Beauty Health (NASDAQ:SKIN) Posts Earnings Results, Beats Expectations By $1.19 EPS

Key Points

• Beauty Health reported quarterly EPS of -$0.14, beating estimates of -$1.33 by $1.19, and revenue of $69.17 million versus expectations of $67.97 million.
• Revenue fell 2.1% year over year, but adjusted EBITDA increased about 50% to $13.4 million and GAAP operating income was positive for a second consecutive quarter. The company raised its 2026 adjusted EBITDA outlook to $48 million–$50 million.
• Declining equipment sales remain a headwind: delivery-system revenue dropped 9.9%, with 798 systems placed compared with 875 a year earlier. The company ended the quarter with $112.4 million in cash after repaying $103.2 million of convertible notes.

Beauty Health (NASDAQ:SKIN - Get Free Report) released its earnings results on Thursday. The company reported ($0.14) EPS for the quarter, topping analysts' consensus estimates of ($1.33) by $1.19, FiscalAI reports. The company had revenue of $69.17 million for the quarter, compared to analysts' expectations of $67.97 million. Beauty Health had a negative return on equity of 47.83% and a negative net margin of 9.79%.

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

• Third-quarter revenue was $69.2 million, down 2.1% year over year, a smaller decline than in the first half; consumables returned to growth, up 1.2%. The company said U.S. performance and commercial initiatives are encouraging, though consumables revenue per system remains below last year.
• Profitability improved: adjusted EBITDA rose about 50% to $13.4 million, and GAAP operating income was positive for a second consecutive quarter. The company raised its 2026 adjusted EBITDA outlook to $48 million–$50 million, while noting Q3 benefited from a one-time tariff refund and that Q4 margins are expected to moderate.
• Equipment sales remain the main headwind: delivery-system revenue fell 9.9%, with 798 systems placed versus 875 a year earlier. EMEA revenue declined 11.7%, and management acknowledged that improving equipment conversion and regional execution will take further work.
• Management is targeting more recurring revenue by increasing treatment utilization across its installed base and expanding its product range; SkinStylus consumables grew 39% year over year. New Hydrafacial products and a U.S. rental program are early-stage initiatives, while the next-generation Hydrafacial platform is targeted for 2028.
• The company repaid its $103.2 million 2026 convertible notes as planned and ended the quarter with $112.4 million in cash. Approximately $250 million of convertible debt remains due in Q4 2028, which management expects to address in 2027.

Beauty Health Stock Performance

Shares of NASDAQ SKIN traded down $0.70 during trading on Thursday, reaching $10.35. 23,067 shares of the stock traded hands, compared to its average volume of 46,208. The company has a debt-to-equity ratio of 4.36, a current ratio of 1.76 and a quick ratio of 1.48. The stock has a market capitalization of $67.38 million, a P/E ratio of -2.35 and a beta of 1.05. Beauty Health has a 52-week low of $9.68 and a 52-week high of $34.80. The company has a 50-day moving average of $12.26 and a 200-day moving average of $16.44.

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on SKIN shares. Jefferies Financial Group restated a "hold" rating and set a $11.00 price objective (up from $0.85) on shares of Beauty Health in a report on Monday, October 19th. Canaccord Genuity Group set a $11.00 target price on shares of Beauty Health and gave the company a "hold" rating in a research note on Thursday, October 22nd. Weiss Ratings reiterated a "sell (e+)" rating on shares of Beauty Health in a research note on Wednesday, October 21st. Citigroup reissued a "hold" rating on shares of Beauty Health in a research report on Thursday, October 15th. Finally, Zacks Research lowered shares of Beauty Health from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 20th. One analyst has rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Beauty Health presently has a consensus rating of "Hold" and an average target price of $18.00.

About Beauty Health

BeautyHealth is a global health and beauty company focused on providing technology, products and services for aesthetic and skincare businesses. Its flagship brand, HydraFacial, offers a non-invasive treatment platform that combines cleansing, exfoliation, extraction and hydration, with treatments delivered through proprietary devices and consumable solutions.

The company also provides professional skincare products, treatment systems and related solutions designed for use by physicians, dermatologists, aestheticians and other licensed practitioners.

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