STOCK TITAN

SkinHealth Systems (NASDAQ: SKIN) Q2 revenue dips as adjusted EBITDA rises

(High)
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

SkinHealth Systems Inc. reported second quarter 2026 results with net sales of $72.1 million, a decrease of 7.8% from Q2 2025, as both delivery systems and consumables sales declined. The company sold 770 delivery systems, down from 957, while its active installed base grew to 36,516 systems.

Profitability metrics improved. Gross margin rose to 68.4% (adjusted 71.8%) from 62.8%, and operating expenses fell to $45.8 million from $51.8 million, reflecting lower personnel-related costs. SkinHealth posted a net loss of $2.7 million versus prior-year net income of $19.7 million, largely because Q2 2025 included an $18.1 million gain related to exchanges and repurchases of its 2026 notes. Adjusted EBITDA increased to $17.0 million, up from $13.9 million, with margin improving to 23.6%.

For the third quarter of 2026, management projects net sales of $65–$70 million and adjusted EBITDA of $5–$7 million. Full-year 2026 guidance calls for net sales of $280–$290 million and adjusted EBITDA of $39–$46 million. Cash, cash equivalents, and restricted cash totaled $206.1 million at June 30, 2026.

Positive

  • Adjusted EBITDA rose to $17.0 million in Q2 2026 from $13.9 million in Q2 2025, with adjusted EBITDA margin improving to 23.6% from 17.8%, reflecting higher gross margin and lower operating expenses.
  • Gross margin improved to 68.4% in Q2 2026 from 62.8% a year earlier (adjusted gross margin 71.8% vs. 65.9%), aided by the absence of prior-year inventory and trade-in related costs.

Negative

  • Net sales fell 7.8% to $72.1 million in Q2 2026 versus Q2 2025, driven by lower delivery system and consumables sales, with delivery systems sold declining to 770 from 957.
  • Results swung to a net loss of $2.7 million in Q2 2026 compared with net income of $19.7 million a year earlier, as the prior period benefited from an $18.1 million gain on 2026 note transactions.

Filing Explained

The filing adds potential note-repayment and settlement cash obligations, while a proposed reverse split would change share-count mechanics only if completed.

This August 6 Form 8-K reports the quarter ended June 30 and identifies three structural matters still ahead: the October 2026 maturity of the 1.25% Convertible Senior Notes, a proposed reverse stock split, and a proposed securities-class-action settlement.

The note maturity is an identified debt-service obligation and the settlement is tied to cash obligations, while the reverse split would alter share-count and per-share-price mechanics if completed. The filing uses “proposed” for both the reverse split and settlement, so it does not present either as completed.

A reverse stock split is a consolidation that reduces share count and raises per-share price proportionally; the split itself does not change company value. At June 30, the balance sheet lists current and noncurrent convertible senior notes, net; these are reported balances, not a stated October repayment amount.

The key follow-up points are the October 2026 note maturity and any later disclosure of the settlement amount, reverse-split terms, or completion.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Net sales Q2 2026 $72.1 million Quarter ended June 30, 2026; decreased 7.8% versus Q2 2025
Gross margin Q2 2026 68.4% Up from 62.8% in the prior-year quarter
Net (loss) income Q2 2026 $(2.7) million Compared with net income of $19.7 million in Q2 2025
Adjusted EBITDA Q2 2026 $17.0 million Increased from $13.9 million in Q2 2025
Adjusted EBITDA margin Q2 2026 23.6% Improved from 17.8% in the prior-year period
Cash, cash equivalents, and restricted cash $206.1 million Balance as of June 30, 2026
Fiscal 2026 net sales guidance $280 – $290 million Company outlook for full-year 2026 net sales
Adjusted EBITDA financial
"Adjusted EBITDA was $17.0 million in Q2 2026, compared to $13.9 million in Q2 2025"
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
"management utilizes certain non-GAAP financial measures such as adjusted gross profit, adjusted EBITDA"
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 was $103.1 and non-current was $242.1"
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.
Go-to-Market restructuring financial
"Go-to-Market restructuring includes costs associated with transition to a distributor model"
securities class action regulatory
"Litigation related costs include the proposed settlement in the Securities Class Action suit"
A securities class action is a lawsuit brought by a group of investors who claim they lost money because a company or its executives made false or misleading statements about financial performance, risks, or business prospects. Think of it as many people pooling forces to challenge misleading information; it matters to investors because these cases can lead to large settlements or judgments, hurt a company’s reputation, drain cash, and cause share prices to fall or become more volatile.
Net sales $72.1 million decrease of (7.8)% compared to Q2 2025
Gross margin 68.4% compared to 62.8% in Q2 2025
Net (loss) income $(2.7) million compared to net income of $19.7 million in Q2 2025
Adjusted EBITDA $17.0 million compared to $13.9 million in Q2 2025
Guidance

Third quarter 2026 net sales $65–$70 million and adjusted EBITDA $5–$7 million; fiscal year 2026 net sales $280–$290 million and adjusted EBITDA $39–$46 million.

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

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FAQ

What were SkinHealth Systems (SKIN) net sales in Q2 2026?

SkinHealth Systems reported Q2 2026 net sales of $72.1 million, a decrease of 7.8% compared with Q2 2025. Delivery systems net sales were $18.3 million and consumables net sales were $53.9 million, reflecting pressure in both parts of the business.

Was SkinHealth Systems (SKIN) profitable in the second quarter of 2026?

SkinHealth Systems recorded a net loss of $2.7 million in Q2 2026, compared with net income of $19.7 million in Q2 2025. However, gross margin improved to 68.4%, and adjusted EBITDA increased to $17.0 million with a 23.6% adjusted EBITDA margin.

What financial guidance did SkinHealth Systems (SKIN) provide for Q3 and full-year 2026?

For Q3 2026, the company projects net sales of $65–$70 million and adjusted EBITDA of $5–$7 million. For fiscal 2026, guidance calls for net sales of $280–$290 million and adjusted EBITDA between $39 million and $46 million, excluding unannounced transactions.

How did SkinHealth Systems (SKIN) delivery system activity and installed base trend in Q2 2026?

The company sold 770 delivery systems in Q2 2026, down from 957 in Q2 2025. Despite lower placements, the active installed base reached 36,516 systems, up from 35,193 a year earlier, defined as systems whose owners bought consumables over the trailing twelve months.

What is SkinHealth Systems (SKIN) cash position and debt profile as of June 30, 2026?

As of June 30, 2026, SkinHealth Systems held $206.1 million in cash, cash equivalents, and restricted cash. The balance sheet included $103.1 million of current convertible senior notes and $242.1 million of non-current convertible senior notes, with total liabilities of $431.0 million.

How did SkinHealth Systems (SKIN) operating expenses and margins change in Q2 2026?

Total operating expenses declined to $45.8 million in Q2 2026 from $51.8 million a year earlier, mainly from lower personnel-related costs. Adjusted operating expenses fell to $34.8 million, while gross margin improved to 68.4% and adjusted gross margin to 71.8%.
FALSE000181809300018180932026-08-062026-08-060001818093us-gaap:CommonStockMember2026-08-062026-08-06

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549  
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 6, 2026
SkinHealth Systems Inc.
(Exact name of registrant as specified in its charter)  
Delaware001-3956585-1908962
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
3600 E. Burnett Street
Long Beach, CA
(Address of principal executive offices)

90815
(Zip Code)
(800) 603-4996
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
     Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading
Symbol(s)
Name of each exchange
on which registered
Class A Common Stock, par value $0.0001 per shareSKIN
The Nasdaq Capital Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company  
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    



Item 2.02. Results of Operations and Financial Condition.

On August 6, 2026, SkinHealth Systems Inc. (the “Company”) issued a press release and will hold a conference call regarding its financial results for its fiscal quarter ended June 30, 2026. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

The information furnished with this Item 2.02, including Exhibit 99.1, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any other filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

The Company is making reference to non-GAAP financial information in both the press release and the conference call. A reconciliation of GAAP to non-GAAP results is provided in the attached Exhibit 99.1 press release.

The Company announces material information to the public through a variety of means, including filings with the Securities and Exchange Commission, press releases, public conference calls, and on the investor relations section of the Company's website (https://www.skinhealthsystems.com/) as means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.


Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.

Description
99.1

Press Release, dated August 6, 2026
104Cover Page Interactive Data File (embedded within the Inline XBRL document)




SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
Dated: August 6, 2026
SkinHealth Systems Inc.
By:/s/ Michael Monahan
Name:Michael Monahan
Title:Chief Financial Officer

Exhibit 99.1
SkinHealth Systems Reports Second Quarter 2026 Financial Results

Long Beach, Calif., August 6, 2026 – SkinHealth Systems Inc. (NASDAQ: SKIN) (“SkinHealth Systems” or the "Company"), home to flagship brand Hydrafacial, today announced financial results for the second quarter ended June 30, 2026 (“Q2 2026”).

"Our second quarter results reflect continued sales pressure, while adjusted EBITDA came in well above our guidance range as we improved gross margin and maintained disciplined operating expense management," said Pedro Malha, President and Chief Executive Officer of SkinHealth Systems.

"Our strategic priorities remain clear. We are focused on strengthening the core Hydrafacial franchise, increasing the productivity of our installed base and expanding our portfolio with complementary technologies. Supported by our trusted brand, global provider network and recurring consumables business, we believe these priorities position SkinHealth Systems to deliver more sustainable and diversified long-term growth."

Key Operational and Business Metrics
Three Months Ended June 30,
Six Months Ended June 30,
Unaudited ($ in millions) (1)
2026
2025
2026
2025
Delivery Systems net sales
$
18.3 
$
22.4 
$
36.8 
$
42.6 
Consumables net sales
53.9 
55.8 
100.2 
105.2 
Total net sales
$
72.1 
$
78.2 
$
137.0 
$
147.8 
Gross profit
$
49.3 
$
49.1 
$
93.8 
$
97.7 
Gross margin
68.4 
%
62.8 
%
68.4 
%
66.1 
%
Adjusted gross profit(2)
$
51.8 
$
51.5 
$
98.7 
$
101.6 
Adjusted gross margin(2)
71.8 
%
65.9 
%
72.0 
%
68.7 
%
Operating expenses
$
45.8 
$
51.8 
$
92.0 
$
112.4 
Adjusted operating expenses(2)
$
34.8 
$
37.6 
$
73.1 
$
80.4 
Net (loss) income
$
(2.7)
$
19.7 
$
(9.3)
$
9.6 
Net (loss) income margin
(3.7)
%
25.2 
%
(6.8)
%
6.5 
%
Adjusted EBITDA(2)
$
17.0 
$
13.9 
$
25.5 
$
21.2 
Adjusted EBITDA margin(2)
23.6 
%
17.8 
%
18.6 
%
14.3 
%

Three Months Ended June 30,
Six Months Ended June 30,
Unaudited
2026
2025
2026
2025
Total delivery systems sold
770 
957 
1,516 
1,819 
Active install base(3)
36,516 
35,193 
36,516 
35,193 
__________________________
(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.
1


Second Quarter Financial Highlights
Net sales were $72.1 million for the second quarter of 2026, a decrease of (7.8)%, compared to the prior year period ("Q2 2025"), due to lower delivery systems and consumables net sales. The Company placed 770 delivery systems during Q2 2026, compared to 957 during Q2 2025.
Gross margin was 68.4% in Q2 2026, compared to 62.8% in Q2 2025. Adjusted gross margin was 71.8% in Q2 2026, compared to 65.9% in Q2 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 and higher inventory-related charges in 2025.
Operating expenses were $45.8 million in Q2 2026, compared to $51.8 million in Q2 2025. Adjusted operating expenses were $34.8 million in Q2 2026, compared to $37.6 million in Q2 2025. The improvement in operating expenses and adjusted operating expenses was primarily due to lower personnel-related expenses.
Net loss was $(2.7) million in Q2 2026, compared to net income of $19.7 million in Q2 2025. The change compared to the prior year was primarily due to an $18.1 million net gain related to the exchange and repurchases of the 2026 Notes in Q2 2025.
Adjusted EBITDA was $17.0 million in Q2 2026, compared to $13.9 million in Q2 2025. The improvement in adjusted EBITDA was primarily due to lower operational spend and higher gross margin, partially offset by lower net sales.

Revised 2026 Financial Guidance
Third Quarter 2026
Net sales
$65 – $70 million
Adjusted EBITDA(1)
$5 – $7 million

Fiscal Year 2026
Net sales
$280 – $290 million
Adjusted EBITDA(1)
$39 – $46 million
__________________________
(1) See "Non-GAAP Financial Measures" below.

Revised 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 any unannounced acquisitions, dispositions or financings.

2


Regional Operational and Business Metrics
Three Months Ended June 30,
Six Months Ended June 30,
Unaudited ($ in millions) (1) (2)
2026
2025
2026
2025
Delivery Systems net sales
Americas
$
12.0 
$
13.6 
$
24.0 
$
26.7 
Asia-Pacific (“APAC”)
2.1 
2.5 
4.2 
4.5 
Europe, the Middle East and Africa (“EMEA”)
4.2 
6.3 
8.6 
11.4 
Total Delivery Systems net sales
$
18.3 
$
22.4 
$
36.8 
$
42.6 
Consumables net sales
Americas
$
37.9 
$
38.5 
$
70.5 
$
71.6 
APAC
5.2 
5.2 
9.7 
11.6 
EMEA
10.7 
12.2 
20.0 
22.0 
Total Consumables net sales
$
53.9 
$
55.8 
$
100.2 
$
105.2 
Net sales
Americas
$
49.9 
$
52.0 
$
94.5 
$
98.3 
APAC
7.3 
7.7 
13.9 
16.1 
EMEA
14.9 
18.4 
28.7 
33.4 
Total net sales
$
72.1 
$
78.2 
$
137.0 
$
147.8 
Delivery Systems sold
Americas
483 
559 
921 
1,109 
APAC
125 
137 
243 
235 
EMEA
162 
261 
352 
475 
Total Delivery Systems sold
770 
957 
1,516 
1,819 
__________________________
(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, August 6, 2026, at 4:30 p.m. ET to review its second 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.

3


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) income excluding the effects of expense (benefit) 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) income, 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.


4


SkinHealth Systems Inc.
Condensed Consolidated Statements of Comprehensive Income (Loss) (1)
($ in millions, except share and per share amounts)
(Unaudited)

Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Net sales
$
72.1 
$
78.2 
$
137.0 
$
147.8 
Cost of sales
22.8 
29.1 
43.2 
50.1 
Gross profit
49.3 
49.1 
93.8 
97.7 
Operating expenses:
Selling and marketing
21.0 
23.1 
44.2 
49.1 
Research and development
1.4 
1.3 
2.5 
2.2 
General and administrative
23.3 
27.5 
45.3 
61.0 
Total operating expenses
45.8 
51.8 
92.0 
112.4 
Income (loss) from operations
3.6 
(2.7)
1.8 
(14.7)
Interest expense
6.3 
4.1 
12.6 
6.6 
Interest income
(1.3)
(3.2)
(2.8)
(6.2)
Other income, net
— 
(18.1)
(1.1)
(18.2)
Change in fair value of warrant liabilities
— 
0.2 
— 
(0.1)
Foreign currency transaction loss (gain), net
— 
(4.5)
1.2 
(6.3)
(Loss) income before provision for income taxes
(1.5)
18.7 
(8.3)
9.5 
Income tax expense (benefit)
1.2 
(1.0)
1.0 
(0.1)
Net (loss) income
(2.7)
19.7 
(9.3)
9.6 
Comprehensive (loss) income, net of tax:
Foreign currency translation adjustments
0.3 
3.6 
— 
4.8 
Comprehensive (loss) income
$
(2.4)
$
23.3
$
(9.3)
$
14.4
Net (loss) income per share
Basic
$
(0.02)
$
0.16
$
(0.07)
$
0.08
Diluted
$
(0.02)
$
0.03
$
(0.07)
$
(0.02)
Weighted average common shares outstanding
Basic
129,596,886 
126,072,603 
128,699,733 
125,578,780 
Diluted
129,596,886 
140,294,291 
128,699,733 
140,589,807 
__________________________
(1)Amounts may not sum due to rounding.


5


SkinHealth Systems Inc.
Condensed Consolidated Balance Sheets (1)
($ in millions)
(Unaudited)
June 30, 2026
December 31, 2025
ASSETS
Current assets:
Cash, cash equivalents, and restricted cash
$
206.1
$
232.7
Accounts receivable, net
17.6
21.7
Inventories
46.8
48.0
Income tax receivable
2.0
1.7
Prepaid expenses and other current assets
22.7
5.4
Total current assets
295.2
309.5
Property and equipment, net
2.1
2.5
Right-of-use assets, net
19.4
11.6
Intangible assets, net
30.2
35.8
Goodwill
126.3
126.6
Deferred income tax assets, net
2.4
1.9
Other assets
10.9
11.9
TOTAL ASSETS
$
486.6
$
499.8
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of convertible senior notes, net
$
103.1
$
124.0
Accounts payable
16.1
15.6
Accrued payroll-related expenses
13.1
24.9
Lease liabilities, current
3.9
5.1
Income tax payable
0.5
1.2
Other accrued expenses
31.6
15.4
Total current liabilities
168.2
186.3
Lease liabilities, non-current
18.0
9.2
Deferred income tax liabilities, net
0.4
0.4
Convertible senior notes, net
242.1
240.4
Other long-term liabilities
2.3
2.4
TOTAL LIABILITIES
$
431.0
$
438.7
Stockholders’ equity:
Class A Common Stock
$
— 
$
— 
Additional paid-in capital
583.7 
580.0 
Accumulated other comprehensive loss
(1.4)
(1.4)
Accumulated deficit
(526.8)
(517.5)
Total stockholders’ equity
$
55.6 
$
61.1 
 LIABILITIES AND STOCKHOLDERS’ EQUITY
$
486.6 
$
499.8 
__________________________
(1)Amounts may not sum due to rounding.



6


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


Six Months Ended June 30,
2026
2025
Cash, cash equivalents, and restricted cash at beginning of period
$
232.7
$
370.1
Operating activities:
Net (loss) income
(9.3)
9.6 
Non-cash adjustments
20.9 
4.6 
Change in operating assets and liabilities:
Accounts receivable
3.4 
2.3 
Inventories
0.5 
9.1 
Prepaid expenses, other current assets, and income tax receivable
(17.6)
0.6 
Accounts payable, accrued expenses, and income tax payable
3.1 
(9.7)
Other, net
(3.8)
(3.8)
Net cash (used for) provided by operating activities
(2.9)
12.6 
Net cash used for investing activities
(2.9)
(2.7)
Net cash used for financing activities
(21.1)
(173.6)
Net change in cash, cash equivalents, and restricted cash
(26.9)
(163.7)
Effect of foreign currency translation
0.3 
5.6 
Cash, cash equivalents, and restricted cash at end of period
$
206.1 
$
212.0 
__________________________
(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 June 30,
Six Months Ended June 30,
Unaudited ($ in millions) (1)
2026
2025
2026
2025
Net sales
$
72.1 
$
78.2 
$
137.0 
$
147.8 
Gross profit
$
49.3 
$
49.1 
$
93.8 
$
97.7 
Gross margin
68.4 
%
62.8 
%
68.4 
%
66.1 
%
Adjusted to exclude the following:
Depreciation expense
0.2 
0.2 
0.4 
0.4 
Amortization expense
2.1 
2.1 
4.2 
3.1 
Share-based compensation expense and other long-term incentive compensation (2)
0.1 
0.1 
0.2 
0.3 
Adjusted gross profit
$
51.8 
$
51.5 
$
98.7 
$
101.6 
Adjusted gross margin
71.8 
%
65.9 
%
72.0 
%
68.7 
%
__________________________
(1)Amounts may not sum due to rounding.
(2)Includes expense associated with long-term cash performance awards.
7


The following table reconciles total operating expenses to adjusted operating expenses for the periods presented:

Three Months Ended June 30,
Six Months Ended June 30,
Unaudited ($ in millions) (1)
2026
2025
2026
2025
Total operating expenses
$
45.8 
$
51.8 
$
92.0 
$
112.4 
Adjusted to exclude the following:
Depreciation expense
0.3 
0.5 
0.7 
2.1 
Amortization expense
2.6 
2.6 
5.3 
5.9 
Share-based compensation expense and other long-term incentive compensation (2)
2.8 
5.2 
4.8 
8.5 
Litigation related costs (3)
4.9 
5.0 
7.0 
11.9 
Go-to-Market restructuring (4)
(0.2)
0.2 
— 
3.0 
Severance, restructuring and other
0.5 
0.6 
1.0 
0.6 
Adjusted operating expenses
$
34.8 
$
37.6 
$
73.1 
$
80.4 
__________________________
(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.
(3)Includes the proposed settlement in the Securities Class Action suit.
(4)Includes costs associated with transition to a distributor model in the China and Australia and New Zealand markets.
8


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

Three Months Ended June 30,
Six Months Ended June 30,
Unaudited ($ in millions) (1)
2026
2025
2026
2025
Net sales
$
72.1 
$
78.2 
$
137.0 
$
147.8 
Net (loss) income
$
(2.7)
$
19.7 
$
(9.3)
$
9.6 
Net (loss) income margin
(3.7)
%
25.2 
%
(6.8)
%
6.5 
%
Adjusted to exclude the following:
Expense (benefit) for income taxes
1.2 
(1.0)
1.0 
(0.1)
Depreciation expense
0.5 
0.7 
1.1 
2.6 
Amortization expense
4.7 
4.7 
9.5 
9.0 
Share-based compensation expense and other long-term incentive compensation (2)
3.0 
5.3 
5.1 
8.8 
Interest expense
6.3 
4.1 
12.6 
6.6 
Interest income
(1.3)
(3.2)
(2.8)
(6.2)
Other income, net
— 
(18.1)
(1.1)
(18.2)
Change in fair value of warrant liabilities
— 
0.2 
— 
(0.1)
Foreign currency loss (gain), net
— 
(4.5)
1.2 
(6.3)
Litigation related costs (3)
4.9 
5.0 
7.0 
11.9 
Go-to-Market restructuring (4)
(0.2)
0.2 
— 
3.0 
Severance, restructuring and other
0.5 
0.6 
1.0 
0.6 
Adjusted EBITDA
$
17.0 
$
13.9 
$
25.5 
$
21.2 
Adjusted EBITDA margin
23.6 
%
17.8 
%
18.6 
%
14.3 
%
__________________________
(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.
(4)Includes costs associated with transition to a distributor model in the China and Australia and New Zealand markets.
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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; 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 October 2026 maturity of its 1.25% Convertible Senior Notes; the Company's continued listing on The Nasdaq Capital Market, including the minimum bid price deficiency and the proposed 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.

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Contacts
Press: press@skinhealthsystems.com
Investors: IR@skinhealthsystems.com
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Filing Exhibits & Attachments

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