SkinHealth Systems’ stock plunged 26.4% following a disappointing earnings report driven primarily by a lowered full-year revenue outlook and continued softness in device placements amid challenging macro conditions and intensified competition.

• Q1 net sales were $64.9 million, within guidance, but device placements fell short of expectations due to tighter credit markets and longer purchasing cycles.
• The company cut full-year revenue guidance by roughly 2.5%, reflecting persistent capital equipment demand weakness and a slow payoff from commercial improvements.
• Consumables revenue declined 6.1% year-over-year, mostly due to a distributor transition in China, with other regional timing variabilities noted.
• Active installed base grew 4% year-over-year to 36,400 devices, while device churn improved, declining 40%, signaling better provider retention.
• Despite top-line challenges, adjusted EBITDA rose 17% year-over-year to $8.5 million, beating guidance amid margin expansion to 72.2%, driven by operational discipline and ongoing investments.