Education
About Us
Working with TipRanks
Follow Us
Strata Skin Sciences (SSKN)
:SSKN
Top Page
Strata Skin Sciences
(NASDAQ:SSKN)
Rating:49Neutral
Price Target:
$2.50
▲(7.30%Upside)
Positive Factors
Leadership and Strategy
The company's turnaround plan is showing early signs of success, focusing on direct-to-consumer marketing, cost efficiency, and improving revenue per device.
Market Potential
Expanded CPT codes significantly increase the company’s potential patient population and should drive broader adoption of the XTRAC laser and commercial growth.
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
Financial Performance
SSKN reported 1Q25 results with revenue below consensus and a GAAP loss per share wider than expectations.
Impairment Charges
The company reported a GAAP loss per share significantly wider than expectations, mostly due to an impairment of goodwill charge.
Strata Skin Sciences (SSKN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.72M
Dividend YieldN/A
Average Volume (3M)14.14K
Price to Earnings (P/E)―
Beta (1Y)0.23
Revenue Growth3.30%
EPS Growth31.84%
CountryUS
Employees106
SectorHealthcare
Sector Strength39
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.23
Shares Outstanding4,171,161
10 Day Avg. Volume22,738
30 Day Avg. Volume14,145
Financial Highlights & Ratios
PEG Ratio-0.07
Price to Book (P/B)3.64
Price to Sales (P/S)0.00
P/FCF Ratio-14.55
Enterprise Value/Market Cap0.45
Enterprise Value/Revenue0.03
Enterprise Value/Gross Profit0.22
Enterprise Value/Ebitda-0.49
Forecast
1Y Price Target
$6.00Price Target Upside157.51% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Strata Skin Sciences Business Overview & Revenue Model
Company DescriptionStrata Skin Sciences, Inc. (SSKN) is a medical technology company operating primarily in the dermatological field. The company focuses on developing, manufacturing, and marketing advanced therapeutic and diagnostic devices that address dermatological conditions. Strata's core products include XTRAC and VTRAC excimer laser systems, which are used in the treatment of psoriasis, vitiligo, and other skin disorders. The company serves a global market, providing innovative solutions to both practitioners and patients.
How the Company Makes MoneyStrata Skin Sciences generates revenue primarily through the sale and lease of its dermatological laser systems, particularly the XTRAC and VTRAC devices. The company also earns income from service and maintenance contracts for these systems, ensuring they remain operational and effective for users. Additionally, Strata may gain revenue from the licensing of its technology and partnerships with other healthcare and medical device companies. These strategic collaborations can help expand the company's market reach and product offerings, contributing to its overall earnings.
Strata Skin Sciences Earnings Call Summary
Earnings Call Date:May 14, 2025
(Q1-2025)
| % Change Since: -11.74%|
Next Earnings Date:Aug 19, 2025
Earnings Call Sentiment Positive
The earnings call reflected a generally positive sentiment with multiple areas of growth, including international sales, TheraClearX device expansion, and improved margins. However, these were partially offset by concerns over stagnant total revenue growth, potential tariff impacts, and challenges in domestic recurring billings.Q1-2025 Updates
Positive Updates
Growth in Direct-to-Consumer Marketing Efforts
The company's Direct-to-Consumer marketing efforts have achieved increased XTRAC leads, resulting in more robust patient appointments volume and higher device utilization.
Elevation in Recurring Revenue
STRATA Skin Sciences reported growth in recurring revenue per device across its domestic installed base of approximately 850 devices, marking the fourth consecutive quarter of year-over-year growth.
TheraClearX Device Expansion
The installed base of TheraClearX devices in the US increased to 160 from 104, and the number of patients submitted for reimbursement in Q1 2025 showed a 138% increase over the previous year.
International Business Growth
International sales reached $2.5 million, up 8% from the previous year, with equipment sales up 13% and recurring treatments revenue up 27%.
Improved Gross Margin
Gross margin improved to 53.5% in Q1 2025 from 45.6% in the same period in 2024, driven by efficiency gains and the absence of a one-time inventory write-off.
Reduction in Operating Expenses
Total operating expenses for Q1 2025 were reduced by 5% compared to the previous year, due to reductions in engineering, product development, and selling expenses.
Negative Updates
Flat Total Revenue Growth
Total revenue for Q1 2025 was $6.8 million, only up 1% compared to Q1 2024, indicating stagnant growth.
Potential Impact of Tariffs
The company expressed concerns over potential negative impacts from tariffs on international revenue, which could lead to a meaningful reduction if not resolved.
Challenges in Domestic Recurring Billings
Domestic recurring billings experienced headwinds due to changes in reimbursement rates and challenges in broader indication coverage.
Company Guidance
During the first quarter of 2025, STRATA Skin Sciences reported strong progress in its turnaround strategy, which focuses on increasing recurring revenue per device and optimizing device utilization. The company achieved over 1,000 patient appointments, marking a 33% increase in unique patients with insurance benefits handled compared to Q1 2024. STRATA's Elevate 360 consulting program facilitated higher patient conversion and improved clinic operations, leading to increased demand and device usage. The company's domestic installed base of approximately 850 devices showed a fourth consecutive quarter of year-over-year growth in average net recurring revenue. Internationally, sales rose 8% to $2.5 million, with equipment sales up 13% and recurring treatment revenue up 27%, despite a 5% decline in parts and maintenance. The TheraClearX device also experienced growth, with an installed base reaching 160 devices and a 138% increase in patients submitted for reimbursement in Q1 2025 compared to the previous year. Overall, STRATA's strategic initiatives have resulted in improved margins and controlled operating expenses, with a gross margin of 53.5% and a 5% reduction in total operating expenses year-over-year.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.45
Neutral
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.50
Neutral
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.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 33.62M | 33.56M | 33.36M | 36.16M | 29.98M | 23.09M |
| Gross Profit | 19.65M | 19.08M | 18.46M | 21.77M | 19.85M | 14.13M |
| EBITDA | -3.36M | -2.84M | -3.38M | 1.13M | 1.73M | -165.00K |
| Net Income | -9.15M | -10.09M | -10.83M | -5.55M | -2.71M | -4.41M |
Balance Sheet | ||||||
| Total Assets | 34.26M | 36.16M | 42.02M | 52.27M | 46.59M | 46.78M |
| Cash, Cash Equivalents and Short-Term Investments | 6.51M | 7.26M | 6.78M | 5.43M | 12.59M | 10.60M |
| Total Debt | 1.17M | 16.44M | 15.63M | 8.44M | 8.03M | 10.88M |
| Total Liabilities | 31.59M | 31.18M | 29.33M | 30.44M | 21.18M | 20.89M |
| Stockholders Equity | 2.67M | 4.97M | 12.69M | 21.83M | 25.41M | 25.89M |
Cash Flow | ||||||
| Free Cash Flow | -668.00K | -1.45M | -5.54M | -4.66M | -2.15M | -63.00K |
| Operating Cash Flow | 442.00K | 188.00K | -519.00K | -1.11M | 1.51M | 2.10M |
| Investing Cash Flow | -1.11M | -1.64M | -5.02M | -4.18M | -7.13M | -2.16M |
| Financing Cash Flow | 18.00K | 1.93M | 6.86M | -500.00K | 92.00K | 2.55M |
Strata Skin Sciences Technical Analysis
Negative
2.33
Price Trends
2.47
Negative
2.57
Negative
2.77
Negative
Market Momentum
-0.02
Negative
47.45
Neutral
44.78
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 2.33 is below the 20-day moving average (MA) of 2.34, below the 50-day MA of 2.47, and below the 200-day MA of 2.77, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 47.45 is Neutral, neither overbought nor oversold. The STOCH value of 44.78 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 44 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 1 New Risks
Strata Skin Sciences Peers Comparison
Overall Rating
UnderperformOutperform
Sector (46)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $76.63M | 42.40 | 3.46% | ― | 24.75% | -61.29% | |
54 Neutral | $26.09M | ― | -450.47% | ― | 9.47% | 81.37% | |
54 Neutral | $26.09M | ― | -450.47% | ― | 9.47% | 81.37% | |
49 Neutral | $9.72M | ― | -151.23% | ― | 3.30% | 31.84% | |
49 Neutral | $8.32M | ― | -72.70% | ― | 5.05% | 26.13% | |
47 Neutral | $10.33M | 0.85 | -499.57% | ― | -33.92% | ― | |
46 Neutral | C$194.71M | -4.33 | -8.58% | 2.64% | 13.66% | -0.73% | |
42 Neutral | $9.34M | ― | -56.80% | ― | -91.22% | 11.84% |
* Healthcare Sector Average
Performance Comparison
SSKN
Strata Skin Sciences
2.38
-0.79
-24.92%
BMRA
Biomerica
3.40
-0.13
-3.68%
SRTS
Sensus Healthcare
4.59
-1.08
-19.05%
CODX
Co-Diagnostics
0.26
-0.98
-79.03%
PAVM
PAVmed
0.59
-0.20
-25.32%
VVOS
Vivos Therapeutics
5.17
2.83
120.94%
VVOS
Vivos Therapeutics
5.17
2.83
120.94%
Strata Skin Sciences Corporate Events
Product-Related AnnouncementsBusiness Operations and Strategy
STRATA Expands CPT Codes for Excimer Laser Treatments
Positive
May 19, 2025
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.
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 StrategyFinancial Disclosures
Strata Skin Sciences Reports Q1 2025 Financial Results
Neutral
May 14, 2025
On May 14, 2025, STRATA Skin Sciences announced its financial results for the first quarter ending March 31, 2025. The company reported a revenue increase of 1% to $6.8 million, with international growth offsetting domestic declines. Gross margins improved significantly by 790 basis points, and operating expenses decreased by 5%. Despite a net loss of $2.4 million, the company showed progress with improved adjusted EBITDA and a strategic focus on international markets, which now account for 36% of total revenue.
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.