SkinHealth Systems (SKIN) Q2 2026 earnings summary

Executive summary

• Q2 2026 net sales were $72.1 million, down 7.8% year-over-year, with a net loss of $2.7 million, primarily due to the absence of a prior-year gain from note repurchases.

• Adjusted EBITDA rose to $17.0 million from $13.9 million in Q2 2025, driven by improved gross margin and disciplined cost management.

• Gross margin improved to 68.4% from 62.8% year-over-year, with adjusted gross margin at 71.8%.

• Operating expenses decreased year-over-year, reflecting lower personnel and legal costs and improved efficiencies.

• Strategic initiatives advanced, including a U.S. device rental program, relaunch of HydraScalp, and rebranding to "SkinHealth Systems Inc.".

Financial highlights

• Delivery Systems net sales were $18.3 million (down 18.4% YoY); Consumables net sales were $53.9 million (down 3.5% YoY).

• Gross profit for Q2 2026 was $49.3 million; gross margin: 68.4% (up from 62.8% YoY); adjusted gross margin: 71.8%.

• Adjusted EBITDA margin increased to 23.6% from 17.8% year-over-year.

• Cash and equivalents at quarter-end were $206.1 million.

• Net loss for Q2 2026 was $2.7 million; basic and diluted net loss per share was $(0.02).

Outlook and guidance

• FY 2026 net sales guidance is $280–$290 million; adjusted EBITDA expected at $39–$46 million.

• Q3 2026 net sales expected at $65–$70 million; adjusted EBITDA guidance is $5–$7 million.

• Guidance assumes no further material market deterioration or unforeseen events.

• Management believes liquidity is sufficient for at least the next 12 months.

• Increased R&D and commercial investments planned for the second half of 2026.