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BH

Beauty Health Co (SKIN)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 net sales were $70.7M (-10.3% YoY) with GAAP gross margin 64.6% and Adjusted EBITDA $8.9M; management said results “exceeded the top end of our guidance range,” driven by consumables resilience and cost discipline .
  • FY 2025 guidance was raised: net sales to $293–$300M and Adjusted EBITDA to $37–$39M; management also gave Q4 2025 guidance of net sales $74.5–$81.5M and Adjusted EBITDA $6.9–$8.9M .
  • Devices remained under pressure (delivery systems net sales $20.8M, units sold 875), while consumables were resilient ($49.8M); active installed base expanded to 35,409, and booster category sales grew 14% .
  • Regional trends were mixed: Americas revenue down 7% YoY to $48.3M, EMEA flat at $16.1M, APAC down 41.5% to $6.3M due to the China distributor transition; inventory was reduced to $56.1M and U.S. manufacturing is fully operational .
  • Catalyst: raised FY guidance and improved margins despite macro headwinds (financing access, uneven consumer confidence), plus a strategic pivot to core consumables and provider engagement (pause of skincare initiative) .

What Went Well and What Went Wrong

What Went Well

  • Margins improved materially: GAAP gross margin 64.6% vs. 51.6% in Q3 2024, driven by lower inventory charges and mix shift toward consumables .
  • Adjusted EBITDA rose to $8.9M (12.6% margin), supported by “ongoing operational efficiency” and lower opex; CEO: “Revenue of $70.7 million and Adjusted EBITDA of $8.9 million exceeded the top end of our guidance range” .
  • Innovation traction: HydroLock HA and Hydrophilic with Pep9 boosters drove 14% growth in booster sales; consumables mix increased to 71% of net sales .

What Went Wrong

  • Device softness continued: delivery systems net sales fell 24.6% YoY to $20.8M; units placed declined to 875 from 1,118 on macro and financing headwinds .
  • APAC weakness tied to China transition: APAC revenue fell to $6.3M (-41.5%) as the company shifted to a distributor model, pre-positioning inventory to minimize tariffs .
  • Elevated churn: management noted churn of ~1.8% vs. ~0.9% last year, citing small-provider closures and staff turnover; GAAP diluted EPS was -$0.09 (vs. -$0.15 in Q3 2024) .

Financial Results

Summary by Quarter (oldest → newest)

MetricQ1 2025Q2 2025Q3 2025
Net Sales ($USD Millions)$69.6 $78.2 $70.7
GAAP Gross Margin %69.8% 62.8% 64.6%
Adjusted Gross Margin %71.9% 65.9% 68.0%
Adjusted EBITDA ($USD Millions)$7.3 $13.9 $8.9
Adjusted EBITDA Margin %10.4% 17.8% 12.6%
GAAP Net Income (Loss) ($USD Millions)$(10.1) $19.7 $(11.0)
Diluted EPS ($USD)$(0.08) $0.03 $(0.09)

Q3 2025 vs Prior Year and vs Estimates

MetricQ3 2024Q3 2025 ActualQ3 2025 S&P Global Consensus
Net Sales ($USD Millions)$78.8 $70.7 $68.13*
GAAP Diluted EPS ($USD)$(0.15) $(0.09) -$0.05* (Primary EPS); Actual Primary EPS $0.03*
Adjusted EBITDA ($USD Millions)$8.1 $8.9 $2.58* (EBITDA Consensus Mean); Actual EBITDA $2.19*

Values marked with * were retrieved from S&P Global.

Segment Mix

Segment ($USD Millions)Q3 2024Q3 2025
Delivery Systems Net Sales$27.6 $20.8
Consumables Net Sales$51.2 $49.8
Total Delivery Systems Sold (Units)1,118 875
Consumables Mix (% of Net Sales)65% 71%

Regional Mix

Region ($USD Millions)Q3 2024Q3 2025
Americas$51.9 $48.3
APAC$10.8 $6.3
EMEA$16.1 $16.1
Total$78.8 $70.7

KPIs

KPIQ1 2025Q2 2025Q3 2025
Delivery Systems Sold (Units)862 957 875
Active Install Base (Units)35,014 35,193 35,409
Devices ASP ($)——~$23,794
Inventory ($USD Millions)$65.6 $59.2 $56.1
Churn (%)——~1.8%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Net Sales ($USD Millions)FY 2025$285–$300 $293–$300 Raised low end
Adjusted EBITDA ($USD Millions)FY 2025$27–$35 $37–$39 Raised range
Net Sales ($USD Millions)Q4 2025—$74.5–$81.5 New quarterly guide
Adjusted EBITDA ($USD Millions)Q4 2025—$6.9–$8.9 New quarterly guide
Net Sales ($USD Millions)Q3 2025$65–$70 Actual $70.7 Beat top end
Opex CommentaryQ4 2025—Opex +$2–$3M QoQ (commissions, marketing) Seasonal increase
Gross Margin CommentaryQ4 2025—GM seasonally lower vs Q3 on promotions Seasonal decrease

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 & Q2 2025)Current Period (Q3 2025)Trend
Device sales & financingDevices pressured; macro headwinds; Q2 “good-better-best” portfolio introduced Devices still down; stabilization in Americas vs prior two quarters; focus on pricing, targeting, lead conversion; financing access a gating item Stabilizing pressure; execution-focused
Consumables & boostersConsumables resilient; Hydrolock launch; >70% revenue mix; Hydrophilic Pep9 launched in Q2 Booster sales +14%; consumables mix 71%; 5% consumables price increase digested well; high booster attachment rates Strengthening
China/APAC strategy & tariffsTransition to distributor model in Q2; discontinue direct sales; US manufacturing footprint established APAC down on China transition; pre-positioned inventory to minimize tariff exposure Near-term drag; tariff mitigation
Supply chain & inventoryUS manufacturing relocation; margin benefits; inventory reduction Inventory below $60M; ASP lower in distributor markets; US manufacturing fully operational Improved planning, quality
Opex discipline & profitabilityCost efficiencies; raised EBITDA guidance in Q2 Opex down YoY; EBITDA +11% YoY; FY EBITDA guidance raised Continuing discipline
Product roadmap & skincareBold brand initiatives; innovation pipeline Skincare initiative paused; capital reallocated to core clinical consumables & provider partnerships Sharpened focus
Provider channelsMed spas dominate; education programs (HFX) Medical channel strength in EMEA (Germany); training and education emphasis; advisory councils launched Provider engagement up

Management Commentary

  • CEO: “Revenue of $70.7 million and Adjusted EBITDA of $8.9 million exceeded the top end of our guidance range… While device sales remained under pressure, the recurring consumables business continued to demonstrate resilience and profitability” .
  • CEO strategic focus: “Protecting and growing our Hydrafacial install base… driving consumable utilization… innovating across devices and consumables… strengthening operational discipline” .
  • CFO: “We delivered strong margins and profitability… selling 875 units worldwide at ASP of approximately $23,794… active machines increased to 35,409” .
  • CEO on macro: “Inflation remains an issue, access to financing continues to be challenging… consumer confidence continues to be uneven” .
  • CEO on portfolio: “We have decided to actually pause the skincare initiative… focus our capital on things that are core to our business” .

Q&A Highlights

  • Americas/EMEA dynamics: Americas down 7% overall with devices -16.3% but stabilization vs prior quarters; EMEA flat with double-digit consumables growth, notably Germany and medical channel .
  • Pricing power: 5% consumables price increase in July was absorbed; boosters also lifting ASPs .
  • Devices stabilization & initiatives: Emphasis on financing solutions, pricing strategies, good-better-best tiers (Syndeo/Elite/Allegro), and improved lead conversion .
  • Consumer/utilization: High booster attachment rates; some pressure on core treatment utilization; leaning into education and training .
  • Churn elevated (~1.8%): Driven by small-provider closures and staff turnover; proactive reactivation and training to return churn to historical levels .

Estimates Context

  • Q3 2025 results vs S&P Global consensus: Revenue beat ($70.7M vs $68.13M*), EPS beat (Primary EPS actual $0.03* vs -$0.05* consensus), noting GAAP diluted EPS was -$0.09 per press release .
  • S&P Global forward estimates: Q4 2025 revenue $77.56M*, EBITDA $8.17M*; Q1 2026 revenue $69.45M*, EBITDA $7.32M*. Values marked with * were retrieved from S&P Global.
  • Note: Company reports Adjusted EBITDA, whereas S&P Global “EBITDA Consensus Mean” may reflect a different definition, so comparisons require caution .

Key Takeaways for Investors

  • Consumables-driven margin and EBITDA outperformance, with booster innovation and price increases supporting mix resilience despite device softness .
  • FY 2025 guidance raised on improved visibility and cost control; Q4 guide implies seasonal promotions pressuring margins but ongoing opex discipline .
  • Devices headwinds persist but show stabilization in Americas; execution on financing, pricing, and “good-better-best” tiers is critical to re-accelerate placements .
  • China distributor transition weighs on APAC near term; tariff mitigation via pre-positioned inventory and U.S. manufacturing should support gross margins .
  • Elevated churn (~1.8%) is a watch item; management is targeting reactivation and training to restore historical levels—monitor install base utilization trends .
  • Strategic focus sharpened: pausing non-core skincare and prioritizing clinical, provider-led consumables innovation and education initiatives (Advisory Councils) .
  • Near-term trading: Positive setup on guidance raise and margin discipline; watch Q4 promotions’ margin impact and devices momentum; medium-term thesis depends on device recovery and sustained consumables growth .

Additional Q3 2025 Press Releases (provider engagement)

  • Company announced Hydrafacial Advisory Councils and Ambassador Network to guide innovation, education, and clinical rigor; aligns with provider-led growth strategy .
  • Confirmed Q3 earnings date and webcast logistics .