Beauty Health (NASDAQ:SKIN) Announces Earnings Results, Beats Estimates By $0.04 EPS

Key Points

• Beauty Health reported Q1 EPS of -$0.05, beating analyst expectations by $0.04, but revenue of $64.91 million still came in below estimates.
• The company cut its full-year revenue outlook to $280 million–$295 million after weaker-than-expected device placements, and management said Q2 softness may continue.
• Despite the revenue pressure, adjusted EBITDA improved to $8.5 million and the company kept its full-year EBITDA guidance of $35 million–$45 million intact, while installed base growth and lower churn suggested better retention.

Beauty Health (NASDAQ:SKIN - Get Free Report) announced its quarterly earnings data on Thursday. The company reported ($0.05) earnings per share for the quarter, topping analysts' consensus estimates of ($0.09) by $0.04, Zacks reports. The firm had revenue of $64.91 million for the quarter, compared to analyst estimates of $66.28 million. Beauty Health had a negative return on equity of 15.40% and a negative net margin of 3.16%.

Here are the key takeaways from Beauty Health's conference call:

• Device placements were weaker than expected, prompting a revised full-year revenue outlook to $280 million–$295 million (about a 2.5% reduction); management says Q2 softness will likely persist while commercial fixes take time to translate to results.
• Q1 adjusted EBITDA outperformed at $8.5 million (up 17% YoY) with an adjusted gross margin of 72.2%, and the company is maintaining its full-year adjusted EBITDA guidance of $35M–$45M.
• The active installed base grew to 36,400 devices (up 4% YoY) and device churn declined ~40% YoY, signaling improved provider retention and resilience in recurring consumables revenue.
• Management is enacting commercial and leadership changes (CEO taking a direct sales role and three new independent directors) and advancing an innovation roadmap — relaunching Keravive next quarter, a clinically backed booster in Q4, strategic partnerships, and a next‑gen Hydrafacial targeted for 2028 — initiatives that are promising but expected to take time to impact growth.

Beauty Health Stock Down 36.3%

Shares of NASDAQ:SKIN traded down $0.33 during mid-day trading on Friday, hitting $0.58. 4,762,649 shares of the company traded hands, compared to its average volume of 726,749. Beauty Health has a 52-week low of $0.57 and a 52-week high of $2.69. The firm's 50 day simple moving average is $0.98 and its 200 day simple moving average is $1.24. The company has a debt-to-equity ratio of 3.94, a quick ratio of 1.40 and a current ratio of 1.66. The firm has a market cap of $74.11 million, a P/E ratio of -2.90 and a beta of 1.12.

Analysts Set New Price Targets

SKIN has been the topic of several research reports. Zacks Research raised Beauty Health from a "strong sell" rating to a "hold" rating in a report on Monday, March 16th. TD Cowen lowered their target price on Beauty Health from $1.65 to $1.50 and set a "hold" rating on the stock in a report on Monday, March 16th. Jefferies Financial Group reissued a "hold" rating and issued a $1.60 target price on shares of Beauty Health in a report on Wednesday, January 14th. Canaccord Genuity Group decreased their price objective on Beauty Health from $1.50 to $1.00 and set a "hold" rating on the stock in a research note on Friday, May 1st. Finally, Benchmark reaffirmed a "hold" rating on shares of Beauty Health in a research note on Friday, March 13th. One equities research analyst has rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $2.32.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in SKIN. Public Employees Retirement System of Ohio bought a new stake in shares of Beauty Health in the 3rd quarter worth approximately $26,000. Atom Investors LP bought a new stake in Beauty Health during the 4th quarter valued at $29,000. Franklin Resources Inc. bought a new stake in Beauty Health during the 3rd quarter valued at $31,000. Ieq Capital LLC bought a new stake in Beauty Health during the 4th quarter valued at $33,000. Finally, Zacks Investment Management bought a new stake in Beauty Health during the 3rd quarter valued at $35,000. Institutional investors and hedge funds own 93.26% of the company's stock.

About Beauty Health

Beauty Health Company NASDAQ: SKIN is a U.S.-based consumer wellness and beauty enterprise that integrates device-based and product-based offerings across skin, body and hair wellness categories. The company operates a portfolio of established brands that blend professional and at-home solutions, focusing on innovative formulations and technologies to address a range of beauty and self-care needs. Through its proprietary e-commerce platforms and strategic retail partnerships, Beauty Health seeks to deliver premium experiences and tangible results to a global customer base.

Beauty Health's brand portfolio includes Sol de Janeiro, known for its award-winning Brazilian Bum Bum Cream body care collection; Elemis, a U.K.-originated professional skin care line distributed in spas and skincare clinics; NuFACE and Dermaflash, two at-home beauty device brands specializing in microcurrent facial toning and gentle exfoliation respectively; and Nutrafol, a legal-strength hair wellness supplement clinically designed to support hair growth.

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