Beauty Health (NASDAQ:SKIN) Releases Earnings Results, Meets Estimates

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

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%

NASDAQ:SKIN traded down $0.11 on Friday, hitting $0.66. The stock had a trading volume of 903,716 shares, compared to its average volume of 771,224. Beauty Health has a 1 year low of $0.55 and a 1 year high of $2.69. The firm’s fifty day simple moving average is $0.73 and its two-hundred day simple moving average is $0.92. The company has a debt-to-equity ratio of 4.37, a quick ratio of 1.48 and a current ratio of 1.79. The stock has a market cap of $85.67 million, a P/E ratio of -3.00 and a beta of 1.07.

Wall Street Analysts Forecast Growth

A number of research analysts have recently issued reports on SKIN shares. Weiss Ratings cut shares of Beauty Health from a “sell (d-)” rating to a “sell (e+)” rating in a report on Thursday, July 23rd. Canaccord Genuity Group lowered their target price on shares of 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 target (down from $2.50) on shares of Beauty Health in a research report on Wednesday, May 20th. Finally, Zacks Research downgraded 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, five have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $1.52.

Institutional Investors Weigh In On Beauty Health

Hedge funds have recently made changes to their positions in the business. Public Employees Retirement System of Ohio bought a new stake in Beauty Health in the third quarter worth about $26,000. Atom Investors LP bought a new position in shares of Beauty Health during the 4th quarter valued at approximately $29,000. Franklin Resources Inc. purchased a new stake in shares of Beauty Health during the 3rd quarter worth approximately $31,000. Ieq Capital LLC purchased a new stake in shares of Beauty Health during the 4th quarter worth approximately $33,000. Finally, Zacks Investment Management bought a new stake in shares of Beauty Health in the 3rd quarter worth approximately $35,000. 93.26% of the stock is currently owned by institutional investors.

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.