SKIN

Hydrafacial Hydralock HA Biocellulose Mask Hydrafacial HydraGlow Pre-Extraction Peel Hydrafacial Hydralock HA Biocellulose Mask HydraGlow Pre-Extraction Peel helps prep skin for easier, more effective extractions and improved exfoliation. Hydralock HA Biocellulose Mask hydrates, soothes and replenishes the skin barrier for a smooth, supple appearance. Both Treatment Enhancers integrate into existing Hydrafacial treatment protocols, giving providers new ways to personalize the experience and create premium upgrades. LONG BEACH, Calif., Sept. 08, 2026 (GLOBE NEWSWIRE) -- SkinHealth Systems (Nasdaq: SKIN), home to Hydrafacial, today announced the launch of two new Hydrafacial Treatment Enhancers: HydraGlow Pre-Extraction Peel and Hydralock HA Biocellulose Mask. Designed to integrate seamlessly into existing Hydrafacial treatment protocols, the new Treatment Enhancers give providers additional tools to customize treatments based on individual skin needs and deliver a more elevated, personalized experience. Two Treatment Enhancers Designed to Optimize the Hydrafacial Treatment Experience HydraGlow Pre-Extraction Peel is an exfoliating peel enhancer applied before the Hydrafacial treatment peel and extraction step. It helps loosen dirt, oil, and pore-clogging impurities for easier, more effective extractions, while a blend of exfoliating acids, glycerin, and hyaluronic acid complex helps refine texture and maintain skin hydration. Hydralock HA Biocellulose Mask is designed to hydrate, soothe and replenish the skin barrier, helping restore moisture and reveal a visibly plumper, smoother appearance. Its immediate cooling sensation makes it ideal for use with LED light therapy. “Personalization has always been central to the Hydrafacial treatment, and we see an opportunity to take that even further by giving providers more ways to tailor each treatment to their individual client,” said Whitney Cypes, Chief Brand and Clinical Innovation Officer of SkinHealth Systems. “With Treatment Enhancers, we’re expanding what’s possible within the Hydrafacial experience while continuing to innovate around the results consumers want and the tools providers need to deliver them.” HydraGlow Pre-Extraction Peel Demonstrates Exfoliation and Extraction Benefits In a split-face study following one Hydrafacial treatment across all Fitzpatrick skin types, HydraGlow Pre-Extraction Peel demonstrated measurable treatment benefits: Helped improve skin exfoliation by nearly two times.1 Enhanced extractions, with providers reporting easier, more effective extractions without leaving skin looking dry or stripped. 1 Supported overall skin health, with 100% of participants reporting healthier, more radiant-looking skin and clearer-looking pores; all said they would request it again.1 Hydralock HA Biocellulose Mask Builds on Consumer Demand for Treatment Personalization The new mask also builds on consumer demand for personalized Hydrafacial treatment experiences. According to a 2025 Ipsos study, 54% of Hydrafacial consumers have had their treatment personalized with a facial mask at an aesthetic practice2, highlighting an established role for customization within the Hydrafacial experience. “I love the Hydralock HA Biocellulose Mask. It feels amazing upon application, with an immediate cooling and soothing sensation, and the glow is unreal,” said Jamie Villarreal, CLHRP, Viva Day + Med Spa. “The HydraGlow Pre-Extraction Peel is a true game changer. I see a noticeable difference in my gunkie jars, and extractions are more efficient with the handpiece and much easier when performed manually. It is the best extraction prep solution I have ever used and a valuable addition to an already amazing treatment.” Treatment Enhancers Designed To Work Together or Independently Providers can incorporate either Treatment Enhancer individually or combine both to create a premium, multi-benefit Hydrafacial treatment experience that pairs enhanced exfoliation and pore refinement with cooling, replenishing hydration and a radiant-looking glow. HydraGlow Pre-Extraction Peel and Hydralock HA Biocellulose Mask are available now to Hydrafacial providers in the U.S. For more information or to find a Hydrafacial provider near you, visit hydrafacial.com. References 1DATA ON FILE. Signature Hydrafacial treatment conducted with GlySal Peel 7.5%. Split-face with one side of face receiving a Signature Hydrafacial Treatment and the other received the Signature Hydrafacial Treatment plus the HydraGlow Pre-Extraction Peel. N = 23. Individual results may vary. 2Ipsos Study 2025. Aesthetic consumers that have received a Hydrafacial treatment were asked, “Has your Hydrafacial treatment experience ever included any of the following customizations?” N=178 About SkinHealth SystemsSkinHealth Systems (NASDAQ: SKIN) is a global medical aesthetics company delivering an integrated ecosystem of clinically proven solutions designed to help consumers achieve superior skin health and support the success of providers. Anchored by Hydrafacial™, a leading and widely requested professional skincare treatment, and supported by complementary offerings including SkinStylus™ microneedling and HydraScalp™ with Keravive™, SkinHealth Systems combines advanced device technology, proprietary consumables, and clinical validation to deliver trusted treatment experiences through an omnichannel network of providers worldwide. Learn more at skinhealthsystems.com or follow us on LinkedIn. Local providers can be found at hydrafacial.com/find-a-hydrafacialist. Forward-Looking StatementsCertain 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 and within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding SkinHealth Systems Inc.’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 SkinHealth Systems Inc.’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: SkinHealth Systems Inc.’s ability to manage growth; SkinHealth Systems Inc.’s ability to execute its business plan; providers’ and consumers’ perception of the Treatment Enhancers; the success of the Treatment Enhancers’ launch and how the products are received amongst providers and consumers; potential litigation involving SkinHealth Systems Inc.; changes in applicable laws or regulations; the possibility that SkinHealth Systems Inc. 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, 2026 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. Those risks continue to be relevant to the Company's performance and financial condition. Moreover, the Company operates in a very competitive and rapidly changing environment. New risk factors emerge from time-to-time and it is not possible for management to predict all such risk factors, nor can it assess the impact of all such risk factors on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. SkinHealth Systems Inc. expressly disclaims any responsibility to update forward-looking statements, whether as a result of new information, future events or otherwise. Contacts: Press: [email protected]: [email protected] Source: SkinHealth Systems Photos accompanying this announcement are available at: https://www.globenewswire.com/NewsRoom/AttachmentNg/d98f951f-3ec8-4c9f-b33b-5bf6571720cchttps://www.globenewswire.com/NewsRoom/AttachmentNg/8db160c9-8cbc-42b9-affc-c14fe2f0de35https://www.globenewswire.com/NewsRoom/AttachmentNg/586380b6-b46d-4428-bf47-bd7bee0208e2

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Revenue performance was pressured by a cautious capital investment environment among providers, leading to an 18.4% decline in delivery systems revenue. Profitability significantly exceeded expectations due to disciplined cost management, favorable mix shift toward consumables, and lower inventory-related charges. Management attributes the consumable revenue softness to increased consumer choice and aesthetic spending being distributed across a broader range of non-invasive treatments. The company is shifting from planning to execution on its three-pillar strategy: strengthening the core franchise, increasing system utilization, and expanding into adjacent categories. A new device rental program was launched in the U.S. to lower upfront capital barriers and expand the addressable market for the HydraFacial platform. Strategic investments are being prioritized in clinically validated boosters and treatment enhancements to drive higher productivity from the existing installed base. The transition of Australia and New Zealand to a distributor model completes the shift to an all-distributor model for the APAC region to better serve the market. The revenue outlook was lowered to $280 million to $290 million to reflect continued pressure on year-over-year device sales. Adjusted EBITDA guidance was raised to $39 million to $46 million, though second-half results are expected to decline relative to the first half due to a $4 million step-up in R&D and commercial investments. Management plans to launch a new clinically validated booster globally in April 2027, with a cadence of two booster launches planned for that year. The next-generation HydraFacial platform remains a multi-year development program with a targeted launch in 2028 to drive system upgrades. A new, non-HydraFacial device is scheduled for introduction to the U.S. market in 2027 to diversify the portfolio into adjacent skin health categories. The company received a Nasdaq notice regarding its minimum bid price and is seeking shareholder approval for a reverse stock split on September 22 to regain compliance. Management intends to retire the $103 million October 2026 convertible maturity using cash on hand, expressing confidence in their liquidity position. EMEA performance was impacted by personnel shortages and shifting distributor order timing, though improvements are expected in the second half of the year. The transition to a distributor model in Australia and New Zealand resulted in a one-time revenue reduction of approximately $1 million for 2026. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that while aesthetic spending remains healthy, consumers are spreading their budget across more options, requiring providers to work harder for engagement. The company is responding by launching clinically validated boosters and relaunching HydraScalp to increase the economic return of each system visit. The program is designed to remove the primary barrier of upfront capital commitment for qualified U.S. providers. Management expects the program to be incremental to the installed base rather than cannibalistic, as it targets providers who previously could not qualify for traditional financing. Margins are expected to step down to the 68% range in the second half due to an increased mix of equipment sales driven by the rental program. The rental program utilizes Syndeo devices, which carry a higher cost of goods compared to other legacy systems in the portfolio. The expansion strategy leverages the existing 36.5 thousand system installed base as an automatic channel for new technology adoption. Management confirmed the 2027 device will not be a HydraFacial unit but a new technology aimed at broadening the solutions offered to their provider network.

Interested in The Beauty Health Company? Here are five stocks we like better. Second-quarter results were mixed: Revenue fell 7.8% year over year to $72.1 million, pressured by weaker equipment and consumables sales, while adjusted EBITDA rose to $17 million and exceeded guidance due to stronger margins and expense discipline. Beauty Health lowered its revenue outlook to $280 million-$290 million for the year because of continued device-sales pressure, but raised adjusted EBITDA guidance to $39 million-$46 million. The company also launched a U.S. rental program to reduce providers’ upfront equipment costs and expand its installed base. Financial and operational risks remain: Management plans to repay an approximately $103 million convertible maturity in October 2026 using cash, while Nasdaq notified the company of its minimum-bid-price deficiency and shareholders will vote on a proposed reverse stock split on Sept. 22. 2 Stocks to Benefit from the Aging Population Beauty Health (NASDAQ:SKIN) reported second-quarter revenue at the low end of its guidance range as cautious capital spending by providers continued to weigh on equipment sales, while stronger gross margins and expense discipline lifted adjusted EBITDA above expectations. SkinHealth Systems Inc., which markets HydraFacial and other professional skin-health products, posted second-quarter net sales of $72.1 million, down 7.8% from the prior-year period. Adjusted EBITDA rose to $17 million from $13.9 million a year earlier, exceeding the company’s guidance range of $11 million to $13 million. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth 2 Beauty Stocks Beaten By the Ugly Stick But Ready to Rally “Overall, this was a mixed quarter,” Chief Executive Officer Pedro Malha said. “Revenue came in at approximately $72 million, at a lower end of our guidance range.” He said equipment sales remained the company’s largest headwind as providers maintained a cautious approach to capital investments, particularly in international markets. Delivery Systems revenue fell 18.4% year over year to $18.3 million, with 770 systems placed during the quarter, compared with 957 systems in the prior-year period. Consumables revenue declined 3.5% to $53.9 million, primarily reflecting lower treatment utilization and a more difficult comparison with the prior year, which included booster launches. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High The Beauty Health Company Stock is a Re-Opening Play Still, the company’s active installed base grew 3.8% year over year to 36,516 systems globally. Malha said the installed base remains a key source of recurring revenue, with consumables accounting for roughly 75% of company revenue. Management said consumers continue to spend on skin health and noninvasive treatments, but their spending is now spread across a broader range of aesthetic offerings. Malha said providers are also facing more pressure to keep patients engaged and returning for treatments. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling “We don’t look at this as simply as a demand issue when it comes to consumer behavior,” Malha said during the question-and-answer session. “We see it actually as an opportunity to increase the productivity of every HydraFacial system that we have in the field.” The company is seeking to improve utilization through clinically validated boosters, treatment enhancements, provider education and protocols. A new clinically validated booster is expected to launch globally in the fourth quarter, followed by two additional booster launches planned for 2027, according to Malha. Sales declined across all reported regions. Americas revenue totaled $49.9 million, down 4.2%, as consumables revenue decreased 1.4% and equipment sales faced broader capital-equipment pressure. EMEA revenue fell 19% to $14.9 million, reflecting softness in both equipment and consumables. Chief Financial Officer Mike Monahan said EMEA results were also affected by personnel shortages and changes in the timing of distributor orders, which the company expects to improve during the second half of the year. APAC revenue declined 5.4% to $7.3 million. During the quarter, the company transitioned Australia and New Zealand from a direct model back to a distributor model, leaving the entire APAC region served through distributors. Monahan said the transition is expected to reduce 2026 revenue by approximately $1 million. Profitability improved significantly. GAAP gross margin expanded to 68.4% from 62.8% a year earlier, while adjusted gross margin increased 590 basis points to 71.8%. Monahan attributed the gain to lower equipment costs following the prior-year sell-through of trade-in units, reduced inventory-related charges, operating efficiencies and a favorable mix toward consumables. GAAP operating expenses fell to $45.8 million from $51.8 million, driven by lower personnel costs and improved efficiencies. The company generated GAAP income from operations of $3.6 million, compared with an operating loss of $2.7 million a year ago. Net loss was $2.7 million, versus net income of $19.7 million in the prior-year quarter, which included an $18.1 million gain related to exchanges and repurchases of 2026 notes. Earlier in August, the company introduced a U.S. rental program for HydraFacial devices, intended to reduce providers’ upfront capital commitment. Under the program, a third-party financing partner owns the devices and administers the rentals, while SkinHealth books the sales revenue upfront upon shipment. Malha said the company does not expect the program to cannibalize existing equipment sales. Instead, it is intended to reach qualified providers that have faced financing barriers and help expand the installed base. Monahan said providers purchasing equipment outright are generally told they can achieve payback in roughly nine months, depending on treatment volume. The company continues to target a 2028 launch for its next-generation HydraFacial platform. Malha said the multiyear program is intended to improve clinical outcomes, treatment experience and provider workflow while creating reasons for current customers to upgrade and new providers to adopt the platform. SkinHealth also cited progress in adjacent categories. The company recently received FDA clearance for SkinStylus microneedling to improve the appearance of periorbital wrinkles. Monahan said SkinStylus revenue, while still small, grew nearly 50% year over year during the second quarter after the sales force increased its focus on selling into the existing provider base. HydraScalp, the relaunch of the Keravive offering for scalp and hair wellness, has also gained traction since its June relaunch, according to Malha. The company further said it remains on track to introduce a separate new device in the U.S. market in 2027, though management did not disclose the technology or category. SkinHealth lowered its full-year revenue outlook to a range of $280 million to $290 million by reducing the top end of its previous guidance, citing continued pressure on year-over-year device sales. However, it raised its adjusted EBITDA outlook to $39 million to $46 million, from prior guidance of $35 million to $45 million. For the third quarter, the company expects revenue of $65 million to $70 million and adjusted EBITDA of $5 million to $7 million. Management expects second-half EBITDA to decline from first-half levels as research and development and commercial investments increase by approximately $4 million, while a greater mix of equipment sales may pressure gross margins. The company ended the quarter with approximately $206 million in cash equivalents and restricted cash, about $1.5 million above its first-quarter ending position. Its October 2026 convertible maturity totals approximately $103 million. Monahan said the company’s current plan is to repay that maturity with cash on hand at the end of the third quarter and that its forecast assumes year-end cash of roughly $100 million. Separately, Monahan said the company received notice from Nasdaq after its shares traded below the exchange’s $1 minimum bid-price requirement for 30 days. Stockholders will be asked to approve a reverse stock split at a special meeting scheduled for Sept. 22. Beauty Health Company (NASDAQ: SKIN) is a U.S.-based consumer wellness and beauty enterprise that integrates device-based and product-based offerings across skin, body and hair wellness categories. The company operates a portfolio of established brands that blend professional and at-home solutions, focusing on innovative formulations and technologies to address a range of beauty and self-care needs. Through its proprietary e-commerce platforms and strategic retail partnerships, Beauty Health seeks to deliver premium experiences and tangible results to a global customer base. Beauty Health's brand portfolio includes Sol de Janeiro, known for its award-winning Brazilian Bum Bum Cream body care collection; Elemis, a U.K.-originated professional skin care line distributed in spas and skincare clinics; NuFACE and Dermaflash, two at-home beauty device brands specializing in microcurrent facial toning and gentle exfoliation respectively; and Nutrafol, a legal-strength hair wellness supplement clinically designed to support hair growth. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Beauty Health Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Adjusted EBITDA of $17 million significantly exceeded the guidance range of $11 million to $13 million, driven by strong gross margins and disciplined cost management. Adjusted gross margin expanded by 590 basis points year-over-year to 71.8%, reflecting lower equipment costs, improved operational efficiency, and a favorable mix shift toward consumables. The active installed base grew 3.8% year-over-year to 36,516 systems, providing a solid foundation for recurring consumable revenue. The company launched a new device rental program in the US to lower the upfront capital barrier for providers, which is expected to expand the addressable market and support installed base growth. The SkinStylist microneedling device, part of the adjacent category strategy, saw revenue grow nearly 50% year-over-year in Q2, demonstrating successful execution in expanding into new categories. The company raised its full-year adjusted EBITDA guidance to $39 million to $46 million, reflecting stronger-than-expected profitability in the first half of the year. Total net sales of $72.1 million came in at the lower end of the guidance range, down 7.8% year-over-year, with continued pressure on equipment sales due to cautious provider capital investments. Consumables revenue declined 3.5% year-over-year, driven by lower treatment utilization and a tough comparison from prior-year booster launches, indicating weaker-than-expected treatment activity. International markets were particularly challenging, with EMEA net sales down 19% year-over-year due to personnel shortages and timing shifts in distributor orders. The company lowered its full-year revenue outlook to $280 million to $290 million, reflecting continued pressure on year-over-year device sales. The company received a NASDAQ notice for trading below the minimum bid price requirement and will need stockholder approval for a reverse stock split to maintain its listing. Second-half adjusted EBITDA is projected to decline relative to the first half due to increased R&D and commercial investments, lower expected gross margins from a higher mix of equipment sales, and normalized operating expenses. Warning! GuruFocus has detected 4 Warning Signs with SKIN. Is SKIN fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide more detail on the factors driving the significant year-over-year improvement in adjusted gross margin, and how should we expect margins to trend in the second half of the year? Also, why is the adjusted EBITDA guidance stepping down in the back half despite strong cost management?A: Mike Monahan (CFO): The first-half adjusted gross margin was 72%, but the midpoint of our guidance assumes a step down to roughly 68% in the back half. This is driven by two key factors: an expected increase in the mix of equipment revenue (which carries lower margins than consumables) and a higher percentage of Sindeo devices in the equipment mix, which have a higher cost of goods. For adjusted EBITDA, the first half was a little over $25 million, but the midpoint of the back-half guidance is less than $17 million. This decline is due to the lower gross margin, the timing of R&D and commercial marketing expenses that are more back-end weighted this year, and a return to more normalized levels of general operating expenses like bad debt, which were unusually low in the first half. Q: Regarding the consumables decline relative to the growing active installed base, what is happening with utilization and inventory levels? Also, how will you manage the rental program to ensure it drives incremental growth rather than cannibalizing existing sales?A: Pedro Mala (CEO): Consumer demand for skin health remains healthy, but consumers now have more treatment options and are spreading their spending across a broader range of procedures. This means providers have to work harder to keep patients engaged, which we view as an execution opportunity to increase the productivity of every system in the field. We are investing in boosters, provider education, and protocols to drive more treatments per system. Regarding the rental program, it directly addresses the biggest barrier to adoption we've seen: the upfront capital commitment. By offering a more manageable payment structure through a third-party financing partner, we expect to expand the addressable market and bring new providers into the fold, rather than cannibalizing existing sales. Q: Can you elaborate on the consumer behavior driving the consumables decline? Are consumers extending time between treatments, or are they simply not trading up to add consumables?A: Pedro Mala (CEO): The category is healthy, and consumers are still spending on aesthetics, but they have more choices than ever before. Our focus is on positioning ourselves to take advantage of this willingness to spend. The investments in clinically validated boosters are designed to increase treatment frequency, the relaunch of HydroScalp creates additional recurring revenue from the same devices, and the focus on SkinStylist leverages our relationships into the fast-growing microneedling category. All of these initiatives target capturing a larger share of that healthy consumer spend. Q: What is the current competitive landscape, and has it intensified further?A: Pedro Mala (CEO): The market has become more competitive, with some competitors using pricing and other commercial incentives more aggressively. This is consistent with what we discussed last quarter. Our response is to focus on differentiating HydraFacial and SkinStylist by demonstrating the clinical outcomes and the economic value they bring to a provider's practice, rather than engaging in a price war. Q: Can you provide an update on the new Sindeo equipment, the payback period for providers, and how that influences pricing for the next-generation device launching in 2028?A: Pedro Mala (CEO) & Mike Monahan (CFO): The next-generation HydraFacial platform is a multiyear program targeting a 2028 launch. The objective is to deliver a meaningful step forward in clinical outcomes, treatment experience, and provider workflow, creating a compelling reason for upgrades and new adoptions. It's too early to discuss specific features or economics. Mike Monahan added that the typical payback period for providers is roughly nine months, depending on treatment volume. The more treatments a provider performs, the faster the payback. Q: When thinking about adjacent categories, how much of the opportunity comes from acquiring new customers versus increasing penetration within your existing provider base? Can you share more details on the new device coming in 2027?A: Pedro Mala (CEO): The biggest share of the opportunity will come from both, but our extensive installed base of over 36,000 providers is our most valuable asset. Any new product launch will primarily target this existing base as an automatic channel for growth. Regarding the new device for 2027, we are progressing on plan and the goal is to broaden the set of solutions we can offer to our provider network. We are not in a position to discuss the specifics of the technology yet, but we will share more as we get closer to the launch. Q: Can you provide more details on the booster planned for launch in the fourth quarter? Will it target a specific market segment, and what is the launch cadence for 2027?A: Pedro Mala (CEO): The Q4 launch is on track and will be a clinically validated booster, aligned with our new strategy of only launching boosters with strong clinical backing. We expect it to perform similarly to our previous successful booster, Hydrolock. For 2027, the plan is to launch two additional clinically backed boosters, as we are being diligent stewards of capital and will only launch products that can deliver proven clinical outcomes. Q: What was the impetus for the new rental program? Was it driven by requests from providers or competitive pressure?A: Pedro Mala (CEO): We conducted a strategic analysis of the market and identified that the ability to qualify for financing remains one of the major barriers for a large number of providers in the U.S. The team built a rental model that eases this barrier of entry, allowing more providers to operate a HydraFacial machine in their practice. It was a direct response to a clear market need we identified. Q: Given the improving neurotoxin market, do you expect the aesthetics capital equipment environment to improve with a lag?A: Pedro Mala (CEO): We continue to see aesthetics as a healthy and growing category, with consumers dedicating discretionary spending to it. The growth in categories like toxins is an opportunity for us. Our strategies are specifically designed to take advantage of this spend by making our devices and consumables more accessible and by increasing the value they provide to practices. Q: Can you discuss any early progress or examples on increasing the productivity of the HydraFacial installed base?A: Pedro Mala (CEO) & Mike Monahan (CFO): We are For the complete transcript of the earnings call, please refer to the full earnings call transcript.

LONG BEACH, Calif., Aug. 06, 2026 (GLOBE NEWSWIRE) -- SkinHealth Systems Inc. (NASDAQ: SKIN) (“SkinHealth Systems” or the "Company"), home to flagship brand Hydrafacial, today announced financial results for the second quarter ended June 30, 2026 (“Q2 2026”). "Our second quarter results reflect continued sales pressure, while adjusted EBITDA came in well above our guidance range as we improved gross margin and maintained disciplined operating expense management," said Pedro Malha, President and Chief Executive Officer of SkinHealth Systems. "Our strategic priorities remain clear. We are focused on strengthening the core Hydrafacial franchise, increasing the productivity of our installed base and expanding our portfolio with complementary technologies. Supported by our trusted brand, global provider network and recurring consumables business, we believe these priorities position SkinHealth Systems to deliver more sustainable and diversified long-term growth." Key Operational and Business Metrics __________________________(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. Second Quarter Financial Highlights Net sales were $72.1 million for the second quarter of 2026, a decrease of (7.8)%, compared to the prior year period ("Q2 2025"), due to lower delivery systems and consumables net sales. The Company placed 770 delivery systems during Q2 2026, compared to 957 during Q2 2025. Gross margin was 68.4% in Q2 2026, compared to 62.8% in Q2 2025. Adjusted gross margin was 71.8% in Q2 2026, compared to 65.9% in Q2 2025. The improvement in gross margin and adjusted gross margin was primarily due to higher product costs in the prior year related to trade-in Delivery Systems sell through and higher inventory-related charges in 2025. Operating expenses were $45.8 million in Q2 2026, compared to $51.8 million in Q2 2025. Adjusted operating expenses were $34.8 million in Q2 2026, compared to $37.6 million in Q2 2025. The improvement in operating expenses and adjusted operating expenses was primarily due to lower personnel-related expenses. Net loss was $(2.7) million in Q2 2026, compared to net income of $19.7 million in Q2 2025. The change compared to the prior year was primarily due to an $18.1 million net gain related to the exchange and repurchases of the 2026 Notes in Q2 2025. Adjusted EBITDA was $17.0 million in Q2 2026, compared to $13.9 million in Q2 2025. The improvement in adjusted EBITDA was primarily due to lower operational spend and higher gross margin, partially offset by lower net sales. Revised 2026 Financial Guidance __________________________(1) See "Non-GAAP Financial Measures" below. Revised 2026 financial guidance: Reflects continued pressure on sales and continued cost discipline. Presumes 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 __________________________(1) Amounts may not sum due to rounding.(2) During the second quarter of 2026, the Company transitioned sales in the Australia and New Zealand market to a distributor partner. During the second quarter of 2025, the Company transitioned sales in the China market to a distributor partner. As a result, the Company has discontinued direct sales to customers in Australia, New Zealand, and China. Conference Call SkinHealth Systems will host a conference call on Thursday, August 6, 2026, at 4:30 p.m. ET to review its second quarter 2026 financial results. The call may be accessed via live webcast through the Events & Presentations page on our Investor Relations website at www.skinhealthsystems.com. A recording of the call will become available on the site approximately three hours after its conclusion. 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, and share-based compensation expense and other long-term incentive compensation. Adjusted gross margin represents adjusted gross profit as a percentage of net sales. Adjusted operating expenses is calculated as total operating expenses excluding the effects of depreciation expense; amortization expense; share-based compensation expense and other long-term incentive compensation; litigation related costs; Go-to-Market restructuring; and severance, restructuring, and other. Adjusted EBITDA is calculated as net (loss) income excluding the effects of expense (benefit) for income taxes; depreciation expense; amortization expense; share-based compensation expense and other long-term incentive compensation; 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; 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 2026 adjusted EBITDA guidance to net (loss) income, 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 2026 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. __________________________(1) Amounts may not sum due to rounding. __________________________(1) Amounts may not sum due to rounding. __________________________(1) Amounts may not sum due to rounding. The following table reconciles gross profit to adjusted gross profit for the periods presented: __________________________(1) Amounts may not sum due to rounding.(2) Includes expense associated with long-term cash performance awards. The following table reconciles total operating expenses to adjusted operating expenses for the periods presented: __________________________(1) Amounts may not sum due to rounding.(2) Includes expense associated with long-term cash performance awards that can be settled in either cash or Common Stock.(3) Includes the proposed settlement in the Securities Class Action suit.(4) Includes costs associated with transition to a distributor model in the China and Australia and New Zealand markets. The following table reconciles net (loss) income to adjusted EBITDA for the periods presented: __________________________(1) Amounts may not sum due to rounding.(2) Includes expense associated with long-term cash performance awards that can be settled in either cash or Common Stock.(3) Includes the proposed settlement in the Securities Class Action suit.(4) Includes costs associated with transition to a distributor model in the China and Australia and New Zealand markets. About SkinHealth Systems SkinHealth Systems (NASDAQ: SKIN) is a global medical aesthetics company delivering an integrated ecosystem of clinically proven solutions designed to help consumers achieve superior skin health and support the success of providers. Anchored by Hydrafacial™, a leading and widely requested professional skincare treatment, and supported by complementary offerings including SkinStylus™ microneedling and HydraScalp™ with Keravive™, SkinHealth Systems combines advanced device technology, proprietary consumables, and clinical validation to deliver trusted treatment experiences through an omnichannel network of providers worldwide. Learn more at skinhealthsystems.com or follow us on LinkedIn. Local providers can be found at hydrafacial.com/find-a-hydrafacialist. 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 and within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding SkinHealth Systems Inc.’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 SkinHealth Systems Inc.’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: SkinHealth Systems Inc.’s ability to manage growth; SkinHealth Systems Inc.’s ability to execute its business plan; potential negative reactions or outcomes related to the Company’s name change in general and focused shift in operations; potential litigation involving SkinHealth Systems Inc.; changes in applicable laws or regulations; the possibility that SkinHealth Systems Inc. may be adversely affected by other economic, business, and/or competitive factors; risks relating to unfavorable macroeconomic and credit conditions and longer equipment sales cycles; the timing of distributor orders and distributor-model transitions, including in Australia and New Zealand; tariffs, trade restrictions, and foreign currency fluctuations; the Company's debt service obligations and the October 2026 maturity of its 1.25% Convertible Senior Notes; the Company's continued listing on The Nasdaq Capital Market, including the minimum bid price deficiency and the proposed reverse stock split; and the proposed settlement of the Company's securities class action and related cash obligations; 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, 2025 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. Those risks continue to be relevant to the Company's performance and financial condition. Moreover, the Company operates in a very competitive and rapidly changing environment. New risk factors emerge from time-to-time and it is not possible for management to predict all such risk factors, nor can it assess the impact of all such risk factors on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. SkinHealth Systems Inc. expressly disclaims any responsibility to update forward-looking statements, whether as a result of new information, future events or otherwise. ContactsPress: [email protected] Investors: [email protected]

SkinHealth Systems Inc. (SKIN) reported $72.1 million in revenue for the quarter ended June 2026, representing a year-over-year decline of 7.8%. EPS of -$0.02 for the same period compares to $0.03 a year ago. The reported revenue represents a surprise of -1.96% over the Zacks Consensus Estimate of $73.54 million. With the consensus EPS estimate being -$0.04, the EPS surprise was +50%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how SkinHealth Systems Inc. performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Geographic Revenue- Americas: $49.9 million compared to the $51.05 million average estimate based on two analysts. The reported number represents a change of -4% year over year. Geographic Revenue- EMEA: $14.9 million compared to the $17.91 million average estimate based on two analysts. The reported number represents a change of -19% year over year. Geographic Revenue- Asia Pacific (APAC): $7.3 million compared to the $6.78 million average estimate based on two analysts. The reported number represents a change of -5.2% year over year. Delivery Systems Net Sales: $18.3 million compared to the $19.72 million average estimate based on two analysts. The reported number represents a change of -18.3% year over year. Consumables Net Sales: $53.9 million compared to the $54.06 million average estimate based on two analysts. The reported number represents a change of -3.4% year over year. View all Key Company Metrics for SkinHealth Systems Inc. here>>> Shares of SkinHealth Systems Inc. have returned -32.8% over the past month versus the Zacks S&P 500 composite's +3.3% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SkinHealth Systems Inc. (SKIN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Wall Street expects a year-over-year decline in earnings on lower revenues when SkinHealth Systems Inc. (SKIN) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 6. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This company is expected to post quarterly loss of $0.04 per share in its upcoming report, which represents a year-over-year change of -233.3%. Revenues are expected to be $73.54 million, down 6% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 16.67% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For SkinHealth Systems Inc., the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +71.43%. On the other hand, the stock currently carries a Zacks Rank of #4. So, this combination makes it difficult to conclusively predict that SkinHealth Systems Inc. will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that SkinHealth Systems Inc. would post a loss of$0.09 per share when it actually produced a loss of -$0.05, delivering a surprise of +44.44%. Over the last four quarters, the company has beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. SkinHealth Systems Inc. doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SkinHealth Systems Inc. (SKIN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Thursday, May 7, 2026 at 4:30 p.m. ET President and CEO — Pedro Malha Chief Financial Officer — Michael Monahan Pedro Malha: Thank you, Norberto. So as you know, 2 weeks ago, we rebranded SkinHealth to Skin Health Systems, and this was not simply a name change. It reflects a deliberate shift in how we operate as a company and that we are building a company with a clinical rigor, the commercial discipline and the operational mindset of a leading medical device company. Hydrafacial remains at the center of that strategy as one of the most recognized specialty aesthetic treatments globally. And around it, we are building a broader platform that includes skin stylist, our microneedling and nano channeling technology and the up-and-coming relaunch of our Keravive for scalp Health. So the objective is straightforward. It's to build a clinically differentiated platform that improves provider economic, strengthens utilization and drives durable recurring revenue growth. I also want to take the time to acknowledge the addition of 3 new independent directors to our Board: Kenneth Tripp; Dr. Sachin Shridharani; and Scott Beattie. Together, they bring deep experience across medtech, aesthetics and global consumer brands. And we believe we now have the right Board to support the company's next phase. So now turning to the quarter. First quarter net sales were $64.9 million, so within our guidance range, while adjusted EBITDA was $8.5 million, up 17% year-over-year and well above the high end of our guidance range. So the quarter clearly demonstrated 2 things: first, that the top line growth has not yet returned; but second, that the operational foundation of the business continues to strengthen. So let's go over first, our systems revenue. Here, device placements came below our expectations during the quarter. Several factors come into play here. On the macro side, the market has gone through rapid expansion, follow consolidation and some of the tailwinds that drove growth in prior years are not as strong today. So as a result, capital equipment demand continues to be constrained by tighter credit conditions and longer purchasing cycles. Also, competition has intensified and providers have more choices than they did 2 years ago. So all that I just mentioned are structural headwinds and not one quarter occurrences. But the macro conditions are only part of the story. We see opportunities to improve our commercial execution, and we are taking the steps to strengthen our sales discipline to sharpen the focus across the organization and to improve how we convert the opportunity in front of us. So given the strength of the Hydrafacial brand and our current market position, we believe there is meaningful room to perform better, and this is where the focus is. One relevant fact is that we continue to see the softness in device placements in Q2. So we are not expecting a near-term inflection of this trend because the commercial fixes that we are implementing, more structural sales processes, tighter pipeline management, better account prioritization and an improved commercial leadership, all will take time to fully translate into results. Therefore, we are revising our full year revenue outlook to a range of $280 million to $295 million, which represents a reduction of approximately 2.5% or roughly $7.5 million at the midpoint. This revision reflects a more cautious near-term view on capital equipment demand as well as the time required for the commercial initiatives now underway to translate into improved trends. Also, as part of our efforts, we recently made a key leadership change within the commercial organization, and I'm now taking on a more direct role in the global sales organization, particularly around how we sell and how we improve conversion across our pipeline. So as importantly, despite the revised revenue outlook, we are maintaining our adjusted EBITDA guidance range of $35 million to $45 million, which reflects the underlying margin strength, the operational discipline and the resilience of our business model. Moving on now to our consumables business. Revenues for the quarter was $46.4 million, down 6.1% year-over-year, but approximately 2/3 of this drop was related to a transition of China to a distributor model last year, which continues to impact the year-over-year comparisons. So outside of China, consumables performance was impacted primarily by the timing-related variability across certain regions, which we expect that to normalize. Moving into our installed base. Despite the placement softness, our active installed base grew this quarter to 36,400 devices, up 4% year-over-year. More encouragingly, device churn in Q1 declined 40% year-over-year, and that is meaningful, and a meaningful earnings signal that our provider retention and reactivation programs are working. To close up our quarterly financial results, on profitability, the quarter demonstrated again the strength of our operating model. Adjusted EBITDA was $8.5 million, up 17% year-over-year and well above the high end of our guidance range, while adjusted gross margin expanded to 72.2%. Importantly, this performance was achieved while continuing to invest in R&D, in provider education, in commercial capabilities and in our innovation pipeline. Now let's step back and look at the longer term. Innovation remains a central focus as we build the next phase of growth for the business. We are advancing our innovation pipeline across 3 key priorities: boosters; strategic partnerships; and the next-generation Hydrafacial platform. First, on boosters. Here, we are restructuring our booster portfolio around clearly defined clinical use cases, differentiated outcomes and tier pricing designed to improve both provider economics and utilization. Later this quarter, we will relaunch Keravive, our scalp health treatment, with updated marketing, enhanced protocols and improved integration into the Hydrafacial platform. Given the growing consumer focus on scalp health, including GLP-1-related hair loss concerns, we believe timing is favorable for us. And in the fourth quarter, we also expect to introduce a new booster backed by strong clinical data. Second, we are in the late stages of diligence, exploring strategic partnerships that will bring complementary technologies into the SkinHealth Systems portfolio. These solutions will expand treatment options for providers while at the same time, strengthens the broader Hydrafacial ecosystem. And third, we continue to advance the development of our next-generation Hydrafacial device targeting a 2028 launch. Our objective here with the next generation of Hydrafacial is to deliver a meaningful advancement in clinical outcomes and treatment experience while creating a compelling upgrading opportunity for our installed base of more than 36,000 active systems. We are also making sure we are applying the lessons learned from prior launches, particularly around quality standards, partner selections and field readiness as we continue -- and we will continue to update you on the development progress. With that, I will turn it over to Mike to walk you through the financials in more detail. Mike? Michael Monahan: Thank you, Pedro. The first quarter demonstrated that the operational improvements of the past year are durable. Margins are holding, adjusted EBITDA is outperforming and the business is generating the financial flexibility to fund the investments required to drive future growth. For the first quarter, total net sales were $64.9 million, down 6.7% versus the prior year and in line with our guidance range of $63 million to $68 million. Consumables revenue was $46.4 million, down 6.1% versus the prior year. By region, Americas was down 1.6%, primarily due to the outperformance of our Q4 promotions pulling demand forward. EMEA was down 5.6%, driven by distributor order timing and APAC was down 29.9%, as Pedro described, attributable to China's distributor transition. We believe the Americas and EMEA declines are timing related, and we expect them to normalize. Delivery Systems revenue was $18.5 million, down 8.3% versus the prior year, with 746 systems placed compared to 862 in Q1 2025. Americas was down 8.5%. EMEA was down 13.6%, consistent with the broader capital equipment pressure we have discussed. APAC was up 6.8%, supported by increased device orders versus the prior year from our distributor partner, a different dynamic than consumables, where the transition impact was concentrated. Our active installed base grew to 36,400 systems globally, up 4% year-over-year. Adjusted gross margin was 72.2% versus 71.9% in the prior year, relatively flat despite lower revenue. GAAP gross margin was 68.5% compared to 69.8% in the prior year, with the decline primarily driven by higher amortization expense. GAAP operating expenses totaled $46.2 million in Q1 2026 compared to $60.6 million in the prior year. Selling and marketing was $23.2 million versus $26 million, reflecting disciplined spending, while continuing to invest in provider education and training. R&D was $1.1 million, up slightly, reflecting early-stage investment in the next-generation device and booster pipeline. G&A was $21.9 million, down significantly from $33.6 million in Q1 2025, driven by lower headcount-related costs, reduced legal fees and lower depreciation and amortization. Adjusted EBITDA was $8.5 million, representing a margin of 13.1% and an improvement of 17% versus the prior year, well above the top end of our guidance range of $3.5 million to $5.5 million. This was achieved while continuing to reinvest in R&D, sales force training and tools, provider education and marketing. Net loss for the quarter improved to $6.6 million compared to a net loss of $10.1 million in the prior year. We ended the quarter with $204.4 million in cash, cash equivalents and restricted cash. Our October 2026 debt maturity totals approximately $103 million. Based on our current cash position, our Q2 and second half cash generation trajectory, we are confident we can address this maturity. We are revising our full year revenue outlook to $280 million to $295 million from our prior range of $285 million to $305 million. The primary drivers are continued softness in capital equipment demand and commercial execution improvements that will take time to be fully reflected in revenue. We are maintaining our adjusted EBITDA guidance of $35 million to $45 million as the operational discipline and margin strength of the business continues to offset top line pressure. For Q2, we expect revenue of $72 million to $77 million and adjusted EBITDA of $11 million to $13 million. I will now turn the call back to Pedro. Pedro Malha: Thanks, Mike. So to close, while top line performance remains below where we wanted it to be, the underlying foundation of our business remains strong. We have a growing installed base of more than 36,000 systems, a highly recurring consumables model, expanding margins and one of the leading brands in aesthetics. So our focus now is execution, improving commercial conversion, increasing utilization across the installed base and continue to invest in the innovation pipeline that we believe will support sustainable, profitable, long-term growth. We understand where the opportunities are, and we are taking decisive actions. And so we remain confident in the long-term strength and potential of our platform. With that, I will turn the call back to the operator for questions. Thank you. Operator: [Operator Instructions] We will now take our first question, and this comes from Oliver Chen from TD Cowen. Oliver Chen: Pedro, regarding your comments on the nature of competition and also the role you're taking more closely with the sales organization, what are you seeing there in terms of what's within your control? And also the outlook still could be pretty hazy with the interest rates as well as a pressured middle consumer. So just love your thoughts on innovation and where you think the company is with respect to what inning you're in on the devices side relative to consumables and the work you have ahead? And then, Mike, as we think about that October maturity, what are the puts and takes on working capital and CapEx to give us more comfort in terms of achieving that obligation as well as generally when we're modeling free cash flow this year, what levers might you have in terms of protecting your free cash flow if there's lack of upside or downside risk to your guidance? Pedro Malha: Thanks, Oliver. So I'll start addressing the competition question, and then I'll touch on the innovation agenda that we're driving. And then I'll just close out talking a little bit about the commercial organizational changes that we have done. So in terms of the competition, it's true, the competition continues to increase. And this is very particularly around the lower end of the market. We are seeing some pressure from lower cost alternatives. Secondary market devices are coming in and a broader set of aesthetic treatments, right, because basically, we're all competing for the same treatment room time. The secondary market is particularly relevant in this current environment because among the smaller providers that are now facing tighter financial conditions, these providers are looking for lower upfront capital commitments. So that's relevant there. Our overall strategy is not to compete purely on price because we know for a fact that providers ultimately optimize for their patients' outcomes and they optimize for the long-term return on their treatment rooms. So we believe that, that exactly plays to the strength of our company, to the strength of Hydrafacial platform and ultimately, will come up stronger as we see the market stabilizing. In terms of innovation, definitely very, very over-indexed in our innovation agenda. Innovation needs to do 4 things for us. It needs to improve clinical outcomes. It needs to strengthen the economics of providers. It needs to obviously fit naturally into the treatment room where our devices of Hydrafacial and skin stylists already reside, and it needs to be accretive to margin. So if it does not meet those, we are not pursuing it. And as I mentioned in my opening remarks, we are putting the right capital behind the development of the next-generation Hydrafacial, and we are putting the right capital and the teams behind our next generation of boosters, which I mean we are overhauling the whole strategy. In terms of the commercial organization, I come from organizations where I had direct overview of the regions. And so with this change that we did, that gives me the possibility to have a direct hand and management of the U.S. and all international business and that will allow me, most importantly, to be directly involved with these regions, with the way we sell closer to metrics. And this is an environment that I'm very comfortable with and coming from all the experiences and positions that I had in the past. And that's the reason why the change was made. Mike, do you want to address the other questions? Michael Monahan: Sure. Thanks, Oliver. The midpoint of our guidance assumes we have modest free cash flow generation in the last 3 quarters of the year. Overall CapEx, I'm expecting $8 million to $10 million for the year of CapEx. We spent $1.6 million, $1.7 million in the first quarter. So as you look at kind of overall, we expect free cash flow, as I said, to be positive after we service the debt for the last 3 quarters. Working capital, I expect to not be a significant drain. Actually, we're forecasting it to be relatively flat year-over-year. It was a use of cash in Q1, but that's largely due to the timing of payables. So my expectation is that, that normalizes by the time we get to the end of the year and specifically by the time we get to the maturity. Operator: And the next question comes from Allen Gong from JPMorgan. K. Gong: Just a quick one on the guide and the cadence that you expect to see throughout the balance of the year. I think previously, we have been hoping that there would be a return to modest growth in the back half of the year off of some easing comps and also some continued stabilization. But is the right expectation now that we probably won't be getting to positive growth in the back half of the year? Or do you think that's something that you can still achieve, say, like in fourth quarter? Pedro Malha: So Allen, let me just refresh the numbers and the change on the guide that we just communicated. So definitely, the Q2, it's not coming as expected. As I just spoke about, we revised our top line guidance to reflect the current market conditions and the execution that is underway across our business. So we are basically guiding the revenue to a range of $280 million to $295 million. But also very strongly, we are maintaining the adjusted EBITDA guidance, right, that we had before. The way we are looking at the quarter -- the current quarter, at the midpoint of the guide, the quarter is sitting at $74.5 million, which basically translates this into having a quarter that will decrease 4.7% year-over-year. And that is largely driven by, again, the lower device sales trends that we're seeing across the board, while consumables in the U.S. and the rest of the world, excluding the APAC, are expecting to be flat. In terms of how do we play it out for the remaining of the year, the expectation is that we are still seeing 2026, and that has not changed, as an execution year and as a stabilization year. And the key drivers of our performance and the way we're going to be showing up the year is by improving the device conversion and as I spoke in the beginning, by improving utilization across the installed base and also improving the booster attachment rates. So the way we are seeing the year is that in the first half of this year, we expect to see the pressure in the device placements and utilization trends to continue. But as we move through the second half, we are expecting a gradual and a sequential improvement as our commercial initiatives provide more results and start taking traction. So it's important that -- to say that if we execute well against all these initiatives, against all these priorities, we believe that the model will begin to compound, utilization will begin to improve and the recurring revenue base naturally will become more productive. That is why we believe the business is positioned to return to more consistent growth in 2027 and beyond. But based on the current trends we are seeing and the expected timing of the initiatives that are underway, although we think that growth will come in 2027, the cadence of that recovery within the year will absolutely depend on how quickly the device business stabilizes and on the timing of any impact of some of the catalysts that I just mentioned, which are the new booster launches and the strategic partnerships take into effect. Operator: And the next question comes from Olivia Tong from Raymond James. Olivia Tong Cheang: Pedro, what gets you to the upper end versus the lower end of your ranges on sales and EBITDA? And in your view, is the shortfall more in just devices or consumables? It sounds like it's devices, but just kind of curious how you think about sort of consumables and the demand there? And then how much of this is a function of your execution versus the volatility in terms of the external environment? Pedro Malha: Sure. So focusing on consumers. Consumables obviously remain very core to our model. And if you exclude the impact of China and the shipment timing that we went through, the business remains actually relatively stable. The larger opportunity that we know for a fact exists is around utilization, which we still believe remains below its potential. The market -- we feel that the market is still there. The consumer remains engaged, although we have seen in the past years the spending behavior being much more selective. But we -- across the category, we're still seeing strong demand for treatments and -- but only for treatments that actually deliver visible results and a very accessible price point, which we play directly into that position. But as I mentioned in the beginning, the market continued to be impacted by tighter credit conditions, longer capital purchasing cycles, which have been indeed putting continued pressure in the device placement. And that is across the industry over the last couple of years. So the way we see it is the market is gradually maturing, which means that utilization and the productivity per treatment room has become incredibly important to drive our acceleration. And that is what we are pivoting our strategy to increase that utilization with our booster strategy, with better training of our sales force, with better value selling with our reps, because the market indeed has changed and has become somewhat more challenging. Operator: The next question comes from Susan Anderson from Canaccord Genuity. Susan Anderson: I was wondering if maybe you could give some more color on the partnerships that you mentioned that you're looking at for the Hydrafacial brand? I guess, what will these look like? Are they partnerships for additional boosters or other types of partnerships? Pedro Malha: Thanks, Susan. So there's obvious -- for obvious reasons, there's so much I can say because we are still in the phase of diligence and I would say, late exploration. But as very core to our strategy, we believe that Hydrafacial and SkinHealth Systems is indeed a platform and should be a platform of -- as an ecosystem of different solutions. So we have the team working around not only identifying feasible partners that will play well in that ecosystem. As I mentioned, we are in very late stages of that diligence. I personally, at this stage, feel encouraged by what I see. And this will become, again, together with skin stylists, another part of our portfolio that the reps can use in selling the overall solution. Again, that's so much I can say, but I feel encouraged by what I see and the time lines of the strategic partnerships that we are pursuing right now. Michael Monahan: I can just add, Susan, they're both on the device side and the consumable side on the partnerships. Susan Anderson: Okay. That's helpful. And then maybe just -- I wanted to ask about, I think you mentioned some timing-related variability in certain regions related to the consumables decline, I think like maybe the Americas. Maybe if you could just expand on what that was and when you expect it to normalize? Pedro Malha: The Americas was down, Susan, the 1.6%, which was a smaller portion of the difference. It was largely due to we do a fourth quarter promotion that outperformed in the fourth quarter of 2025. So some of it was a smaller kind of pull forward. The other timing piece of it was we had a large distributor order at the end of Q4 2025. A portion of that order was consumables that came in, that pulled forward some of the revenue as well. The largest portion of the $3 million year-over-year difference on the global consumables was the move from the China -- to a China distributor. In Q1 and a large portion of Q2 last year, we still were direct in China. And so as we move through the year, that comp is going to pressure the first half of the year and should subside a bit as we move throughout 2026. Operator: The next question comes from John Block from Stifel. Joseph Federico: Joe Federico on for John Block. Maybe just focusing on EMEA following up on the last question. Obviously, growth was a little bit softer this quarter after kind of having been the bright spot in performance for the last handful of quarters. So with the ongoing conflict in the Middle East and subsequent rise in energy costs over there, are you seeing anything specific in the consumer in those regions? I think some of the consumables commentary you just gave speaks to it improving. But do you expect the softer performance to continue on the capital side in the near term? Just any trends would be helpful. Pedro Malha: Yes. So I'll -- I can take that and then Mike can chime in. So in terms of the conflict is, the way we are seeing is, is not going to have a material impact. Obviously, we are monitoring the situation very actively. But so far, we're not expecting or forecasting any impact on our business. In terms of the EMEA, the split, between devices and consumables and the way they show up in the quarter, EMEA is very -- what's happening to EMEA, it's very much in line with what we have seen and are seeing much more broadly going over globally in terms of devices. We have seen still a softness in device sales, and that is true for the U.S. and for EMEA. In terms of consumables, it's a mix -- a little bit of a mixed bag. There's some timing issues there. But again, we expect those to normalize over time. Joseph Federico: Okay. Great. Really helpful. And then maybe just as a quick follow-up. When you originally gave the 1Q guide, it was mid-March, and so I would think a good line of sight into how the quarter would shake out. And obviously, you came in within range on sales, but the EBITDA was well above. So was there anything that really deviated in the final weeks of the quarter operationally that led to that outperformance? And then maybe just one step further, with reiterating the full year guide for EBITDA, did some of those operations not continue into 2Q? Or is it just simply a function of the now lower sales outlook? Pedro Malha: A large portion of the EBITDA beat was driven by outperformance on gross margin and then management of the overall OpEx. So OpEx, specifically in March came in lower than we had forecasted. On the gross margin side, there were 2 drivers -- 2 of the largest drivers. The first was in the Americas, average selling price on devices was higher than we projected. And so that favored even though we had pressure on the overall number of units and came in lower than we were forecasting. The ASP offset a portion of that, which drove higher overall kind of profits on a lower number of units. The second thing is on the operational side, we project each quarter expected scrap and write-offs, and it was much, much lower than normal in Q1. So as we look going forward, we're projecting overall gross margin to come down from Q1 a bit, still stay in the high upper 60s. And it's really, the overall projection is we expect -- as we're projecting device unit sales to come back a little bit, we expect the overall ASP to come down and normalize a little bit below where it did, specifically in the Americas on Q1, and we expect overall scrap to return to normal levels. Operator: And the next question comes from Sidney Wagner from Jefferies. Sydney Wagner: So you mentioned restructuring the booster portfolio around clearly defined clinical use cases. Can you just walk us through how does that differ from how boosters were positioned previously? And what specifically was maybe not coming through clearly around the efficacy or attended use before? Pedro Malha: So we have done in the past quarter, 1.5 quarters, a lot of not only strategic work around our booster strategy where boosters play a very important role in consumables, overall sales, but also in driving a higher utilization, a higher interest from overall consumers getting to the door and most importantly, how it drives a higher return on investment for all providers. So boosters, we continue to see as the main driver of that to drive utilization. What we have seen is that historically, the company has had a lot of different boosters, a lot of SKUs. What we're going now is rather for simplicity and impact. So we are redoing the whole selection of boosters. But most importantly, we are selecting the boosters that bring clinical outcomes that actually will give what consumers are looking for. And that requires a different view of what boosters can do and what type of boosters we are going to be offering. Just to tell you that we have 2 planned launches this year. The first is actually next quarter when we're going to be launching the HydraScalp booster, and we're going to be using that for -- to reactivate basically an asset, which is Keravive, that never got to deserve attention or focus. And in the second, we're going to -- in -- the second booster is going to be launched in Q4 of this year, and that is definitely going to be much more clinically backed booster that is going to be supported by real clinical data. So the team is very enthusiastic about that booster. And we know for a fact, and we have those proxies in our business that we will -- when we launch a booster that delivers the outcomes that they're supposed to deliver, that drives sales. That drives provider engagement, that drives consumers into the doors, and that is a huge part of our business. So we plan to over-index on that strategy. Sydney Wagner: Okay. That's helpful. And then just one more on competition. So when you think about Hydrafacial's competitive positioning, is it more about differentiation versus similar facial devices or systems? Or are you increasingly competing for consumer spend against adjacent treatments like lasers, for instance? Pedro Malha: I think it's both. It's not only the low end of the market that we are competing, is becoming more crowded. But we also are competing for time space of those treatment rooms as more treatments, more technologies coming in, trying to get that time from the consumer and dollar. So it's both. It's both. But we feel that we are very well positioned, actually very well resilient throughout all these challenges and throughout all these past years. Hydrafacial continues to be the gateway for other treatments. We plan to over-index in that. It's a staple in the majority of all the med spas and is a technology and is a procedure that delivers results. So although we are seeing an increased competitive pressure, we feel that is a natural pressure because the segment is still very appealing. And we plan to combat that. We plan to have the right strategy, the right sales force execution, the right messaging, the right segmentation and a well-prepared and well-trained sales force that is able to win in a little bit of a more challenging market that we're facing right now. Operator: And the next question comes from Bruce Jackson from The Benchmark Company. Bruce Jackson: A couple of macro questions. So with the rise in oil prices, are you seeing any effect on your inputs, for example, with plastic resins or freight costs? And if we do get above inflation, how do you feel about your ability to protect the EBITDA margins? Pedro Malha: No, we're not seeing anything specific, Bruce, on overall increases in our prices. On the capital equipment side, we have a decent amount of raw materials already in-house. We've been working through our existing inventory. So we shouldn't see an impact of that in the near term. So overall, I'm not concerned about inflation materially impacting the adjusted EBITDA guide. Bruce Jackson: Okay. And then a follow-up, if I may. With the booster that you're launching in the fourth quarter, are you providing any additional details about that at this time? Pedro Malha: Not at this time. It's in late stages of development, and we will provide you the updates in the coming quarters as we get closer to the launch time. Operator: Thank you. And there are no further questions that came through. This concludes our conference call for today. Thank you all for participating. You may now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Beauty Health (SKIN) Q1 2026 Earnings Transcript was originally published by The Motley Fool

Interested in The Beauty Health Company? Here are five stocks we like better. Beauty Health reported Q1 2026 net sales of $64.9 million, down 6.7% year over year, as weaker device placements continued to pressure growth. However, adjusted EBITDA improved 17% to $8.5 million, beating the high end of guidance. Device demand remained soft, with delivery systems revenue falling 8.3% and system placements dropping to 746 from 862 a year ago. Management said tighter credit, longer buying cycles and rising competition are structural challenges, not just a one-quarter issue. The company cut its full-year revenue outlook to $280 million-$295 million but kept adjusted EBITDA guidance unchanged at $35 million-$45 million. It also said it is focusing on booster innovation, partnerships and a next-generation Hydrafacial platform while expecting gradual improvement in the second half of 2026. 2 Stocks to Benefit from the Aging Population Beauty Health (NASDAQ:SKIN), referred to by executives as SkinHealth Systems following a recent rebrand, reported first-quarter 2026 net sales of $64.9 million, down 6.7% from the prior year, as weaker device placements continued to weigh on growth. The company said adjusted EBITDA rose 17% year over year to $8.5 million, exceeding the high end of its guidance range. Chief Executive Officer Pedro Malha said the quarter showed that “top-line growth has not yet returned,” but also that the company’s operating foundation is strengthening. He said the rebrand to SkinHealth Systems reflects a shift toward operating with “the clinical rigor, the commercial discipline, and the operational mindset of a leading medical device company.” → Insider Sales: Top AST SpaceMobile Insider Cuts Postion Over 30% 2 Beauty Stocks Beaten By the Ugly Stick But Ready to Rally Hydrafacial remains central to the company’s strategy, Malha said, while SkinStylus, microneedling and nano-channeling technology, and a planned relaunch of Keravive for scalp health are intended to broaden the platform. Delivery systems revenue was $18.5 million in the first quarter, down 8.3% from the prior year. Chief Financial Officer Mike Monahan said the company placed 746 systems, compared with 862 in the first quarter of 2025. → Light Speed Returns: Corning Cashes In on NVIDIA Growth The Beauty Health Company Stock is a Re-Opening Play Malha said device placements came in below expectations due to several factors, including tighter credit conditions, longer purchasing cycles and increased competition. He said those pressures are structural rather than isolated to one quarter. “Competition continues to increase, and this is very particular around the lower end of the market,” Malha said during the question-and-answer session. He cited lower-cost alternatives, secondary-market devices and a broader set of aesthetic treatments competing for treatment room time. → Years in the Making, AMD’s Upside Movement Has Just Begun Malha said the company is not seeking to compete primarily on price, arguing that providers focus on patient outcomes and long-term returns from treatment rooms. He also said he is taking a more direct role in the global sales organization after a recent commercial leadership change, with a focus on sales processes, pipeline management, account prioritization and conversion. Consumables revenue was $46.4 million, down 6.1% year over year. Malha said about two-thirds of the decline was related to China’s transition to a distributor model last year, which continues to affect comparisons. Monahan said consumables revenue in the Americas declined 1.6%, primarily because fourth-quarter promotions pulled some demand forward. EMEA consumables were down 5.6%, driven by distributor order timing, while APAC declined 29.9% due to the China distributor transition. Despite softer device placements, the company’s active installed base grew to 36,400 systems globally, up 4% from the prior year. Malha also said device churn declined 40% year over year in the quarter, which he described as a meaningful signal that provider retention and reactivation programs are working. Adjusted gross margin expanded to 72.2%, compared with 71.9% in the prior year. GAAP gross margin was 68.5%, down from 69.8%, with Monahan attributing the decline primarily to higher amortization expense. GAAP operating expenses were $46.2 million, compared with $60.6 million a year earlier. Selling and marketing expenses declined to $23.2 million from $26 million, while general and administrative expenses fell to $21.9 million from $33.6 million. Monahan said the G&A decline reflected lower headcount-related costs, reduced legal fees and lower depreciation and amortization. Net loss improved to $6.6 million from $10.1 million in the prior-year period. The company ended the quarter with $204.4 million in cash equivalents and restricted cash. Monahan said the company’s October 2026 debt maturity totals about $103 million and said management is confident it can address the maturity based on its cash position and expected cash generation. The company lowered its full-year revenue outlook to $280 million to $295 million, down from its prior range of $285 million to $305 million. Malha said the revision reflects a more cautious view of near-term capital equipment demand and the time required for commercial improvements to affect results. However, the company maintained its full-year adjusted EBITDA guidance of $35 million to $45 million. For the second quarter, management expects revenue of $72 million to $77 million and adjusted EBITDA of $11 million to $13 million. In response to an analyst question about the rest of the year, Malha said 2026 remains an “execution year” and a “stabilization year.” He said the company expects pressure on device placements and utilization trends to continue in the first half, followed by gradual sequential improvement in the second half if commercial initiatives gain traction. Malha said SkinHealth Systems is advancing its innovation pipeline across three priorities: boosters, strategic partnerships and the next-generation Hydrafacial platform. The company is restructuring its booster portfolio around clinical use cases, differentiated outcomes and tiered pricing. Malha said the company plans to relaunch Keravive later this quarter with updated marketing, enhanced protocols and better integration into the Hydrafacial platform. He also said the company expects to introduce a clinically backed booster in the fourth quarter. During the Q&A session, Malha said the company has historically had “a lot of different boosters” and SKUs, but is now prioritizing simplicity and clinical impact. He said boosters are expected to help drive utilization, provider engagement and consumer demand. Management also said the company is in late-stage diligence on strategic partnerships involving both devices and consumables. Monahan said the potential partnerships span both sides of the business, while Malha said they are intended to expand the portfolio available to sales representatives. The company is also developing a next-generation Hydrafacial device targeted for a 2028 launch. Malha said the goal is to improve clinical outcomes and treatment experience while creating an upgrade opportunity for the company’s installed base of more than 36,000 active systems. Beauty Health Company (NASDAQ: SKIN) is a U.S.-based consumer wellness and beauty enterprise that integrates device-based and product-based offerings across skin, body and hair wellness categories. The company operates a portfolio of established brands that blend professional and at-home solutions, focusing on innovative formulations and technologies to address a range of beauty and self-care needs. Through its proprietary e-commerce platforms and strategic retail partnerships, Beauty Health seeks to deliver premium experiences and tangible results to a global customer base. Beauty Health's brand portfolio includes Sol de Janeiro, known for its award-winning Brazilian Bum Bum Cream body care collection; Elemis, a U.K.-originated professional skin care line distributed in spas and skincare clinics; NuFACE and Dermaflash, two at-home beauty device brands specializing in microcurrent facial toning and gentle exfoliation respectively; and Nutrafol, a legal-strength hair wellness supplement clinically designed to support hair growth. The article "Beauty Health Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

LONG BEACH, Calif., May 07, 2026 (GLOBE NEWSWIRE) -- SkinHealth Systems Inc. (NASDAQ: SKIN) (“SkinHealth Systems” or the "Company"), home to flagship brand Hydrafacial, today announced financial results for the first quarter ended March 31, 2026 (“Q1 2026”). “First quarter results reflect the strength of the business. We delivered revenue within our guidance range, significantly outperformed on adjusted EBITDA, and continued to expand margins through disciplined execution. "While the market remains challenging and we are lowering our full-year revenue outlook, the fundamentals are intact. The installed base is growing, the brand is strong, and we are taking direct action to improve execution while continuing to invest in the capabilities and innovation that will drive long-term growth.” said Pedro Malha, President and CEO of SkinHealth Systems. Key Operational and Business Metrics __________________________ (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. First Quarter Financial Highlights Net sales were $64.9 million for the first quarter of 2026, a decrease of (6.7)%, compared to the prior year period ("Q1 2025"), due to lower delivery systems and consumables net sales. The Company placed 746 delivery systems during Q1 2026, compared to 862 during Q1 2025. Gross margin was 68.5% in Q1 2026, compared to 69.8% in Q1 2025. The decrease in gross margin was primarily due to higher amortization expense. Adjusted gross margin was relatively flat at 72.2% in Q1 2026 compared to 71.9% in Q1 2025. Operating expenses were $46.2 million in Q1 2026, compared to $60.6 million in Q1 2025. Adjusted operating expenses were $38.4 million in Q1 2026, compared to $42.8 million in Q1 2025. The improvement in operating expenses and adjusted operating expenses was primarily due to lower personnel-related expenses and lower marketing-related spend. Net loss was $(6.6) million in Q1 2026, compared to $(10.1) million in Q1 2025. The change compared to the prior year was primarily due to lower operational spend, partially offset by lower net sales. Adjusted EBITDA was $8.5 million in Q1 2026, compared to $7.3 million in Q1 2025. The improvement in adjusted EBITDA was primarily due to lower operational spend, partially offset by lower net sales. Revised 2026 Financial Guidance __________________________ (1) See "Non-GAAP Financial Measures" below. Revised 2026 financial guidance: Reflects continued pressure on year over year device sales. Presumes 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 __________________________ (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 SkinHealth Systems will host a conference call on Thursday, May 7, 2026, at 4:30 p.m. ET to review its first quarter 2026 financial results. The call may be accessed via live webcast through the Events & Presentations page on our Investor Relations website at www.skinhealthsystems.com. A recording of the call will become available on the site approximately three hours after its conclusion. 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, and share-based compensation expense and other long-term incentive compensation. Adjusted gross margin represents adjusted gross profit as a percentage of net sales. Adjusted operating expenses is calculated as total operating expenses excluding the effects of depreciation expense; amortization expense; share-based compensation expense and other long-term incentive compensation; litigation related costs; Go-to-Market restructuring; and severance, restructuring, and other. Adjusted EBITDA is calculated as net loss excluding the effects of (benefit) expense for income taxes; depreciation expense; amortization expense; share-based compensation expense and other long-term incentive compensation; 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; 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 2026 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 2026 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. __________________________ (1) Amounts may not sum due to rounding. __________________________ (1) Amounts may not sum due to rounding. __________________________ (1) Amounts may not sum due to rounding. The following table reconciles gross profit to adjusted gross profit for the periods presented: __________________________ (1) Amounts may not sum due to rounding. (2) Includes expense associated with long-term cash performance awards. The following table reconciles total operating expenses to adjusted operating expenses for the periods presented: __________________________ (1) Amounts may not sum due to rounding. (2) Includes expense associated with long-term cash performance awards that can be settled in either cash or Common Stock. The following table reconciles net loss to adjusted EBITDA for the periods presented: __________________________ (1) Amounts may not sum due to rounding. (2) Includes expense associated with long-term cash performance awards that can be settled in either cash or Common Stock. About SkinHealth Systems SkinHealth Systems (NASDAQ: SKIN) is a global medical aesthetics company delivering an integrated ecosystem of clinically proven solutions designed to help consumers achieve superior skin health and support the success of providers. Anchored by Hydrafacial™, a leading and widely requested professional skincare treatment, and supported by complementary offerings including SkinStylus™ microneedling and HydraScalp™ with Keravive™, SkinHealth Systems combines advanced device technology, proprietary consumables, and clinical validation to deliver trusted treatment experiences through an omnichannel network of providers worldwide. Learn more at skinhealthsystems.com or follow us on LinkedIn. Local providers can be found at hydrafacial.com/find-a-hydrafacialist. 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 and within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding SkinHealth Systems Inc.’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 SkinHealth Systems Inc.’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: SkinHealth Systems Inc.’s ability to manage growth; SkinHealth Systems Inc.’s ability to execute its business plan; potential negative reactions or outcomes related to the Company’s name change in general and focused shift in operations; potential litigation involving SkinHealth Systems Inc.; changes in applicable laws or regulations; the possibility that SkinHealth Systems Inc. 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, 2025 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. Those risks continue to be relevant to the Company's performance and financial condition. Moreover, the Company operates in a very competitive and rapidly changing environment. New risk factors emerge from time-to-time and it is not possible for management to predict all such risk factors, nor can it assess the impact of all such risk factors on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. SkinHealth Systems Inc. expressly disclaims any responsibility to update forward-looking statements, whether as a result of new information, future events or otherwise. Contacts Press: [email protected] Investors: [email protected]