The Beauty Health Company (SKIN) Q4 2025 earnings summary

Executive summary

• Q4 2025 saw structural progress in margins, profitability, and balance sheet strength, with operational improvements and a shift in commercial focus from device placement to utilization to drive recurring consumables revenue.

• Full year 2025 net sales were $300.8 million, down 10% year-over-year, with consumables growth offsetting lower delivery systems sales and China distributor transition.

• Adjusted EBITDA for 2025 was $45.1 million, up significantly year-over-year, reflecting operational efficiencies and margin improvements.

• Net loss improved to $(9.5) million for 2025, a $19.6 million year-over-year improvement, driven by lower operational spend and higher gross margin.

• 2026 is positioned as an execution year, with growth expected to resume in 2027 as operational initiatives take hold.

Financial highlights

• Q4 2025 net sales were $82.4 million, down 1.3% year-over-year, with consumables revenue growing 1.7% to $57.7 million and device revenue declining 7.9% to $24.7 million.

• Q4 2025 adjusted EBITDA was $15 million, up from $9 million in Q4 2024; full-year adjusted EBITDA margin reached 15.0%.

• Q4 2025 gross margin improved to 64.4% from 62.7% year-over-year; adjusted gross margin was 67.4%.

• Q4 2025 net loss narrowed to $(8.1) million from $(10.3) million year-over-year.

• Operating cash flow exceeded $37 million for the year.

Outlook and guidance

• FY 2026 net sales expected between $285 million and $305 million; adjusted EBITDA guidance of $35 million to $45 million.

• Q1 2026 net sales projected at $63 million–$68 million and adjusted EBITDA at $3.5 million–$5.5 million.

• First half of 2026 projected to be modestly below prior year, with momentum building in the second half as commercial initiatives take effect.

• Return to growth anticipated in 2027 as operational initiatives take hold.