The Beauty Health Company (SKIN) Q2 2025 earnings summary

Executive summary

• Q2 2025 exceeded revenue and adjusted EBITDA guidance, with net sales of $78.2M, driven by consumables growth, margin expansion, and operational improvements, despite a 13.7% year-over-year decline in net sales due to lower delivery systems sales.

• Net income rose to $19.7M from $0.2M in Q2 2024, aided by lower operational spend, higher gross margin, and gains from debt repurchases.

• Launched Hydrophilic with Peptide Booster, now the top-performing Hydrafacial booster, and expanded to over 35,000 active devices globally.

• Completed transition to a distributor model in China and restructured debt, closing the quarter with $212M in cash.

• Operating expenses reduced by nearly 18%, with inventory lowered and continued focus on innovation and provider engagement.

Financial highlights

• Q2 2025 net sales: $78.2M (down 13.7% year-over-year); adjusted EBITDA: $13.9M, both above expectations.

• Gross margin improved to 62.8% from 45.2% year-over-year; adjusted gross margin reached 65.9%.

• Net income was $19.7M, up from $0.2M in Q2 2024.

• Consumables sales totaled $55.8M, up 0.8% year-over-year, while delivery systems sales fell 36.5% to $22.4M.

• Adjusted EBITDA margin was 17.8% in Q2 2025, compared to -5.7% in the prior year.

Outlook and guidance

• FY 2025 net sales guidance raised to $285–$300M; adjusted EBITDA expected at $27–$35M.

• Q3 2025 net sales projected at $65–$70M, with adjusted EBITDA of $2–$4M, reflecting seasonality and R&D investments.

• Second half expected to see ASP pressure, lower gross margins due to product mix, $4–$5M in R&D spend, and $4M in tariff impact.

• Management believes liquidity is sufficient for at least the next 12 months, with ongoing evaluation of capital needs.

• Guidance assumes no further material market deterioration and excludes unannounced transactions.