What caused Olaplex's revenue decline in 2022-2023?

Multiple headwinds converged in 2022-2023: litigation and social media controversy — class action lawsuits were filed alleging that Olaplex products caused hair loss and scalp irritation; while Olaplex defended these claims vigorously and the scientific evidence for the allegations was disputed, the lawsuits created viral TikTok content warning consumers about Olaplex; the #Olaplex hair loss controversy spread widely among the young female consumer demographic most likely to use prestige hair care products; consumer awareness of the controversy led many potential buyers to switch to alternatives. Category competition intensification: K18 (a leave-in hair repair treatment claiming peptide-based bond repair) became a viral TikTok sensation in 2022; K18's direct-to-consumer and prestige retail success demonstrated that the bond-building category had become crowded; every major professional hair care brand (L'Oréal, Schwarzkopf, Redken) introduced bond-building competitive products, reducing Olaplex's category exclusivity. Post-COVID consumer behavior normalization: during COVID, prestige hair care at-home experienced a boom as salons were closed; as salons reopened, some spending shifted back to salon professional services; simultaneously, general consumer discretionary spending normalized from pandemic peaks, reducing prestige beauty spending growth. The combination of these three forces produced approximately 20-40% revenue declines year-over-year in 2022-2023, causing significant stock price decline from its 2021 post-IPO highs.

What is a commercial mortgage REIT and how does it differ from an equity REIT?

Equity REIT (what most people mean by 'REIT'): owns and operates physical real estate assets (apartment buildings, office towers, shopping centers, warehouses, hospitals); income comes from rent collected from tenants; the REIT earns appreciation when property values increase; the REIT takes the risk of property vacancies, maintenance costs, and property value changes. Commercial mortgage REIT (mREIT): does not own physical properties; instead makes loans secured by commercial real estate (first mortgage loans, bridge loans, mezzanine loans); income comes from interest charged on loans; the REIT takes the risk of borrower default; if the borrower defaults, the REIT forecloses on the property (receiving the real estate, not the loan). Key differences for investors: equity REITs benefit from property appreciation and inflation (rental income generally grows with inflation); commercial mortgage REITs benefit from rising interest rates (floating-rate loans increase income when SOFR rises); commercial mortgage REITs have more concentrated credit risk (a few large loans failing can significantly impair income and book value); commercial mortgage REITs generally have less liquidity than equity REITs because loans are harder to sell quickly than publicly traded equity. Terra Property Trust's position: focuses on transitional commercial real estate — properties under renovation or lease-up that need bridge financing banks won't provide; charges premium interest rates for this transitional risk; income is higher than traditional equity REIT dividends but credit risk is also higher.

How do prestige hair care brands grow and what is the channel strategy?

Professional-to-consumer pipeline: the most effective prestige hair care growth model begins in professional salons — when a colorist uses Olaplex in a client's coloring service, the client experiences the benefit directly; the colorist may say 'I used Olaplex in your color today — here's the take-home version'; the professional recommendation is the most credible possible — it's not advertising, it's a trusted professional sharing what they actually use; this professional-to-consumer pipeline has built Olaplex, Wella, Redken, and other salon brands over decades. Retail prestige expansion: once professional awareness builds, prestige retail (Sephora, Ulta, Space NK) provides scalable consumer acquisition; prestige retail associates can explain the bond-building concept to beauty enthusiasts; Sephora's prestige positioning reinforces Olaplex's premium brand perception; this is distinctly different from mass-market retail (CVS, Walmart) which would commoditize the brand. Direct-to-consumer: olaplex.com allows subscription, full product range access, and direct customer relationships; DTC has higher margins (no retailer margin) and allows Olaplex to build first-party customer data; however, DTC is most effective once brand awareness has been built through professional and prestige retail channels. International expansion: Olaplex's bond-building concept translates globally — colorist-to-consumer recommendation works in the same way in Europe, Australia, and Asia; international markets are less mature, providing growth above the U.S. rate.

brimindinvest.com / compare / olpx-vs-elmxLIVE

OLPX

Olaplex Holdings, Inc. · Consumer Staples - Professional Beauty / Hair Care

$2.05

+0.99% this month

VERSUS

⟷

COMPARE

TPT

Terra Property Trust (Commercial Real Estate Debt REIT) · Real Estate - Commercial Mortgage REIT

N/A

N/A this month

Scoreboard verdict

Across AI score, momentum, valuation, upside, operating margin

OLPX

0

TPT

0

MIXED SETUP

Comparison scoreboard

MIXED SETUP

AI Score

OLPX 22.1

TPT N/A

1Y Return

OLPX +42.36%

TPT N/A

Fwd P/E

OLPX 20.62

TPT N/A

Target Up.

OLPX -3.48%

TPT N/A

Op. Margin

OLPX N/A

TPT N/A

Metrics last refreshed: 6/20/2026

Quick take

OLPX vs Hair Care Brand and REIT Comparison: AI Score, Valuation, Performance and Upside

OLPX (Olaplex) and Terra Property Trust are entirely different investment vehicles — Olaplex is a prestige hair care consumer brand turnaround story (patented bond-building chemistry, professional salon and Sephora/Ulta retail channels, recovering from 2022-2023 consumer perception challenges) while Terra Property Trust is a commercial real estate debt vehicle earning floating-rate income on transitional property bridge loans (with commercial real estate credit cycle exposure).

OLPX vs Terra Property Trust is prestige beauty brand turnaround in a challenged consumer environment (Olaplex's bond-building chemistry differentiation, professional salon credibility, and Sephora/Ulta retail presence — navigating litigation-driven consumer trust damage and intensifying bond-building category competition from K18 and L'Oréal) versus commercial real estate credit investment vehicle earning floating-rate income on transitional property loans (Terra Property Trust's bridge lending in a challenged commercial real estate environment with office vacancy and hotel stress) — consumer brand recovery versus real estate credit income.

Live analysis · updated 6/20/2026

OLPX and TPT are closely matched — they split the tracked metrics evenly.

Normalized 1Y performance

OLPX

TPT

Not enough data to chart yet.

Recent returns

OLPX

TPT

Analyst price targets & sentiment

OLPX · 8 analysts

Price target range

analyst low$1.65
analyst high$2.06
analyst mean$1.98
current price$2.05

-3.5% upside to analyst mean

TPT

Price target data unavailable

N/A

Who should consider this stock?

OLPX may suit investors who:

→Believe Olaplex's bond-building chemistry heritage and Sephora/Ulta retail positioning provide brand advantages that survive the litigation-driven demand decline and category competition
→See prestige hair care as a secular growth segment where Olaplex's scientific credibility will reassert itself as the consumer trust damage from 2022-2023 fades
→Value Olaplex's dual channel model (professional salon adoption driving retail recommendation) as a defensible distribution moat that competitors with retail-only strategies cannot easily replicate

TPT may suit investors who:

→Seek floating-rate commercial real estate debt income with collateral protection from first mortgage liens on commercial properties
→Believe transitional commercial real estate bridge lending (renovation-stage hotels, repositioning office buildings) generates sufficient risk premiums above the credit risks involved
→Want to access commercial real estate debt returns without direct property ownership or management responsibility

Performance & AI score

Metric	OLPX	TPT
AI score	22.1	N/A
AI rank	#4315	N/A
Latest close	$2.05	N/A
1M return	+0.99%	N/A
6M return	+54.14%	N/A
1Y return	+42.36%	N/A

$10,000 invested — hypothetical growth (dividends reinvested)

How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?

Period	OLPX	TPT
1Y ago	$14.24K (+42.4%) started 2025-06-18	N/A
5Y ago	$836.73 (-91.6%) started 2021-09-30	N/A
10Y ago	$836.73 (-91.6%) started 2021-09-30	N/A

Hypothetical — past performance does not guarantee future results.

Valuation & upside potential

Metric	OLPX	TPT
Market cap	$1.38B	N/A
Trailing P/E	N/A	N/A
Forward P/E	20.62	N/A
Price/Sales	3.24	N/A
EV/Revenue	3.30	N/A
Analyst target	$1.98	N/A
Target upside	-3.48%	N/A

Growth, profitability & risk

Metric	OLPX	TPT
Revenue growth	2.50%	N/A
Earnings growth	N/A	N/A
EPS growth	N/A	N/A
FCF margin	+15.37%	N/A
Operating margin	N/A	N/A
Profit margin	-3.53%	N/A
ROIC proxy	-1.71%	N/A
Return on equity	-1.71%	N/A
Dividend yield	0.00%	N/A
Beta	1.86	N/A
Debt/equity	40.15	N/A
Current ratio	6.27	N/A
Quick ratio	5.11	N/A

Drawdown & downside risk

Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.

1Y risk snapshot

OLPX max drawdown39.88%

TPT max drawdownN/A

OLPX max wkly drop26.40%

TPT max wkly dropN/A

5Y risk snapshot

OLPX max drawdown96.57%

TPT max drawdownN/A

OLPX max wkly drop58.13%

TPT max wkly dropN/A

10Y risk snapshot

OLPX max drawdown96.57%

TPT max drawdownN/A

OLPX max wkly drop58.13%

TPT max wkly dropN/A

Performance metrics by period

Period	Metric	OLPX	TPT
1Y	Growth	+42.36%	N/A
	CAGR	+42.40%	N/A
	Sharpe ratio	0.74	N/A
	Max drawdown	39.88%	N/A
	Max daily drop	17.70%	N/A
	Max wkly drop	26.40%	N/A
5Y	Growth	-91.63%	N/A
	CAGR	-40.92%	N/A
	Sharpe ratio	-0.34	N/A
	Max drawdown	96.57%	N/A
	Max daily drop	56.69%	N/A
	Max wkly drop	58.13%	N/A
10Y	Growth	-91.63%	N/A
	CAGR	-40.92%	N/A
	Sharpe ratio	-0.34	N/A
	Max drawdown	96.57%	N/A
	Max daily drop	56.69%	N/A
	Max wkly drop	58.13%	N/A

Business comparison

Category	OLPX	TPT
Company	Olaplex Holdings, Inc.	Terra Property Trust (Commercial Real Estate Debt REIT)
Sector	Consumer Staples - Professional Beauty / Hair Care	Real Estate - Commercial Mortgage REIT
Industry	N/A	N/A
Core business	Olaplex is a specialty hair care brand that pioneered bond-building chemistry — formulations that protect and repair disulfide bonds in hair damaged by chemical treatments (bleaching, coloring, relaxing). Olaplex's core franchise is professional-channel treatment products used in salons during coloring services (Olaplex No. 1 Bond Multiplier added to lighteners; Olaplex No. 2 Bond Perfector applied after) and take-home maintenance products (Olaplex No. 3 Hair Perfector — the iconic consumer product; shampoo, conditioner, hair mask, oil). Olaplex distributes through professional salon channels (sold to salons wholesale), specialty retail (Sephora, Ulta), and direct-to-consumer (olaplex.com). Olaplex's scientific positioning — patented bond-building chemistry versus ingredient-claiming competitors — has made it a premium-priced prestige hair care brand globally.	Terra Property Trust is a real estate credit company (commercial mortgage REIT) providing first mortgage loans, mezzanine loans, and preferred equity investments on commercial real estate. Terra Property Trust focuses on transitional properties — commercial real estate assets undergoing renovation, repositioning, or lease-up — where traditional bank lenders are unwilling to lend but where a skilled debt investor can structure appropriate senior or mezzanine debt. Terra Property Trust is affiliated with Terra Capital Partners, which manages multiple real estate credit vehicles. Commercial properties include multifamily, office, retail, hotel, and mixed-use real estate across major U.S. markets.
Investor focus	Investors track Olaplex's revenue by channel (professional vs retail vs DTC), gross margins, international growth, and recovery from the consumer demand decline and litigation that impaired sales in 2022-2023.	Investors in commercial mortgage REITs track net interest income (interest earned on loans), credit quality (non-performing loans and loan loss reserves), book value per share (net asset value of the loan portfolio), and dividend sustainability.

OLPX strengths

→Patented bond-building chemistry created a new category in hair care — Olaplex's original patents on bis-aminopropyl diglycol dimaleate (the active bond-building ingredient) established Olaplex as the scientific originator of bond building; even as patents expired and competitors emerged, Olaplex's brand credibility as the originator remains the benchmark
→Professional salon channel creates a two-sided distribution moat — salons use Olaplex in chemical service treatments (building adoption at the professional level) while recommending Olaplex take-home products to clients; professional endorsement drives retail demand in a highly credible category
→Premium brand prestige at Sephora and Ulta positions Olaplex in the high-growth prestige hair care segment — prestige hair care (versus mass market) has been the fastest-growing segment in beauty; Olaplex's price points ($30-$56 per product) fit prestige positioning with high repeat purchase rates

TPT strengths

→Commercial real estate credit fills a gap between bank lending and equity — transitional commercial properties (hotels under renovation, office buildings being repositioned) need bridge financing that banks won't provide; specialty commercial mortgage REITs fill this gap at premium interest rates
→First lien position on commercial properties provides bankruptcy protection — first mortgage loans have priority claim on property in foreclosure; this collateral protection limits downside in credit stress scenarios
→Floating rate loan structure benefits from rising interest rates — commercial mortgage REIT loans are typically floating rate (SOFR + spread); when interest rates rise, loan income increases proportionally

Risks to watch — OLPX

→Litigation and consumer concerns in 2022-2023 significantly impaired Olaplex sales — lawsuits alleging Olaplex products caused hair loss created viral social media concerns; while the science was disputed, consumer perception damage was real and led to significant revenue decline; brand trust recovery is the primary challenge
→Bond-building category competition has intensified significantly — K18, Redken, Schwarzkopf, L'Oréal Série Expert, and numerous others have introduced bond-building products; Olaplex's category-defining status is threatened by intense imitation from well-funded competitors
→Professional channel recovery depends on salon adoption continuity as competitors offer similar salon treatments — if salons shift to K18 or branded bond-building alternatives, Olaplex's professional-to-consumer recommendation pipeline is disrupted

Risks to watch — TPT

→Commercial real estate credit quality has been challenged since COVID — office vacancy rates remain elevated post-COVID; hotel properties experienced pandemic stress; some retail anchored properties face secular demand challenges; loan defaults at commercial REITs increased significantly in 2022-2024
→Transitional property lending is inherently higher risk — loans to properties under renovation depend on the renovation completing on time and budget, achieving stabilized occupancy, and being refinanced; execution risk at the property level translates to credit risk for the lender
→Interest rate increases compress commercial real estate values — higher interest rates reduce the cap rate expansion required for commercial properties to sell; declining property values reduce the collateral coverage on REIT loans, increasing loss severity if defaults occur

Frequently asked questions

Hair bond chemistry: human hair is composed primarily of keratin proteins held together by multiple types of chemical bonds; the strongest bonds are disulfide bonds (covalent bonds between sulfur atoms in cysteine amino acids in adjacent keratin protein chains); these disulfide bonds give hair its strength, elasticity, and curl pattern. How chemical damage breaks bonds: when hair is bleached or chemically relaxed, the chemical agents (hydrogen peroxide, ammonium thioglycolate) break disulfide bonds to lift color pigment or straighten curly hair; this process structurally weakens hair by reducing the number of intact disulfide bonds; damaged hair breaks more easily, loses elasticity, and becomes more porous. Olaplex's bis-aminopropyl diglycol dimaleate: Olaplex's original active ingredient (patented in 2014, co-developed with inventor Eric Pressly and Craig Hawker at UCSB) is a small molecule that acts as a 'bridge' connecting broken disulfide bond halves; during chemical treatments, Olaplex is added to bleach or color; the molecule migrates through the hair strand and links broken sulfur atoms, repairing disulfide bonds in real time during the chemical service; post-treatment Olaplex products continue repairing remaining broken bonds. Clinical evidence: Olaplex is among the most rigorously studied hair care ingredients with multiple independent studies confirming bond-repair efficacy; the scientific backing differentiated Olaplex from cosmetic ingredient claims in traditional hair care.

AI Prediction SignalNext 5 trading days

Members only

OLPX

+2.8%BUY

TPT

+1.1%HOLD

Start Free Trial Log in

ML model trained on historical prices · 14-day free trial · No credit card required

Free public comparison

Want deeper AI forecasts?

This comparison page is public and free forever. Subscribers can unlock saved watchlists, full AI rankings, detailed forecasts, and interactive analysis tools.

Start Free Trial Read Investing Guides