Beauty Health (NASDAQ:SKIN) Issues Earnings Results

Beauty Health (NASDAQ:SKIN) released its quarterly earnings data on Thursday. The company reported ($0.14) EPS for the quarter, topping analysts’ consensus estimates of ($1.33) by $1.19, FiscalAI reports. Beauty Health had a negative net margin of 9.79% and a negative return on equity of 47.83%. The firm had revenue of $69.17 million during the quarter, compared to analysts’ expectations of $67.97 million.

Here are the key takeaways from Beauty Health’s conference call:

• Third-quarter revenue was $69.2 million, down 2.1% year over year, a smaller decline than in the first half; consumables returned to growth, up 1.2%. The company said U.S. performance and commercial initiatives are encouraging, though consumables revenue per system remains below last year.
• Profitability improved: adjusted EBITDA rose about 50% to $13.4 million, and GAAP operating income was positive for a second consecutive quarter. The company raised its 2026 adjusted EBITDA outlook to $48 million–$50 million, while noting Q3 benefited from a one-time tariff refund and that Q4 margins are expected to moderate.
• Equipment sales remain the main headwind: delivery-system revenue fell 9.9%, with 798 systems placed versus 875 a year earlier. EMEA revenue declined 11.7%, and management acknowledged that improving equipment conversion and regional execution will take further work.
• Management is targeting more recurring revenue by increasing treatment utilization across its installed base and expanding its product range; SkinStylus consumables grew 39% year over year. New Hydrafacial products and a U.S. rental program are early-stage initiatives, while the next-generation Hydrafacial platform is targeted for 2028.
• The company repaid its $103.2 million 2026 convertible notes as planned and ended the quarter with $112.4 million in cash. Approximately $250 million of convertible debt remains due in Q4 2028, which management expects to address in 2027.

Beauty Health Stock Up 51.8%

NASDAQ:SKIN traded up $5.36 during trading hours on Friday, reaching $15.71. 433,975 shares of the company were exchanged, compared to its average volume of 44,874. The business has a 50 day moving average of $12.26 and a 200 day moving average of $16.44. Beauty Health has a 1-year low of $9.68 and a 1-year high of $34.80. The company has a current ratio of 1.76, a quick ratio of 1.48 and a debt-to-equity ratio of 4.36.

Analyst Upgrades and Downgrades

SKIN has been the subject of a number of research reports. Weiss Ratings restated a “sell (e+)” rating on shares of Beauty Health in a research note on Wednesday, October 21st. TD Cowen started coverage on shares of Beauty Health in a research note on Friday, October 30th. They issued a “hold” rating on the stock. Citigroup reissued a “hold” rating on shares of Beauty Health in a report on Thursday, October 15th. Jefferies Financial Group restated a “hold” rating and set a $11.00 price objective (up from $0.85) on shares of Beauty Health in a research report on Monday, October 19th. Finally, Canaccord Genuity Group set a $11.00 price objective on Beauty Health and gave the stock a “hold” rating in a report on Thursday, October 22nd. One investment analyst has rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Beauty Health currently has an average rating of “Hold” and an average price target of $18.00.

Beauty Health Company Profile

BeautyHealth is a global health and beauty company focused on providing technology, products and services for aesthetic and skincare businesses. Its flagship brand, HydraFacial, offers a non-invasive treatment platform that combines cleansing, exfoliation, extraction and hydration, with treatments delivered through proprietary devices and consumable solutions.

The company also provides professional skincare products, treatment systems and related solutions designed for use by physicians, dermatologists, aestheticians and other licensed practitioners.