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Beauty Health
(NASDAQ:SKIN)
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Rating:47Neutral
Price Target:
$0.76
▲(3.42% Upside)
Action:Reiterated
Date:08/07/26
SKIN scores below average primarily due to weak financial fundamentals (negative growth, ongoing losses, and very high leverage with thin equity). Technicals are mixed and still pressured by the longer-term downtrend. The latest earnings call showed real margin/EBITDA improvement, but was offset by reduced revenue guidance and noted balance-sheet/listing risks; corporate events are a small net headwind given the Nasdaq notice despite litigation overhang easing.
Positive Factors
Margin Expansion
A sustained ~72% adjusted gross margin, driven by lower equipment COGS, inventory charge reduction and favorable mix to consumables, materially improves cash generation potential. Durable higher gross margins support operating leverage, funding reinvestment and cushioning profitability during top-line volatility.
Negative Factors
High Leverage
Very high leverage dramatically reduces financial flexibility and raises refinancing risk if operating performance slips. With thin equity and negative ROE, debt servicing and covenant pressure could constrain investments and require cash preservation or dilutive actions over the coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Expansion
A sustained ~72% adjusted gross margin, driven by lower equipment COGS, inventory charge reduction and favorable mix to consumables, materially improves cash generation potential. Durable higher gross margins support operating leverage, funding reinvestment and cushioning profitability during top-line volatility.
Read all positive factors
Beauty Health (SKIN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$86.80M
Dividend YieldN/A
Average Volume (3M)1.04M
Price to Earnings (P/E)―
Beta (1Y)1.95
Revenue Growth-6.45%
EPS Growth-44.06%
CountryUS
Employees613
SectorConsumer Defensive
Sector Strength42
IndustryMedical - Specialties
Share Statistics
EPS (TTM)-0.23
Shares Outstanding130,140,760
10 Day Avg. Volume926,645
30 Day Avg. Volume1,036,656
Financial Highlights & Ratios
PEG Ratio0.27
Price to Book (P/B)2.88
Price to Sales (P/S)0.58
P/FCF Ratio5.43
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$1.23Price Target Upside67.81% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)-0.17
Revenue Forecast (FY)$286.15M
Beauty Health Business Overview & Revenue Model
Company Description
SkinHealth Systems Inc., a global medical aesthetics company delivering an integrated ecosystem of clinically proven solutions in the Americas, the Asia-Pacific, Europe, the Middle East, Africa, Canada, and Latin America. The company's flagship pr...
How the Company Makes Money
Beauty Health primarily makes money through the HydraFacial platform, combining sales and recurring revenue tied to treatment usage. Key revenue streams include: (1) Sales of HydraFacial delivery systems/devices and related equipment to clinics, m...
Beauty Health Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Neutral
The call presents a mixed picture: strong margin improvement, adjusted EBITDA upside and tangible strategic progress (rental program, product pipeline, installed‑base monetization) are positive. However, meaningful top‑line weakness — driven by an 18.4% decline in equipment revenue, continued consumables softness, regional softness in EMEA, and near‑term balance sheet and Nasdaq listing risks — tempers the outlook. Management is focused on execution and long‑term investments, but near‑term revenue and capital markets pressures balance the positives.Positive Updates
Adjusted EBITDA Beat and Margin Expansion
Adjusted EBITDA of $17.0M, up from $13.9M year‑over‑year and above the prior guidance range ($11M–$13M). Adjusted gross margin improved to 71.8% from 65.9% a year ago, a 590 basis point expansion driven by lower equipment COGS, lower inventory charges, operational efficiencies and favorable mix toward consumables.
Negative Updates
Revenue Decline and Miss Relative to Guidance
Total net sales of $72.1M, down 7.8% year‑over‑year and at the lower end of guidance, reflecting broad top‑line pressure across geographies and product lines.
Read all updates
Q2-2026 Updates
Positive
Negative
Adjusted EBITDA Beat and Margin Expansion
Adjusted EBITDA of $17.0M, up from $13.9M year‑over‑year and above the prior guidance range ($11M–$13M). Adjusted gross margin improved to 71.8% from 65.9% a year ago, a 590 basis point expansion driven by lower equipment COGS, lower inventory charges, operational efficiencies and favorable mix toward consumables.
Read all positive updates
Company Guidance
Management lowered full‑year 2026 revenue to $280–290 million while raising adjusted EBITDA guidance to $39–46 million (from $35–45M), and gave Q3 guidance of $65–70 million revenue and $5–7 million adjusted EBITDA; they expect H2 adjusted EBITDA to be down versus H1 as R&D and commercial investment steps up by about $4 million. For context, Q2 results were $72.1M revenue, $17M adjusted EBITDA (above prior $11–13M guide), GAAP gross margin 68.4% and adjusted gross margin 71.8% (up 590 bps), active installed base 36.5k systems (+3.8% YoY), delivery systems revenue $18.3M (770 systems placed, down 18.4% vs 957 LY), consumables $53.9M (down 3.5%), ending cash of ~$26M (+$1.5M Q/Q), and an October 2026 convertible maturity of ~$103M that management plans to retire with cash (the forecast midpoint assumes roughly $100M year‑end cash); they also modeled H2 adjusted gross margin nearer ~68% (H1 was ~72%) and noted the Australia/New Zealand distributor transition reduces 2026 revenue by ~$1M.Beauty Health Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
22
Negative
Cash Flow
46
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 290.04M | 300.79M | 334.29M | 397.99M | 365.88M | 260.09M |
| Gross Profit | 192.41M | 196.36M | 182.30M | 155.11M | 248.78M | 178.54M |
| EBITDA | 28.89M | 38.74M | 10.34M | -53.56M | 81.60M | -350.93M |
| Net Income | -28.40M | -9.52M | -29.10M | -100.12M | 44.22M | -378.76M |
Balance Sheet | ||||||
| Total Assets | 486.60M | 499.80M | 685.68M | 929.11M | 1.00B | 1.22B |
| Cash, Cash Equivalents and Short-Term Investments | 206.10M | 232.70M | 370.06M | 523.02M | 568.20M | 901.89M |
| Total Debt | 367.10M | 378.70M | 568.16M | 752.29M | 751.79M | 746.41M |
| Total Liabilities | 431.00M | 438.70M | 633.88M | 869.72M | 836.03M | 916.51M |
| Stockholders Equity | 55.60M | 61.10M | 51.80M | 59.39M | 167.05M | 302.30M |
Cash Flow | ||||||
| Free Cash Flow | 16.64M | 32.32M | 9.34M | 8.70M | -123.99M | -43.98M |
| Operating Cash Flow | 21.96M | 37.48M | 16.13M | 21.75M | -106.60M | -28.36M |
| Investing Cash Flow | -5.32M | -5.16M | -6.79M | -31.51M | -18.87M | -37.73M |
| Financing Cash Flow | -22.45M | -174.93M | -158.34M | -37.45M | -205.24M | 959.03M |
Beauty Health Technical Analysis
Negative
0.73
Price Trends
0.73
Negative
0.77
Negative
1.05
Negative
Market Momentum
-0.03
Positive
39.39
Neutral
18.26
Positive
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 0.73 is above the 20-day moving average (MA) of 0.69, above the 50-day MA of 0.73, and below the 200-day MA of 1.05, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 39.39 is Neutral, neither overbought nor oversold. The STOCH value of 18.26 is Positive, 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
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% | |
58 Neutral | $1.31B | -14.03 | -6.27% | 2.17% | -7.00% | -246.78% | |
54 Neutral | $703.89M | -1.56 | -48.24% | ― | -2.08% | -23.88% | |
52 Neutral | $72.05M | 61.14 | 5.39% | ― | 5.76% | -73.80% | |
51 Neutral | $233.65M | -1.05 | -29.42% | 4.72% | -15.44% | -319.79% | |
47 Neutral | $86.80M | -2.66 | -47.84% | ― | -6.45% | -44.06% |
* Consumer Defensive Sector Average
SKIN
Beauty Health
0.60
-1.56
-72.22%
HELE
Helen Of Troy
28.74
4.71
19.60%
NUS
Nu Skin
4.70
-6.83
-59.25%
EPC
Edgewell Personal Care
28.45
5.58
24.40%
SLSN
Solesence
0.89
-2.48
-73.71%
Beauty Health Corporate Events
Legal Proceedings
SkinHealth Systems Reaches Settlement in Securities Class Action
Positive
Jun 22, 2026
On June 17, 2026, SkinHealth Systems Inc., formerly The Beauty Health Company, agreed to a stipulated settlement to resolve a securities class action in the U.S. District Court for the Central District of California, covering investors who traded ...
Executive/Board ChangesShareholder Meetings
Beauty Health Shareholders Approve Directors, Auditor and Pay
Positive
Jun 16, 2026
On June 10, 2026, SkinHealth Systems Inc. held its annual meeting of stockholders in a virtual format, with approximately 72% of the 129.6 million eligible Class A shares represented, establishing a quorum for corporate business. Stockholders elec...
Delistings and Listing ChangesRegulatory Filings and Compliance
Beauty Health Receives Nasdaq Notice on Bid Price
Negative
May 12, 2026
On May 8, 2026, SkinHealth Systems Inc. disclosed that it had received a notice from Nasdaq stating its Class A common stock had failed to meet the exchange’s minimum bid price requirement, after trading below $1.00 for 30 consecutive busine...
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.