Strata Skin Sciences (SSKN) AI Stock Analysis

• Market Cap: $9.44M
• Dividend Yield: N/A
• Average Volume (3M): 14.22K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.28
• Revenue Growth: 3.30%
• EPS Growth: 31.84%
• Country: US
• Employees: 106
• Sector: Healthcare
• Sector Strength: 58
• Industry: Medical - Devices
• EPS (TTM): -0.23
• Shares Outstanding: 4,171,161
• 10 Day Avg. Volume: 4,299
• 30 Day Avg. Volume: 14,223
• PEG Ratio: -0.07
• Price to Book (P/B): 3.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -14.86
• Enterprise Value/Market Cap: 0.49
• Enterprise Value/Revenue: 0.03
• Enterprise Value/Gross Profit: 0.23
• Enterprise Value/Ebitda: -0.51
• 1Y Price Target: $10.00
• Price Target Upside: 342.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 54 Neutral
• Price Target: $2.50 ▲(10.62%Upside)

Strata Skin Sciences exhibits mixed prospects. The company's financial struggles and valuation concerns weigh heavily, but there is optimism from recent corporate events and positive earnings call sentiment. Technical analysis suggests limited momentum, highlighting the need for cautious optimism.

Positive Factors

Market Expansion

Expanded CPT codes significantly increase the company’s potential patient population and should drive broader adoption of the XTRAC laser and commercial growth.

Strategic Turnaround

The company's turnaround plan is showing early signs of success, focusing on direct-to-consumer marketing, cost efficiency, and improving revenue per device.

Valuation

Shares currently trade at an EV/revenue multiple of 0.5x our 2025 estimate, below the peer average, suggesting potential for valuation growth.

Negative Factors

Financial Performance

SSKN reported 1Q25 results with revenue below consensus and a GAAP loss per share wider than expectations.

Impairment Charge

The company reported a GAAP loss per share significantly wider than expectations, mostly due to an impairment of goodwill charge.

Strata Skin Sciences Business Overview & Revenue Model

Company Description

STRATA Skin Sciences, Inc., a medical technology company, develops, commercializes, and markets products for the treatment of dermatologic conditions in the United States, Europe, the Middle East, Asia, Australia, South Africa, and Central and South America. The company operates in two segments, Dermatology Recurring Procedures and Dermatology Procedures Equipment. Its products include XTRAC and Pharos excimer lasers, VTRAC lamp systems, and TheraClear treatment systems that are used for the treatment of psoriasis, vitiligo, acne, and other skin conditions. The company distributes its products internationally through distributors, and domestically directly to physicians. The company was formerly known as MELA Sciences, Inc and changed its name to STRATA Skin Sciences, Inc. in January 2016. STRATA Skin Sciences, Inc. was incorporated in 1989 and is based in Horsham, Pennsylvania.

How the Company Makes Money

Strata Skin Sciences generates revenue primarily through the sale and leasing of its XTRAC Excimer Laser systems to dermatology clinics and healthcare providers. The company also earns income from the provision of maintenance services and consumables related to its laser systems. Additionally, Strata Skin Sciences may engage in strategic partnerships and collaborations, which can contribute to its revenue stream by expanding its market reach and enhancing its product offerings. The company focuses on maintaining strong relationships with healthcare providers to ensure continued use and adoption of its products, thereby securing recurring revenue from both sales and service agreements.

Strata Skin Sciences Financial Statement Overview

Summary

Strata Skin Sciences is facing significant financial challenges, characterized by persistent losses and declining equity. While there are some improvements in debt management and operating cash flow, the company needs to address its profitability issues and stabilize its cash flows to enhance its financial standing.

Income Statement

The company has shown a declining trend in revenue from the past year, with a slight growth in gross profit margin. However, the net profit margin remains negative, indicating continued losses. The EBIT and EBITDA margins are also negative, reflecting ongoing operational challenges.

Balance Sheet

The company's debt-to-equity ratio has improved due to reduced total debt, but the equity ratio has declined. Return on equity is negative, indicating that the company is not generating profit from its equity base. The balance sheet shows a reduction in total assets and stockholders' equity.

Cash Flow

The company has managed to improve its operating cash flow, but free cash flow remains negative. The free cash flow to net income ratio is also negative, indicating cash flow challenges. The operating cash flow to net income ratio shows some improvement, but further stability is needed.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
33.62M	33.56M	33.36M	36.16M	29.98M	23.09M
	Gross Profit
19.65M	19.08M	18.46M	21.77M	19.85M	14.13M
	EBIT
-8.38M	-9.26M	-8.60M	-4.56M	-4.40M	-4.08M
	EBITDA
-3.36M	-2.84M	-3.38M	1.13M	1.73M	-165.00K
	Net Income Common Stockholders
-9.15M	-10.09M	-10.83M	-5.55M	-2.71M	-4.41M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.15M	7.26M	6.78M	5.43M	12.59M	10.60M
	Total Assets
46.05M	36.16M	42.02M	52.27M	46.59M	46.78M
	Total Debt
8.61M	16.44M	15.63M	8.44M	8.03M	10.88M
	Net Debt
456.00K	9.18M	8.85M	3.01M	-4.56M	278.00K
	Total Liabilities
18.00M	31.18M	29.33M	30.44M	21.18M	20.89M
	Stockholders Equity
28.05M	4.97M	12.69M	21.83M	25.41M	25.89M
Cash Flow		Free Cash Flow
-668.00K	-1.45M	-5.54M	-4.66M	-2.15M	-63.00K
	Operating Cash Flow
442.00K	188.00K	-519.00K	-1.11M	1.51M	2.10M
	Investing Cash Flow
-1.11M	-1.64M	-5.02M	-4.18M	-7.13M	-2.16M
	Financing Cash Flow
18.00K	1.93M	6.86M	-500.00K	92.00K	2.55M

Strata Skin Sciences Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SSKN, the sentiment is Negative. The current price of 2.26 is below the 20-day moving average (MA) of 2.46, below the 50-day MA of 2.54, and below the 200-day MA of 2.83, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 39.67 is Neutral, neither overbought nor oversold. The STOCH value of 7.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SSKN.

Strata Skin Sciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SRTS	64 Neutral	$79.10M	43.77	3.46%	―	24.75%	-61.29%
SSKN	54 Neutral	$9.44M	―	-151.23%	―	3.30%	31.84%
Sector *	54 Neutral	$5.37B	3.26	-45.10%	3.30%	16.81%	0.02%
PAVM	53 Neutral	$11.04M	0.90	-499.57%	―	-33.92%	―
BMRA	48 Neutral	$8.15M	―	-72.70%	―	5.05%	26.13%
VVOS	46 Neutral	$12.60M	―	-450.47%	―	9.47%	81.37%
CODX	42 Neutral	$9.30M	―	-56.80%	―	-91.22%	11.84%

Strata Skin Sciences Corporate Events

STRATA Expands CPT Codes for Excimer Laser Treatments

On May 19, 2025, STRATA Skin Sciences announced a significant expansion of CPT codes for reimbursement of 308nm excimer laser treatments, which now include multiple inflammatory and autoimmune skin conditions beyond psoriasis. This change, reflecting over 20 years of clinical evidence, is expected to broaden market access from 10 million to over 30 million potential patients, reducing reimbursement barriers and supporting STRATA’s mission to provide non-drug dermatologic solutions. The update is anticipated to drive commercial growth and expand the use of STRATA’s XTRAC platform, benefiting patients, providers, and insurers.

The most recent analyst rating on (SSKN) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on Strata Skin Sciences stock, see the SSKN Stock Forecast page.

Strata Skin Sciences Reports Q1 2025 Financial Results

On May 14, 2025, STRATA Skin Sciences announced its financial results for the first quarter ending March 31, 2025. The company reported a revenue increase of 1% to $6.8 million, with international growth offsetting domestic declines. Gross margins improved significantly by 790 basis points, and operating expenses decreased by 5%. Despite a net loss of $2.4 million, the company showed progress with improved adjusted EBITDA and a strategic focus on international markets, which now account for 36% of total revenue.

The most recent analyst rating on (SSKN) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on Strata Skin Sciences stock, see the SSKN Stock Forecast page.

Strata Skin Sciences Reports Q4 2024 Financial Results

On March 27, 2025, STRATA Skin Sciences announced its financial results for the fourth quarter and full year of 2024. The company reported a 10% increase in fourth-quarter revenue compared to the previous year, driven by international growth and improvements in equipment revenue. Despite a slight overall increase in annual revenue, STRATA achieved significant operational improvements, including a reduction in operating expenses and an increase in gross margin. The company also renewed key distributor agreements in China and Japan, and took legal action against competitors for unfair practices. These developments reflect STRATA’s strategic focus on enhancing operational efficiency and expanding its international market presence.

Strata Skin Sciences Highlights XTRAC® Laser Study Success

On March 20, 2025, STRATA Skin Sciences announced the publication of a study highlighting the superior clinical outcomes of their XTRAC® Excimer Laser over other UVB light sources like Excimer Light. The study, conducted by researchers from Nippon Medical School, demonstrated that the excimer laser’s unique technological characteristics, such as deeper penetration and greater activation of melanocyte lineage cells, result in better pigmentation and fewer side effects. This reinforces STRATA’s commitment to providing effective dermatological treatments and underscores their growing presence in Japan, where they have expanded significantly since 2019.