SkinHealth Systems (SKIN) Q4 2025 earnings summary

Executive summary

• Achieved stabilization in business fundamentals, with improved margins and profitability in Q4 and full-year 2025, supported by operational efficiencies and a strong recurring consumables revenue model.

• Full year 2025 net sales were $300.8M, down 10% year-over-year, with consumables growth offsetting lower delivery systems sales and China distributor transition.

• Adjusted EBITDA for 2025 was $45.1M, up significantly year-over-year, reflecting margin improvements and cost controls.

• Net loss improved to $(9.5)M for 2025, a substantial year-over-year improvement due to lower operational spend and higher gross margin.

• 2026 is positioned as an execution year, with growth expected to resume in 2027 as operational initiatives and innovation take effect.

Financial highlights

• Q4 2025 revenue was $82.4M, down 1.3% year-over-year, with consumables revenue growing and device revenue declining.

• Consumables revenue grew 1.7%–1.8% year-over-year to $57.7M in Q4 and $212.7M for the full year; device revenue declined 7.9% in Q4 and 29.8% for the year.

• Adjusted gross margin expanded to 67.4% in Q4 and 68.2% for the year; GAAP gross margin improved to 64.4% in Q4 and 65.3% for the year.

• Adjusted EBITDA for Q4 was $15M (18.3% margin); full-year adjusted EBITDA margin reached 15.0%.

• Ended 2025 with $232.7M–$233M in cash, down from $370.1M, mainly due to debt repurchase and refinancing.

Outlook and guidance

• 2026 revenue expected between $285M–$305M, with positive adjusted EBITDA of $35M–$45M.

• Q1 2026 revenue guidance: $63M–$68M, with positive adjusted EBITDA of $3.5M–$5.5M.

• First half of 2026 projected to be modestly below prior year; momentum expected to build in the second half as commercial initiatives take effect.

• Return to growth anticipated in 2027 as operational initiatives take hold.

• Guidance assumes no further material deterioration in market conditions, FX, tariffs, or trade restrictions.