Beauty Health (SKIN) AI Stock Analysis

• Market Cap: $144.38M
• Dividend Yield: N/A
• Average Volume (3M): 1.04M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.01
• Revenue Growth: -13.14%
• EPS Growth: 57.98%
• Country: US
• Employees: 769
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): -0.06
• Shares Outstanding: 127,773,050
• 10 Day Avg. Volume: 926,645
• 30 Day Avg. Volume: 1,036,656
• PEG Ratio: 0.28
• Price to Book (P/B): 2.88
• Price to Sales (P/S): 0.58
• P/FCF Ratio: 4.72
• Enterprise Value/Market Cap: 2.01
• Enterprise Value/Revenue: 0.97
• Enterprise Value/Gross Profit: 1.48
• Enterprise Value/Ebitda: 7.78
• 1Y Price Target: $1.82
• Price Target Upside: 61.06% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): -0.13
• Revenue Forecast (FY): $306.66M

• Rating: 47 Neutral
• Price Target: $1.00 ▼(-11.50% Downside)
• Action: Reiterated Date: 03/14/26
• Date: Action: Reiterated 03/14/26

The score is held down primarily by weakening revenue and a highly leveraged balance sheet despite improving margins and positive free cash flow. Earnings-call guidance and profitability progress provide some support, while technicals are only modestly improving and valuation remains constrained by ongoing unprofitability; the legal/governance matter adds a small additional risk.

Positive Factors

High and Improving Gross Margins

A durable shift toward higher-margin consumables and mix improvement lifted adjusted gross margins materially. Sustained ~65–68%+ gross margins provide a structural cushion for profitability, enabling the company to absorb sales variability while converting recoveries into operating leverage and cash.

Recurring Consumables and Large Installed Base

A sizable installed base plus recurring consumables sales create predictable, high-margin revenue streams. This consumables-driven model supports durable revenue visibility, higher spend-per-treatment dynamics and pricing power, anchoring long-term unit economics even if device placements fluctuate.

Improving Cash Generation and Profitability Trajectory

Recent positive free cash flow and large adjusted EBITDA expansion show improving cash conversion and expense discipline. That cash generation enabled debt repurchases/refinancing, supports reinvestment in sales and R&D, and provides a clearer path to self-funded growth if trends persist.

Negative Factors

Multi-year Revenue Contraction

Revenue has declined across multiple years, eroding operating leverage and stressing the growth runway. Persistent top-line weakness limits scalability of fixed costs, increases reliance on margin recovery to sustain profits, and makes the company vulnerable if consumables demand slows or device placements remain weak.

Highly Leveraged Balance Sheet

Material leverage constrains strategic flexibility and raises refinancing risk despite recent debt reduction. Significant debt relative to modest equity means cash flow volatility or slower-than-expected cash conversion could force restrictive covenant actions or curtail investment, hampering long-term execution.

Governance/Litigation Over Syndeo Launch

The derivative action and settlement highlight past oversight and disclosure issues tied to a product rollout. Even if non-monetary, governance reforms and ongoing scrutiny create reputational and execution risk, potentially slowing product launches, partner trust, and management bandwidth for strategic initiatives.

Beauty Health Business Overview & Revenue Model

Company Description

The Beauty Health Company designs, develops, manufactures, markets, and sells aesthetic technologies and products worldwide. The company's flagship product includes HydraFacial that enhance the skin to cleanse, peel, exfoliate, extract, infuse, and hydrate the skin with proprietary solutions and serums. Its products also comprise Syndeo, a HydraFacial Delivery System designed to elevate every part of the treatment and connects providers to the consumer's preferences to create a more personalized experience; HydraFacial Nation App, an app that allows consumers to learn about their skin health, discover treatment options, and track their treatments over time; and Keravive, a treatment for scalp health. The company was founded in 1997 and is headquartered in Long Beach, California.

How the Company Makes Money

Beauty Health (SKIN) generates revenue primarily through the direct sale of its skincare products across various channels, including online platforms, retail partnerships, and dermatology clinics. The company's revenue model is built on a combination of product sales and subscription services, where customers can sign up for regular deliveries of their favorite products. Key revenue streams include the sale of individual products, bundled packages, and exclusive membership programs that offer discounts and early access to new launches. Additionally, strategic partnerships with skincare professionals and beauty influencers enhance brand visibility and drive sales, contributing significantly to the company's earnings.

Beauty Health Financial Statement Overview

Summary

Fundamentals remain pressured by multi-year revenue contraction and continued GAAP losses, while the balance sheet is heavily leveraged (very high debt-to-equity), limiting flexibility. Offsetting positives include consistently strong gross margins and improved/positive recent free cash flow, but durability is not yet proven.

Income Statement

Revenue has been shrinking for multiple years (down 16% in 2024 and down 37% in 2025), which pressures operating leverage. Profitability has improved from the deep losses seen in 2021–2023, but the business is still unprofitable in 2024–2025 (net margin about -9% in 2024 and -3% in 2025) with EBIT still negative. A key positive is consistently strong gross margin (about 65% in 2025), suggesting the core product economics remain attractive if costs and demand stabilize.

Balance Sheet

Leverage remains the central issue: debt is high relative to equity (debt-to-equity ~11.0x in 2024 and ~6.2x in 2025), leaving limited balance-sheet flexibility. Equity is low in absolute dollars ($61M in 2025) versus $379M of debt, and returns on equity are negative due to ongoing losses. While total debt has come down from 2023 to 2025, the capital structure is still aggressive and elevates refinancing and execution risk.

Cash Flow

Cash generation is a relative bright spot recently: operating cash flow and free cash flow were positive in 2024 and improved further in 2025 ($37.5M free cash flow). However, cash flow has been volatile over time (notably large negative operating and free cash flow in 2022), and the 2025 free cash flow growth rate is sharply negative versus the prior period, signaling inconsistency. Overall, the business is showing improved cash discipline, but durability through the cycle is not yet proven.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	300.80M	334.29M	397.99M	365.88M	260.09M
Gross Profit	196.40M	182.30M	155.11M	248.78M	178.54M
EBITDA	33.00K	10.34M	-53.56M	81.60M	-350.93M
Net Income	-9.50M	-29.10M	-100.12M	44.22M	-378.76M
Balance Sheet
Total Assets	499.80M	685.68M	929.11M	1.00B	1.22B
Cash, Cash Equivalents and Short-Term Investments	232.70M	370.06M	523.02M	568.20M	901.89M
Total Debt	378.70M	568.16M	752.29M	751.79M	746.41M
Total Liabilities	438.70M	633.88M	869.72M	836.03M	916.51M
Stockholders Equity	61.10M	51.80M	59.39M	167.05M	302.30M
Cash Flow
Free Cash Flow	37.18M	9.34M	8.70M	-123.99M	-43.98M
Operating Cash Flow	37.50M	16.13M	21.75M	-106.60M	-28.36M
Investing Cash Flow	-5.16M	-6.79M	-31.51M	-18.87M	-37.73M
Financing Cash Flow	-174.90M	-158.34M	-37.45M	-205.24M	959.03M

Beauty Health Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.13
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SKIN, the sentiment is Negative. The current price of 1.13 is above the 20-day moving average (MA) of 1.09, below the 50-day MA of 1.25, and below the 200-day MA of 1.61, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.02 is Neutral, neither overbought nor oversold. The STOCH value of 35.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SKIN.

Beauty Health Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EWCZ	64 Neutral	$314.68M	17.43	15.38%	―	-5.47%	13.42%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
NUS	55 Neutral	$342.66M	2.96	20.36%	2.39%	-12.10%	―
EPC	52 Neutral	$907.70M	-3.02	1.62%	3.51%	-1.34%	-73.59%
SLSN	49 Neutral	$62.07M	-50.67	6.53%	―	30.04%	-53.50%
SKIN	47 Neutral	$144.38M	-5.47	-19.78%	―	-13.14%	57.98%
HELE	46 Neutral	$342.62M	-1.34	-67.60%	―	-5.64%	-577.74%

Beauty Health Corporate Events

Beauty Health Advances Governance Settlement Over Syndeo Launch

On March 3, 2026, The Beauty Health Company notified stockholders that on February 9, 2026, it had entered into a stipulation of settlement, subject to Delaware Court of Chancery approval, to resolve a consolidated stockholder derivative action alleging fiduciary breaches tied to defects and disclosure issues around its HydraFacial Syndeo system. The court issued a scheduling order on February 20, 2026, set a May 13, 2026 settlement hearing, and outlined a non-monetary resolution centered on corporate governance reforms and a negotiated $737,500 fee award for plaintiffs’ counsel, signaling an effort to close governance-related litigation over the product rollout without direct cash payments to shareholders.

The derivative case, brought after extensive books-and-records demands beginning in late 2023, accused current and former directors and officers of failing to properly oversee Syndeo’s launch and of allowing allegedly misleading statements about the product’s readiness, customer acceptance and technical issues, though defendants deny any wrongdoing. By moving toward a governance-focused settlement rather than damages, Beauty Health seeks to resolve oversight and disclosure challenges raised by the Syndeo launch, potentially strengthening its compliance framework while limiting immediate financial outflows but leaving its reputation and execution on innovation under continued investor scrutiny.

The most recent analyst rating on (SKIN) stock is a Hold with a $1.65 price target. To see the full list of analyst forecasts on Beauty Health stock, see the SKIN Stock Forecast page.