Beauty Health (NASDAQ:SKIN) Releases Earnings Results

Key Points

• Beauty Health’s revenue fell 7.8% to $72.1 million, missing analyst expectations, while the company posted an adjusted EBITDA of $17 million that exceeded guidance due to stronger margins and cost controls.
• The company cut its 2026 revenue outlook to $280 million–$290 million but increased adjusted EBITDA guidance to $39 million–$46 million; management is also expanding HydraFacial access through a U.S. device rental program.
• Shares declined 13.9% to $0.66 as investors weighed competitive pressure, an approximately $103 million convertible-note maturity in October 2026, and Nasdaq’s minimum-bid-price notice that may lead to a reverse stock split vote.

Beauty Health (NASDAQ:SKIN - Get Free Report) issued its quarterly earnings data on Thursday. The company reported ($0.02) EPS for the quarter, hitting analysts' consensus estimates of ($0.02), FiscalAI reports. Beauty Health had a negative return on equity of 46.83% and a negative net margin of 9.79%.The company had revenue of $72.09 million for the quarter, compared to analysts' expectations of $74.45 million.

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

• Revenue declined 7.8% to $72.1 million, with Delivery Systems down 18.4% as providers remained cautious on capital spending and consumables down 3.5% amid lower treatment utilization. The company cited intensified competition and consumers spreading spending across more aesthetic treatments.
• Adjusted EBITDA rose to $17 million, above guidance of $11 million-$13 million, supported by a 590-basis-point expansion in adjusted gross margin to 71.8%, lower operating expenses, and cost discipline.
• The company lowered its 2026 revenue outlook to $280 million-$290 million but raised adjusted EBITDA guidance to $39 million-$46 million. Third-quarter guidance calls for revenue of $65 million-$70 million and adjusted EBITDA of $5 million-$7 million, with higher R&D and commercial investment expected in the second half.
• Management launched a U.S. device rental program to reduce upfront costs and expand the HydraFacial addressable market, while a clinically validated booster is expected in the fourth quarter. HydraScalp and SkinStylus are also gaining traction, and a next-generation HydraFacial platform remains targeted for 2028 alongside a new U.S. device planned for 2027.
• The company faces an approximately $103 million convertible-note maturity in October 2026 and plans to repay it with cash on hand, which is expected to leave roughly $100 million at year-end. It also received a Nasdaq notice for trading below the $1 minimum bid price and will seek shareholder approval for a reverse stock split on September 22.

Beauty Health Stock Down 13.9%

Shares of NASDAQ:SKIN traded down $0.11 during midday trading on Friday, reaching $0.66. The company had a trading volume of 903,716 shares, compared to its average volume of 771,224. The company has a debt-to-equity ratio of 4.37, a current ratio of 1.79 and a quick ratio of 1.48. The stock's fifty day moving average price is $0.73 and its 200-day moving average price is $0.92. The stock has a market capitalization of $85.67 million, a P/E ratio of -3.00 and a beta of 1.07. Beauty Health has a one year low of $0.55 and a one year high of $2.69.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the stock. Woodline Partners LP increased its position in shares of Beauty Health by 255.9% in the 3rd quarter. Woodline Partners LP now owns 5,930,027 shares of the company's stock worth $11,801,000 after purchasing an additional 4,263,997 shares during the last quarter. Millennium Management LLC lifted its position in shares of Beauty Health by 127.0% during the fourth quarter. Millennium Management LLC now owns 5,764,802 shares of the company's stock worth $8,013,000 after purchasing an additional 3,225,668 shares during the last quarter. Geode Capital Management LLC grew its stake in Beauty Health by 27.5% in the second quarter. Geode Capital Management LLC now owns 2,302,784 shares of the company's stock worth $4,399,000 after purchasing an additional 496,963 shares in the last quarter. State Street Corp increased its holdings in Beauty Health by 0.9% in the fourth quarter. State Street Corp now owns 1,871,527 shares of the company's stock valued at $2,601,000 after buying an additional 16,493 shares during the last quarter. Finally, Jacobs Levy Equity Management Inc. raised its stake in Beauty Health by 11.8% during the third quarter. Jacobs Levy Equity Management Inc. now owns 1,210,898 shares of the company's stock valued at $2,410,000 after buying an additional 127,994 shares in the last quarter. 93.26% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

Several brokerages recently commented on SKIN. Canaccord Genuity Group dropped their target price on Beauty Health from $1.50 to $1.00 and set a "hold" rating on the stock in a report on Friday, May 1st. Roth Capital reaffirmed a "buy" rating and issued a $2.00 price objective (down from $2.50) on shares of Beauty Health in a research report on Wednesday, May 20th. Zacks Research lowered shares of Beauty Health from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 20th. Finally, Weiss Ratings cut shares of Beauty Health from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Thursday, July 23rd. One research analyst has rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $1.52.

Beauty Health Company Profile

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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