Strata Skin Sciences Inc (SSKN)
NASDAQ:SSKN
Advertisement

Strata Skin Sciences (SSKN) AI Stock Analysis

Compare
244 Followers

Top Page

SSKN

Strata Skin Sciences

(NASDAQ:SSKN)

Select Model
Select Model
Select Model
Neutral 44 (OpenAI - 4o)
Rating:44Neutral
Price Target:
$1.50
▼(-10.71% Downside)
The overall stock score is primarily impacted by the company's financial challenges and bearish technical indicators. While there are some positive strategic initiatives and market expansion potential, these are overshadowed by ongoing losses, valuation concerns, and weak market momentum.
Positive Factors
Regulatory Clearance
Regulatory clearance in Mexico for TheraClearX expands STRATA's market reach, enabling entry into new international markets and boosting long-term growth potential.
Market Expansion Potential
The expansion of CPT codes significantly increases the potential patient base for STRATA, enhancing revenue opportunities and strengthening its competitive position in the dermatology market.
Increased Device Placements
The increase in device placements indicates strong demand and potential revenue growth, reflecting effective market penetration and expansion strategies.
Negative Factors
Revenue Decline
The decline in revenue highlights ongoing challenges in maintaining sales momentum, which could impact the company's ability to invest in growth and innovation.
International Revenue Challenges
Challenges in international markets, such as trade disruptions, can limit growth opportunities and affect overall financial performance, necessitating strategic adjustments.
Increased Operating Expenses
Rising operating expenses, driven by litigation costs, strain profitability and cash flow, potentially hindering the company's ability to invest in strategic initiatives.

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 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 Earnings Call Summary

Earnings Call Date:Aug 13, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 13, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While there were significant positive developments like the expansion of CPT codes and increased device placements, the company faced substantial challenges, including revenue declines and international market disruptions. Despite efforts to expand the market and improve reimbursement rates, financial performance was impacted by legal expenses and decreased international and equipment revenues.
Q2-2025 Updates
Positive Updates
Expansion of CPT Codes
The American Medical Association CPT Editorial Panel expanded CPT codes for STRATA's XTRAC 308-nanometer excimer laser, enabling coverage for multiple inflammatory and autoimmune skin conditions, potentially tripling the addressable market to 30 million patients.
Increased Device Placements
STRATA placed 19 new XTRAC devices with accounts interested in growth, marking the highest number of placements in the U.S. in the last six quarters.
Market Expansion Potential
The company is preparing to expand into new indications with the potential for higher reimbursement rates, supported by submitted economic data. This could lead to increased revenue per patient procedure.
Positive Direct-to-Consumer Campaigns
Generated 1,100 DTC-driven patient appointments with a 61% show rate and handled benefits for approximately 5,100 patients, demonstrating strong demand for excimer laser therapy.
TheraClearX Growth
Installed base of TheraClearX devices grew to 161 in the U.S., up from 117 in Q2 2024, indicating a growing portion of the company's revenue.
Negative Updates
Decline in Total Revenue
Total revenue for Q2 2025 was $7.7 million, down 9% compared to Q2 2024, primarily due to challenges in the international market.
International Revenue Challenges
International revenue was $2.6 million in Q2 2025, a decline of 15% compared to the prior year, affected by trade disruptions in China and distributor challenges in Korea.
Increased Operating Expenses
Total operating expenses rose to $6.5 million in Q2 2025, up roughly $1 million from the prior year period, partly due to litigation expenses.
Legal Expenses and Litigation
Legal expenses related to litigation against LaserOptek contributed to increased operating expenses, impacting profitability.
Decline in Equipment Revenue
Equipment revenue was $2.5 million in Q2 2025, down 18% from Q2 2024, due to international challenges.
Company Guidance
During the STRATA Skin Sciences Inc. Second Quarter 2025 Financial Results and Corporate Update Conference Call, significant guidance was provided, highlighting several key metrics and strategic initiatives. The company reported total revenue of $7.7 million for Q2 2025, representing a 9% decline compared to Q2 2024, primarily due to international market challenges. Despite removing 21 XTRAC laser devices from suboptimal partners, STRATA placed 19 new devices with promising new accounts, marking the highest U.S. placements in six quarters. The company generated approximately 1,100 direct-to-consumer-driven patient appointments with a 61% show rate, and their RDX system processed benefits for about 5,100 patients. Additionally, STRATA's efforts to expand reimbursement eligibility for their excimer laser treatments are expected to significantly increase their addressable market, potentially tripling their patient population and increasing revenue per patient. The company is also pursuing an increase in reimbursement rates through economic data submissions and is focused on optimizing clinic partnerships and launching innovative direct-to-consumer campaigns. Furthermore, STRATA's ongoing litigation against LaserOptek is positioned to potentially recover significant damages, reflecting the company's proactive legal strategy.

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
45
Neutral
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
50
Neutral
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
40
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 Revenue32.85M33.56M33.36M36.16M29.98M23.09M
Gross Profit19.02M19.08M18.46M21.77M19.85M14.13M
EBITDA-5.97M-2.84M-3.38M1.13M1.73M-165.00K
Net Income-11.54M-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 Investments5.97M7.26M6.78M5.43M12.59M10.60M
Total Debt1.08M16.44M15.63M8.44M8.03M10.88M
Total Liabilities30.41M31.18M29.33M30.44M21.18M20.89M
Stockholders Equity308.00K4.97M12.69M21.83M25.41M25.89M
Cash Flow
Free Cash Flow-2.79M-1.45M-5.54M-4.66M-2.15M-63.00K
Operating Cash Flow-2.09M188.00K-519.00K-1.11M1.51M2.10M
Investing Cash Flow-704.00K-1.64M-5.02M-4.18M-7.13M-2.16M
Financing Cash Flow1.94M1.93M6.86M-500.00K92.00K2.55M

Strata Skin Sciences Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.68
Price Trends
50DMA
1.80
Negative
100DMA
1.94
Negative
200DMA
2.28
Negative
Market Momentum
MACD
-0.05
Positive
RSI
46.37
Neutral
STOCH
37.67
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 1.68 is below the 20-day moving average (MA) of 1.75, below the 50-day MA of 1.80, and below the 200-day MA of 2.28, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 46.37 is Neutral, neither overbought nor oversold. The STOCH value of 37.67 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
65
Neutral
$103.88M-20.783.64%16.88%
59
Neutral
$94.46M13.384.34%3.36%-21.15%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
44
Neutral
$9.66M-0.61-235.41%0.36%-17.20%
42
Neutral
$11.83M-0.31-195.48%-40.47%96.14%
41
Neutral
$49.66M-4.34-68.84%-7.81%65.39%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SSKN
Strata Skin Sciences
1.68
-1.67
-49.85%
FONR
Fonar
14.85
-0.87
-5.53%
SINT
Sintx Technologies
3.43
1.26
58.06%
CTSO
Cytosorbents
0.64
-0.28
-30.43%
XTNT
Xtant Medical Holdings
0.72
0.25
53.19%
NAOV
NanoVibronix
4.79
-71.29
-93.70%

Strata Skin Sciences Corporate Events

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.

Delistings and Listing ChangesRegulatory Filings and Compliance
Strata Skin Sciences Granted Nasdaq Compliance Extension
Neutral
Oct 14, 2025

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.

Private Placements and Financing
Strata Skin Sciences Completes $2.42 Million Stock Offering
Neutral
Sep 4, 2025

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.

Private Placements and FinancingRegulatory Filings and Compliance
Strata Skin Sciences Raises $2.4M in Stock Offering
Neutral
Sep 3, 2025

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
Sep 1, 2025

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.

Delistings and Listing ChangesRegulatory Filings and Compliance
Strata Skin Sciences Faces Nasdaq Compliance Notice
Negative
Aug 22, 2025

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.

Business Operations and StrategyFinancial DisclosuresLegal Proceedings
Strata Skin Sciences Unveils Strategic Initiatives
Positive
Aug 18, 2025

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
Aug 14, 2025

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.

Business Operations and StrategyFinancial Disclosures
Strata Skin Sciences Reports Q2 2025 Financial Results
Neutral
Aug 13, 2025

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.

Business Operations and StrategyLegal ProceedingsProduct-Related Announcements
Strata Skin Sciences Secures Temporary Reimbursement Codes
Positive
Aug 7, 2025

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.

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: Nov 07, 2025