0001628280-26-017376
SEC filingThe Beauty Health Company reported FY 2025 net sales of $300.8M, a decrease from $334.3M in FY 2024. The company generated a gross profit of $196.4M, resulting in a gross margin of 65.3%, an improvement from 54.5% in the prior year. Despite this, the company recorded a loss from operations of ($20.8M) and a net loss of ($9.5M). Operating cash flow was positive at $37.5M, but net cash decreased by $142.6M due to significant financing activities, including the exchange and repurchase of convertible senior notes. The company ended the period with $232.7M in cash and equivalents and total assets of $499.8M. Key forward-looking items include ongoing legal proceedings and the strategic focus on commercial execution and innovation within its medical aesthetics ecosystem.
For the fiscal year ended December 31, 2025, The Beauty Health Company reported net sales of $300.8 million, a decrease of 10.0% from $334.3 million in FY 2024. The company improved its gross profit to $196.4 million (FY 2024: $182.3 million), driven by a significant gross margin expansion to 65.3% from 54.5%. Total operating expenses were $217.2 million, down from $250.1 million in the prior year. This resulted in a loss from operations of ($20.8 million), an improvement from a ($67.8 million) loss in FY 2024. The net loss for the year was ($9.5 million), compared to a net loss of ($29.1 million) in FY 2024. The company reported a comprehensive loss of ($4.0 million).
The company's revenue is derived from its medical aesthetics platform, anchored by the Hydrafacial brand. Net sales are disaggregated into Delivery Systems and Consumables. For FY 2025, Delivery Systems revenue was $88.1 million (FY 2024: $125.4 million), and Consumables revenue was $212.7 million (FY 2024: $208.9 million). Geographically, 68% of net sales were derived from the Americas ($204.0 million), 23% from Europe, the Middle East and Africa ($68.3 million), and 9% from Asia-Pacific ($28.5 million). No single customer accounted for 10% or more of net sales.
The company's gross margin improved substantially to 65.3% in FY 2025 from 54.5% in FY 2024. This improvement was primarily driven by a reduction in cost of sales, which decreased to $104.4 million from $152.0 million. The operating loss margin was (6.9%). Selling and marketing expenses were $93.6 million, research and development expenses were $5.6 million, and general and administrative expenses were $117.9 million. The company recognized a $7.2 million inventory write-down during the period.
Net cash provided by operating activities was $37.5 million for FY 2025, driven by adjustments including share-based compensation of $14.8 million and amortization of intangible assets of $17.0 million. Net cash used in investing activities was ($5.2 million), primarily for intangible assets. Net cash used in financing activities was ($174.9 million), largely due to the repurchase and exchange of convertible senior notes. The net change in cash was a decrease of $142.6 million. The company ended the period with cash, cash equivalents, and restricted cash of $232.7 million, total assets of $499.8 million, total liabilities of $438.7 million, and total stockholders' equity of $61.1 million. Convertible senior notes, net, totaled $364.4 million.
The company's strategic priorities focus on salesforce excellence, marketing discipline, and focused innovation to strengthen its medical aesthetics platform. It faces risks from ongoing legal proceedings, including a securities class action lawsuit, a customer class action lawsuit, a consolidated derivative action, and an SEC investigation. The company believes these claims are without merit and intends to defend them vigorously. The business is subject to moderate seasonal fluctuations, typically experiencing the highest revenues in the fiscal fourth quarter. The company's growth strategy is centered on increasing utilization of its installed base of devices and driving recurring consumables revenue.