Strata Skin Sciences (SSKN) AI Stock Analysis

• Market Cap: $7.59M
• Dividend Yield: N/A
• Average Volume (3M): 34.96K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.12
• Revenue Growth: 0.36%
• EPS Growth: -17.20%
• Country: US
• Employees: 106
• Sector: Healthcare
• Sector Strength: 51
• Industry: Medical - Devices
• EPS (TTM): -0.19
• Shares Outstanding: 4,171,161
• 10 Day Avg. Volume: 14,381
• 30 Day Avg. Volume: 34,959
• 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: 2.63
• Enterprise Value/Revenue: 0.61
• Enterprise Value/Gross Profit: 1.05
• Enterprise Value/Ebitda: -2.72
• 1Y Price Target: $2.75
• Price Target Upside: 53.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 45 Neutral
• Price Target: $1.50 ▼(-16.20% Downside)

Strata Skin Sciences faces significant financial and operational challenges, reflected in its low financial performance and valuation scores. While there are promising strategic initiatives and potential market expansions, the current bearish technical indicators and ongoing losses weigh heavily on the overall stock score.

Positive Factors

Market Potential

Significant opportunities in the dermatology market, with the potential for growth in the global treatment market expected to reach $44B by 2031.

Strategic Initiatives

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

Earnings Report

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

Financial Performance

The 2Q25 revenue miss was primarily due to international weakness related to tariffs which could continue to pressure the topline through the remainder of 2025.

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: 1.79
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 1.79 is below the 20-day moving average (MA) of 1.91, below the 50-day MA of 2.16, and below the 200-day MA of 2.64, indicating a bearish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 35.18 is Neutral, neither overbought nor oversold. The STOCH value of 21.61 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
SRTS	58 Neutral	$55.07M	48.68	-1.62%	―	3.30%	-112.70%
Sector *	51 Neutral	kr6.00B	8.82	-28.73%	2.24%	51.33%	18.74%
BMRA	49 Neutral	$8.07M	―	-72.70%	―	5.05%	26.13%
VVOS	47 Neutral	$24.21M	―	-450.47%	―	9.47%	81.37%
PAVM	46 Neutral	$7.78M	0.37	-499.57%	―	-73.36%	―
SSKN	45 Neutral	$7.59M	―	-235.41%	―	0.36%	-17.20%
CODX	45 Neutral	$11.33M	―	-63.40%	―	-91.14%	9.47%

Strata Skin Sciences Corporate Events

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.

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.

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.

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.