SKIN · The Beauty Health Company

SkinHealth Systems delivered Q1 2026 results showing resilience amid a challenging market, with total net sales of $64.9 million reflecting declines in both delivery systems ($18.5 million from $20.2 million) and consumables ($46.4 million from $49.4 million), primarily due to fewer units placed (746 vs. 862) and regional softness, notably in EMEA and APAC consumables following the China distributor transition in Q2 2025. Despite revenue pressure, profitability improved markedly: GAAP gross margin dipped slightly to 68.5% from higher amortization, but adjusted gross margin held steady at 72.2%. Operating expenses dropped sharply to $46.2 million (adjusted $38.4 million) from personnel and marketing cuts, driving net loss narrower to $(6.6) million and adjusted EBITDA higher to $8.5 million (13.1% margin). CEO Pedro Malha highlighted business strength, growing install base to 36,419, intact fundamentals, and actions to enhance execution while investing in innovation. Guidance revision signals caution on device sales and market conditions, lowering FY2026 net sales to $280-$295 million but maintaining adjusted EBITDA at $35-$45 million, with Q2 at $72-$77 million sales and $11-$13 million EBITDA. Balance sheet shows cash at $204.4 million (down from $232.7 million), operating cash use of $5.6 million, and financing outflow of $20.9 million likely tied to debt management, with equity at $55.2 million.