Beauty Health (NASDAQ:SKIN) Posts Quarterly Earnings Results, Hits Expectations

Beauty Health (NASDAQ:SKIN) announced its quarterly earnings data on Thursday. The company reported ($0.02) earnings per share (EPS) for the quarter, hitting the consensus estimate of ($0.02), FiscalAI reports. Beauty Health had a negative return on equity of 46.83% and a negative net margin of 9.79%.The firm had revenue of $72.09 million for the quarter, compared to analysts’ expectations of $74.45 million.

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

• Revenue declined 7.8% to $72.1 million, with Delivery Systems down 18.4% as providers remained cautious on capital spending and consumables down 3.5% amid lower treatment utilization. The company cited intensified competition and consumers spreading spending across more aesthetic treatments.
• Adjusted EBITDA rose to $17 million, above guidance of $11 million-$13 million, supported by a 590-basis-point expansion in adjusted gross margin to 71.8%, lower operating expenses, and cost discipline.
• The company lowered its 2026 revenue outlook to $280 million-$290 million but raised adjusted EBITDA guidance to $39 million-$46 million. Third-quarter guidance calls for revenue of $65 million-$70 million and adjusted EBITDA of $5 million-$7 million, with higher R&D and commercial investment expected in the second half.
• Management launched a U.S. device rental program to reduce upfront costs and expand the HydraFacial addressable market, while a clinically validated booster is expected in the fourth quarter. HydraScalp and SkinStylus are also gaining traction, and a next-generation HydraFacial platform remains targeted for 2028 alongside a new U.S. device planned for 2027.
• The company faces an approximately $103 million convertible-note maturity in October 2026 and plans to repay it with cash on hand, which is expected to leave roughly $100 million at year-end. It also received a Nasdaq notice for trading below the $1 minimum bid price and will seek shareholder approval for a reverse stock split on September 22.

Beauty Health Stock Performance

NASDAQ:SKIN traded down $0.11 during midday trading on Friday, reaching $0.66. 903,716 shares of the company traded hands, compared to its average volume of 771,224. Beauty Health has a twelve month low of $0.55 and a twelve month high of $2.69. The firm has a market capitalization of $85.67 million, a price-to-earnings ratio of -3.00 and a beta of 1.07. The company has a debt-to-equity ratio of 4.37, a current ratio of 1.79 and a quick ratio of 1.48. The company has a fifty day moving average price of $0.73 and a 200 day moving average price of $0.92.

Wall Street Analysts Forecast Growth

Several analysts have weighed in on the stock. Roth Capital reiterated a “buy” rating and set a $2.00 target price (down from $2.50) on shares of Beauty Health in a research note on Wednesday, May 20th. Canaccord Genuity Group reduced their price target on shares of Beauty Health from $1.50 to $1.00 and set a “hold” rating on the stock in a research report on Friday, May 1st. Weiss Ratings lowered shares of Beauty Health from a “sell (d-)” rating to a “sell (e+)” rating in a report on Thursday, July 23rd. Finally, Zacks Research downgraded shares of Beauty Health from a “strong-buy” rating to a “hold” rating in a research report on Monday, July 20th. One equities research analyst has rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $1.52.

Institutional Investors Weigh In On Beauty Health

Several large investors have recently added to or reduced their stakes in SKIN. Public Employees Retirement System of Ohio bought a new stake in Beauty Health in the third quarter valued at $26,000. Atom Investors LP bought a new position in shares of Beauty Health during the fourth quarter worth about $29,000. Franklin Resources Inc. bought a new position in shares of Beauty Health during the third quarter worth about $31,000. Ieq Capital LLC bought a new position in shares of Beauty Health during the fourth quarter worth about $33,000. Finally, Zacks Investment Management acquired a new stake in shares of Beauty Health in the 3rd quarter worth about $35,000. 93.26% of the stock is owned by institutional investors and hedge funds.

About Beauty Health

Beauty Health Company (NASDAQ: SKIN) is a U.S.-based consumer wellness and beauty enterprise that integrates device-based and product-based offerings across skin, body and hair wellness categories. The company operates a portfolio of established brands that blend professional and at-home solutions, focusing on innovative formulations and technologies to address a range of beauty and self-care needs. Through its proprietary e-commerce platforms and strategic retail partnerships, Beauty Health seeks to deliver premium experiences and tangible results to a global customer base.

Beauty Health’s brand portfolio includes Sol de Janeiro, known for its award-winning Brazilian Bum Bum Cream body care collection; Elemis, a U.K.-originated professional skin care line distributed in spas and skincare clinics; NuFACE and Dermaflash, two at-home beauty device brands specializing in microcurrent facial toning and gentle exfoliation respectively; and Nutrafol, a legal-strength hair wellness supplement clinically designed to support hair growth.