BeautyHealth Reports Third Quarter 2025 Financial Results

LONG BEACH, Calif., Nov. 06, 2025 (GLOBE NEWSWIRE) -- The Beauty Health Company (NASDAQ: SKIN) (“BeautyHealth” or the "Company"), home to flagship brand Hydrafacial, today announced financial results for the third quarter ended September 30, 2025 (“Q3 2025”).

“Our third-quarter results reflect disciplined execution and the continued strengthening of BeautyHealth’s foundation,” said BeautyHealth President and CEO, Pedro Malha. "Revenue of $70.7 million and Adjusted EBITDA of $8.9 million exceeded the top end of our guidance range, supported by ongoing operational efficiency. While device sales remained under pressure, the recurring consumables business continued to demonstrate resilience and profitability. With a large installed base, a growing global community of providers, and a category-defining brand in Hydrafacial, we believe we have the right foundation to drive sustainable, profitable growth. The team remains focused on expanding the device footprint, growing consumables, strengthening commercial execution, and maintaining disciplined capital stewardship.”

Key Operational and Business Metrics

	Three Months Ended September 30,						Nine Months Ended September 30,
Unaudited ($ in millions) ⁽¹⁾	2025			2024			2025			2024
Delivery Systems net sales	$	20.8		$	27.6		$	63.4		$	98.6
Consumables net sales		49.8			51.2			155.0			152.2
Total net sales	$	70.7		$	78.8		$	218.4		$	250.8
Gross profit	$	45.6		$	40.6		$	143.3		$	130.0
Gross margin		64.6	%		51.6	%		65.6	%		51.8	%
Adjusted gross profit ⁽²⁾	$	48.1		$	54.7		$	149.6		$	151.2
Adjusted gross margin ⁽²⁾		68.0	%		69.5	%		68.5	%		60.3	%
Net loss	$	(11.0	)	$	(18.3	)	$	(1.4	)	$	(18.8	)
Adjusted EBITDA ⁽²⁾	$	8.9		$	8.1		$	30.1		$	3.2
Adjusted EBITDA margin ⁽²⁾		12.6	%		10.2	%		13.8	%		1.3	%

	Three Months Ended September 30,		Nine Months Ended September 30,
Unaudited	2025	2024	2025	2024
Total delivery systems sold	875	1,118	2,694	3,820
Active install base ⁽³⁾	35,409	34,162	35,409	34,162

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(1)	Amounts may not sum due to rounding.
(2)	See "Non-GAAP Financial Measures" below.
(3)	Estimated number of delivery systems owned by providers that have purchased consumables in the trailing twelve-month period.

Third Quarter Financial Highlights

Net sales were $70.7 million for the third quarter of 2025, a decrease of (10.3)%, compared to the prior year period ("Q3 2024"), due to lower delivery systems and consumables net sales.
Gross margin was 64.6% in Q3 2025, compared to 51.6% in Q3 2024. The improvement in gross margin was primarily due to lower inventory related charges and favorable mix shift towards consumable net sales, partially offset by lower average selling price of equipment net sales.
Adjusted gross margin was 68.0% in Q3 2025, compared to 69.5% in Q3 2024. The change in adjusted gross margin was primarily due to lower average selling price of equipment net sales.
Net loss was $(11.0) million in Q3 2025, compared to $(18.3) million in Q3 2024. The change compared to the prior year was primarily due to lower operational spend and higher gross margin, partially offset by lower net sales.
Adjusted EBITDA was $8.9 million in Q3 2025, compared to $8.1 million in Q3 2024. The improvement in adjusted EBITDA was primarily due to lower operational spend partially offset by lower adjusted gross profit.
The Company placed 875 delivery systems during Q3 2025, compared to 1,118 during Q3 2024, reflecting a challenging macroeconomic environment.

Balance Sheet and Cash Flow Highlights

Cash, cash equivalents, and restricted cash were approximately $219 million as of September 30, 2025, compared to approximately $370 million as of December 31, 2024. The change was primarily due to the repurchase of convertible senior notes during the first half of 2025.
The Company had approximately 7 million private placement warrants and approximately 127 million shares of Class A common stock outstanding as of September 30, 2025.

Updated 2025 Financial Guidance

Fiscal Year 2025
Net sales	$293 – $300 million
Adjusted EBITDA ⁽¹⁾	$37 – $39 million

__________________________

(1)	See "Non-GAAP Financial Measures" below.

Updated 2025 financial guidance reflects the following assumptions:

Increase in full-year guidance reflects improvements in Adjusted EBITDA and other financial metrics.
No further material deterioration in current general market conditions or other unforeseen circumstances beyond the Company's control, such as foreign currency exchange rates, tariffs, and trade restrictions.
Excludes any unannounced acquisitions, dispositions or financings.

Regional Operational and Business Metrics

	Three Months Ended September 30,				Nine Months Ended September 30,
Unaudited ($ in millions) ⁽¹⁾⁽²⁾	2025		2024		2025		2024
Delivery Systems net sales
Americas	$	13.6	$	16.2	$	40.3	$	54.1
Asia-Pacific (“APAC”)		2.1		4.9		6.6		18.9
Europe, the Middle East and Africa (“EMEA”)		5.1		6.5		16.5		25.6
Total Delivery Systems net sales	$	20.8	$	27.6	$	63.4	$	98.6

Consumables net sales
Americas	$	34.7	$	35.6	$	106.3	$	105.8
APAC		4.2		5.9		15.8		17.5
EMEA		10.9		9.6		32.9		28.9
Total Consumables net sales	$	49.8	$	51.2	$	155.0	$	152.2

Net sales
Americas	$	48.3	$	51.9	$	146.6	$	159.9
APAC		6.3		10.8		22.4		36.4
EMEA		16.1		16.1		49.5		54.4
Total net sales	$	70.7	$	78.8	$	218.4	$	250.8

Delivery Systems sold
Americas		540		634		1,649		2,046
APAC		123		215		358		771
EMEA		212		269		687		1,003
Total Delivery Systems sold		875		1,118		2,694		3,820

__________________________

(1)	Amounts may not sum due to rounding.
(2)	During the second quarter of 2025, the Company transitioned sales in the China market to a distributor partner, and as a result, the Company has discontinued direct sales to customers in China.

Conference Call

BeautyHealth will host a conference call on Thursday, November 6, 2025, at 4:30 p.m. ET to review its third quarter 2025 financial results. The call may be accessed via live webcast through the Events & Presentations page on our Investor Relations website at https://investors.beautyhealth.com. A replay of the conference call will be available approximately three hours after the conclusion of the call and can be accessed online at https://investors.beautyhealth.com.

Non-GAAP Financial Measures

In addition to results determined in accordance with accounting principles generally accepted in the United States of America ("GAAP"), management utilizes certain non-GAAP financial measures such as adjusted gross profit, adjusted gross margin, adjusted EBITDA, and adjusted EBITDA margin for purposes of evaluating ongoing operations and for internal planning and forecasting purposes.

Management believes that these non-GAAP financial measures, when reviewed collectively with the Company’s GAAP financial information, provide useful supplemental information to investors in assessing the Company's operating performance. These non-GAAP financial measures should not be considered as an alternative to GAAP financial information or as an indication of operating performance or any other measure of performance derived in accordance with GAAP, and may not provide information that is directly comparable to that provided by other companies in its industry, as these other companies may calculate non-GAAP financial measures differently, particularly related to unusual items.

Adjusted gross profit is gross profit excluding the effects of depreciation expense, amortization expense, share-based compensation expense, manufacturing optimization costs, and write-off of discontinued, excess and obsolete product. Adjusted gross margin represents adjusted gross profit as a percentage of net sales.

Adjusted EBITDA is calculated as net loss excluding the effects of expense for income taxes; depreciation expense; amortization expense; share-based compensation expense; interest expense; interest income; other income, net; change in fair value of warrant liabilities; foreign currency loss (gain), net; litigation related costs; Go-to-Market restructuring; manufacturing optimization costs; write-off of discontinued, excess and obsolete product; and severance, restructuring and other. Adjusted EBITDA margin represents adjusted EBITDA as a percentage of net sales.

The Company does not provide a reconciliation of its fiscal 2025 adjusted EBITDA guidance to net loss, the most directly comparable forward looking GAAP financial measures, due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation, which cannot be done without unreasonable efforts, including adjustments that could be made for changes in fair value of warrant liabilities, integration and acquisition-related expenses, amortization expenses, non-cash share-based compensation, gains/losses on foreign currency, and other charges reflected in our reconciliation of historic numbers, the amount of which, based on historical experience, could be significant. The presentation of this financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. The Company's fiscal 2025 adjusted EBITDA guidance is merely an outlook and is not a guarantee of future performance. Stockholders should not rely or place an undue reliance on such forward-looking statements. See “Forward-Looking Statements” for additional information.

The Beauty Health Company Condensed Consolidated Statements of Comprehensive Income (Loss) ⁽¹⁾ ($ in millions, except share and per share amounts) (Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2025			2024			2025			2024
Net sales	$	70.7		$	78.8		$	218.4		$	250.8
Cost of sales		25.0			38.2			75.1			120.8
Gross profit		45.6			40.6			143.3			130.0
Operating expenses:
Selling and marketing		20.9			27.6			70.1			91.8
Research and development		1.7			1.1			3.9			5.1
General and administrative		29.3			33.4			90.3			93.7
Total operating expenses		51.9			62.2			164.3			190.6
Loss from operations		(6.2	)		(21.5	)		(21.0	)		(60.6	)
Interest expense		6.3			2.5			13.0			7.9
Interest income		(1.3	)		(4.9	)		(7.4	)		(14.4	)
Other income, net		(0.6	)		(0.1	)		(18.8	)		(33.5	)
Change in fair value of warrant liabilities		(0.2	)		(0.4	)		(0.3	)		(3.0	)
Foreign currency transaction loss (gain), net		0.2			(2.3	)		(6.2	)		0.2
Loss before provision for income taxes		(10.6	)		(16.3	)		(1.1	)		(17.8	)
Income tax expense		0.4			1.9			0.3			0.9
Net loss		(11.0	)		(18.3	)		(1.4	)		(18.8	)
Comprehensive (loss) income, net of tax:
Foreign currency translation adjustments		0.4			1.2			5.2			(0.7	)
Comprehensive (loss) income	$	(10.6	)	$	(17.1	)	$	3.8		$	(19.4	)
Net loss per share
Basic	$	(0.09	)	$	(0.15	)	$	(0.01	)	$	(0.15	)
Diluted	$	(0.09	)	$	(0.15	)	$	(0.11	)	$	(0.31	)
Weighted average common shares outstanding
Basic		126,890,888			124,057,602			126,020,956			123,630,811
Diluted		126,890,888			124,057,602			137,294,187			142,667,209

__________________________

(1)	Amounts may not sum due to rounding.

The Beauty Health Company Condensed Consolidated Balance Sheets ⁽¹⁾ ($ in millions) (Unaudited)

	September 30, 2025			December 31, 2024
ASSETS
Current assets:
Cash, cash equivalents, and restricted cash	$	219.4		$	370.1
Accounts receivable, net		22.2			27.6
Inventories		56.1			69.1
Income tax receivable		3.2			0.8
Prepaid expenses and other current assets		7.4			9.5
Total current assets		308.4			477.1
Property and equipment, net		3.1			6.0
Right-of-use assets, net		13.6			13.6
Intangible assets, net		38.0			47.5
Goodwill		126.5			123.5
Deferred income tax assets, net		1.0			3.9
Other assets		13.1			14.1
TOTAL ASSETS	$	503.6		$	685.7
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	17.3		$	21.9
Accrued payroll-related expenses		18.8			17.6
Lease liabilities, current		5.0			5.1
Income tax payable		1.5			3.4
Other accrued expenses		19.3			20.0
Total current liabilities		61.9			68.2
Lease liabilities, non-current		10.6			10.8
Deferred income tax liabilities, net		0.1			0.4
Warrant liabilities		0.1			0.5
Convertible senior notes, net		363.4			552.2
Other long-term liabilities		1.9			1.8
TOTAL LIABILITIES	$	438.0		$	633.9

Stockholders’ equity:
Class A Common Stock	$	—		$	—
Additional paid-in capital		576.8			566.7
Accumulated other comprehensive loss		(1.8	)		(7.0	)
Accumulated deficit		(509.4	)		(508.0	)
Total stockholders’ equity	$	65.7		$	51.8
LIABILITIES AND STOCKHOLDERS’ EQUITY	$	503.6		$	685.7

__________________________

(1)	Amounts may not sum due to rounding.

The Beauty Health Company Condensed Consolidated Statement of Cash Flows ⁽¹⁾ ($ in millions) (Unaudited)

	Nine Months Ended September 30,
	2025			2024
Cash, cash equivalents, and restricted cash at beginning of period	$	370.1		$	523.0
Operating activities:
Net loss		(1.4	)		(18.8	)
Non-cash adjustments:		21.2			51.6
Change in operating assets and liabilities:
Accounts receivable		4.8			13.3
Inventories		11.1			(7.5	)
Prepaid expenses, other current assets, and income tax receivable		(0.1	)		8.0
Accounts payable, accrued expenses, and income tax payable		(7.1	)		(39.5	)
Other, net		(6.2	)		(7.5	)
Net cash provided by (used for) operating activities		22.3			(0.3	)
Net cash used for investing activities		(3.8	)		(5.9	)
Net cash used for financing activities		(174.4	)		(157.6	)
Net change in cash, cash equivalents, and restricted cash		(155.9	)		(163.8	)
Effect of foreign currency translation		5.2			(0.3	)
Cash, cash equivalents, and restricted cash at end of period	$	219.4		$	358.9

__________________________

(1)	Amounts may not sum due to rounding.

The following table reconciles gross profit to adjusted gross profit for the periods presented:

	Three Months Ended September 30,						Nine Months Ended September 30,
Unaudited ($ in millions)⁽¹⁾	2025			2024			2025			2024
Net sales	$	70.7		$	78.8		$	218.4		$	250.8

Gross profit	$	45.6		$	40.6		$	143.3		$	130.0
Gross margin		64.6	%		51.6	%		65.6	%		51.8	%

Adjusted to exclude the following:
Depreciation expense		0.2			1.0			0.7			1.8
Amortization expense		2.1			3.2			5.2			9.8
Share-based compensation expense		0.1			0.2			0.4			(0.1	)
Manufacturing optimization costs		—			7.6			—			7.6
Write-off of discontinued, excess and obsolete product		—			2.0			—			2.0
Adjusted gross profit	$	48.1		$	54.7		$	149.6		$	151.2
Adjusted gross margin		68.0	%		69.5	%		68.5	%		60.3	%

__________________________

(1)	Amounts may not sum due to rounding.

The following table reconciles net loss to adjusted EBITDA for the periods presented:

	Three Months Ended September 30,						Nine Months Ended September 30,
Unaudited ($ in millions)⁽¹⁾	2025			2024			2025			2024
Net sales	$	70.7		$	78.8		$	218.4		$	250.8

Net loss	$	(11.0	)	$	(18.3	)	$	(1.4	)	$	(18.8	)
Adjusted to exclude the following:
Expense for income taxes		0.4			1.9			0.3			0.9
Depreciation expense		0.6			3.1			3.2			8.5
Amortization expense		7.8			6.5			16.8			18.6
Share-based compensation expense		2.5			7.7			11.2			20.8
Interest expense		6.3			2.5			13.0			7.9
Interest income		(1.3	)		(4.9	)		(7.4	)		(14.4	)
Other income, net		(0.6	)		(0.1	)		(18.8	)		(33.5	)
Change in fair value of warrant liabilities		(0.2	)		(0.4	)		(0.3	)		(3.0	)
Foreign currency loss (gain), net		0.2			(2.3	)		(6.2	)		0.2
Litigation related costs		2.2			2.5			14.1			3.7
Go-to-Market restructuring		—			—			3.0			—
Manufacturing optimization costs		—			7.6			—			7.6
Write-off of discontinued, excess and obsolete product		—			2.0			—			2.0
Severance, restructuring and other		2.1			0.2			2.7			2.5
Adjusted EBITDA	$	8.9		$	8.1		$	30.1		$	3.2
Adjusted EBITDA margin		12.6	%		10.2	%		13.8	%		1.3	%

__________________________

(1)	Amounts may not sum due to rounding.

About The Beauty Health Company

The Beauty Health Company (NASDAQ: SKIN) is a medtech meets beauty company delivering millions of skin health experiences every year that help consumers reinvent their relationship with their skin, bodies, and self-confidence. Our brands are pioneers: Hydrafacial™ in hydradermabrasion, SkinStylus™ in nanoneedling and microneedling, and Keravive™ in scalp health. Together, with our powerful global community of estheticians, partners, and consumers, we are personalizing skin health for all ages, genders, skin tones, and skin types. We are committed to being ever more mindful in how we conduct our business to positively impact our communities and the planet. Find a local provider at https://hydrafacial.com/find-a-provider/, and learn more at beautyhealth.com or LinkedIn.

Forward-Looking Statements

Certain statements made in this release are “forward looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995, including statements regarding The Beauty Health Company’s strategy, plans, objectives, initiatives and financial outlook. When used in this press release, the words “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,” “propose” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements.

These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside The Beauty Health Company’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. As such, readers are cautioned not to place undue reliance on any forward-looking statements.

Important factors that may affect actual results or outcomes include, among others: The Beauty Health Company’s ability to manage growth; The Beauty Health Company’s ability to execute its business plan; potential litigation involving The Beauty Health Company; changes in applicable laws or regulations; the possibility that The Beauty Health Company may be adversely affected by other economic, business, and/or competitive factors; and other risks and uncertainties set forth in the sections entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 filed with the U.S. Securities and Exchange Commission (the “SEC”) and in the Company’s subsequent filings with the SEC such as on a Quarterly Report on Form 10-Q. There may be additional risks that the Company does not presently know of or that the Company currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. The Beauty Health Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

Contacts
Investors: IR@beautyhealth.com
Press: Press@beautyhealth.com

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