cash used in financing activities was primarily due to a decrease in debt repayments of $35.0 million, partly offset by an increase in the repurchase of shares of our common stock in conjunction with our share repurchase program of $8.8 million.

Current wording

Net cash used in financing activities was $111.2 million for the six months ended September 30, 2025, compared to $116.7 million for the six months ended September 30, 2024. The $5.5 million decrease in cash used in financing activities was primarily due to a decrease in debt repayments of $75.0 million and a decrease in shares surrendered as payment of tax withholding of $1.6 million, partly offset by an increase in the repurchase of shares of our common stock in conjunction with our share repurchase program of $72.0 million.

Previous wording

As of June 30, 2025, we had no outstanding balance on our asset-based revolving credit facility originally entered into on January 31, 2012 (the "2012 ABL Revolver”) and a borrowing capacity of $173.2 million.

Current wording

As of September 30, 2025, we had no outstanding balance on our asset-based revolving credit facility originally entered into on January 31, 2012 (the "2012 ABL Revolver”) and a borrowing capacity of $190.0 million.

Previous wording

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on our knowledge of current events and actions that we may undertake in the future, actual results could differ from those estimates. A summary of our critical accounting policies is presented in our Annual Report on Form 10-K for the fiscal year ended March 31, 2025. There were no material changes to our critical accounting policies during the three months ended June 30, 2025.

Current wording

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on our knowledge of current events and actions that we may undertake in the future, actual results could differ from those estimates. A summary of our critical accounting policies is presented in our Annual Report on Form 10-K for the fiscal year ended March 31, 2025. There were no material changes to our critical accounting policies during the six months ended September 30, 2025.