Beauty Health (NASDAQ:SKIN) Releases Quarterly Earnings Results, Beats Expectations By $1.19 EPS

Beauty Health (NASDAQ:SKIN) announced its quarterly earnings results on Thursday. The company reported ($0.14) EPS for the quarter, beating analysts’ consensus estimates of ($1.33) by $1.19, FiscalAI reports. The company had revenue of $69.17 million for the quarter, compared to analysts’ expectations of $67.97 million. Beauty Health had a negative net margin of 9.79% and a negative return on equity of 47.83%.

Here are the key takeaways from Beauty Health’s conference call:

• Third-quarter revenue was $69.2 million, down 2.1% year over year, a smaller decline than in the first half; consumables returned to growth, up 1.2%. The company said U.S. performance and commercial initiatives are encouraging, though consumables revenue per system remains below last year.
• Profitability improved: adjusted EBITDA rose about 50% to $13.4 million, and GAAP operating income was positive for a second consecutive quarter. The company raised its 2026 adjusted EBITDA outlook to $48 million–$50 million, while noting Q3 benefited from a one-time tariff refund and that Q4 margins are expected to moderate.
• Equipment sales remain the main headwind: delivery-system revenue fell 9.9%, with 798 systems placed versus 875 a year earlier. EMEA revenue declined 11.7%, and management acknowledged that improving equipment conversion and regional execution will take further work.
• Management is targeting more recurring revenue by increasing treatment utilization across its installed base and expanding its product range; SkinStylus consumables grew 39% year over year. New Hydrafacial products and a U.S. rental program are early-stage initiatives, while the next-generation Hydrafacial platform is targeted for 2028.
• The company repaid its $103.2 million 2026 convertible notes as planned and ended the quarter with $112.4 million in cash. Approximately $250 million of convertible debt remains due in Q4 2028, which management expects to address in 2027.

Beauty Health Price Performance

Shares of SKIN traded down $0.70 during midday trading on Thursday, hitting $10.35. 23,067 shares of the company traded hands, compared to its average volume of 46,208. The stock has a 50-day moving average of $12.26 and a 200-day moving average of $16.44. Beauty Health has a one year low of $9.68 and a one year high of $34.80. The firm has a market cap of $67.38 million, a P/E ratio of -2.35 and a beta of 1.05. The company has a debt-to-equity ratio of 4.36, a current ratio of 1.76 and a quick ratio of 1.48.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on the stock. Zacks Research lowered shares of Beauty Health from a “strong-buy” rating to a “hold” rating in a research note on Monday, July 20th. Weiss Ratings restated a “sell (e+)” rating on shares of Beauty Health in a research report on Wednesday, October 21st. TD Cowen began coverage on Beauty Health in a research report on Friday, October 30th. They set a “hold” rating on the stock. Jefferies Financial Group reaffirmed a “hold” rating and issued a $11.00 price target (up from $0.85) on shares of Beauty Health in a report on Monday, October 19th. Finally, Stifel Nicolaus set a $10.00 price target on Beauty Health in a research report on Thursday, October 15th. One equities research analyst has rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $18.00.

Beauty Health Company Profile

BeautyHealth is a global health and beauty company focused on providing technology, products and services for aesthetic and skincare businesses. Its flagship brand, HydraFacial, offers a non-invasive treatment platform that combines cleansing, exfoliation, extraction and hydration, with treatments delivered through proprietary devices and consumable solutions.

The company also provides professional skincare products, treatment systems and related solutions designed for use by physicians, dermatologists, aestheticians and other licensed practitioners.