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Beauty Health (SKIN)
NASDAQ:SKIN
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Beauty Health
(NASDAQ:SKIN)
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Rating:51Neutral
Price Target:
$1.50
▼(-3.85% Downside)
The overall stock score reflects significant financial challenges, including declining revenues and high leverage. While technical indicators show some short-term strength, valuation concerns and mixed earnings call results weigh on the score. The positive corporate event provides a slight uplift, but substantial operational improvements are needed for a more favorable outlook.
Positive Factors
Management Quality
The appointment of Pedro Malha as CEO, with his extensive experience in healthcare and medical devices, is expected to drive innovation and operational efficiency, enhancing long-term strategic direction.
Strategic Initiatives
The strategic focus on expanding the Hydrafacial installed base and driving consumable utilization supports predictable and profitable revenue growth, strengthening the company's market position.
Product Innovation
Successful new product launches like Hydralock HA and HydraFillic with Pep9 Boosters demonstrate the company's commitment to innovation, enhancing its competitive edge and driving future sales.
Negative Factors
Revenue Decline
The decline in overall revenue reflects ongoing challenges in market demand and competitive pressures, potentially impacting long-term financial stability and growth prospects.
High Leverage
High leverage poses financial risks, limiting the company's ability to invest in growth opportunities and increasing vulnerability to economic downturns.
APAC Revenue Drop
The significant drop in APAC revenue due to a transition to a distributor model in China highlights regional challenges and could affect the company's global expansion strategy.
Beauty Health (SKIN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$183.60M
Dividend YieldN/A
Average Volume (3M)1.04M
Price to Earnings (P/E)―
Beta (1Y)2.06
Revenue Growth-13.14%
EPS Growth57.98%
CountryUS
Employees769
SectorConsumer Defensive
Sector Strength42
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)-0.09
Shares Outstanding127,503,060
10 Day Avg. Volume926,645
30 Day Avg. Volume1,036,656
Financial Highlights & Ratios
PEG Ratio0.10
Price to Book (P/B)3.80
Price to Sales (P/S)0.59
P/FCF Ratio21.08
Enterprise Value/Market Cap2.24
Enterprise Value/Revenue1.36
Enterprise Value/Gross Profit2.11
Enterprise Value/Ebitda14.15
Forecast
1Y Price Target
$2.13Price Target Upside36.54% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Beauty Health Business Overview & Revenue Model
Company DescriptionThe 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 MoneyBeauty 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 Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q3-2025)
| % Change Since: |
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
The company faces challenges with declining revenues and profitability pressures. High leverage poses financial risks, though there is some improvement in cash flow generation. The company needs to address operational inefficiencies and manage debt levels to enhance financial stability.Income Statement
The income statement shows a declining revenue trend with a negative revenue growth rate of -2.63% TTM. Gross profit margin remains relatively strong at 64.81% TTM, but the company struggles with profitability, evidenced by a negative net profit margin of -3.89% TTM. EBIT and EBITDA margins are also weak, indicating operational challenges.Balance Sheet
The balance sheet reveals high leverage with a debt-to-equity ratio of 5.77 TTM, indicating significant reliance on debt financing. Return on equity is negative, reflecting losses and potential risk to equity holders. The equity ratio is low, suggesting limited equity buffer against liabilities.Cash Flow
Cash flow analysis shows a modest improvement in free cash flow growth at 3.83% TTM. However, the operating cash flow to net income ratio is below 1, indicating potential cash flow constraints. The free cash flow to net income ratio is close to 1, suggesting that free cash flow is nearly covering net losses.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 301.92M | 334.29M | 397.99M | 365.88M | 260.09M | 119.09M |
| Gross Profit | 195.67M | 182.30M | 155.11M | 248.78M | 178.54M | 67.20M |
| EBITDA | 29.12M | 10.34M | -53.56M | 81.60M | -350.93M | -2.81M |
| Net Income | -11.74M | -29.10M | -100.12M | 44.22M | -378.76M | -29.18M |
Balance Sheet | ||||||
| Total Assets | 503.64M | 685.68M | 929.11M | 1.00B | 1.22B | 222.84M |
| Cash, Cash Equivalents and Short-Term Investments | 219.40M | 370.06M | 523.02M | 568.20M | 901.89M | 9.49M |
| Total Debt | 378.98M | 568.16M | 752.29M | 751.79M | 746.41M | 216.54M |
| Total Liabilities | 437.98M | 633.88M | 869.72M | 836.03M | 916.51M | 252.79M |
| Stockholders Equity | 65.66M | 51.80M | 59.39M | 167.05M | 302.30M | -29.96M |
Cash Flow | ||||||
| Free Cash Flow | 37.87M | 9.34M | 8.70M | -123.99M | -43.98M | -16.25M |
| Operating Cash Flow | 38.76M | 16.13M | 21.75M | -106.60M | -28.36M | -12.44M |
| Investing Cash Flow | -4.64M | -6.79M | -31.51M | -18.87M | -37.73M | -3.82M |
| Financing Cash Flow | -175.18M | -158.34M | -37.45M | -205.24M | 959.03M | 18.27M |
Beauty Health Technical Analysis
Positive
1.56
Price Trends
1.42
Positive
1.68
Negative
1.62
Negative
Market Momentum
>-0.01
Positive
49.39
Neutral
54.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SKIN, the sentiment is Positive. The current price of 1.56 is above the 20-day moving average (MA) of 1.45, above the 50-day MA of 1.42, and below the 200-day MA of 1.62, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 49.39 is Neutral, neither overbought nor oversold. The STOCH value of 54.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $491.40M | 4.74 | 14.55% | 2.39% | -12.10% | ― | |
61 Neutral | $219.07M | 15.22 | 15.38% | ― | -5.47% | 13.42% | |
58 Neutral | $789.02M | 33.15 | 1.62% | 3.51% | -1.34% | -73.59% | |
51 Neutral | $183.60M | -7.06 | -18.73% | ― | -13.14% | 57.98% | |
50 Neutral | $105.81M | 109.29 | 6.60% | ― | 30.04% | -53.50% | |
46 Neutral | $485.45M | -0.60 | -52.84% | ― | -5.64% | -577.74% |
* Consumer Defensive Sector Average
SKIN
Beauty Health
1.56
0.01
0.65%
HELE
Helen Of Troy
20.58
-41.41
-66.80%
NUS
Nu Skin
10.32
4.26
70.30%
EPC
Edgewell Personal Care
17.69
-13.04
-42.43%
SLSN
Solesence
1.53
-0.91
-37.30%
EWCZ
European Wax Center
3.97
-2.19
-35.55%
Beauty Health Corporate Events
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.
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.