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olivLaw · US equity research

SkinHealth Systems Inc. SKIN

Surgical & Medical Instruments & Apparatus · SIC 3841 · Vertical: Surgical & Medical Instruments & Apparatus (SIC 3841)

10.38USD+4.43% · 1 dayClose 02 Nov 2026

SkinHealth Systems (SKIN), known for its flagship Hydrafacial brand, sells skin treatment devices and recurring consumables to providers worldwide. Sales fell in the second quarter of 2026 but adjusted EBITDA came in above guidance, and the company revised its fiscal 2026 outlook to net sales of 280-290 million USD.

At the close of 02 Nov 2026, SkinHealth Systems Inc. (SKIN) stock was 10.38 USD (+4.43% on the day), with market capitalisation 1.4 bn USD, beta -2.27, 52-week range 0.55–12.60 USD. Latest reported quarter (Q2 2026): revenue of 72.1 m USD (−7.8% YoY), net income of -2.7 m USD (−113.5% YoY), diluted EPS -0.02 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
1.4 bn USD
shares as of 03 Aug 2026
P/E (TTM)
unavailable
Diluted EPS TTM -0.22 · TTM to 30 Jun 2026
E/P (TTM)
-2.14%
TTM to 30 Jun 2026
Dividend yield
unavailable
Beta (2y)
-2.27
Volatility (1y) 328%
52-week range
0.5512.60

Price history

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Technical reading

RSI (14)
73.3
overbought (≥ 70)
Bollinger (20, 2)
-2.54 – 16.91
in the upper half of the band · %B 0.66 · band width 270.9%
SMA 50 / 200
3.28 / 1.51
uptrend (price > SMA50 > SMA200)
MACD (12, 26, 9)
2.41 / 2.40
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month+1,547.6%−2.3%+1,550.0 pp—
3 months+1,385.0%−0.8%+1,385.8 pp—
6 months+1,053.3%+4.7%+1,048.6 pp—
Year to date+646.8%+10.2%+636.6 pp—
1 year+625.9%+10.3%+615.6 pp−31.4%
3 years+137.0%+73.0%+64.0 pp−20.8%
5 years−64.8%+61.8%−126.6 pp—
Max drawdown (1y)
−65.4%
03 Dec 2025 → 09 Oct 2026
Max drawdown (5y)
−98.1%
04 Nov 2021 → 09 Oct 2026
Compound annual growth (5y)
−18.8%
S&P 500 +10.1%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q2 2026 · 30 Jun 2026

Revenue
72.1 m USD
−7.8% YoY
Net income
-2.7 m USD
−113.5% YoY
Diluted EPS
-0.02
−166.7% YoY
net / operating
-3.7% / 5.0%

Quarterly margins

Quarterly statements · USD

Fiscal yearQ3 '24Q4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26
Revenue78.8 m83.5 m69.6 m78.2 m70.7 m82.4 m64.9 m72.1 m
Cost of revenue38.2 m31.1 m21.0 m29.1 m25.0 m29.3 m20.5 m22.8 m
Gross profit40.6 m52.3 m48.6 m49.1 m45.6 m53.0 m44.4 m49.3 m
Research & development1.1 m1.2 m998.0 k1.3 m1.7 m1.7 m1.1 m1.4 m
Operating income-21.5 m-7.2 m-12.0 m-2.7 m-6.2 m162.0 k-1.8 m3.6 m
Interest expense2.5 m2.5 m2.5 m4.1 m6.3 m6.4 m6.3 m6.3 m
Pre-tax income-16.3 m-11.7 m-9.2 m18.7 m-10.6 m-4.8 m-6.8 m-1.5 m
Income tax1.9 m-1.4 m892.0 k-993.0 k386.0 k3.3 m-184.0 k1.2 m
Net income-18.3 m-10.3 m-10.1 m19.7 m-11.0 m-8.1 m-6.6 m-2.7 m
Diluted EPS-0.15-0.07 ≈-0.080.03-0.09-0.06 ≈-0.05-0.02
Operating cash flow10.3 m ≈16.5 m3.0 m9.6 m ≈9.6 m ≈15.2 m-5.6 m2.7 m ≈
Capex4.0 k ≈74.0 k45.0 k92.0 k ≈27.0 k ≈139.0 k224.0 k427.0 k ≈

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Fiscal years

Fiscal year2019202020212022202320242025
Revenue166.6 m119.1 m260.1 m365.9 m398.0 m334.3 m300.8 m
Revenue YoYunavailable−28.5%+118.4%+40.7%+8.8%−16.0%−10.0%
Net income-1.6 m-29.2 m-378.8 m44.2 m-100.1 m-29.1 m-9.5 m
Net income YoYunavailableunavailableunavailableunavailable−326.4%unavailableunavailable
Diluted EPS-0.05-0.85-3.71-0.23-0.76-0.36-0.16
Diluted EPS YoYunavailableunavailableunavailableunavailableunavailableunavailableunavailable
net %-1.0%-24.5%-145.6%12.1%-25.2%-8.7%-3.2%
Free cash flow-7.0 m-15.9 m-39.6 m-117.4 m17.9 m15.4 m37.2 m

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2025 · 31 Dec 2025

Cash
232.7 m USD
Financial debt
unavailable USD
Net debt
unavailable USD
Equity
61.1 m USD
Total assets
499.8 m USD
Debt / equity
unavailable
Current ratio
1.66x
ROE
-16.9%
ROA
-1.6%
FCF margin
12.4%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2023
398.0 m
2024
334.3 m
2025
300.8 m

SEC (XBRL)· 12 Mar 2026verified

Cost of revenue
2023
242.9 m
2024
152.0 m
2025
104.4 m

SEC (XBRL)· 12 Mar 2026verified

Gross profit
2023
155.1 m
2024
182.3 m
2025
196.4 m

SEC (XBRL)· 12 Mar 2026verified

Research & development
2023
10.1 m
2024
6.3 m
2025
5.6 m

SEC (XBRL)· 12 Mar 2026verified

Operating income
2023
-130.9 m
2024
-67.8 m
2025
-20.8 m

SEC (XBRL)· 12 Mar 2026verified

Interest expense
2023
13.6 m
2024
10.4 m
2025
19.3 m

SEC (XBRL)· 12 Mar 2026verified

Pre-tax income
2023
-101.9 m
2024
-29.6 m
2025
-5.9 m

SEC (XBRL)· 12 Mar 2026verified

Income tax
2023
-1.8 m
2024
-452.0 k
2025
3.6 m

SEC (XBRL)· 12 Mar 2026verified

Net income
2023
-100.1 m
2024
-29.1 m
2025
-9.5 m

SEC (XBRL)· 12 Mar 2026verified

Diluted EPS
2023
-0.76
2024
-0.36
2025
-0.16

SEC (XBRL)· 12 Mar 2026verified

Weighted average diluted shares
2023
131.7 m
2024
142.5 m
2025
135.8 m

SEC (XBRL)· 12 Mar 2026verified

Balance sheet · USD

Cash
2023
523.0 m
2024
370.1 m
2025
232.7 m

SEC (XBRL)· 12 Mar 2026verified

Receivables
2023
54.7 m
2024
27.6 m
2025
21.7 m

SEC (XBRL)· 12 Mar 2026verified

Inventories
2023
91.3 m
2024
69.1 m
2025
48.0 m

SEC (XBRL)· 12 Mar 2026verified

Current assets
2023
698.3 m
2024
477.1 m
2025
309.5 m

SEC (XBRL)· 12 Mar 2026verified

Property, plant & equipment, net
2023
—
2024
—
2025
—

SEC (XBRL)· 13 Aug 2021verified

Goodwill
2023
125.8 m
2024
123.5 m
2025
126.6 m

SEC (XBRL)· 12 Mar 2026verified

Intangibles (excl. goodwill)
2023
62.1 m
2024
47.5 m
2025
35.8 m

SEC (XBRL)· 12 Mar 2026verified

Total assets
2023
929.1 m
2024
685.7 m
2025
499.8 m

SEC (XBRL)· 12 Mar 2026verified

Accounts payable
2023
44.8 m
2024
21.9 m
2025
15.6 m

SEC (XBRL)· 12 Mar 2026verified

Long-term debt
2023
—
2024
552.2 m
2025
—

SEC (XBRL)· 07 Aug 2025verified

Current liabilities
2023
115.0 m
2024
68.2 m
2025
186.3 m

SEC (XBRL)· 12 Mar 2026verified

Total liabilities
2023
869.7 m
2024
633.9 m
2025
438.7 m

SEC (XBRL)· 12 Mar 2026verified

Equity
2023
59.4 m †
2024
51.8 m †
2025
61.1 m †

SEC (XBRL)· 12 Mar 2026verified

Cash flow · USD

Operating cash flow
2023
21.8 m
2024
16.1 m
2025
37.5 m

SEC (XBRL)· 12 Mar 2026verified

Capex
2023
3.8 m
2024
756.0 k
2025
303.0 k

SEC (XBRL)· 12 Mar 2026verified

Free cash flow
2023
17.9 m ≈
2024
15.4 m ≈
2025
37.2 m ≈

SEC (XBRL)· 12 Mar 2026derived

Investing cash flow
2023
-31.5 m
2024
-6.8 m
2025
-5.2 m

SEC (XBRL)· 12 Mar 2026verified

Financing cash flow
2023
-37.4 m
2024
-158.3 m
2025
-174.9 m

SEC (XBRL)· 12 Mar 2026verified

Share repurchases
2023
30.2 m
2024
0
2025
0

SEC (XBRL)· 12 Mar 2026verified

Computed indicators

Growth

Revenue growth (YoY)
-10.0%
computed by olivLawFY 2025
Revenue CAGR 3Y
-6.3%
computed by olivLawFY 2022 → FY 2025
Revenue CAGR 5Y
20.4%
computed by olivLawFY 2020 → FY 2025
EBIT growth (YoY)
unavailable
the base of the ratio is not positive
Net income growth (YoY)
unavailable
the base of the ratio is not positive
Net income CAGR 3Y
unavailable
the base of the ratio is not positive
Net income CAGR 5Y
unavailable
the base of the ratio is not positive
EPS growth (YoY)
unavailable
the base of the ratio is not positive
EPS CAGR 3Y
unavailable
the base of the ratio is not positive
EPS CAGR 5Y
unavailable
the base of the ratio is not positive
FCF growth (YoY)
141.8%
computed by olivLawFY 2025

Profitability

Gross margin
66.4%
computed by olivLawTTM to 30 Jun 2026
EBITDA margin
unavailable
input data missing
EBIT margin
-1.5%
computed by olivLawTTM to 30 Jun 2026
Net margin
-9.8%
computed by olivLawTTM to 30 Jun 2026
FCF margin
7.3%
computed by olivLawTTM to 30 Jun 2026

Returns

ROE
-43.9%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROA
-5.7%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROIC
unavailable
input data missing
ROCE
-1.4%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Payout ratio (EPS)
unavailable
input data missing
Payout ratio (FCF)
unavailable
input data missing

Balance sheet

Net debt
unavailable
input data missing
Net debt / EBITDA
unavailable
input data missing
Debt / equity
unavailable
input data missing
Interest coverage
-0.2x
computed by olivLawTTM to 30 Jun 2026

Liquidity

Current ratio
1.8x
computed by olivLawbalance sheet at 30 Jun 2026
Quick ratio
1.5x
computed by olivLawbalance sheet at 30 Jun 2026
Cash ratio
1.2x
computed by olivLawbalance sheet at 30 Jun 2026

Cash

Operating cash flow
22.0 m USD
computed by olivLawTTM to 30 Jun 2026
Capital expenditure
817.0 k USD
computed by olivLawTTM to 30 Jun 2026
Free cash flow
21.1 m USD
computed by olivLawTTM to 30 Jun 2026
FCF conversion
unavailable
insufficient data
Cash conversion
unavailable
input data missing

Efficiency

Days sales outstanding
27 days
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Days inventory outstanding
198 days
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Days payables outstanding
73 days
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Cash conversion cycle
152 days
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026

Market and valuation

Market capitalisation
1.4 bn USD
computed by olivLawbalance sheet at 30 Jun 2026
Enterprise value
unavailable
input data missing
Market cap / net income TTM
unavailable
insufficient data
P/E (TTM)
unavailable
insufficient data
Earnings yield
-2.1%
computed by olivLawTTM to 30 Jun 2026
P/B
24.3x
computed by olivLawbalance sheet at 30 Jun 2026
P/S
4.7x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
EV/EBITDA
unavailable
input data missing
EV/EBIT
unavailable
input data missing
EV/Sales
unavailable
input data missing
P/FCF
63.9x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
FCF yield
1.6%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero
Shareholder yield (distributions)
0.0%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026

1 indicators that do not apply to the sector.

Valuation

olivLaw classification

Insufficient data
What is missing
  • score weight coverage: 39.6% of at least 60%
  • valuation methods computed: 0 of at least 1

A scoring methodology on indicators and valuation, not investment advice.

Closing price

10.38 USD

02 Nov 2026Source: olivLaw, closing series

Market cap: 1.4 bn USD

Key indicators

Market capitalisation
1.4 bn USD
computed by olivLawbalance sheet at 30 Jun 2026
P/E (TTM)
unavailable
insufficient data
P/B
24.3x
computed by olivLawbalance sheet at 30 Jun 2026
EV/EBITDA
unavailable
input data missing
ROE
-43.9%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Net margin
-9.8%
computed by olivLawTTM to 30 Jun 2026
Revenue growth (YoY)
-10.0%
computed by olivLawFY 2025
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero

Coverage and freshness

30/37 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 30 Jun 2026
Latest balance sheet date: 30 Jun 2026
Share count (cover of the latest filing), as of: 03 Aug 2026
Source: SEC (XBRL)published 06 Aug 2026
verified 915derived 79

Score by group

40% · Insufficient data

Estimated value range

unavailable — no valuation method could be computed

Valuation assumptions are editorial choices, not measured; beta is not measured.

Valuation methods

  • DCF (discounted cash flow)unavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
  • Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
  • Peers: P/Eunavailable · the base of the ratio is not positive
  • Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption

no valuation method could be computed

Multiple comparisons use the SIC vertical: Surgical & Medical Instruments & Apparatus (SIC 3841)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Insufficient data

Minimum-evidence gate: score weight coverage: 39.6% of at least 60%; valuation methods computed: 0 of at least 1

FactorValueScoreWeight used
ROIC · Qualityunavailableunavailable—
Net margin · Quality-9.8%43 (vs peers)16%
FCF conversion · Qualityunavailableunavailable—
Revenue CAGR 3Y · Growth-6.3%0 (on a fixed band)21%
EPS CAGR 3Y · Growthunavailableunavailable—
Net debt / EBITDA · Balance sheetunavailableunavailable—
Interest coverage · Balance sheet-0.2x0 (on a fixed band)16%
Current ratio · Balance sheet1.8x80 (on a fixed band)11%
P/E (TTM) · Valuationunavailableunavailable—
EV/EBITDA · Valuationunavailableunavailable—
FCF yield · Valuation1.6%20 (on a fixed band)21%
Shareholder yield (distributions) · Returns0.0%0 (on a fixed band)16%
Payout ratio (FCF) · Returnsunavailableunavailable—

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet32/100 · 2/3 factors with a value
  • Growth· partial0/100 · 1/2 factors with a value
  • Quality· partial43/100 · 1/3 factors with a value
  • Returns· partial0/100 · 1/2 factors with a value
  • Valuation· partial20/100 · 1/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

SkinHealth Systems Inc. (SKIN). Latest full fiscal year: 2025; data up to 2026-06-30.

Figures computed from the financial statements: revenue 300.8 m USD in 2025; YoY growth -10.0%; net margin -9.8%; ROE -43.9%.

Valuation cannot be computed from the available data.

Insufficient data for a verdict (score weight coverage: 39.6% of at least 60%; valuation methods computed: 0 of at least 1).

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • Current ratio: 1.8x

What contradicts it

  • Revenue CAGR 3Y: -6.3%
  • Interest coverage: -0.2x
  • FCF yield: 1.6%
  • Shareholder yield (distributions): 0.0%

Not assessed (insufficient data or a ratio without meaning): ROIC, FCF conversion, EPS CAGR 3Y, Net debt / EBITDA, P/E (TTM), EV/EBITDA, Payout ratio (FCF).

Versus the vertical median

Surgical & Medical Instruments & Apparatus (SIC 3841) · same industry (4-digit SIC) · compared with 39 companies

Multiples and returns vs the median

P/E
—
vertical median 26.6x
EV/EBITDA
—
vertical median 16.0x
P/S
4.7x
vertical median 3.1x
above median (+48.5%)
P/B
24.3x
vertical median 2.4x
above median (+932.6%)
ROE
-43.9%
vertical median -9.5%
below median
Net margin
-9.8%
vertical median -6.2%
below median
EBIT margin
-1.5%
vertical median -3.7%
above median
Revenue YoY
-10.0%
vertical median 13.0%
below median (−176.9%)
Net debt/EBITDA
—
vertical median 0.9x
Dividend yield
—
vertical median 1.1%

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
SYKStryker Corp116.8 bn32.716.0%13.8%+11.2%−17% / +4%
MMM3m Company92.2 bn26.680.8%14.0%+1.5%+4% / +115%
BSXBoston Scientific Corporation64.2 bn18.814.3%16.6%+19.9%−56% / −21%
BDXBecton, Dickinson And Company54.1 bn60.03.8%4.0%+8.2%+30% / +7%
RMDResMed Inc.32.8 bn21.226.4%27.8%+9.9%−9% / +48%
DXCMDexcom, Inc.31.6 bn33.437.7%19.4%+15.6%+34% / −27%
WSTWest Pharmaceutical Services, Inc.28.4 bn45.821.2%18.8%+6.3%+47% / +16%
GKOSGLAUKOS Corp14.1 bn—-22.8%-24.6%+32.3%+124% / +273%
BAXBaxter International Inc.12.5 bn—-10.5%-6.2%+5.7%+29% / −33%
HAEHaemonetics Corporation5.5 bn58.711.2%7.1%−2.0%+48% / +49%
MMSIMerit Medical Systems Inc5.1 bn31.79.8%9.9%+11.8%−3% / +18%
HTFLHeartflow, Inc.4.7 bn——-55.8%+39.9%+69% / unavailable
UFPTUFP Technologies, Inc.2.2 bn30.617.1%11.4%+19.5%+25% / +71%
INSPInspire Medical Systems, Inc.1.9 bn19.613.5%11.4%+13.6%−46% / −54%
SKINSkinHealth Systems Inc.1.4 bn—-43.9%-9.8%−10.0%+626% / +137%
IARTIntegra Lifesciences Holdings Corp1.1 bn81.11.2%0.8%+1.5%+4% / −65%
BBNXBeta Bionics, Inc.864.4 m—-23.9%-65.3%+53.9%−49% / unavailable
TCMDTactile Systems Technology, Inc.512.3 m22.311.0%6.7%+12.5%−11% / +72%
MDXGMimedx Group, Inc.478.6 m—-8.5%-6.3%+20.0%−52% / −58%
SSIISs Innovations International, Inc.462.9 m—-26.1%-23.7%+105.7%−66% / unavailable
OFIXOrthofix Medical Inc.356.4 m—-13.9%-7.4%+2.9%−46% / −21%
CTSOCytosorbents Corporation258.9 m—-336.2%-48.9%+4.1%−75% / −83%
PROFProfound Medical Corp.245.9 m—-73.5%-171.6%+50.7%+2% / −38%
UTMDUtah Medical Products, Inc.224.6 m21.58.8%29.0%−5.8%+25% / −16%
KRMDKoru Medical Systems, Inc.140.8 m—-10.5%-4.0%+22.2%−48% / +35%

1- and 3-year price returns: for SKIN from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
3 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
5 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
What moves the 3-year price the most

    AI analysis

    AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

    In brief

    SkinHealth Systems (SKIN), known for its flagship Hydrafacial brand, sells skin treatment devices and recurring consumables to providers worldwide. Sales fell in the second quarter of 2026 but adjusted EBITDA came in above guidance, and the company revised its fiscal 2026 outlook to net sales of 280-290 million USD 123.

    SWOT

    Strengths

    • The Hydrafacial brand is globally recognised and backed by a large worldwide installed base, which supports a steady flow of consumables 1.
    • The recurring consumables model reduces dependence on equipment sales, which are cyclical 1.
    • Gross margin improved in 2026 and adjusted EBITDA exceeded the guidance range, showing cost discipline 3.

    Weaknesses

    • Sales of new systems fell significantly, and total revenue contracted in 2025 and the first half of 2026 13.
    • The company reported net losses in 2025 and 2026, and net results depend on interest costs and non-recurring items 13.
    • A history of performance problems in earlier generations of the Syndeo system affected reputation and generated remediation costs 1.

    Opportunities

    • If utilisation of the installed base rises, consumables revenue could return to growth 1.
    • Expanding the portfolio with SkinStylus and complementary technologies could open new revenue streams for providers 1.
    • Partnership distribution and technology partnerships could lower costs and speed entry into new markets 12.

    Threats

    • Tighter economic and credit conditions could further delay provider purchases of systems 12.
    • Competition from larger companies and new skincare brands could pressure prices and margins 1.
    • Tariffs, trade restrictions and supply chain disruptions could raise costs and delay deliveries 12.

    Risks

    • Decline in system saleshigh

      If providers keep deferring equipment purchases, device revenue could remain below last year's level and weigh on total results 13.

    • Net losses and debt costshigh

      The company has reported net losses and carries high interest costs on its notes, which could limit financial flexibility if results do not improve 13.

    • Product quality issuesmedium

      Technical defects in earlier generations of the Syndeo system led to high return rates, and any new issue could damage the brand 1.

    • Counterfeiting and diversionmedium

      Counterfeit or diverted products could compromise user safety and the brand's image 1.

    • Supply chain exposuremedium

      Single sources for certain components and reliance on contract manufacturers could delay production if war, disasters or epidemics occur 1.

    Investment thesis

    What would need to be true (bull case)

    • Adjusted EBITDA rose in the second quarter and exceeded guidance, and gross margin improved, which could show an ability to protect profitability even with weaker sales 3.
    • The active install base grew year on year, and recurring consumables could become a steadier support if utilisation improves 13.
    • If the partner-led distribution strategy lowers operating costs without losing clients, the company could have a more efficient structure over the longer term 2.

    What would break the thesis

    • Sales declined in 2025 and in the second quarter of 2026, and the revised fiscal 2026 outlook reflects continued pressure on sales 3.
    • The company continues to report net losses and carries high interest costs, which could limit investment capacity if demand does not recover 13.
    • If providers and consumers cut spending on aesthetic treatments because of economic conditions, consumables revenue could also decline 12.

    What to watch

    • Results of new system sales and the number of systems placedQ3 2026
    • Delivery against the revised guidance for net sales and adjusted EBITDAQ3 2026
    • Trends in the active install base and consumables utilisationnext 10-K
    • Effects of the shift to distributors in Australia and New Zealand on revenue and costs2027

    Products, market & competition

    AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

    The business

    The company describes itself as a global medical aesthetics company whose core product is the Hydrafacial system, a patented hydradermabrasion treatment, supplemented by SkinStylus for microneedling and nano-channeling and HydraScalp powered by Keravive for the scalp 1. Its economic model is razor/razor blade: Delivery Systems are sold as capital equipment, while consumables (single-use tips, solutions, serums) generate recurring revenue as the installed base grows 1. Delivery Systems are manufactured in Long Beach, California, while many other components are made by external suppliers in North America, Europe and Asia 1.

    According to the annual report, consumables revenue grew in 2025 on system placements and price increases, while Delivery System sales declined sharply 1. The company moved China sales to a distributor in 2025 and did the same for Australia and New Zealand in June 2026 12. These changes are presented as part of a strategy to align the distribution model with in-market partner capabilities 2.

    The stated strategy has three pillars: disciplined selling with a value-based approach, marketing focused on consumer demand, and innovation centred on clinically supported technologies, including a next generation of Hydrafacial systems intended to drive upgrades across the installed base 1.

    Market context

    The active install base, estimated at 36516 systems at June 30 2026, rose from 35193 a year earlier, indicating that utilisation of the existing base remains the main source of recurring revenue 3. If utilisation of the installed base improves, consumables revenue could support total sales even while system sales remain weak 1.

    Trends

    • Pressure on equipment spendingheadwind

      Providers are deferring purchases of new systems amid tighter economic and credit conditions, which reduced device sales in 2025 and the first half of 2026 12.

    • Demand for non-invasive treatmentstailwind

      Consumers prioritise skin health and non-invasive treatments, and practices are favouring technologies that attract clients and support combined protocols 1.

    • Tariffs and trade restrictionsheadwind

      Tariffs and trade restrictions could raise material costs and prices, and the company acknowledges that price adjustments may reduce demand 12.

    • Shift to partner-led distributionmixed

      Moving sales to distributors in China and in Australia and New Zealand may reduce direct revenue, but the company states the change could be accretive to long-term profitability 2.

    Competitive position

    The industry is highly competitive, with large multinational consumer products companies owning many beauty brands, standalone skincare brands and newer companies backed by influencers 1. Larger competitors generally have greater financial and marketing resources than the company and may respond better to price cuts and market changes 1.

    The company differentiates itself through the Hydrafacial brand, its global installed base and proprietary consumables supported by clinical data, but competition in microneedling and nano-channeling, where SkinStylus participates, is growing 1.

    • Multinational consumer products groups with beauty lines

      The source refers to several large international groups with many beauty brands and greater marketing and financial resources than the company 1.

    • Independent skincare brands and influencer-backed companies

      These have emerged in recent years with large followings and can quickly shift consumer preferences 1.

    • Microneedling and nano-channeling technology makers

      These compete in the category where SkinStylus aims to grow, which the source describes as expanding 1.

    • Local distributors in markets where the company moved to indirect sales

      The company transferred sales to partners in China and in Australia and New Zealand, so these partners now compete for provider attention 12.

    News & filings

    In the press

    No news in our archive over the last 180 days.

    SEC filings

    Sources

    1. [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / SkinHealth Systems Inc. · 12 Mar 2026
    2. [2] Form 10-Q, quarter ended 2026-06-30 · SEC / SkinHealth Systems Inc. · 06 Aug 2026
    3. [3] Form 8-K, results release (exhibit 99.1) · SEC / SkinHealth Systems Inc. · 06 Aug 2026

    Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.

    SkinHealth Systems Inc. (SKIN): stock, results, valuation and forecast · olivLaw