SkinHealth Systems (SKIN) Q1 2026 earnings summary

Executive summary

• Rebranded to SkinHealth Systems, signaling a shift to a clinically rigorous, commercially disciplined medical device platform focused on Hydrafacial, with expansion into SkinStylus and Keravive for scalp health.

• Strategic objective is to lead in medical aesthetics by combining devices, consumables, clinical credibility, and brand power for superior skin health and provider economics.

• Q1 2026 net sales were $64.9 million, down 6.7% year-over-year, with declines in both Delivery Systems and Consumables due to macroeconomic and credit conditions, distributor transitions, and prior period promotions.

• Adjusted EBITDA improved to $8.5 million from $7.3 million in Q1 2025, reflecting reduced operational spend.

• Net loss narrowed to $6.6 million from $10.1 million year-over-year, reflecting disciplined cost management.

Financial highlights

• Q1 2026 net sales were $64.9 million, down 6.7% year-over-year, mainly due to lower consumables sales and reduced delivery system placements.

• Adjusted EBITDA was $8.5 million, up 17% year-over-year and above guidance.

• Adjusted gross margin expanded to 72.2%; GAAP gross margin was 68.5%, down due to higher amortization.

• Net loss improved to $6.6 million from $10.1 million year-over-year.

• Cash, cash equivalents, and restricted cash totaled $204.4 million as of March 31, 2026, down from $232.7 million at year-end 2025.

Outlook and guidance

• Full-year 2026 revenue outlook revised to $280 million-$295 million, reflecting continued softness in capital equipment demand and time needed for commercial initiatives.

• Maintained adjusted EBITDA guidance of $35 million-$45 million, reflecting margin strength and operational discipline.

• Q2 2026 net sales projected at $72 million-$77 million; adjusted EBITDA at $11 million-$13 million.

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

• Gradual sequential improvement expected in the second half of 2026, with a return to consistent growth anticipated in 2027 and beyond.