SkinHealth Systems (SKIN) Q3 2026 earnings summary

Executive summary

• Q3 net sales were $69.2M, down 2.1% YoY; consumables returned to growth as delivery systems sales fell, while operating income turned positive and net loss narrowed.

• Adjusted EBITDA rose to $13.4M from $8.9M, with a 19.3% margin versus 12.6%, reflecting higher gross margin and lower operating spend.

• Strategy focuses on stabilizing the Hydrafacial core, new products and adjacent categories, with Phase 1 underway.

Financial highlights

• Q3 net sales were $69.2M, down 2.1% YoY; gross profit was $47.1M versus $45.6M.

• Operating expenses were $42.2M versus $51.9M; adjusted operating expenses were $36.3M versus $39.1M, reflecting lower personnel-related costs and professional fees.

• Operating income was $5.0M versus an operating loss of $6.2M; net loss was $0.9M versus $11.0M.

• Adjusted EBITDA was $13.4M versus $8.9M; adjusted EBITDA margin was 19.3% versus 12.6%.

• Nine-month net sales were $206.2M versus $218.4M; adjusted EBITDA was $38.9M versus $30.1M, while net loss was $10.2M versus $1.4M.

Outlook and guidance

• FY2026 net sales guidance is $281M-$287M; adjusted EBITDA guidance is $48M-$50M, raised from $39M-$46M.

• Q4 assumptions include continued equipment pressure and further EMEA improvement efforts; adjusted gross margin is expected to moderate as equipment mix rises and the tariff refund benefit ends.

• Q4 operating expenses are expected to rise QoQ, including meaningfully higher R&D as device programs, clinical studies and innovation initiatives ramp.

• Guidance assumes no material deterioration or unforeseen events; it is non-GAAP and not reconciled to GAAP because some adjustments cannot be forecast without unreasonable effort.

• Management expects to address the $250.0M 2028 Notes in 2027; no 2027 financial guidance was provided. Refinancing or other capital may be needed at maturity.