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Beauty Health (SKIN)
NASDAQ:SKIN
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Beauty Health (SKIN) AI Stock Analysis

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SKIN

Beauty Health

(NASDAQ:SKIN)

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Neutral 43 (OpenAI - 4o)
Rating:43Neutral
Price Target:
$1.00
▼(-22.48% Downside)
The overall stock score is primarily influenced by financial performance challenges, including high leverage and negative profitability. Technical analysis indicates bearish momentum, further weighing on the score. Valuation metrics are unattractive due to ongoing losses. While the earnings call highlighted some operational improvements, the negative revenue trends and regional performance issues remain significant concerns.
Positive Factors
Adjusted EBITDA Growth
The increase in adjusted EBITDA reflects strong operational execution and cost control, indicating improved profitability potential.
Consumable Mix Increase
A higher consumable mix suggests a shift towards recurring revenue streams, enhancing revenue stability and predictability.
Successful New Product Launches
New product launches driving sales growth indicate effective innovation and market responsiveness, supporting long-term competitiveness.
Negative Factors
Overall Revenue Decline
The decline in revenue suggests challenges in maintaining sales growth, which could impact long-term financial performance.
High Leverage
Significant leverage poses financial risks, potentially limiting the company's ability to invest in growth and manage economic downturns.
Device Segment Revenue Decline
A sharp decline in device sales indicates market pressures and challenges in maintaining product demand, affecting future revenue streams.

Beauty Health (SKIN) vs. SPDR S&P 500 ETF (SPY)

Beauty Health Business Overview & Revenue Model

Company DescriptionBeauty Health (SKIN) is a leading innovator in the beauty and wellness industry, focusing on skincare products that harness the power of health and beauty science. The company specializes in developing and marketing advanced skin health solutions, including proprietary formulations that combine dermatological expertise with consumer-friendly applications. Its core products are designed to enhance skin appearance and health, catering to a diverse clientele that values both efficacy and sustainability in beauty care.
How the Company Makes MoneyBeauty Health generates revenue primarily through the sale of its skincare products, which include serums, creams, and treatment solutions. The company employs a direct-to-consumer sales model via its online platform, as well as a wholesale distribution strategy that targets beauty retailers and dermatology clinics. Additionally, Beauty Health benefits from strategic partnerships with beauty influencers and dermatologists, which not only enhances brand visibility but also drives sales through trusted recommendations. The company may also explore collaborations with health and wellness brands for co-branded products, further diversifying its revenue streams.

Beauty Health Earnings Call Summary

Earnings Call Date:Nov 06, 2025
(Q3-2025)
|
Next Earnings Date:Mar 18, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative elements. On the positive side, there was growth in adjusted EBITDA, an improved consumable mix, successful new product launches, and significant inventory management achievements. However, these were countered by declines in overall revenue, significant drops in the device segment and APAC revenues, and concerns about the churn rate among providers. While operational improvements and strategic initiatives offer promise, the ongoing pressures in device sales and regional performance present notable challenges.
Q3-2025 Updates
Positive Updates
Adjusted EBITDA Growth
Adjusted EBITDA for Q3 was $8.9 million, up 11% from the previous year, reflecting tight cost control and solid operational execution.
Consumable Mix Increase
Consumable mix increased from 65% of net sales in the previous year to 71% this quarter, driven by modest growth net of the China impact.
Successful New Product Launches
Hydralock HA and HydraFillic with Pep9 Boosters collectively contributed to a 14% growth in the booster sales category.
Inventory Management Milestone
Inventory levels were reduced to below $60 million, the lowest in 3 years, due to improved demand planning and production quality.
Negative Updates
Overall Revenue Decline
Total net sales for Q3 were $70.7 million, down 10.3% year-over-year, slightly ahead of the high end of the forecast.
Device Segment Revenue Decline
Device segment revenues were $20.8 million, a decrease of 24.6% year-over-year, due to continued pressure on equipment sales globally.
APAC Revenue Drop
APAC revenue decreased by 41.5% to $6.3 million, reflecting a planned transition to a distributor model in China.
Churn Rate Concerns
Churn rate was nearly 2%, higher than historical averages, attributed to financial pressures and closures among low-volume providers.
Company Guidance
During The Beauty Health Company's 2025 Third Quarter Earnings Conference Call, the guidance provided highlighted a few key metrics and strategic focuses. The company reported total net sales of $70.7 million for Q3, reflecting a year-over-year decrease of 10.3%, with device segment revenues down 24.6% to $20.8 million and consumables segment revenues down 2.6% to $49.8 million. Despite these declines, adjusted EBITDA was up 11% to $8.9 million, showcasing strong operational execution and cost control. The company raised its adjusted EBITDA guidance for the remainder of the year, now expecting between $37 million and $39 million, and adjusted its full-year revenue guidance to between $293 million and $300 million. The strategic focus remains on protecting and growing the Hydrafacial installed base of over 35,000 devices, driving consumable utilization, innovating across device and consumable platforms, and strengthening operational discipline. While the company faces market challenges, it aims to leverage its unique business model to drive predictable and profitable revenue.

Beauty Health Financial Statement Overview

Summary
Beauty Health faces significant financial challenges with declining revenues and profitability issues. While cash flow has improved, high leverage and negative profit margins highlight risks. The company needs to address operational inefficiencies and manage debt levels to ensure long-term financial stability.
Income Statement
45
Neutral
The company exhibits declining revenue, with a growth rate of -3.53% from 2024 to TTM. Profit margins are negative due to significant net losses, demonstrated by a TTM net profit margin of -11.94%. The gross profit margin stands at 56.60%, indicating a decent cost management relative to revenue. However, negative EBIT and EBITDA margins suggest operational inefficiencies.
Balance Sheet
30
Negative
The balance sheet reveals high leverage, with a debt-to-equity ratio of 12.32, posing a substantial risk. The equity ratio is low at 6.83%, indicating limited equity cushion. Return on equity is negative due to net losses. The company's reliance on debt over equity increases financial risk.
Cash Flow
55
Neutral
Cash flow analysis shows improvement, with a 219.42% growth in free cash flow from 2024 to TTM. The operating cash flow to net income ratio indicates better cash generation than reported net income. However, the free cash flow to net income ratio is still below optimal levels, suggesting cash flow challenges.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue310.06M334.29M397.99M365.88M260.09M119.09M
Gross Profit190.69M182.30M155.11M248.78M178.54M67.20M
EBITDA20.71M10.34M-53.56M80.75M-22.00M-2.81M
Net Income-19.00M-29.10M-100.12M44.22M-375.11M-29.18M
Balance Sheet
Total Assets507.56M685.68M929.11M1.01B1.22B222.84M
Cash, Cash Equivalents and Short-Term Investments212.00M370.06M523.02M568.20M901.89M9.49M
Total Debt376.73M568.16M752.29M751.79M746.41M216.54M
Total Liabilities433.56M633.88M869.72M837.43M916.51M252.79M
Stockholders Equity74.00M51.80M59.39M171.48M302.30M-29.96M
Cash Flow
Free Cash Flow36.48M9.34M8.70M-123.99M-43.98M-16.25M
Operating Cash Flow39.43M16.13M21.75M-106.60M-28.36M-12.44M
Investing Cash Flow-5.65M-6.79M-31.51M-18.87M-37.73M-3.82M
Financing Cash Flow-174.59M-158.34M-37.45M-205.24M959.03M18.27M

Beauty Health Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.29
Price Trends
50DMA
1.82
Negative
100DMA
1.86
Negative
200DMA
1.64
Negative
Market Momentum
MACD
-0.11
Negative
RSI
34.73
Neutral
STOCH
39.01
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 1.29 is below the 20-day moving average (MA) of 1.42, below the 50-day MA of 1.82, and below the 200-day MA of 1.64, indicating a bearish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 34.73 is Neutral, neither overbought nor oversold. The STOCH value of 39.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SKIN.

Beauty Health Risk Analysis

Beauty Health disclosed 95 risk factors in its most recent earnings report. Beauty Health reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Beauty Health Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$523.69M5.2813.68%2.22%-11.79%
65
Neutral
$207.63M18.6910.98%-5.04%-22.01%
63
Neutral
$892.11M14.184.12%3.13%-2.92%-43.06%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
56
Neutral
$231.18M42.6634.76%65.67%
48
Neutral
$465.87M-52.84%-5.64%-577.74%
43
Neutral
$175.02M-4.90-26.54%-15.33%75.52%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SKIN
Beauty Health
1.29
-0.34
-20.86%
HELE
Helen Of Troy
19.21
-43.27
-69.25%
NUS
Nu Skin
10.83
4.46
70.02%
EPC
Edgewell Personal Care
18.70
-16.71
-47.19%
SLSN
Solesence
3.08
1.17
61.26%
EWCZ
European Wax Center
3.69
-4.24
-53.47%

Beauty Health Corporate Events

Beauty Health Company Exceeds Earnings Expectations in Q3 2025
Nov 7, 2025

The Beauty Health Company, a medtech meets beauty enterprise, is renowned for its flagship brand Hydrafacial, offering innovative skin health experiences through hydradermabrasion, nanoneedling, and microneedling technologies.

Business Operations and StrategyExecutive/Board Changes
Beauty Health Appoints Dr. Philippe Schaison to Board
Positive
Nov 3, 2025

On October 30, 2025, The Beauty Health Company appointed Dr. Philippe Schaison to its Board of Directors, recognizing his extensive experience in scaling global beauty and aesthetics businesses. Dr. Schaison, who currently serves as CEO of Soltégo, Inc., brings over 20 years of leadership in the aesthetics, biotech, and consumer health industries. His appointment is expected to enhance the company’s strategic direction and accelerate growth, particularly for its Hydrafacial brand.

The most recent analyst rating on (SKIN) stock is a Sell with a $1.50 price target. To see the full list of analyst forecasts on Beauty Health stock, see the SKIN Stock Forecast page.

Executive/Board Changes
Pedro Malha Appointed CEO of Beauty Health
Neutral
Sep 30, 2025

On October 1, 2025, Pedro Malha will assume the role of President and CEO of The Beauty Health Company, succeeding Marla Beck, who will transition to an advisory role. Malha’s extensive experience in the healthcare and medical device sectors positions him to lead the company into its next growth phase, building on Beck’s efforts to enhance innovation and operational efficiency.

The most recent analyst rating on (SKIN) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Beauty Health stock, see the SKIN Stock Forecast page.

Business Operations and StrategyPrivate Placements and Financing
Beauty Health Modifies Indenture for Convertible Notes
Positive
Sep 4, 2025

On September 4, 2025, The Beauty Health Company, along with its domestic and foreign subsidiaries, entered into a Supplemental Indenture with U.S. Bank Trust Company to modify an existing indenture related to its 7.95% Convertible Senior Notes due 2028. This modification includes securing the notes with a first-priority guarantee by new foreign subsidiaries and addressing certain ambiguities in the original indenture, potentially strengthening the company’s financial structure and enhancing investor confidence.

The most recent analyst rating on (SKIN) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Beauty Health stock, see the SKIN Stock Forecast page.

Beauty Health Co. Earnings Call Highlights Strong Performance
Aug 13, 2025

The Beauty Health Company’s recent earnings call showcased a strong financial performance, marked by significant improvements in revenue, adjusted EBITDA, and gross margins. The company celebrated successful product launches and strategic debt restructuring, although it acknowledged challenges such as declining device revenue, regional revenue declines, and increased churn. The macroeconomic environment and seasonal factors are expected to impact the upcoming quarter.

Restrictive Covenants in Beauty Health’s 2028 Notes: A Barrier to Growth and Flexibility
Aug 9, 2025

The restrictive covenants embedded within the 2028 Notes of Beauty Health Company could significantly constrain its operational flexibility. These covenants limit the company’s ability to engage in debt financing, asset transactions, and various strategic initiatives, including mergers and acquisitions. Such restrictions may hinder the company’s capacity to adapt to industry changes or pursue growth opportunities. Additionally, non-compliance with these covenants could trigger a default event, posing a substantial risk to the company’s financial stability.

BeautyHealth Reports Strong Q2 2025 Performance
Aug 8, 2025

The Beauty Health Company, operating in the medtech and beauty sector, specializes in skin health experiences through its flagship brand Hydrafacial, among others. In its second quarter of 2025, BeautyHealth reported a strong financial performance, surpassing revenue and adjusted EBITDA expectations, and subsequently raised its full-year guidance. The company highlighted the success of its HydraFillic with Pep9™ Booster launch and noted significant improvements in gross margins, driven by a shift towards consumable sales. Key financial metrics revealed a decrease in net sales to $78.2 million, a 13.7% drop from the previous year, attributed to lower delivery systems sales. However, the gross margin improved significantly to 62.8% from 45.2%, and net income rose to $19.7 million from $0.2 million. Adjusted EBITDA also saw a notable increase to $13.9 million from a negative $5.2 million, reflecting effective cost management and strategic shifts. Looking ahead, BeautyHealth remains optimistic about its growth trajectory, underpinned by a robust recurring revenue model and ongoing innovation efforts, despite macroeconomic challenges.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Nov 07, 2025