SkinHealth Systems Reports First Quarter 2026 Financial Results
Rhea-AI Summary
SkinHealth Systems (NASDAQ: SKIN) reported Q1 2026 results: net sales $64.9M (down 6.7% YoY), net loss $(6.6)M versus $(10.1)M, and adjusted EBITDA $8.5M versus $7.3M. The company placed 746 delivery systems and reported an active install base of 36,419.
Cash and equivalents were $204.4M at March 31, 2026. SkinHealth lowered full‑year 2026 net sales guidance to $280–$295M and maintained adjusted EBITDA guidance of $35–$45M.
Positive
- Adjusted EBITDA increased to $8.5M
- Net loss improved to $(6.6)M
- Active install base grew to 36,419
- Cash and equivalents of $204.4M
Negative
- Net sales declined 6.7% to $64.9M
- Delivery systems placements fell to 746
- Revised FY 2026 net sales outlook lowered to $280–$295M
News Market Reaction – SKIN
In the May 8 session, SKIN declined 36.26%, reflecting a significant negative market reaction. Argus tracked a trough of -35.3% from its starting point during tracking. Our momentum scanner triggered 41 alerts that day, indicating elevated trading interest and price volatility. Trading volume was exceptionally heavy at 5.3x the daily average, suggesting significant selling pressure.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Mar 12 | Full-year 2025 earnings | Positive | +19.8% | Improved 2025 profitability and higher gross margin despite lower net sales. |
| Nov 06 | Q3 2025 earnings | Positive | +8.5% | Higher gross margin and better adjusted EBITDA with lower year-over-year sales. |
| Aug 07 | Q2 2025 earnings | Positive | +18.9% | Net income jump, margin gains, positive adjusted EBITDA and raised 2025 guidance. |
| May 08 | Q1 2025 earnings | Positive | +50.8% | Margins and adjusted EBITDA improved while install base and consumables grew. |
| Mar 12 | Full-year 2024 earnings | Negative | -5.6% | Full-year and Q4 2024 net sales declined despite margin and EBITDA improvement. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings releases have typically produced strong, mostly positive price reactions, even when sales declined but margins and EBITDA improved.
Across the last five earnings releases from March 2024 through March 2026, SKIN has repeatedly reported declining equipment sales but strengthening margins, narrowing losses, and improving adjusted EBITDA. These announcements often coincided with updated full‑year guidance and growth in the active install base. Price reactions to past earnings were mostly positive double‑digit moves, suggesting investors have historically rewarded profitability and cash discipline even amid top‑line pressure. Today’s Q1 2026 results and revised 2026 outlook fit into this trajectory of margin focus and conservative guidance.
Key Terms
adjusted EBITDA financial
non-GAAP financial measures financial
adjusted gross margin financial
convertible senior notes financial
warrant liabilities financial
Schedule 13G regulatory
Form 3 regulatory
Form 4 regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
LONG BEACH, Calif., May 07, 2026 (GLOBE NEWSWIRE) -- SkinHealth Systems Inc. (NASDAQ: SKIN) (“SkinHealth Systems” or the "Company"), home to flagship brand Hydrafacial, today announced financial results for the first quarter ended March 31, 2026 (“Q1 2026”).
“First quarter results reflect the strength of the business. We delivered revenue within our guidance range, significantly outperformed on adjusted EBITDA, and continued to expand margins through disciplined execution.
"While the market remains challenging and we are lowering our full-year revenue outlook, the fundamentals are intact. The installed base is growing, the brand is strong, and we are taking direct action to improve execution while continuing to invest in the capabilities and innovation that will drive long-term growth.” said Pedro Malha, President and CEO of SkinHealth Systems.
Key Operational and Business Metrics
| Three Months Ended March 31, | |||||||
| Unaudited ($ in millions)(1) | 2026 | 2025 | |||||
| Delivery Systems net sales | $ | 18.5 | $ | 20.2 | |||
| Consumables net sales | 46.4 | 49.4 | |||||
| Total net sales | $ | 64.9 | $ | 69.6 | |||
| Gross profit | $ | 44.4 | $ | 48.6 | |||
| Gross margin | 68.5 | % | 69.8 | % | |||
| Adjusted gross profit(2) | $ | 46.9 | $ | 50.0 | |||
| Adjusted gross margin(2) | 72.2 | % | 71.9 | % | |||
| Operating expenses | $ | 46.2 | $ | 60.6 | |||
| Adjusted operating expenses(2) | $ | 38.4 | $ | 42.8 | |||
| Net loss | $ | (6.6 | ) | $ | (10.1 | ) | |
| Net loss margin | (10.2 | )% | (14.5 | )% | |||
| Adjusted EBITDA(2) | $ | 8.5 | $ | 7.3 | |||
| Adjusted EBITDA margin(2) | 13.1 | % | 10.4 | % | |||
| Three Months Ended March 31, | |||||
| Unaudited | 2026 | 2025 | |||
| Total delivery systems sold | 746 | 862 | |||
| Active install base(3) | 36,419 | 35,014 | |||
__________________________
(1) Amounts may not sum due to rounding.
(2) See "Non-GAAP Financial Measures" below.
(3) Estimated number of delivery systems owned by providers that have purchased consumables in the trailing twelve-month period.
First Quarter Financial Highlights
- Net sales were
$64.9 million for the first quarter of 2026, a decrease of (6.7)%, compared to the prior year period ("Q1 2025"), due to lower delivery systems and consumables net sales. The Company placed 746 delivery systems during Q1 2026, compared to 862 during Q1 2025. - Gross margin was
68.5% in Q1 2026, compared to69.8% in Q1 2025. The decrease in gross margin was primarily due to higher amortization expense. Adjusted gross margin was relatively flat at72.2% in Q1 2026 compared to71.9% in Q1 2025. - Operating expenses were
$46.2 million in Q1 2026, compared to$60.6 million in Q1 2025. Adjusted operating expenses were$38.4 million in Q1 2026, compared to$42.8 million in Q1 2025. The improvement in operating expenses and adjusted operating expenses was primarily due to lower personnel-related expenses and lower marketing-related spend. - Net loss was
$(6.6) million in Q1 2026, compared to$(10.1) million in Q1 2025. The change compared to the prior year was primarily due to lower operational spend, partially offset by lower net sales. - Adjusted EBITDA was
$8.5 million in Q1 2026, compared to$7.3 million in Q1 2025. The improvement in adjusted EBITDA was primarily due to lower operational spend, partially offset by lower net sales.
Revised 2026 Financial Guidance
| Second Quarter 2026 | |
| Net sales | |
| Adjusted EBITDA(1) |
| Fiscal Year 2026 | |
| Net sales | |
| Adjusted EBITDA(1) |
__________________________
(1) See "Non-GAAP Financial Measures" below.
Revised 2026 financial guidance:
- Reflects continued pressure on year over year device sales.
- Presumes no further material deterioration in current general market conditions or other unforeseen circumstances beyond the Company's control, such as foreign currency exchange rates, tariffs, and trade restrictions.
- Excludes any unannounced acquisitions, dispositions or financings.
Regional Operational and Business Metrics
| Three Months Ended March 31, | |||||||
| Unaudited ($ in millions)(1) (2) | 2026 | 2025 | |||||
| Delivery Systems net sales | |||||||
| Americas | $ | 12.0 | $ | 13.1 | |||
| Asia-Pacific (“APAC”) | 2.1 | 2.0 | |||||
| Europe, the Middle East and Africa (“EMEA”) | 4.4 | 5.1 | |||||
| Total Delivery Systems net sales | $ | 18.5 | $ | 20.2 | |||
| Consumables net sales | |||||||
| Americas | $ | 32.6 | $ | 33.1 | |||
| APAC | 4.5 | 6.4 | |||||
| EMEA | 9.3 | 9.9 | |||||
| Total Consumables net sales | $ | 46.4 | $ | 49.4 | |||
| Net sales | |||||||
| Americas | $ | 44.6 | $ | 46.3 | |||
| APAC | 6.6 | 8.3 | |||||
| EMEA | 13.7 | 15.0 | |||||
| Total net sales | $ | 64.9 | $ | 69.6 | |||
| Delivery Systems sold | |||||||
| Americas | 438 | 550 | |||||
| APAC | 118 | 98 | |||||
| EMEA | 190 | 214 | |||||
| Total Delivery Systems sold | 746 | 862 | |||||
__________________________
(1) Amounts may not sum due to rounding.
(2) During the second quarter of 2025, the Company transitioned sales in the China market to a distributor partner, and as a result, the Company has discontinued direct sales to customers in China.
Conference Call
SkinHealth Systems will host a conference call on Thursday, May 7, 2026, at 4:30 p.m. ET to review its first quarter 2026 financial results. The call may be accessed via live webcast through the Events & Presentations page on our Investor Relations website at www.skinhealthsystems.com. A recording of the call will become available on the site approximately three hours after its conclusion.
Non-GAAP Financial Measures
In addition to results determined in accordance with accounting principles generally accepted in the United States of America ("GAAP"), management utilizes certain non-GAAP financial measures such as adjusted gross profit, adjusted gross margin, adjusted EBITDA, and adjusted EBITDA margin for purposes of evaluating ongoing operations and for internal planning and forecasting purposes.
Management believes that these non-GAAP financial measures, when reviewed collectively with the Company’s GAAP financial information, provide useful supplemental information to investors in assessing the Company's operating performance. These non-GAAP financial measures should not be considered as an alternative to GAAP financial information or as an indication of operating performance or any other measure of performance derived in accordance with GAAP, and may not provide information that is directly comparable to that provided by other companies in its industry, as these other companies may calculate non-GAAP financial measures differently, particularly related to unusual items.
Adjusted gross profit is gross profit excluding the effects of depreciation expense, amortization expense, and share-based compensation expense and other long-term incentive compensation. Adjusted gross margin represents adjusted gross profit as a percentage of net sales.
Adjusted operating expenses is calculated as total operating expenses excluding the effects of depreciation expense; amortization expense; share-based compensation expense and other long-term incentive compensation; litigation related costs; Go-to-Market restructuring; and severance, restructuring, and other.
Adjusted EBITDA is calculated as net loss excluding the effects of (benefit) expense for income taxes; depreciation expense; amortization expense; share-based compensation expense and other long-term incentive compensation; interest expense; interest income; other income, net; change in fair value of warrant liabilities; foreign currency loss (gain), net; litigation related costs; Go-to-Market restructuring; and severance, restructuring and other. Adjusted EBITDA margin represents adjusted EBITDA as a percentage of net sales.
The Company does not provide a reconciliation of its fiscal 2026 adjusted EBITDA guidance to net loss, the most directly comparable forward looking GAAP financial measures, due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation, which cannot be done without unreasonable efforts, including adjustments that could be made for changes in fair value of warrant liabilities, integration and acquisition-related expenses, amortization expenses, non-cash share-based compensation, gains/losses on foreign currency, and other charges reflected in our reconciliation of historic numbers, the amount of which, based on historical experience, could be significant. The presentation of this financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. The Company's fiscal 2026 adjusted EBITDA guidance is merely an outlook and is not a guarantee of future performance. Stockholders should not rely or place an undue reliance on such forward-looking statements. See “Forward-Looking Statements” for additional information.
| SkinHealth Systems Inc. Condensed Consolidated Statements of Comprehensive Income (Loss)(1) ($ in millions, except share and per share amounts) (Unaudited) | |||||||
| Three Months Ended March 31, | |||||||
| 2026 | 2025 | ||||||
| Net sales | $ | 64.9 | $ | 69.6 | |||
| Cost of sales | 20.5 | 21.0 | |||||
| Gross profit | 44.4 | 48.6 | |||||
| Operating expenses: | |||||||
| Selling and marketing | 23.2 | 26.0 | |||||
| Research and development | 1.1 | 1.0 | |||||
| General and administrative | 21.9 | 33.6 | |||||
| Total operating expenses | 46.2 | 60.6 | |||||
| Loss from operations | (1.8 | ) | (12.0 | ) | |||
| Interest expense | 6.3 | 2.5 | |||||
| Interest income | (1.5 | ) | (3.0 | ) | |||
| Other income, net | (1.0 | ) | (0.1 | ) | |||
| Change in fair value of warrant liabilities | — | (0.3 | ) | ||||
| Foreign currency transaction loss (gain), net | 1.2 | (1.9 | ) | ||||
| Loss before provision for income taxes | (6.8 | ) | (9.2 | ) | |||
| Income tax (benefit) expense | (0.2 | ) | 0.9 | ||||
| Net loss | (6.6 | ) | (10.1 | ) | |||
| Comprehensive loss, net of tax: | |||||||
| Foreign currency translation adjustments | (0.3 | ) | 1.1 | ||||
| Comprehensive loss | $ | (6.9 | ) | $ | (9.0 | ) | |
| Net loss per share | |||||||
| Basic | $ | (0.05 | ) | $ | (0.08 | ) | |
| Diluted | $ | (0.05 | ) | $ | (0.08 | ) | |
| Weighted average common shares outstanding | |||||||
| Basic | 127,792,611 | 125,079,470 | |||||
| Diluted | 131,399,898 | 125,079,470 | |||||
__________________________
(1) Amounts may not sum due to rounding.
| SkinHealth Systems Inc. Condensed Consolidated Balance Sheets(1) ($ in millions) (Unaudited) | |||||||
| March 31, 2026 | December 31, 2025 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash, cash equivalents, and restricted cash | $ | 204.4 | $ | 232.7 | |||
| Accounts receivable, net | 18.6 | 21.7 | |||||
| Inventories | 47.7 | 48.0 | |||||
| Income tax receivable | 1.6 | 1.7 | |||||
| Prepaid expenses and other current assets | 5.4 | 5.4 | |||||
| Total current assets | 277.7 | 309.5 | |||||
| Property and equipment, net | 2.3 | 2.5 | |||||
| Right-of-use assets, net | 20.3 | 11.6 | |||||
| Intangible assets, net | 32.8 | 35.8 | |||||
| Goodwill | 126.2 | 126.6 | |||||
| Deferred income tax assets, net | 2.4 | 1.9 | |||||
| Other assets | 11.5 | 11.9 | |||||
| TOTAL ASSETS | $ | 473.2 | $ | 499.8 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| Current liabilities: | |||||||
| Current portion of convertible senior notes, net | $ | 102.9 | $ | 124.0 | |||
| Accounts payable | 15.9 | 15.6 | |||||
| Accrued payroll-related expenses | 13.0 | 24.9 | |||||
| Lease liabilities, current | 4.2 | 5.1 | |||||
| Income tax payable | 0.5 | 1.2 | |||||
| Other accrued expenses | 18.7 | 15.4 | |||||
| Total current liabilities | 155.2 | 186.3 | |||||
| Lease liabilities, non-current | 18.8 | 9.2 | |||||
| Deferred income tax liabilities, net | 0.4 | 0.4 | |||||
| Convertible senior notes, net | 241.3 | 240.4 | |||||
| Other long-term liabilities | 2.4 | 2.4 | |||||
| TOTAL LIABILITIES | $ | 418.0 | $ | 438.7 | |||
| Stockholders’ equity: | |||||||
| Class A Common Stock | $ | — | $ | — | |||
| Additional paid-in capital | 581.1 | 580.0 | |||||
| Accumulated other comprehensive loss | (1.7 | ) | (1.4 | ) | |||
| Accumulated deficit | (524.1 | ) | (517.5 | ) | |||
| Total stockholders’ equity | $ | 55.2 | $ | 61.1 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 473.2 | $ | 499.8 | |||
__________________________
(1) Amounts may not sum due to rounding.
| SkinHealth Systems Inc. Condensed Consolidated Statement of Cash Flows(1) ($ in millions) (Unaudited) | |||||||
| Three Months Ended March 31, | |||||||
| 2026 | 2025 | ||||||
| Cash, cash equivalents, and restricted cash at beginning of period | $ | 232.7 | $ | 370.1 | |||
| Operating activities: | |||||||
| Net loss | (6.6 | ) | (10.1 | ) | |||
| Non-cash adjustments: | 10.2 | 10.2 | |||||
| Change in operating assets and liabilities: | |||||||
| Accounts receivable | 2.5 | 4.0 | |||||
| Inventories | (0.1 | ) | 3.8 | ||||
| Prepaid expenses, other current assets, and income tax receivable | — | 2.9 | |||||
| Accounts payable, accrued expenses, and income tax payable | (9.6 | ) | (5.7 | ) | |||
| Other, net | (2.0 | ) | (2.0 | ) | |||
| Net cash (used for) provided by operating activities | (5.6 | ) | 3.0 | ||||
| Net cash used for investing activities | (1.6 | ) | (1.1 | ) | |||
| Net cash used for financing activities | (20.9 | ) | (0.3 | ) | |||
| Net change in cash, cash equivalents, and restricted cash | (28.1 | ) | 1.6 | ||||
| Effect of foreign currency translation | (0.2 | ) | 1.4 | ||||
| Cash, cash equivalents, and restricted cash at end of period | $ | 204.4 | $ | 373.0 | |||
__________________________
(1) Amounts may not sum due to rounding.
The following table reconciles gross profit to adjusted gross profit for the periods presented:
| Three Months Ended March 31, | |||||||
| Unaudited ($ in millions)(1) | 2026 | 2025 | |||||
| Net sales | $ | 64.9 | $ | 69.6 | |||
| Gross profit | $ | 44.4 | $ | 48.6 | |||
| Gross margin | 68.5 | % | 69.8 | % | |||
| Adjusted to exclude the following: | |||||||
| Depreciation expense | 0.2 | 0.2 | |||||
| Amortization expense | 2.1 | 1.1 | |||||
| Share-based compensation expense and other long-term incentive compensation(2) | 0.1 | 0.2 | |||||
| Adjusted gross profit | $ | 46.9 | $ | 50.0 | |||
| Adjusted gross margin | 72.2 | % | 71.9 | % | |||
__________________________
(1) Amounts may not sum due to rounding.
(2) Includes expense associated with long-term cash performance awards.
The following table reconciles total operating expenses to adjusted operating expenses for the periods presented:
| Three Months Ended March 31, | |||||||
| Unaudited ($ in millions)(1) | 2026 | 2025 | |||||
| Total operating expenses | $ | 46.2 | $ | 60.6 | |||
| Adjusted to exclude the following: | |||||||
| Depreciation expense | 0.4 | 1.6 | |||||
| Amortization expense | 2.7 | 3.2 | |||||
| Share-based compensation expense and other long-term incentive compensation(2) | 2.0 | 3.3 | |||||
| Litigation related costs | 2.2 | 6.9 | |||||
| Go-to-Market restructuring | 0.2 | 2.7 | |||||
| Severance, restructuring and other | 0.5 | — | |||||
| Adjusted operating expenses | $ | 38.4 | $ | 42.8 | |||
__________________________
(1) Amounts may not sum due to rounding.
(2) Includes expense associated with long-term cash performance awards that can be settled in either cash or Common Stock.
The following table reconciles net loss to adjusted EBITDA for the periods presented:
| Three Months Ended March 31, | |||||||
| Unaudited ($ in millions)(1) | 2026 | 2025 | |||||
| Net sales | $ | 64.9 | $ | 69.6 | |||
| Net loss | $ | (6.6 | ) | $ | (10.1 | ) | |
| Net loss margin | (10.2 | )% | (14.5 | )% | |||
| Adjusted to exclude the following: | |||||||
| (Benefit) expense for income taxes | (0.2 | ) | 0.9 | ||||
| Depreciation expense | 0.6 | 1.9 | |||||
| Amortization expense | 4.8 | 4.3 | |||||
| Share-based compensation expense and other long-term incentive compensation(2) | 2.1 | 3.5 | |||||
| Interest expense | 6.3 | 2.5 | |||||
| Interest income | (1.5 | ) | (3.0 | ) | |||
| Other income, net | (1.0 | ) | (0.1 | ) | |||
| Change in fair value of warrant liabilities | — | (0.3 | ) | ||||
| Foreign currency loss (gain), net | 1.2 | (1.9 | ) | ||||
| Litigation related costs | 2.2 | 6.9 | |||||
| Go-to-Market restructuring | 0.2 | 2.7 | |||||
| Severance, restructuring and other | 0.5 | — | |||||
| Adjusted EBITDA | $ | 8.5 | $ | 7.3 | |||
| Adjusted EBITDA margin | 13.1 | % | 10.4 | % | |||
__________________________
(1) Amounts may not sum due to rounding.
(2) Includes expense associated with long-term cash performance awards that can be settled in either cash or Common Stock.
About SkinHealth Systems
SkinHealth Systems (NASDAQ: SKIN) is a global medical aesthetics company delivering an integrated ecosystem of clinically proven solutions designed to help consumers achieve superior skin health and support the success of providers. Anchored by Hydrafacial™, a leading and widely requested professional skincare treatment, and supported by complementary offerings including SkinStylus™ microneedling and HydraScalp™ with Keravive™, SkinHealth Systems combines advanced device technology, proprietary consumables, and clinical validation to deliver trusted treatment experiences through an omnichannel network of providers worldwide. Learn more at skinhealthsystems.com or follow us on LinkedIn. Local providers can be found at hydrafacial.com/find-a-hydrafacialist.
Forward-Looking Statements
Certain statements made in this release are “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 and within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding SkinHealth Systems Inc.’s strategy, plans, objectives, initiatives and financial outlook. When used in this press release, the words “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,” “propose” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements.
These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside SkinHealth Systems Inc.’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. As such, readers are cautioned not to place undue reliance on any forward-looking statements.
Important factors that may affect actual results or outcomes include, among others: SkinHealth Systems Inc.’s ability to manage growth; SkinHealth Systems Inc.’s ability to execute its business plan; potential negative reactions or outcomes related to the Company’s name change in general and focused shift in operations; potential litigation involving SkinHealth Systems Inc.; changes in applicable laws or regulations; the possibility that SkinHealth Systems Inc. may be adversely affected by other economic, business, and/or competitive factors; and other risks and uncertainties set forth in the sections entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 filed with the U.S. Securities and Exchange Commission (the “SEC”) and in the Company’s subsequent filings with the SEC such as on a Quarterly Report on Form 10-Q. Those risks continue to be relevant to the Company's performance and financial condition. Moreover, the Company operates in a very competitive and rapidly changing environment. New risk factors emerge from time-to-time and it is not possible for management to predict all such risk factors, nor can it assess the impact of all such risk factors on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. SkinHealth Systems Inc. expressly disclaims any responsibility to update forward-looking statements, whether as a result of new information, future events or otherwise.
Contacts
Press: press@skinhealthsystems.com
Investors: IR@skinhealthsystems.com
