Beauty Health (NASDAQ:SKIN) Announces Quarterly Earnings Results, Beats Estimates By $1.19 EPS

Beauty Health (NASDAQ:SKIN) announced its quarterly earnings results on Thursday. The company reported ($0.14) EPS for the quarter, topping analysts’ consensus estimates of ($1.33) by $1.19, FiscalAI reports. Beauty Health had a negative return on equity of 47.83% and a negative net margin of 9.79%. The business had revenue of $69.17 million for the quarter, compared to analysts’ expectations of $67.97 million.

Here are the key takeaways from Beauty Health’s conference call:

• Third-quarter revenue was $69.2 million, down 2.1% year over year, a smaller decline than in the first half; consumables returned to growth, up 1.2%. The company said U.S. performance and commercial initiatives are encouraging, though consumables revenue per system remains below last year.
• Profitability improved: adjusted EBITDA rose about 50% to $13.4 million, and GAAP operating income was positive for a second consecutive quarter. The company raised its 2026 adjusted EBITDA outlook to $48 million–$50 million, while noting Q3 benefited from a one-time tariff refund and that Q4 margins are expected to moderate.
• Equipment sales remain the main headwind: delivery-system revenue fell 9.9%, with 798 systems placed versus 875 a year earlier. EMEA revenue declined 11.7%, and management acknowledged that improving equipment conversion and regional execution will take further work.
• Management is targeting more recurring revenue by increasing treatment utilization across its installed base and expanding its product range; SkinStylus consumables grew 39% year over year. New Hydrafacial products and a U.S. rental program are early-stage initiatives, while the next-generation Hydrafacial platform is targeted for 2028.
• The company repaid its $103.2 million 2026 convertible notes as planned and ended the quarter with $112.4 million in cash. Approximately $250 million of convertible debt remains due in Q4 2028, which management expects to address in 2027.

Beauty Health Stock Performance

Shares of SKIN stock traded up $5.36 during midday trading on Friday, reaching $15.71. 433,975 shares of the stock were exchanged, compared to its average volume of 44,874. The company has a quick ratio of 1.48, a current ratio of 1.76 and a debt-to-equity ratio of 4.36. The company’s 50 day moving average is $12.26 and its two-hundred day moving average is $16.44. Beauty Health has a 1 year low of $9.68 and a 1 year high of $34.80.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on the stock. Stifel Nicolaus set a $10.00 price objective on shares of Beauty Health in a research report on Thursday, October 15th. Citigroup reissued a “hold” rating on shares of Beauty Health in a research note on Thursday, October 15th. Canaccord Genuity Group set a $11.00 price target on Beauty Health and gave the company a “hold” rating in a report on Thursday, October 22nd. Jefferies Financial Group reiterated a “hold” rating and issued a $11.00 price objective (up from $0.85) on shares of Beauty Health in a research report on Monday, October 19th. Finally, Zacks Research cut Beauty Health from a “strong-buy” rating to a “hold” rating in a research note on Monday, July 20th. One research analyst has rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $18.00.

Beauty Health Company Profile

BeautyHealth is a global health and beauty company focused on providing technology, products and services for aesthetic and skincare businesses. Its flagship brand, HydraFacial, offers a non-invasive treatment platform that combines cleansing, exfoliation, extraction and hydration, with treatments delivered through proprietary devices and consumable solutions.

The company also provides professional skincare products, treatment systems and related solutions designed for use by physicians, dermatologists, aestheticians and other licensed practitioners.