Q3 FY2026
Filed Nov 5, 2026SkinHealth Systems Reports Third Quarter 2026 Financial Results
Q3 net sales declined to $69.2 million, driven by lower Delivery Systems net sales, while consumables returned to growth, gross margins expanded, operating expenses declined, and adjusted EBITDA increased to $13.4 million.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 total net salesGAAP | $69.2M | – | (2.1)% |
| Q3 2026 Delivery Systems net salesGAAP | $18.8M | – | – |
| Q3 2026 Consumables net salesGAAP | $50.4M | – | – |
| Q3 2026 gross profitGAAP | $47.1M | – | – |
| Q3 2026 gross marginGAAP | 68.2% | – | – |
| Q3 2026 adjusted gross profitnon-GAAP | $49.7M | – | – |
| Q3 2026 adjusted gross marginnon-GAAP | 71.8% | – | – |
| Q3 2026 total operating expensesGAAP | $42.2M | – | – |
| Q3 2026 adjusted operating expensesnon-GAAP | $36.3M | – | – |
| Q3 2026 income from operationsGAAP | $5M | – | – |
| Q3 2026 net lossGAAP | −$900K | – | – |
| Q3 2026 net loss marginGAAP | (1.3)% | – | – |
| Q3 2026 basic net loss per shareGAAP | $(0.14) | – | – |
| Q3 2026 diluted net loss per shareGAAP | $(0.14) | – | – |
| Q3 2026 adjusted EBITDAnon-GAAP | $13.4M | – | – |
| Q3 2026 adjusted EBITDA marginnon-GAAP | 19.3% | – | – |
| Q3 2026 total delivery systems soldother | 798 | – | – |
| Active install base as of September 30other | 37,342 | – | – |
| Nine months ended September 30, 2026 total net salesGAAP | $206.2M | – | – |
| Nine months ended September 30, 2026 gross profitGAAP | $140.9M | – | – |
| Nine months ended September 30, 2026 gross marginGAAP | 68.3% | – | – |
| Nine months ended September 30, 2026 total operating expensesGAAP | $134.2M | – | – |
| Nine months ended September 30, 2026 income from operationsGAAP | $6.7M | – | – |
| Nine months ended September 30, 2026 net lossGAAP | −$10.2M | – | – |
| Nine months ended September 30, 2026 adjusted EBITDAnon-GAAP | $38.9M | – | – |
| Nine months ended September 30, 2026 adjusted EBITDA marginnon-GAAP | 18.9% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Delivery SystemsLower delivery systems net sales; the Company placed 798 delivery systems during Q3 2026, compared to 875 during Q3 2025. | $18.8M | – | – |
| ConsumablesConsumables returned to growth. | $50.4M | – | – |
| Americas net salesAmericas Delivery Systems net sales were $12.8 million and Consumables net sales were $36.1 million. | $48.9M | – | – |
| APAC net salesDuring the second quarter of 2026, the Company transitioned sales in the Australia and New Zealand market to a distributor partner. | $6.1M | – | – |
| EMEA net salesThe Company launched SkinStylus™ across six European markets. | $14.2M | – | – |
Fiscal Year 2026 outlook
- Revenue$281 – $287 million
- NoteAdjusted EBITDA (1) $48 – $50 million
What drove it
- Gross margin and adjusted gross margin improved primarily due to higher product costs in the prior year related to trade-in Delivery Systems sell through, tariff related recoveries, and lower inventory charges in 2026.
- Operating expenses improved primarily due to lower personnel-related expenses, amortization expense, and professional fees.
- Adjusted operating expenses improved primarily due to lower personnel-related expenses and professional fees.
- Net loss improvement compared to the prior year was primarily due to lower operational spend and higher gross margin.
- Adjusted EBITDA improvement was primarily due to lower adjusted operational spend and higher adjusted gross margin.
- The Company introduced the HydraClear™ Treatment Booster and launched SkinStylus™ across six European markets.
Concerns
- Net sales decreased (2.1)% from Q3 2025 due to lower Delivery Systems net sales.
- The Company placed 798 delivery systems during Q3 2026, compared to 875 during Q3 2025.
- Updated 2026 financial guidance reflects continued pressure on sales.
- The Company expects no further material deterioration in current general market conditions or other unforeseen circumstances beyond its control, such as foreign currency exchange rates, tariffs, and trade restrictions.
- The Company reported a net loss of $(10.2) million for the nine months ended September 30, 2026, compared to net loss of $(1.4) million for the nine months ended September 30, 2025.
What to watch
- Delivery Systems net sales and delivery systems sold.
- Consumables sales growth and the active install base.
- Execution of commercial priorities in the core Hydrafacial franchise and new product introductions.
- Progress against Fiscal Year 2026 net sales guidance of $281 – $287 million and adjusted EBITDA guidance of $48 – $50 million.
- Cash, cash equivalents, and restricted cash following repayment of the remaining $103.2 million aggregate principal amount of the 2026 Notes.
Balance sheet and cash flow
- Cash, cash equivalents, and restricted cash were $112.4 million as of September 30, 2026, compared to $232.7 million as of December 31, 2025.
- The Company repaid the remaining outstanding aggregate principal amount of $103.2 million on September 30, 2026 and retired the 2026 Notes in accordance with their terms.
- Convertible senior notes, net were $243.0 million as of September 30, 2026, compared to $240.4 million as of December 31, 2025.
- Total liabilities were $333.3 million as of September 30, 2026, compared to $438.7 million as of December 31, 2025.
- Net cash provided by operating activities was $8.4 million for the nine months ended September 30, 2026, compared to $22.3 million for the nine months ended September 30, 2025.
- Net cash used for investing activities was $(3.9) million for the nine months ended September 30, 2026, compared to $(3.8) million for the nine months ended September 30, 2025.
- Net cash used for financing activities was $(124.6) million for the nine months ended September 30, 2026, compared to $(174.4) million for the nine months ended September 30, 2025.
- The Company had 6.5 million shares of Class A Common Stock outstanding as of September 30, 2026.
- On October 14, 2026, the Company effected a 1-for-20 reverse stock split of its Class A Common Stock and a proportionate decrease in the number of issued and outstanding shares.
Analysis
SkinHealth Systems reported Q3 2026 net sales of $69.2 million, compared with $70.7 million in Q3 2025, a decrease of (2.1)%. The release attributes the decline to lower Delivery Systems net sales, which were $18.8 million compared with $20.8 million. Delivery systems placed declined to 798 from 875. Consumables net sales were $50.4 million compared with $49.8 million, and management stated that consumables returned to growth. The active install base was 37,342 compared with 35,409.
Profitability improved substantially despite the sales decline. GAAP gross margin was 68.2%, compared with 64.6%, and adjusted gross margin was 71.8%, compared with 68.0%. The Company cited higher product costs in the prior year related to trade-in Delivery Systems sell through, tariff related recoveries, and lower inventory charges in 2026. GAAP operating expenses declined to $42.2 million from $51.9 million, while adjusted operating expenses declined to $36.3 million from $39.1 million, primarily reflecting lower personnel-related expenses and professional fees.
The lower cost base and improved margins moved income from operations to $5.0 million from a loss from operations of $(6.2) million. Net loss narrowed to $(0.9) million from $(11.0) million, and adjusted EBITDA increased to $13.4 million from $8.9 million. Adjusted EBITDA margin expanded to 19.3% from 12.6%. For the nine months ended September 30, 2026, net sales were $206.2 million compared with $218.4 million, while adjusted EBITDA was $38.9 million compared with $30.1 million.
Liquidity changed materially during the period. Cash, cash equivalents, and restricted cash were $112.4 million as of September 30, 2026, compared with $232.7 million as of December 31, 2025. The Company repaid the remaining $103.2 million aggregate principal amount and retired the 2026 Notes on September 30, 2026. Nine-month operating cash flow was $8.4 million, compared with $22.3 million in the prior-year period, and financing cash outflow was $(124.6) million.
Fiscal Year 2026 guidance calls for net sales of $281 – $287 million and adjusted EBITDA of $48 – $50 million. The Company said the outlook reflects continued pressure on sales and continued cost discipline. The guide assumes no further material deterioration in general market conditions and excludes the potential effect of unannounced acquisitions, dispositions or financings.
Management, verbatim
Our third quarter results reflect encouraging progress in strengthening our business. Revenue trends improved, consumables returned to growth, and we delivered healthy adjusted EBITDA performance. While we have more work ahead, these results give us greater confidence that the actions we are taking are moving the business in the right direction.
Pedro Malha, President and Chief Executive Officer of SkinHealth Systems
We advanced each of our strategic priorities, strengthening commercial execution in the core Hydrafacial franchise, introducing clinically differentiated innovations designed to increase the value and productivity of our installed base, including our new HydraClear TM Treatment Booster, and expanding our portfolio with the launch of SkinStylus TM across six European markets.
Pedro Malha, President and Chief Executive Officer of SkinHealth Systems
We also retired our 2026 debt as planned. We have a strong global brand, a substantial installed base and a more efficient operating model. Our focus now is on translating those advantages into sustainable growth through disciplined execution.
Pedro Malha, President and Chief Executive Officer of SkinHealth Systems
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so comparison with prior guidance is unavailable.
- Q3 2026 operating cash flow was not reported.
- Free cash flow was not reported.
- Share repurchases and dividends were not reported.
- Adjusted EPS was not reported.
- Forward gross margin, operating expenses, tax rate, and EPS guidance were not reported.
- Prior-quarter comparisons were not reported for the presented key metrics.
- Explicit year-over-year percentage changes were not reported for individual Delivery Systems, Consumables, regional net sales, gross profit, operating expenses, income from operations, net loss, EPS, or adjusted EBITDA.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.