SkinHealth Systems (SKIN) Q2 2026 earnings summary

Executive summary

• Q2 2026 net sales were $72.1 million, down 7.8% year-over-year, with declines in both delivery systems and consumables, and a net loss of $2.7 million mainly due to the absence of a prior-year gain from note repurchases.

• Adjusted EBITDA rose to $17.0 million, up from $13.9 million year-over-year, driven by improved gross margin and disciplined cost management.

• Gross margin improved to 68.4% from 62.8% year-over-year, with adjusted gross margin at 71.8%.

• Operating expenses decreased year-over-year, supported by lower personnel and legal costs.

• Strategic focus includes strengthening the core franchise, expanding into adjacent categories, and launching a U.S. device rental program.

Financial highlights

• Delivery systems net sales: $18.3 million (down 18.4% YoY); consumables: $53.9 million (down 3.5% YoY); 770 systems placed vs. 957 prior year.

• Americas net sales: $49.9 million (down 4.2% YoY); EMEA: $14.9 million (down 19% YoY); APAC: $7.3 million (down 5.4% YoY).

• Cash and equivalents at quarter-end: $206.1 million.

• Adjusted EBITDA margin: 23.6% (Q2 2026) vs. 17.8% (Q2 2025).

• Net loss margin for Q2 2026: (3.7)% vs. 25.2% net income margin in Q2 2025.

Outlook and guidance

• FY 2026 net sales guidance: $280–$290 million; adjusted EBITDA: $39–$46 million.

• Q3 2026 net sales expected at $65–$70 million; adjusted EBITDA at $5–$7 million.

• Guidance assumes no further material market deterioration or unforeseen events.

• Second half guidance includes $4 million increased R&D and commercial investment; projected second half adjusted EBITDA to decline relative to first half.

• Management believes liquidity is sufficient for at least the next 12 months.