Strata Skin Sciences (SSKN) AI Stock Analysis

• Market Cap: $8.05M
• Dividend Yield: N/A
• Average Volume (3M): 35.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.23
• Revenue Growth: 3.30%
• EPS Growth: 31.84%
• Country: US
• Employees: 106
• Sector: Healthcare
• Sector Strength: 42
• Industry: Medical - Devices
• EPS (TTM): -0.23
• Shares Outstanding: 4,171,161
• 10 Day Avg. Volume: 71,071
• 30 Day Avg. Volume: 35,834
• PEG Ratio: -0.06
• Price to Book (P/B): 3.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -12.05
• Enterprise Value/Market Cap: 0.34
• Enterprise Value/Revenue: 0.03
• Enterprise Value/Gross Profit: -1.34
• Enterprise Value/Ebitda: -0.07
• 1Y Price Target: $6.00
• Price Target Upside: 206.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 48 Neutral
• Price Target: $2.00 ▲(2.04%Upside)

The overall stock score is weighted down by financial performance and technical analysis, which highlight significant challenges. The earnings call and corporate events provide some optimistic aspects, but they are not enough to offset the pressing financial and technical issues.

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.

Goodwill Impairment

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. (SSKN) is a medical technology company operating primarily in the dermatological field. The company focuses on developing, manufacturing, and marketing advanced therapeutic and diagnostic devices that address dermatological conditions. Strata's core products include XTRAC and VTRAC excimer laser systems, which are used in the treatment of psoriasis, vitiligo, and other skin disorders. The company serves a global market, providing innovative solutions to both practitioners and patients.

How the Company Makes Money

Strata Skin Sciences generates revenue primarily through the sale and lease of its dermatological laser systems, particularly the XTRAC and VTRAC devices. The company also earns income from service and maintenance contracts for these systems, ensuring they remain operational and effective for users. Additionally, Strata may gain revenue from the licensing of its technology and partnerships with other healthcare and medical device companies. These strategic collaborations can help expand the company's market reach and product offerings, contributing to its overall earnings.

Strata Skin Sciences Financial Statement Overview

Summary

Strata Skin Sciences faces significant financial challenges with persistent losses and declining equity. While there are improvements in debt management and operating cash flow, profitability issues and unstable cash flows remain concerns.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	33.56M	33.36M	36.16M	29.98M	23.09M
Gross Profit	19.08M	18.46M	21.77M	19.85M	14.13M
EBITDA	-2.84M	-3.38M	1.13M	1.73M	-165.00K
Net Income	-10.09M	-10.83M	-5.55M	-2.71M	-4.41M
Balance Sheet
Total Assets	36.16M	42.02M	52.27M	46.59M	46.78M
Cash, Cash Equivalents and Short-Term Investments	7.26M	6.78M	5.43M	12.59M	10.60M
Total Debt	16.44M	15.63M	8.44M	8.03M	10.88M
Total Liabilities	31.18M	29.33M	30.44M	21.18M	20.89M
Stockholders Equity	4.97M	12.69M	21.83M	25.41M	25.89M
Cash Flow
Free Cash Flow	-1.45M	-5.54M	-4.66M	-2.15M	-63.00K
Operating Cash Flow	188.00K	-519.00K	-1.11M	1.51M	2.10M
Investing Cash Flow	-1.64M	-5.02M	-4.18M	-7.13M	-2.16M
Financing Cash Flow	1.93M	6.86M	-500.00K	92.00K	2.55M

Strata Skin Sciences Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.96
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 1.96 is below the 20-day moving average (MA) of 2.27, below the 50-day MA of 2.36, and below the 200-day MA of 2.72, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 28.35 is Positive, neither overbought nor oversold. The STOCH value of 10.45 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	$90.61M	50.14	3.46%	―	24.75%	-61.29%
PAVM	54 Neutral	$9.87M	0.81	-499.57%	―	-33.92%	―
VVOS	54 Neutral	$27.83M	―	-450.47%	―	9.47%	81.37%
Sector *	52 Neutral	$7.59B	0.18	-63.14%	2.16%	16.34%	0.64%
BMRA	49 Neutral	$9.95M	―	-72.70%	―	5.05%	26.13%
SSKN	48 Neutral	$8.05M	―	-151.23%	―	3.30%	31.84%
CODX	41 Neutral	$9.36M	―	-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.