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Beauty Health
(NASDAQ:SKIN)
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Rating:44Neutral
Price Target:
$10.00
▲(1370.59% Upside)
Action:Reiterated
Date:10/17/26
Overall score is held back primarily by weak financial strength (continued losses, negative/declining revenue, and very high leverage) and bearish technicals (price below key moving averages with negative MACD). The earnings call adds a modest offset from strong margin/adjusted EBITDA execution, but lowered revenue guidance and highlighted listing/debt risks keep the outlook constrained; valuation provides limited support due to negative earnings and no dividend data.
Positive Factors
Recurring Revenue Base
The growing installed base expands the number of providers able to generate repeat consumables demand, while the 75% recurring mix improves revenue visibility. This platform economics can support customer retention, monetization of utilization, and more durable revenue than equipment sales alone.
Negative Factors
Revenue Contraction
Top-line contraction across geographies and product lines indicates that the recovery remains incomplete, while the reduced annual outlook lowers the near-term scale available to absorb fixed costs. Persistent revenue pressure could delay a return to durable profitability and constrain investment flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Revenue Base
The growing installed base expands the number of providers able to generate repeat consumables demand, while the 75% recurring mix improves revenue visibility. This platform economics can support customer retention, monetization of utilization, and more durable revenue than equipment sales alone.
Read all positive factors
Beauty Health (SKIN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$68.26M
Dividend YieldN/A
Average Volume (3M)30.11K
Price to Earnings (P/E)―
Beta (1Y)1.61
Revenue Growth-6.45%
EPS Growth-43.98%
CountryUS
Employees613
SectorConsumer Defensive
Sector Strength42
IndustryMedical - Specialties
Share Statistics
EPS (TTM)-4.51
Shares Outstanding6,507,038
10 Day Avg. Volume54,070
30 Day Avg. Volume30,107
Financial Highlights & Ratios
PEG Ratio0.27
Price to Book (P/B)2.88
Price to Sales (P/S)0.58
P/FCF Ratio5.43
Enterprise Value/Market Cap3.67
Enterprise Value/Revenue0.86
Enterprise Value/Gross Profit1.30
Enterprise Value/Ebitda9.64
Forecast
1Y Price Target
$12.50Price Target Upside1738.24% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)-3.17
Revenue Forecast (FY)$284.80M
Beauty Health Business Overview & Revenue Model
Company Description
SkinHealth Systems Inc., a global medical aesthetics company delivering an integrated ecosystem of clinically proven solutions in the Americas, the Asia-Pacific, Europe, the Middle East, Africa, Canada, and Latin America. The company's flagship pr...
How the Company Makes Money
Beauty Health makes money primarily through a platform-and-consables model centered on HydraFacial. The company generates revenue from (1) sales of HydraFacial delivery systems and related equipment to professional providers (capital equipment/dev...
Beauty Health Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Neutral
The call presents a mixed picture: strong margin improvement, adjusted EBITDA upside and tangible strategic progress (rental program, product pipeline, installed‑base monetization) are positive. However, meaningful top‑line weakness — driven by an 18.4% decline in equipment revenue, continued consumables softness, regional softness in EMEA, and near‑term balance sheet and Nasdaq listing risks — tempers the outlook. Management is focused on execution and long‑term investments, but near‑term revenue and capital markets pressures balance the positives.Positive Updates
Adjusted EBITDA Beat and Margin Expansion
Adjusted EBITDA of $17.0M, up from $13.9M year‑over‑year and above the prior guidance range ($11M–$13M). Adjusted gross margin improved to 71.8% from 65.9% a year ago, a 590 basis point expansion driven by lower equipment COGS, lower inventory charges, operational efficiencies and favorable mix toward consumables.
Negative Updates
Revenue Decline and Miss Relative to Guidance
Total net sales of $72.1M, down 7.8% year‑over‑year and at the lower end of guidance, reflecting broad top‑line pressure across geographies and product lines.
Read all updates
Q2-2026 Updates
Positive
Negative
Adjusted EBITDA Beat and Margin Expansion
Adjusted EBITDA of $17.0M, up from $13.9M year‑over‑year and above the prior guidance range ($11M–$13M). Adjusted gross margin improved to 71.8% from 65.9% a year ago, a 590 basis point expansion driven by lower equipment COGS, lower inventory charges, operational efficiencies and favorable mix toward consumables.
Read all positive updates
Company Guidance
Management lowered full‑year 2026 revenue to $280–290 million while raising adjusted EBITDA guidance to $39–46 million (from $35–45M), and gave Q3 guidance of $65–70 million revenue and $5–7 million adjusted EBITDA; they expect H2 adjusted EBITDA to be down versus H1 as R&D and commercial investment steps up by about $4 million. For context, Q2 results were $72.1M revenue, $17M adjusted EBITDA (above prior $11–13M guide), GAAP gross margin 68.4% and adjusted gross margin 71.8% (up 590 bps), active installed base 36.5k systems (+3.8% YoY), delivery systems revenue $18.3M (770 systems placed, down 18.4% vs 957 LY), consumables $53.9M (down 3.5%), ending cash of ~$26M (+$1.5M Q/Q), and an October 2026 convertible maturity of ~$103M that management plans to retire with cash (the forecast midpoint assumes roughly $100M year‑end cash); they also modeled H2 adjusted gross margin nearer ~68% (H1 was ~72%) and noted the Australia/New Zealand distributor transition reduces 2026 revenue by ~$1M.Beauty Health Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
22
Negative
Cash Flow
46
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 290.04M | 300.79M | 334.29M | 397.99M | 365.88M | 260.09M |
| Gross Profit | 192.41M | 196.36M | 182.30M | 155.11M | 248.78M | 178.54M |
| EBITDA | 26.00M | 38.74M | 14.54M | -53.56M | 81.60M | -350.93M |
| Net Income | -28.40M | -9.52M | -29.10M | -100.12M | 44.22M | -378.76M |
Balance Sheet | ||||||
| Total Assets | 486.60M | 499.80M | 685.68M | 929.11M | 1.00B | 1.22B |
| Cash, Cash Equivalents and Short-Term Investments | 206.10M | 232.70M | 370.06M | 523.02M | 568.20M | 901.89M |
| Total Debt | 367.10M | 378.70M | 568.16M | 752.29M | 751.79M | 746.41M |
| Total Liabilities | 431.00M | 438.70M | 633.88M | 869.72M | 836.03M | 916.51M |
| Stockholders Equity | 55.60M | 61.10M | 51.80M | 59.39M | 167.05M | 302.30M |
Cash Flow | ||||||
| Free Cash Flow | 16.64M | 32.32M | 9.34M | 8.70M | -123.99M | -43.98M |
| Operating Cash Flow | 21.96M | 37.48M | 16.13M | 21.75M | -106.60M | -28.36M |
| Investing Cash Flow | -5.32M | -5.16M | -6.79M | -31.51M | -18.87M | -37.73M |
| Financing Cash Flow | -22.45M | -174.93M | -158.34M | -37.45M | -205.24M | 959.03M |
Beauty Health Technical Analysis
Negative
0.68
Price Trends
12.57
Negative
13.55
Negative
16.92
Negative
Market Momentum
-0.63
Positive
39.68
Neutral
16.35
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SKIN, the sentiment is Negative. The current price of 0.68 is below the 20-day moving average (MA) of 11.25, below the 50-day MA of 12.57, and below the 200-day MA of 16.92, indicating a bearish trend. The MACD of -0.63 indicates Positive momentum. The RSI at 39.68 is Neutral, neither overbought nor oversold. The STOCH value of 16.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SKIN.
Beauty Health Risk Analysis
Beauty Health disclosed 95 risk factors in its most recent earnings report. Beauty Health reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Beauty Health Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
58 Neutral | $1.28B | -13.84 | -6.27% | 2.17% | -7.00% | -246.78% | |
55 Neutral | $685.58M | -6.74 | -11.86% | ― | 0.52% | 84.94% | |
51 Neutral | $231.70M | -1.07 | -29.42% | 5.04% | -15.44% | -319.79% | |
46 Neutral | $57.64M | -31.62 | -11.58% | ― | -14.05% | -135.74% | |
44 Neutral | $68.26M | -2.33 | -47.84% | ― | -6.45% | -43.98% |
* Consumer Defensive Sector Average
SKIN
Beauty Health
10.15
-18.05
-64.01%
HELE
Helen Of Troy
29.71
10.59
55.39%
NUS
Nu Skin
4.69
-5.56
-54.24%
EPC
Edgewell Personal Care
28.57
9.79
52.14%
SLSN
Solesence
0.83
-2.45
-74.57%
Beauty Health Corporate Events
Regulatory Filings and ComplianceShareholder MeetingsStock Split
Beauty Health Executes Reverse Stock Split to Meet Nasdaq
Neutral
Oct 14, 2026
On October 9, 2026, SkinHealth Systems filed an amendment to its Delaware charter to implement a 1-for-20 reverse split of its Class A common stock, effective at 12:00 a.m. Eastern Time on October 14, 2026. The shares began trading on a split-adju...
Business Operations and StrategyPrivate Placements and Financing
Beauty Health Retires Convertible Notes, Strengthens Capital Structure
Positive
Oct 6, 2026
On September 30, 2026, SkinHealth Systems Inc. fully repaid the remaining outstanding balance of its 1.25% Convertible Senior Notes due 2026, including all accrued and unpaid interest, thereby retiring the notes ahead of their October 1, 2026 matu...
Business Operations and StrategyShareholder MeetingsStock Split
Beauty Health shareholders approve reverse stock split flexibility
Neutral
Sep 28, 2026
On September 22, 2026, SkinHealth Systems Inc. held a virtual special meeting of stockholders, with approximately 89% of the 130.1 million outstanding Class A shares represented, establishing a quorum. At this meeting, stockholders approved a reve...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
Beauty Health Elevates Monahan to Finance and Operations Chief
Positive
Sep 10, 2026
On September 3, 2026, SkinHealth Systems Inc. promoted Chief Financial Officer Michael Monahan to Chief Financial and Operating Officer, expanding his remit to oversee all financial operations as well as the company’s supply chain, manufactu...
Business Operations and StrategyExecutive/Board Changes
Beauty Health Announces Senior Operations Executive Resignation
Neutral
Aug 14, 2026
On August 10, 2026, Sheri Lewis informed SkinHealth Systems Inc. of her decision to resign as Chief Operations, Quality and Technology Officer to pursue business opportunities outside the company, with her departure effective August 28, 2026. The ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.