Strata Skin Sciences (SSKN) AI Stock Analysis

• Market Cap: $10.74M
• Dividend Yield: N/A
• Average Volume (3M): 7.72M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.02
• Revenue Growth: 0.36%
• EPS Growth: -17.20%
• Country: US
• Employees: 106
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): -0.19
• Shares Outstanding: 5,684,508
• 10 Day Avg. Volume: 10,725,031
• 30 Day Avg. Volume: 7,723,336
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.86
• Enterprise Value/Revenue: 0.61
• Enterprise Value/Gross Profit: 1.05
• Enterprise Value/Ebitda: -2.72
• 1Y Price Target: $4.00
• Price Target Upside: 145.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 41 Neutral
• Price Target: $1.50 ▼(-7.98% Downside)

The overall stock score is primarily impacted by the company's weak financial performance and bearish technical indicators. The negative P/E ratio and lack of dividend yield further weigh down the valuation. Despite some positive strategic initiatives highlighted in the earnings call, the financial and technical challenges are significant.

Positive Factors

Market Expansion Potential

Expanding into new indications with higher reimbursement rates could significantly boost revenue, enhancing long-term growth prospects.

Increased Device Placements

The increase in device placements indicates strong demand and market penetration, supporting sustainable revenue growth and competitive positioning.

Legal Strategy and Partnerships

The legal strategy and new partnerships enhance market position and revenue, reflecting effective competitive tactics and potential for sustained growth.

Negative Factors

Decline in Total Revenue

A decline in total revenue indicates challenges in maintaining growth, which could impact the company's ability to invest in new initiatives and technologies.

International Revenue Challenges

Challenges in international markets, such as trade disruptions, can limit global expansion and revenue diversification, affecting long-term stability.

Increased Operating Expenses

Rising operating expenses, partly due to litigation, could strain profitability and cash flow, hindering the company's ability to invest in growth opportunities.

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 through the sale of its XTRAC laser systems, which are used in the treatment of various skin conditions. The company also earns money from recurring revenue streams associated with the sale of consumables and maintenance services for these laser systems. Additionally, Strata engages in strategic partnerships with dermatology clinics and healthcare institutions, which helps expand its market reach and enhance service offerings. The combination of capital equipment sales, consumable product sales, and service agreements constitutes the primary revenue model for SSKN.

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	32.85M	33.56M	33.36M	36.16M	29.98M	23.09M
Gross Profit	19.02M	19.08M	18.46M	21.77M	19.85M	14.13M
EBITDA	-7.34M	-2.84M	-3.38M	1.13M	1.73M	-165.00K
Net Income	-11.54M	-10.09M	-10.83M	-5.55M	-2.71M	-4.41M
Balance Sheet
Total Assets	30.72M	36.16M	42.02M	52.27M	46.59M	46.78M
Cash, Cash Equivalents and Short-Term Investments	5.97M	7.26M	6.78M	5.43M	12.59M	10.60M
Total Debt	1.08M	16.44M	15.63M	8.44M	8.03M	10.88M
Total Liabilities	30.41M	31.18M	29.33M	30.44M	21.18M	20.89M
Stockholders Equity	308.00K	4.97M	12.69M	21.83M	25.41M	25.89M
Cash Flow
Free Cash Flow	-2.79M	-1.45M	-5.54M	-4.66M	-2.15M	-63.00K
Operating Cash Flow	-2.09M	188.00K	-519.00K	-1.11M	1.51M	2.10M
Investing Cash Flow	-704.00K	-1.64M	-5.02M	-4.18M	-7.13M	-2.16M
Financing Cash Flow	1.94M	1.93M	6.86M	-500.00K	92.00K	2.55M

Strata Skin Sciences Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.63
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 1.63 is below the 20-day moving average (MA) of 1.93, below the 50-day MA of 1.86, and below the 200-day MA of 2.37, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 44.11 is Neutral, neither overbought nor oversold. The STOCH value of 21.74 is Neutral, 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
FONR	64 Neutral	$98.31M	12.64	4.92%	―	1.43%	-20.12%
XTNT	57 Neutral	$106.41M	―	-9.80%	―	15.16%	-39.18%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CTSO	43 Neutral	$55.58M	―	-68.84%	―	-7.81%	65.39%
SINT	42 Neutral	$14.20M	―	-195.48%	―	-40.47%	96.14%
SSKN	41 Neutral	$10.74M	―	-235.41%	―	0.36%	-17.20%

Strata Skin Sciences Corporate Events

Strata Skin Sciences Announces Equity Distribution Agreement

STRATA Skin Sciences, Inc. announced an equity distribution agreement with Ladenburg Thalmann & Co. Inc. for the sale of up to $11 million in common stock shares. This agreement, initially registered in 2021 and updated in 2024, allows for future offerings, potentially impacting the company’s market operations and investor relations.

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

Strata Skin Sciences Granted Nasdaq Compliance Extension

Strata Skin Sciences, Inc. received a deficiency notification from Nasdaq on August 22, 2025, for not meeting the minimum stockholders’ equity requirement of $2,500,000 for continued listing on the Nasdaq Capital Market. On October 13, 2025, Nasdaq accepted the company’s compliance plan, granting an extension until February 16, 2026, to meet the requirement. The company is exploring options to regain compliance, but failure to do so could result in delisting, with the possibility to appeal any delisting decision.

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

Strata Skin Sciences Completes $2.42 Million Stock Offering

On September 4, 2025, STRATA Skin Sciences announced the closing of a registered direct offering, issuing 1,097,547 shares of common stock at $2.204 per share, raising approximately $2.42 million in gross proceeds. The funds are intended for working capital and general corporate purposes, potentially impacting the company’s operational capabilities and market positioning.

The most recent analyst rating on (SSKN) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Strata Skin Sciences stock, see the SSKN Stock Forecast page.

Strata Skin Sciences Raises $2.4M in Stock Offering

On September 2, 2025, Strata Skin Sciences entered into Securities Purchase Agreements with institutional investors to issue 1,097,547 shares of common stock at $2.204 per share, raising approximately $2.4 million in a registered direct offering. Ladenburg Thalmann & Co. Inc. acted as the exclusive placement agent, and the proceeds are intended for general corporate and working capital purposes. The offering is expected to close on or around September 4, 2025, and is made under a shelf registration statement filed with the SEC.

The most recent analyst rating on (SSKN) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Strata Skin Sciences stock, see the SSKN Stock Forecast page.

Strata Skin Sciences’ Earnings Call: Mixed Sentiments and Strategic Moves

The recent earnings call for Strata Skin Sciences presented a mixed outlook, reflecting both promising developments and notable challenges. On the positive side, there was significant progress with the expansion of CPT codes and increased device placements. However, the company also faced substantial hurdles, including revenue declines and disruptions in international markets. Despite efforts to broaden the market and improve reimbursement rates, financial performance was hampered by legal expenses and decreased revenues from international and equipment sales.

Strata Skin Sciences Faces Nasdaq Compliance Notice

On August 19, 2025, Strata Skin Sciences received a notice from Nasdaq indicating non-compliance with the minimum stockholders’ equity requirement for continued listing on the Nasdaq Capital Market. The company has until October 3, 2025, to submit a compliance plan, with the possibility of a 180-day extension if accepted. The notice does not immediately affect the company’s stock listing, but failure to comply could lead to delisting, although the company can appeal such a decision.

The most recent analyst rating on (SSKN) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Strata Skin Sciences stock, see the SSKN Stock Forecast page.

Strata Skin Sciences Unveils Strategic Initiatives

On August 18, 2025, Strata Skin Sciences announced an investor presentation highlighting its strategic initiatives and financial performance. The company reported operational cash flow positivity in 2024 and anticipates significant market expansion by January 2026 due to a historic CPT code expansion. This expansion could unlock over 30 million potential patients for new indications, enhancing revenue opportunities. Additionally, a lawsuit against LaserOptek could potentially bolster Strata’s cash position, reducing competition in the market.

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 Q2 2025 Financial Results

STRATA Skin Sciences, Inc. is a medical technology company specializing in the development and marketing of innovative products for treating dermatologic conditions, including psoriasis and vitiligo, using technologies like the XTRAC excimer laser.

Strata Skin Sciences Reports Q2 2025 Financial Results

On August 13, 2025, STRATA Skin Sciences reported its financial results for the second quarter ending June 30, 2025. The company highlighted significant developments, including the historic expansion of CPT codes for reimbursement, which could potentially triple the covered patient population in the US. Despite a 9% decrease in revenue compared to the previous year, STRATA is optimistic about its growth strategy, leveraging new reimbursement codes and expanding its patient pool. The company also reported a net loss of $2.5 million for the quarter, attributing some challenges to the seasonality of its business.

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 Secures Temporary Reimbursement Codes

On August 7, 2025, STRATA Skin Sciences announced its collaboration with the Centers for Medicare & Medicaid Services to secure temporary codes for expanded reimbursement of its XTRAC® excimer laser treatment, aiming to make these treatments reimbursable by 2026. This expansion, approved by the American Medical Association, includes inflammatory and autoimmune skin conditions, potentially tripling the addressable patient population and enhancing treatment economics. Additionally, recent studies have validated the efficacy of excimer laser therapy combined with JAK inhibitors for vitiligo, strengthening STRATA’s position in the dermatology market. The company also provided an update on its ongoing lawsuit against LaserOptek America, with the Federal District Court allowing the addition of LaserOptek Korea and C. Dalton, LLC as defendants, supporting STRATA’s claims of unfair competition.

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 Navigates Legal Challenges: Potential Impacts on Financial Performance and Reputation

Strata Skin Sciences faces potential business risks due to legal proceedings that may arise in the ordinary course of operations. These legal matters could involve contract disputes and employment-related issues, some of which might be significant enough to require separate disclosure. Such proceedings could impact the company’s financial performance and reputation, necessitating careful management and resolution. The company must remain vigilant in addressing these legal challenges to mitigate any adverse effects on its business operations.