Strata Skin Sciences (SSKN) AI Stock Analysis

• Market Cap: $7.54M
• Dividend Yield: N/A
• Average Volume (3M): 7.72M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.12
• Revenue Growth: -5.19%
• EPS Growth: -0.81%
• Country: US
• Employees: 106
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): <0.01
• Shares Outstanding: 5,888,199
• 10 Day Avg. Volume: 10,725,031
• 30 Day Avg. Volume: 7,723,336
• PEG Ratio: 0.68
• Price to Book (P/B): 22.28
• Price to Sales (P/S): 3.30
• P/FCF Ratio: -76.51
• Enterprise Value/Market Cap: 2.65
• Enterprise Value/Revenue: 0.64
• Enterprise Value/Gross Profit: 1.11
• Enterprise Value/Ebitda: -4.59
• 1Y Price Target: $4.00
• Price Target Upside: 225.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: $1.00 ▼(-18.70% Downside)

Strata Skin Sciences faces significant financial and technical challenges, with persistent losses and bearish market trends being the most impactful factors. While there are positive developments in market expansion and strategic initiatives, these are overshadowed by declining revenues and valuation concerns.

Positive Factors

Market Expansion

The expansion of CPT codes will significantly broaden reimbursement eligibility, potentially tripling the addressable market and enhancing long-term revenue prospects.

International Growth

International expansion into Mexico signifies a strategic move to capture new markets, which can drive revenue growth and diversify geographical risk.

Litigation Success

Winning litigation against LaserOptik reduces competition and recovers market share, positively impacting revenue and strengthening market position.

Negative Factors

Declining Revenue

A significant decline in revenue indicates challenges in maintaining sales momentum, which could affect long-term financial stability and growth.

Negative Profit Margins

Persistent negative profit margins highlight ongoing operational challenges, which may hinder the company's ability to achieve profitability and sustain operations.

Nasdaq Compliance Risk

Failure to meet Nasdaq's equity requirements could lead to delisting, affecting investor confidence and access to capital markets, impacting long-term viability.

Strata Skin Sciences Business Overview & Revenue Model

Company Description

Strata Skin Sciences (SSKN) is a medical technology company specializing in the development and commercialization of innovative solutions for the treatment of dermatological conditions. The company operates primarily in the healthcare sector, focusing on skin-related disorders, particularly through its core products that include advanced light-based therapies and proprietary devices for the treatment of acne, psoriasis, and other skin conditions. Strata's commitment to improving patient outcomes drives its research and development efforts, positioning it as a key player in the dermatology market.

How the Company Makes Money

Strata Skin Sciences generates revenue primarily through the sale of its medical devices and treatment systems, particularly its Xtrac excimer laser technology, which is used for treating various skin disorders. The company also earns money through service agreements, providing ongoing support and maintenance for its equipment. In addition, Strata engages in strategic partnerships with healthcare providers and dermatology clinics, further expanding its market reach and driving sales. The company's revenue model is bolstered by continuous investment in research and development, leading to the introduction of new therapies and expanding its product offerings, which enhances its competitive advantage and contributes to its earnings.

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	30.98M	33.56M	33.36M	36.16M	29.98M	23.09M
Gross Profit	17.89M	19.08M	18.46M	21.77M	19.85M	14.13M
EBITDA	-4.34M	-2.84M	-3.38M	1.13M	1.73M	-15.00K
Net Income	-11.04M	-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	7.08M	7.26M	6.78M	5.43M	12.59M	10.60M
Total Debt	16.31M	16.44M	15.63M	8.44M	8.03M	10.88M
Total Liabilities	29.40M	31.18M	29.33M	30.44M	21.18M	20.89M
Stockholders Equity	1.31M	4.97M	12.69M	21.83M	25.41M	25.89M
Cash Flow
Free Cash Flow	-3.51M	-1.45M	-5.54M	-4.66M	-2.15M	-63.00K
Operating Cash Flow	-1.85M	188.00K	-519.00K	-1.11M	1.51M	2.10M
Investing Cash Flow	-1.66M	-1.64M	-5.02M	-4.18M	-7.13M	-2.16M
Financing Cash Flow	2.19M	1.93M	6.86M	-500.00K	92.00K	2.55M

Strata Skin Sciences Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.23
• 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 1.23 is below the 20-day moving average (MA) of 1.38, below the 50-day MA of 1.56, and below the 200-day MA of 2.09, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 41.89 is Neutral, neither overbought nor oversold. The STOCH value of 9.09 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
XTNT	66 Neutral	$113.40M	76.47	3.64%	―	16.88%	―
FONR	59 Neutral	$93.77M	13.13	4.34%	―	3.36%	-21.15%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CTSO	44 Neutral	$48.11M	-3.68	-96.15%	―	-8.97%	47.29%
SSKN	43 Neutral	$7.54M	-0.47	-207.19%	―	-5.19%	-0.81%
SINT	40 Underperform	$13.83M	-0.53	-204.04%	―	-60.89%	94.49%

Strata Skin Sciences Corporate Events

Strata Skin Sciences Outlines Growth Initiatives for 2025

STRATA Skin Sciences posted a new investor presentation outlining its strategic initiatives for expansion and growth in December 2025. Key highlights include advancements in reimbursement policies starting January 2027, which will significantly expand the addressable patient market, and a legal victory against LaserOptek for false advertising, reducing competition and potentially strengthening its financial position. These developments, alongside a cash-flow-positive 2024 and plans to leverage enhanced technologies and market strategies, position the company for increased market share and stakeholder value.

Strata Skin Sciences Holds Annual Stockholder Meeting

On December 10, 2025, Strata Skin Sciences held its annual meeting of stockholders, where several key decisions were made. The stockholders elected five director nominees to the board, approved an amendment to the 2016 Omnibus Incentive Plan to increase the number of shares by 520,000, and ratified the selection of CBIZ CPAs P.C. as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

Strata Skin Sciences Reports Q3 2025 Revenue Decline

On November 13, 2025, STRATA Skin Sciences announced its financial results for the third quarter of 2025, reporting a decline in total revenue by approximately $1.9 million due to international market instability. Despite this, the company made significant progress in expanding CPT codes for reimbursement, which is expected to triple the covered patient population in the US. The company also reported positive developments in its ongoing lawsuit against LaserOptek, which could lead to increased revenue. STRATA’s gross margin remained stable at 60%, and the company ended the quarter with $7.1 million in cash.

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.

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.