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Strata Skin Sciences Inc (SSKN)
NASDAQ:SSKN

Strata Skin Sciences (SSKN) AI Stock Analysis

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SSKN

Strata Skin Sciences

(NASDAQ:SSKN)

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Neutral 46 (OpenAI - 5.2)
Rating:46Neutral
Price Target:
$1.50
▲(15.38% Upside)
Overall score reflects weak financial quality (losses, negative cash flow, and elevated leverage) as the primary drag, reinforced by a technically weak longer-term trend. The latest earnings call provides some offset via credible long-term catalysts (expanded reimbursement and litigation-driven market recovery), but near-term revenue pressure and lack of valuation support keep the score below average.
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 (SSKN) vs. SPDR S&P 500 ETF (SPY)

Strata Skin Sciences Business Overview & Revenue Model

Company DescriptionSTRATA 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 MoneyStrata 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 Earnings Call Summary

Earnings Call Date:Nov 13, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Mar 24, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed sentiment. While there were significant advancements in the expansion of addressable markets and successful litigation outcomes, the overall financial performance was hampered by a decline in total and equipment revenue due to international trade challenges.
Q3-2025 Updates
Positive Updates
Expansion of CPT Codes
The historic expansion of CPT codes for STRATA's XTRAC 308-nanometer excimer laser, effective January 1, 2027, will expand reimbursement eligibility to include multiple inflammatory and autoimmune skin conditions, increasing the addressable market by threefold.
Elevate360 Program Success
Since the beginning of 2025, 99 clinics part of the Elevate360 program have seen an average growth of 7% year over year. The gross billings per device increased by 8.5% versus 2024, reaching the highest since 2022.
International Expansion
Regulatory approval and initial commercial placements of technologies in Mexico mark significant progress in international expansion.
Successful Litigation Outcomes
STRATA won an injunction against LaserOptik, limiting damage and allowing 20 clinics to return, contributing over $1 million in annual revenue.
Improved Financial Metrics
Adjusted EBITDA turned positive compared to negative $240,000 in the previous year, driven by lower operating expenses.
Negative Updates
Decline in Total Revenue
Total revenue for 2025 was $6.9 million, down 20% compared to 2024, mainly due to a challenging international environment.
Decrease in Equipment Revenue
Equipment revenue for 2025 decreased by 60% compared to the prior year period.
International Trade Challenges
International revenue was pressured by the current trade policy of the United States, particularly affecting performance in China.
Company Guidance
During the call, STRATA Skin Sciences provided guidance and insights into their strategic initiatives and financial performance for the third quarter of 2025. A significant highlight was the anticipated expansion of CPT codes for the XTRAC 308-nanometer excimer laser, effective January 1, 2027, which is expected to significantly broaden reimbursement eligibility to over 30 skin conditions and potentially triple the addressable patient market. The company noted an 8.5% increase in average gross billings per device to $5,981, marking the highest since 2022, while recurring revenue saw a 4.1% growth. Despite total revenue falling 20% to $6.9 million due to international challenges, STRATA maintained a gross profit margin of 60%. The Elevate360 program, implemented in 99 clinics, resulted in a 7% growth for participating partners. Additionally, the company is focused on international expansion, with initial placements in Mexico, and is actively pursuing litigation against LaserOptik to reclaim market share, having already brought back approximately two dozen devices. STRATA remains optimistic about the fourth quarter and the long-term growth opportunities presented by expanded reimbursement and international market penetration.

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
24
Negative
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
18
Very Negative
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
22
Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue30.98M33.56M33.36M36.16M29.98M23.09M
Gross Profit17.89M19.08M18.46M21.77M19.85M14.13M
EBITDA-4.34M-2.84M-3.38M1.13M1.73M-15.00K
Net Income-11.04M-10.09M-10.83M-5.55M-2.71M-4.41M
Balance Sheet
Total Assets30.72M36.16M42.02M52.27M46.59M46.78M
Cash, Cash Equivalents and Short-Term Investments7.08M7.26M6.78M5.43M12.59M10.60M
Total Debt16.31M16.44M15.63M8.44M8.03M10.88M
Total Liabilities29.40M31.18M29.33M30.44M21.18M20.89M
Stockholders Equity1.31M4.97M12.69M21.83M25.41M25.89M
Cash Flow
Free Cash Flow-3.51M-1.45M-5.54M-4.66M-2.15M-63.00K
Operating Cash Flow-1.85M188.00K-519.00K-1.11M1.51M2.10M
Investing Cash Flow-1.66M-1.64M-5.02M-4.18M-7.13M-2.16M
Financing Cash Flow2.19M1.93M6.86M-500.00K92.00K2.55M

Strata Skin Sciences Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.30
Price Trends
50DMA
1.40
Negative
100DMA
1.63
Negative
200DMA
1.99
Negative
Market Momentum
MACD
-0.03
Negative
RSI
44.94
Neutral
STOCH
28.57
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 1.3 is above the 20-day moving average (MA) of 1.29, below the 50-day MA of 1.40, and below the 200-day MA of 1.99, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 44.94 is Neutral, neither overbought nor oversold. The STOCH value of 28.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SSKN.

Strata Skin Sciences Risk Analysis

Strata Skin Sciences disclosed 43 risk factors in its most recent earnings report. Strata Skin Sciences reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Strata Skin Sciences Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
$117.43M16.854.34%3.36%-21.15%
66
Neutral
$95.76M63.823.64%16.88%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
46
Neutral
$7.54M-0.49-207.19%-5.19%-0.81%
44
Neutral
$45.09M-3.63-96.15%-8.97%47.29%
40
Underperform
$14.21M-0.53-204.04%-60.89%94.49%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SSKN
Strata Skin Sciences
1.29
-1.67
-56.42%
FONR
Fonar
18.64
3.36
21.99%
SINT
Sintx Technologies
3.67
0.44
13.62%
CTSO
Cytosorbents
0.69
-0.35
-33.65%
XTNT
Xtant Medical Holdings
0.65
0.13
25.92%

Strata Skin Sciences Corporate Events

Business Operations and StrategyFinancial DisclosuresLegal Proceedings
Strata Skin Sciences Outlines Growth Initiatives for 2025
Positive
Dec 17, 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.

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.

Executive/Board ChangesShareholder Meetings
Strata Skin Sciences Holds Annual Stockholder Meeting
Neutral
Dec 10, 2025

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.

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.

Financial DisclosuresLegal Proceedings
Strata Skin Sciences Reports Q3 2025 Revenue Decline
Neutral
Nov 13, 2025

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.

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.

Private Placements and Financing
Strata Skin Sciences Announces Equity Distribution Agreement
Neutral
Oct 16, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jan 13, 2026