v3.26.1
Acquisition (Tables)
 3 Months Ended
Jun. 30, 2026
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Schedule of Consideration Transferred The following table summarizes the preliminary allocation of purchase price to the assets acquired and liabilities assumed (in thousands):
Cash consideration
$590,149 
Equity consideration (common stock issued)(1)
300,278 
Valuation of potential earnout7,100 
Total consideration897,527 
Net assets acquired, excluding liability assumed for acquisition-related seller expenses
$431,734 
Liability assumed for acquisition-related seller expenses(2)
(47,100)
Less: Net assets acquired(384,634)
Goodwill
$512,893 
(1) The fair market value of the $300.3 million common stock issued (equivalent to 2,582,371 shares of common stock) was determined on the basis of the opening market price of the Company’s stock of $116.28 per share on the acquisition date.
(2) In connection with the rhode Acquisition, the Company paid rhode’s acquisition-related expenses of $47.1 million recognized as an assumed liability at the acquisition date. The Company determined these amounts represented assumed liabilities of the sellers at the acquisition date, as the Company bore no legal obligation to the related vendors prior to closing.
Schedule of Purchase Price Allocation and Intangible Assets and Liabilities Acquired
The following table presents the purchase price allocation recorded in the Company's condensed consolidated balance sheet on the acquisition date and upon finalization during the quarter ended June 30, 2026. The adjustment reflects finalization of purchase accounting for facts and circumstances that existed upon the acquisition date as follows (in thousands):
Cash$8,467 
Accounts receivable30,036
Inventory39,568
Prepaid expenses and other current assets2,392
Property and equipment2,098
Intangible assets380,900
Goodwill(1)
512,893
Total assets acquired
976,354 
Accounts payable(17,898)
Accrued expenses and other current liabilities(60,861)
Other obligations(68)
Total liabilities assumed(78,827)
Total purchase price
$897,527 
(1) The goodwill represents the excess value over both tangible and intangible assets acquired and liabilities assumed. The goodwill recognized in the transaction is primarily attributable to the Company’s expectation that rhode can continue to expand distribution and deliver new skin care products. A substantial amount of the goodwill is expected to be deductible for tax purposes.
Intangible assets
The estimated fair values (all considered level 3 measurements) of the identifiable intangible assets acquired as of the acquisition date, their estimated useful lives and fair value methodology are as follows:
Fair ValueEstimated Useful Life
(in thousands)(in years)
Fair Value Methodology
Customer relationships – retailers$104,600 12Excess earnings method
Trademarks276,300 15Relief from Royalty method
Total identified intangible assets$380,900