Prestige Consumer Healthcare Inc. (PBH) · Nov 5, 2026 · Earnings
Guidance cut — FY27 revenue $1.28-$1.29B vs. $1.29-$1.315B prior outlook
Prestige Consumer Healthcare earnings show solid Q2 execution, but Clear Eyes supply problems cut FY27 revenue, EPS and cash-flow guidance.
Prestige is in a transition year: it is folding Breathe Right and LaCorium into a diversified over-the-counter healthcare portfolio while trying to repair Pillar5 and restore reliable Clear Eyes supply. The previous fiscal-2027 plan, established after those acquisitions, called for $1.29-$1.315 billion of revenue, 1%-3% organic growth, $4.55-$4.65 of adjusted EPS and at least $270 million of adjusted free cash flow.
The quarter itself was broadly healthy, but not enough to offset the outlook reset. Reported revenue jumped 22.7%, with the acquisitions supplying much of the growth, while adjusted EPS rose to $1.13 from $1.07. The less flattering underlying number is organic revenue: down 1.6% in Q2, although first-half organic growth was still 0.7%.
| Q2 FY27 | Q2 FY26 | 1H FY27 | 1H FY26 | |
|---|---|---|---|---|
| Revenue (Financial Highlights) | $336.3M (+22.7%) | $274.1M | ||
| Organic revenue (Organic Revenue Change) | -1.6% | 0.7% | ||
| Adjusted diluted EPS (Adjusted Net Income & EPS) | $1.13 (+5.6%) | $1.07 | $2.11 (+4.5%) | $2.02 |
| Adjusted EBITDA (Adjusted EBITDA) | $113.0M (+30.1%) | $86.8M | $197.0M (+18.3%) | $166.5M |
| Adjusted free cash flow (Adjusted FCF) | $39.2M | $55.4M | $123.0M (-8.0%) | $133.6M |
| FY27 revenue outlook (Outlook) | $1.28-$1.29B | $1.29-$1.315B | ||
| FY27 adjusted EPS outlook (Outlook) | $4.48-$4.55 | $4.55-$4.65 | ||
| FY27 adjusted FCF outlook (Outlook) | $265M+ | $270M+ |
Clear Eyes is the actual miss versus the standing business plan. Management now expects variable Pillar5 production to reduce Clear Eyes availability and second-half revenue, cutting the full-year revenue range, flattening organic growth and lowering adjusted EPS. That is more than routine conservatism: the manufacturing asset acquired to secure supply is still creating supply volatility.
The acquisitions are tracking, but they are masking a softer core. Breathe Right and LaCorium contributed approximately $65.1 million of Q2 revenue and are described as on track, with Breathe Right integration largely consolidated and the main integration expected by the end of fiscal Q3. That supports the portfolio-building strategy, but it does not remove the near-term dependence on acquired revenue to offset weak Clear Eyes and modest base-business growth. 〔0〕
Cash generation remains adequate, but leverage makes the guidance cut more consequential. First-half adjusted free cash flow fell 8% to $123 million, while net debt stood around $2.1 billion after the acquisitions. The company has extended a $400 million debt maturity to 2034 and has no maturities until 2031, which reduces near-term refinancing pressure, but the lower cash-flow target leaves less room for deleveraging than previously planned.
Bottom line: Prestige executed reasonably well in Q2 and the new acquisitions are contributing, but the core supply problem at Clear Eyes forced a real downgrade to the fiscal-year plan. The business story is still intact, though this filing makes the recovery dependent on fixing Pillar5 rather than simply integrating acquisitions. Ich
Breathe Right integration completion, end of fiscal Q3
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