Adjusted EBITDA Outperformance
Adjusted EBITDA of $8.5M in Q1, up 17% year-over-year and representing a 13.1% margin; result was well above the prior guidance range of $3.5M to $5.5M.
Strong Adjusted Gross Margin
Adjusted gross margin expanded to 72.2% in Q1 versus 71.9% in prior year, demonstrating margin resilience despite lower revenue.
Improved Profitability and Cost Discipline
GAAP operating expenses decreased to $46.2M from $60.6M a year ago (driven by lower S&M, G&A and legal costs), contributing to an improved net loss of $6.6M versus $10.1M in prior year.
Growing Installed Base and Reduced Churn
Active installed base grew to 36,400 systems, up 4% year-over-year, while device churn declined 40% year-over-year, signaling improved provider retention and reactivation.
Strong Cash Position and Manageable Near-Term Debt
Ended the quarter with $204.4M in cash, cash equivalents and restricted cash; company stated confidence in addressing the October 2026 debt maturity of approximately $103M based on current cash flow expectations.
Maintained Full-Year Adjusted EBITDA Guidance
Despite lowering revenue guidance, management maintained adjusted EBITDA guidance of $35M to $45M, reflecting operational leverage and margin strength.
Active Innovation and Board Strengthening
Advancing innovation initiatives including booster portfolio overhaul, Keravive (HydraScalp) relaunch later this quarter, a clinically-backed booster expected in Q4, and development of a next-generation Hydrafacial device targeting a 2028 launch; added three independent directors with medtech/aesthetics experience.