SkinHealth Systems Reports Third Quarter 2026 Financial Results

Q: What were SkinHealth Systems' third-quarter 2026 earnings results?

SkinHealth Systems reported $69.2 million in net sales and a $0.9 million net loss for the quarter ended September 30, 2026. Sales declined 2.1% year over year, while the net loss narrowed from $11.0 million. Basic and diluted net loss per share were $0.14, versus $1.74 a year earlier, with both periods adjusted for the reverse stock split.

Q: What is SkinHealth Systems' updated 2026 financial guidance?

SkinHealth Systems forecasts 2026 net sales of $281–$287 million and adjusted EBITDA of $48–$50 million. The company said the outlook reflects continued sales pressure and cost discipline. Adjusted EBITDA is an earnings measure that excludes interest, taxes, depreciation, amortization and specified other items.

Quarterly operating income turned positive, but nine-month sales declined and the net loss widened.

Rhea-AI Impact

(Very High)

Rhea-AI Sentiment

(Positive)How Sentiment works

Sentiment and the balance of points

Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.

How Sentiment works How the balance works

Rhea-AI Summary

SkinHealth Systems (SKIN) reported third-quarter 2026 net sales of $69.2 million, down year over year as delivery-system sales declined. Consumables sales rose to $50.4 million from $49.8 million. Gross margin increased to 68.2% from 64.6%, and operating expenses fell to $42.2 million from $51.9 million. Net loss narrowed to $0.9 million from $11.0 million, while adjusted EBITDA rose to $13.4 million from $8.9 million.

The company forecasts 2026 sales of $281–$287 million and adjusted EBITDA of $48–$50 million, reflecting continued sales pressure and cost discipline. It repaid $103.2 million of remaining 2026 Notes principal on September 30. Cash, cash equivalents and restricted cash were $112.4 million, versus $232.7 million at year-end 2025. A 1-for-20 reverse stock split took effect October 14, 2026. Nine-month net loss widened to $10.2 million from $1.4 million.

15 points · 1 major

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Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance works How Sentiment works

0 major · 16 points

Hollow bars mark forward-looking points. How the balance works

Positive

Major point2026 Notes retirement repaid $103.2 million of remaining principal on September 30, 2026. 1.4× market cap
Moderate pointQ3 net loss narrowed to $0.9 million from $11.0 million a year earlier.
Moderate pointQ3 adjusted EBITDA rose to $13.4 million from $8.9 million; margin increased to 19.3% from 12.6%.
Moderate pointQ3 gross margin increased to 68.2% from 64.6% a year earlier.
Moderate pointQ3 operating expenses fell to $42.2 million from $51.9 million a year earlier.
Moderate pointQ3 operating income reached $5.0 million, versus a $6.2 million operating loss a year earlier.
Moderate point. Forward-looking: it has not happened yet and may not happen.The company forecasts 2026 net sales of $281–$287 million.
Moderate point. Forward-looking: it has not happened yet and may not happen.The company forecasts 2026 adjusted EBITDA of $48–$50 million.

7 minor points

Minor pointQ3 consumables sales increased to $50.4 million from $49.8 million a year earlier.
Minor pointQ3 Americas net sales increased to $48.9 million from $48.3 million a year earlier.
Minor pointActive delivery systems whose providers purchased consumables in the trailing twelve months increased to 37,342 from 35,409.
Minor pointNine-month adjusted EBITDA increased to $38.9 million from $30.1 million; margin rose to 18.9% from 13.8%.
Minor pointNine-month gross margin increased to 68.3% from 65.6% a year earlier.
Minor pointNine-month operating expenses fell to $134.2 million from $164.3 million a year earlier.
Minor pointNine-month operating income reached $6.7 million, versus a $21.0 million operating loss a year earlier.

Negative

Moderate pointQ3 net sales declined 2.1% year over year to $69.2 million.
Moderate pointCash, cash equivalents and restricted cash fell to $112.4 million from $232.7 million at year-end 2025.
Moderate pointNine-month interest expense increased to $18.9 million from $13.0 million a year earlier.
Minor pointQ3 delivery-system sales fell to $18.8 million from $20.8 million a year earlier.
Minor pointQ3 delivery systems sold declined to 798 from 875 a year earlier.

11 minor points

Minor pointQ3 EMEA net sales declined to $14.2 million from $16.1 million a year earlier.
Minor pointQ3 APAC net sales declined to $6.1 million from $6.3 million a year earlier.
Minor pointNoncurrent convertible senior notes, net, totaled $243.0 million at September 30, versus $240.4 million at year-end 2025.
Minor pointNine-month net loss widened to $10.2 million from $1.4 million a year earlier.
Minor pointNine-month net sales declined to $206.2 million from $218.4 million a year earlier.
Minor pointNine-month delivery-system sales declined to $55.6 million from $63.4 million a year earlier.
Minor pointNine-month consumables sales declined to $150.6 million from $155.0 million a year earlier.
Minor pointNine-month delivery systems sold declined to 2,314 from 2,694 a year earlier.
Minor pointNine-month Americas net sales declined to $143.4 million from $146.6 million a year earlier.
Minor pointNine-month APAC net sales declined to $19.9 million from $22.4 million a year earlier.
Minor pointNine-month EMEA net sales declined to $42.8 million from $49.5 million a year earlier.

News Explained

The September 30 balance sheet still listed convertible senior notes, net, even after SkinHealth Systems repaid the remaining 2026 Notes principal; the release therefore does not show all convertible-note debt eliminated.

Key Figures

Net sales: $69.2 million (-2.1% YoY) Gross margin: 68.2% vs. 64.6% Adjusted EBITDA: $13.4 million vs. $8.9 million +5 more

Net sales: $69.2 million (-2.1% YoY); Q3 2026; $70.7 million in Q3 2025
Gross margin: 68.2% vs. 64.6%; Q3 2026 vs. Q3 2025
Adjusted EBITDA: $13.4 million vs. $8.9 million; Q3 2026 vs. Q3 2025
Net loss: $(0.9) million vs. $(11.0) million; Q3 2026 vs. Q3 2025
FY 2026 net-sales guidance: $281–$287 million; Updated fiscal 2026 guidance
FY 2026 adjusted EBITDA guidance: $48–$50 million; Updated fiscal 2026 guidance
2026 Notes principal repaid: $103.2 million; Repaid September 30, 2026
Cash, cash equivalents, and restricted cash: $112.4 million vs. $232.7 million; September 30, 2026 vs. December 31, 2025

Previous Earnings Reports

2 past events · Latest: Aug 06

Same Type 2 events

Aug 06
Q2 earnings

24h Move

-13.9%

Q2 sales fell 7.8% year over year, and the company issued Q3 and full-year guidance.
May 07
Q1 earnings

24h Move

-36.3%

The company reported lower Q1 sales and reduced its full-year net-sales guidance.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

adjusted ebitda, non-gaap financial measures, convertible senior notes, restricted cash

4 terms

adjusted ebitda financial

"Adjusted EBITDA was $13.4 million in Q3 2026"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

non-gaap financial measures financial

"In addition to results determined in accordance with accounting principles"

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

convertible senior notes financial

"Current portion of convertible senior notes, net"

Convertible senior notes are a type of loan that a company issues to investors, which can be turned into company shares later on. They are called "senior" because they are paid back before other debts if the company runs into trouble. This allows investors to earn interest like a loan but also have the chance to own part of the company if its value rises.

restricted cash financial

"Cash, cash equivalents, and restricted cash were approximately $112 million"

Cash that a company holds but cannot use for day-to-day operations because it is set aside for a specific purpose—such as meeting loan covenants, serving as collateral, funding an escrow, or complying with regulations. Like money in a locked savings account earmarked for a bill, restricted cash reduces the cash available to run the business and pay dividends or debts, so investors treat it differently when assessing a company’s true short-term financial strength.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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11/05/2026 - 04:05 PM EST

LONG BEACH, Calif., Nov. 05, 2026 (GLOBE NEWSWIRE) -- SkinHealth Systems Inc. (NASDAQ: SKIN) (“SkinHealth Systems” or the "Company"), home to flagship brand Hydrafacial®, today announced financial results for the third quarter ended September 30, 2026 (“Q3 2026”).

“Our third quarter results reflect encouraging progress in strengthening our business. Revenue trends improved, consumables returned to growth, and we delivered healthy adjusted EBITDA performance. While we have more work ahead, these results give us greater confidence that the actions we are taking are moving the business in the right direction,” said Pedro Malha, President and Chief Executive Officer of SkinHealth Systems.

“We advanced each of our strategic priorities, strengthening commercial execution in the core Hydrafacial franchise, introducing clinically differentiated innovations designed to increase the value and productivity of our installed base, including our new HydraClear^™ Treatment Booster, and expanding our portfolio with the launch of SkinStylus^™ across six European markets. We also retired our 2026 debt as planned. We have a strong global brand, a substantial installed base and a more efficient operating model. Our focus now is on translating those advantages into sustainable growth through disciplined execution.”

Key Operational and Business Metrics

	Three Months Ended September 30,						Nine Months Ended September 30,
Unaudited ($ in millions)⁽¹⁾	2026			2025			2026			2025
Delivery Systems net sales	$	18.8		$	20.8		$	55.6		$	63.4
Consumables net sales		50.4			49.8			150.6			155.0
Total net sales	$	69.2		$	70.7		$	206.2		$	218.4
Gross profit	$	47.1		$	45.6		$	140.9		$	143.3
Gross margin		68.2	%		64.6	%		68.3	%		65.6	%
Adjusted gross profit⁽²⁾	$	49.7		$	48.1		$	148.3		$	149.6
Adjusted gross margin⁽²⁾		71.8	%		68.0	%		71.9	%		68.5	%
Operating expenses	$	42.2		$	51.9		$	134.2		$	164.3
Adjusted operating expenses⁽²⁾	$	36.3		$	39.1		$	109.4		$	119.5
Net loss	$	(0.9	)	$	(11.0	)	$	(10.2	)	$	(1.4	)
Net loss margin		(1.3	)%		(15.6	)%		(4.9	)%		(0.6	)%
Adjusted EBITDA⁽²⁾	$	13.4		$	8.9		$	38.9		$	30.1
Adjusted EBITDA margin⁽²⁾		19.3	%		12.6	%		18.9	%		13.8	%

	Three Months Ended September 30,		Nine Months Ended September 30,
Unaudited	2026	2025	2026	2025
Total delivery systems sold	798	875	2,314	2,694
Active install base⁽³⁾	37,342	35,409	37,342	35,409

__________________________

(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.

Third Quarter Financial Highlights

Net sales were $69.2 million for the third quarter of 2026, a decrease of (2.1)%, compared to the prior year period ("Q3 2025"), due to lower delivery systems net sales. The Company placed 798 delivery systems during Q3 2026, compared to 875 during Q3 2025.
Gross margin was 68.2% in Q3 2026, compared to 64.6% in Q3 2025. Adjusted gross margin was 71.8% in Q3 2026, compared to 68.0% in Q3 2025. The improvement in gross margin and adjusted gross margin was primarily due to higher product costs in the prior year related to trade-in Delivery Systems sell through, as well as tariff related recoveries, and lower inventory charges in 2026.
Operating expenses were $42.2 million in Q3 2026, compared to $51.9 million in Q3 2025. The improvement in operating expenses was primarily due to lower personnel-related expenses, amortization expense, and professional fees. Adjusted operating expenses were $36.3 million in Q3 2026, compared to $39.1 million in Q3 2025. The improvement in adjusted operating expenses was primarily due to lower personnel-related expenses and professional fees.
Net loss was $(0.9) million in Q3 2026, compared to net loss of $(11.0) million in Q3 2025. The change compared to the prior year was primarily due to lower operational spend and higher gross margin.
Adjusted EBITDA was $13.4 million in Q3 2026, compared to $8.9 million in Q3 2025. The improvement in adjusted EBITDA was primarily due to lower adjusted operational spend and higher adjusted gross margin.

Balance Sheet and Cash Flow Highlights

Cash, cash equivalents, and restricted cash were approximately $112 million as of September 30, 2026, compared to approximately $233 million as of December 31, 2025. On September 30, 2026, the Company retired the 2026 Notes in accordance with their terms. The Company repaid the remaining outstanding aggregate principal amount of $103.2 million.
The Company had 6.5 million shares of Class A Common Stock outstanding as of September 30, 2026. On October 14, 2026, the Company effected a 1-for-20 reverse stock split of its Class A Common Stock and a proportionate decrease in the number of issued and outstanding shares (the "Reverse Stock Split").

Updated 2026 Financial Guidance

Fiscal Year 2026
Net sales	$281 – $287 million
Adjusted EBITDA⁽¹⁾	$48 – $50 million

__________________________
(1) See "Non-GAAP Financial Measures" below.

Updated 2026 financial guidance:

Reflects continued pressure on sales and continued cost discipline.
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 the potential effect of any unannounced acquisitions, dispositions or financings.

Regional Operational and Business Metrics

	Three Months Ended September 30,				Nine Months Ended September 30,
Unaudited ($ in millions)^{(1) (2)}	2026		2025		2026		2025
Delivery Systems net sales
Americas	$	12.8	$	13.6	$	36.8	$	40.3
Asia-Pacific (“APAC”)		2.0		2.1		6.2		6.6
Europe, the Middle East and Africa (“EMEA”)		4.0		5.1		12.6		16.5
Total Delivery Systems net sales	$	18.8	$	20.8	$	55.6	$	63.4

Consumables net sales
Americas	$	36.1	$	34.7	$	106.7	$	106.3
APAC		4.1		4.2		13.7		15.8
EMEA		10.2		10.9		30.2		32.9
Total Consumables net sales	$	50.4	$	49.8	$	150.6	$	155.0

Net sales
Americas	$	48.9	$	48.3	$	143.4	$	146.6
APAC		6.1		6.3		19.9		22.4
EMEA		14.2		16.1		42.8		49.5
Total net sales	$	69.2	$	70.7	$	206.2	$	218.4

Delivery Systems sold
Americas		511		540		1,432		1,649
APAC		125		123		368		358
EMEA		162		212		514		687
Total Delivery Systems sold		798		875		2,314		2,694

__________________________

(1)	Amounts may not sum due to rounding.
(2)	During the second quarter of 2026, the Company transitioned sales in the Australia and New Zealand market to a distributor partner. During the second quarter of 2025, the Company transitioned sales in the China market to a distributor partner. As a result, the Company has discontinued direct sales to customers in Australia, New Zealand, and China.

Conference Call

SkinHealth Systems will host a conference call on Thursday, November 5, 2026, at 4:30 p.m. ET to review its third 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 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 September 30,						Nine Months Ended September 30,
	2026			2025			2026			2025
Net sales	$	69.2		$	70.7		$	206.2		$	218.4
Cost of sales		22.0			25.0			65.3			75.1
Gross profit		47.1			45.6			140.9			143.3
Operating expenses:
Selling and marketing		20.0			20.9			64.2			70.1
Research and development		1.7			1.7			4.2			3.9
General and administrative		20.5			29.3			65.8			90.3
Total operating expenses		42.2			51.9			134.2			164.3
Income (loss) from operations		5.0			(6.2	)		6.7			(21.0	)
Interest expense		6.3			6.3			18.9			13.0
Interest income		(1.4	)		(1.3	)		(4.2	)		(7.4	)
Other income, net		—			(0.6	)		(1.1	)		(18.8	)
Change in fair value of warrant liabilities		—			(0.2	)		—			(0.3	)
Foreign currency transaction loss (gain), net		0.2			0.2			1.5			(6.2	)
Loss before provision for income taxes		(0.1	)		(10.6	)		(8.4	)		(1.1	)
Income tax expense		0.8			0.4			1.8			0.3
Net loss		(0.9	)		(11.0	)		(10.2	)		(1.4	)
Comprehensive (loss) income, net of tax:
Foreign currency translation adjustments		(0.3	)		0.4			(0.3	)		5.2
Comprehensive (loss) income	$	(1.2	)	$	(10.6	)	$	(10.5	)	$	3.8
Net loss per share ⁽²⁾
Basic	$	(0.14	)	$	(1.74	)	$	(1.58	)	$	(0.22	)
Diluted	$	(0.14	)	$	(1.74	)	$	(1.58	)	$	(2.12	)
Weighted average common shares outstanding ⁽²⁾
Basic		6,510,178			6,345,283			6,460,831			6,301,728
Diluted		6,510,178			6,345,283			6,460,831			6,865,390

__________________________

(1)	Amounts may not sum due to rounding.
(2)	References to share and per-share amounts disclosed for all periods presented have been retroactively adjusted to reflect the effects of the Reverse Stock Split.

SkinHealth Systems Inc.
Condensed Consolidated Balance Sheets ⁽¹⁾
($ in millions)
(Unaudited)

	September 30, 2026			December 31, 2025
ASSETS
Current assets:
Cash, cash equivalents, and restricted cash	$	112.4		$	232.7
Accounts receivable, net		18.5			21.7
Inventories		46.2			48.0
Income tax receivable		1.8			1.7
Prepaid expenses and other current assets		22.7			5.4
Total current assets		201.6			309.5
Property and equipment, net		1.9			2.5
Right-of-use assets, net		19.0			11.6
Intangible assets, net		27.6			35.8
Goodwill		126.1			126.6
Deferred income tax assets, net		2.2			1.9
Other assets		10.7			11.9
TOTAL ASSETS	$	389.1		$	499.8
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of convertible senior notes, net	$	—		$	124.0
Accounts payable		15.1			15.6
Accrued payroll-related expenses		15.5			24.9
Lease liabilities, current		3.6			5.1
Income tax payable		0.1			1.2
Other accrued expenses		35.6			15.4
Total current liabilities		69.8			186.3
Lease liabilities, non-current		17.7			9.2
Deferred income tax liabilities, net		0.7			0.4
Convertible senior notes, net		243.0			240.4
Other long-term liabilities		2.1			2.4
TOTAL LIABILITIES	$	333.3		$	438.7

Stockholders’ equity:
Class A Common Stock	$	—		$	—
Additional paid-in capital		585.1			580.0
Accumulated other comprehensive loss		(1.7	)		(1.4	)
Accumulated deficit		(527.7	)		(517.5	)
Total stockholders’ equity	$	55.8		$	61.1
LIABILITIES AND STOCKHOLDERS’ EQUITY	$	389.1		$	499.8

__________________________
(1) Amounts may not sum due to rounding.

SkinHealth Systems Inc.
Condensed Consolidated Statement of Cash Flows ⁽¹⁾
($ in millions)
(Unaudited)

	Nine Months Ended September 30,
	2026			2025
Cash, cash equivalents, and restricted cash at beginning of period	$	232.7		$	370.1
Operating activities:
Net loss		(10.2	)		(1.4	)
Non-cash adjustments		32.1			21.2
Change in operating assets and liabilities:
Accounts receivable		1.8			4.8
Inventories		(0.2	)		11.1
Prepaid expenses, other current assets, and income tax receivable		(17.5	)		(0.1	)
Accounts payable, accrued expenses, and income tax payable		8.5			(7.1	)
Other, net		(6.1	)		(6.2	)
Net cash provided by operating activities		8.4			22.3
Net cash used for investing activities		(3.9	)		(3.8	)
Net cash used for financing activities		(124.6	)		(174.4	)
Net change in cash, cash equivalents, and restricted cash		(120.2	)		(155.9	)
Effect of foreign currency translation		(0.1	)		5.2
Cash, cash equivalents, and restricted cash at end of period	$	112.4		$	219.4

__________________________
(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 September 30,						Nine Months Ended September 30,
Unaudited ($ in millions)⁽¹⁾	2026			2025			2026			2025
Net sales	$	69.2		$	70.7		$	206.2		$	218.4

Gross profit	$	47.1		$	45.6		$	140.9		$	143.3
Gross margin		68.2	%		64.6	%		68.3	%		65.6	%

Adjusted to exclude the following:
Depreciation expense		0.3			0.2			0.7			0.7
Amortization expense		2.1			2.1			6.4			5.2
Share-based compensation expense and other long-term incentive compensation ⁽²⁾		0.1			0.1			0.4			0.4
Adjusted gross profit	$	49.7		$	48.1		$	148.3		$	149.6
Adjusted gross margin		71.8	%		68.0	%		71.9	%		68.5	%

__________________________
(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 total operating expenses to adjusted operating expenses for the periods presented:

	Three Months Ended September 30,				Nine Months Ended September 30,
Unaudited ($ in millions)⁽¹⁾	2026		2025		2026		2025
Total operating expenses	$	42.2	$	51.9	$	134.2	$	164.3
Adjusted to exclude the following:
Depreciation expense		0.3		0.4		1.0		2.5
Amortization expense		2.6		5.7		7.9		11.6
Share-based compensation expense and other long-term incentive compensation ⁽²⁾		1.4		2.3		6.2		10.8
Litigation related costs ⁽³⁾		1.4		2.2		8.4		14.1
Go-to-Market restructuring ⁽⁴⁾		0.2		—		0.3		3.0
Severance, restructuring and other		—		2.1		1.0		2.7
Adjusted operating expenses	$	36.3	$	39.1	$	109.4	$	119.5

__________________________
(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.
(3)      Includes the proposed settlement in the Securities Class Action suit for the nine months ended September 30, 2026.
(4)      Includes costs associated with transition to a distributor model in the China and Australia and New Zealand markets.

The following table reconciles net loss to adjusted EBITDA for the periods presented:

	Three Months Ended September 30,						Nine Months Ended September 30,
Unaudited ($ in millions)⁽¹⁾	2026			2025			2026			2025
Net sales	$	69.2		$	70.7		$	206.2		$	218.4

Net loss	$	(0.9	)	$	(11.0	)	$	(10.2	)	$	(1.4	)
Net loss margin	(1.3) %			(15.6) %			(4.9) %			(0.6) %

Adjusted to exclude the following:
Expense for income taxes		0.8			0.4			1.8			0.3
Depreciation expense		0.6			0.6			1.6			3.2
Amortization expense		4.7			7.8			14.2			16.8
Share-based compensation expense and other long-term incentive compensation ⁽²⁾		1.5			2.5			6.6			11.2
Interest expense		6.3			6.3			18.9			13.0
Interest income		(1.4	)		(1.3	)		(4.2	)		(7.4	)
Other income, net		—			(0.6	)		(1.1	)		(18.8	)
Change in fair value of warrant liabilities		—			(0.2	)		—			(0.3	)
Foreign currency loss (gain), net		0.2			0.2			1.5			(6.2	)
Litigation related costs ⁽³⁾		1.4			2.2			8.4			14.1
Go-to-Market restructuring ⁽⁴⁾		0.2			—			0.3			3.0
Severance, restructuring and other		—			2.1			1.0			2.7
Adjusted EBITDA	$	13.4		$	8.9		$	38.9		$	30.1
Adjusted EBITDA margin		19.3	%		12.6	%		18.9	%		13.8	%

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; risks relating to unfavorable macroeconomic and credit conditions and longer equipment sales cycles; pricing pressures, including as a result of competitors' pricing, discounting and promotional activity; the timing of distributor orders and distributor-model transitions, including in Australia and New Zealand; tariffs, trade restrictions, and foreign currency fluctuations; the Company's debt service obligations and the November 15, 2028 maturity of its 7.95% Convertible Senior Secured Notes; the Company's continued listing on The Nasdaq Capital Market, including the minimum bid price and the reverse stock split; and the proposed settlement of the Company's securities class action and related cash obligations; 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

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were SkinHealth Systems' third-quarter 2026 earnings results?

SkinHealth Systems reported $69.2 million in net sales and a $0.9 million net loss for the quarter ended September 30, 2026. Sales declined 2.1% year over year, while the net loss narrowed from $11.0 million. Basic and diluted net loss per share were $0.14, versus $1.74 a year earlier, with both periods adjusted for the reverse stock split.

What is SkinHealth Systems' updated 2026 financial guidance?

SkinHealth Systems forecasts 2026 net sales of $281–$287 million and adjusted EBITDA of $48–$50 million. The company said the outlook reflects continued sales pressure and cost discipline. Adjusted EBITDA is an earnings measure that excludes interest, taxes, depreciation, amortization and specified other items.

Why did SkinHealth Systems' third-quarter 2026 gross margin improve?

SkinHealth Systems attributed the gross-margin improvement primarily to higher prior-year product costs associated with sales of traded-in delivery systems, tariff-related recoveries and lower inventory charges in 2026. Gross margin increased to 68.2% from 64.6% a year earlier.

How has SkinHealth Systems changed its sales model in Australia, New Zealand and China?

SkinHealth Systems transitioned Australia and New Zealand sales to a distributor partner in the second quarter of 2026, following a similar transition in China in the second quarter of 2025. Direct sales to customers in those markets have been discontinued.

SkinHealth Systems Reports Third Quarter 2026 Financial Results