The Beauty Health Company Class A Common Stock Earnings Recaps
Q1 2026
May 11, 2026
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.
Key takeaways
- 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.
Q3 2025
Nov 8, 2025
The Beauty Health Company reported Q3 2025 net sales of $70.7 million, a 10.3% decrease year-over-year, attributed primarily to reduced device sales and ongoing transitions in the China market.
Key takeaways
- Device revenues fell 24.6% to $20.8 million, reflecting global sales pressure and a shift to a distributor model in China.
- Consumables represented 71% of total sales, up from 65% a year prior, with stability seen once China’s impact is excluded.
- Adjusted EBITDA rose 11% year-over-year to $8.9 million, highlighting effective cost control despite revenue declines.
- Inventory levels reached their lowest in three years at under $60 million thanks to improved demand planning.
- The company raised its adjusted EBITDA guidance for the remainder of 2025, indicating positive momentum entering 2026.