# SkinHealth Systems Inc. (SKIN)

Informational only - not investment advice.

CIK: 0001818093
SIC: 3841 Surgical & Medical Instruments & Apparatus
SIC breadcrumb: [Manufacturing](/division/D/) > [SIC Major Group 38](/major-group/38/) > [SIC 3841 Surgical & Medical Instruments & Apparatus](/industry/3841/)
Latest 10-K filed: 2026-03-12
SEC page: https://www.sec.gov/edgar/browse/?CIK=1818093
Filing source: https://www.sec.gov/Archives/edgar/data/1818093/000162828026017376/skin-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-03-12 · accession 0001628280-26-017376 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001818093.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 300,790,000 USD | 2025 | verified |
| Net income | -9,519,000 USD | 2025 | verified |
| Assets | 499,803,000 USD | 2025 | verified |
| Free cash flow | 37,182,000 USD | 2025 | computed |
| Net margin | -3.16% | 2025 | computed |
| Operating margin | -6.92% | 2025 | computed |
| Revenue YoY | -10.02% | 2025 | computed |
| ROE | -15.59% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | SKIN | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | -3.2% | -6.0% | 52 | 63 |
| Operating margin | -6.9% | -2.7% | 47 | 63 |
| Revenue growth | -10.0% | 13.6% | 2 | 64 |
| FCF margin | 12.4% | 0.2% | 74 | 63 |
| ROE | -15.6% | -9.1% | 44 | 58 |
| ROA | -1.9% | -4.8% | 53 | 65 |
| Liabilities / equity | 7.19 | 0.89 | 94 | 63 |
| Current ratio | 1.66 | 3.23 | 12 | 65 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 3841 Surgical & Medical Instruments & Apparatus, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 300790000 | USD | 2025 | 2026-03-12 |
| Net income | -9519000 | USD | 2025 | 2026-03-12 |
| Assets | 499803000 | USD | 2025 | 2026-03-12 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-12. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001818093.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue |  | 166,623,000 | 119,092,000 | 260,086,000 | 365,876,000 | 397,991,000 | 334,294,000 | 300,790,000 |
| Net income |  | -1,638,000 | -29,175,000 | -378,764,000 | 44,224,000 | -100,116,000 | -29,098,000 | -9,519,000 |
| Operating income |  | 13,462,000 | -17,182,000 | -39,928,000 | -25,841,000 | -130,917,000 | -67,774,000 | -20,803,000 |
| Gross profit |  | 106,512,000 | 67,199,000 | 178,538,000 | 248,779,000 | 155,113,000 | 182,296,000 | 196,364,000 |
| Diluted EPS |  | -0.05 | -0.85 | -3.71 | -0.23 | -0.76 | -0.36 | -0.16 |
| Operating cash flow |  | 1,728,000 | -12,436,000 | -28,361,000 | -106,600,000 | 21,750,000 | 16,134,000 | 37,485,000 |
| Capital expenditures |  | 8,774,000 | 3,501,000 | 11,201,000 | 10,847,000 | 3,825,000 | 756,000 | 303,000 |
| Share buybacks |  | 0.00 | 154,000 | 0.00 | 160,000,000 | 30,155,000 | 0.00 | 0.00 |
| Assets |  |  | 222,835,000 | 1,218,806,000 | 1,003,083,000 | 929,113,000 | 685,683,000 | 499,803,000 |
| Liabilities |  |  | 252,795,000 | 916,509,000 | 836,030,000 | 869,723,000 | 633,880,000 | 438,747,000 |
| Stockholders' equity | 294,000 | -1,208,000 | -30,567,000 | 298,034,000 | 167,053,000 | 59,390,000 | 51,803,000 | 61,056,000 |
| Free cash flow |  | -7,046,000 | -15,937,000 | -39,562,000 | -117,447,000 | 17,925,000 | 15,378,000 | 37,182,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  | -0.98% | -24.50% | -145.63% | 12.09% | -25.16% | -8.70% | -3.16% |
| Operating margin |  | 8.08% | -14.43% | -15.35% | -7.06% | -32.89% | -20.27% | -6.92% |
| Return on equity |  |  |  | -127.09% | 26.47% | -168.57% | -56.17% | -15.59% |
| Return on assets |  |  | -13.09% | -31.08% | 4.41% | -10.78% | -4.24% | -1.90% |
| Liabilities / equity |  |  |  | 3.08 | 5.00 | 14.64 | 12.24 | 7.19 |
| Current ratio |  |  | 1.91 | 13.09 | 10.92 | 6.07 | 7.00 | 1.66 |

## As-reported value updates

10 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/SKIN/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001818093.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | -0.03 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | -0.17 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | 0.03 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 97,413,000 | -73,818,000 | -0.56 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 96,821,000 | -9,403,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 81,403,000 | -679,000 | -0.10 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 90,594,000 | 202,000 | -0.10 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 78,802,000 | -18,291,000 | -0.15 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 83,495,000 | -10,330,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 69,580,000 | -10,096,000 | -0.08 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 78,187,000 | 19,712,000 | 0.03 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 70,655,000 | -11,031,000 | -0.09 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 82,368,000 | -8,104,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 64,910,000 | -6,630,000 | -0.05 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 72,113,000 | -2,669,000 | -0.02 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from SKIN's latest 10-K: [/company/SKIN/business/](/company/SKIN/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from SKIN's latest 10-K: [/company/SKIN/risk-factors/](/company/SKIN/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1818093/000162828026054476/skin-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2026-08-06
Report date: 2026-06-30

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Cautionary Note Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q for the three months ended June 30, 2026 (the “Quarterly Report on Form 10-Q”) contains “forward looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this Quarterly Report on Form 10-Q, the words “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,” “propose” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements.

These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to these differences include, but are not limited to, those identified below and those discussed in the section titled Risk Factors of this filing and our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 filed with the Securities and Exchange Commission (the “SEC”) on March 12, 2026 (the “Annual Report on Form 10-K”).

Important factors that may affect actual results or outcomes include, among others: the inability to recognize the benefits of the business combination consummated on May 4, 2021 pursuant to a certain Agreement and Plan of Merger entered into by and among the Company and other parties (the “Business Combination”); the Company’s availability of cash for debt service and exposure to risk of default under debt obligations; the Company’s ability to manage growth; the Company’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 the Company; changes in applicable laws or regulations; and the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements and related notes appearing elsewhere in this Quarterly Report on Form 10-Q and also with our audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K.

Unless the context otherwise requires, references to the “Company”, “Hydrafacial”, “we”, “us”, and “our” in this section are intended to mean the business and operations of SkinHealth Systems Inc. and its consolidated subsidiaries.

Company Overview

SkinHealth Systems Inc. (the “Company” or “SkinHealth Systems”) 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 powered by Keravive, the Company combines advanced device technology, proprietary consumables, and clinical validation to deliver trusted treatment experiences through an omnichannel network of providers worldwide.

24

Business and Macroeconomic Conditions

During the three and six months ended June 30, 2026, we continued to strengthen the foundation of the business while expanding our footprint by selling and placing our patented hydradermabrasion delivery systems (“Delivery Systems”) worldwide, driving consumables, which consist of single-use tips, solutions, serums, and other products used to provide a Hydrafacial treatment (collectively “Consumables”), investing in our community of providers, partners, and consumers, driving brand awareness, advancing our science-backed innovation product pipeline, and optimizing our global infrastructure. Although we believe we can be successful in our current operating environment, various factors may impact our business in unpredictable ways such as:

•Global economic conditions, including inflation, recession, changes in foreign currency exchange rates, higher interest rates, and other changes in economic conditions;

•Market conditions, including increased competition and the interest rate environment, affecting the ability of potential customers to obtain credit on acceptable terms and longer sales cycles;

•The imposition of tariffs and/or trade restrictions, due to geopolitical tensions or otherwise, may impact material costs and pricing;

•Changes in applicable laws, regulations, regulatory interpretations, or enforcement policies in countries in which we operate;

•Disruptions in transportation and other supply chain related constraints, such as labor strife in the transportation industry or geopolitical tensions; and

•Issues related to older models of Syndeo and our actions to remediate such issues.

We may be able to offset cost pressures through increasing the selling prices of some of our products, increasing value engineering efforts to optimize product costs, increasing the diversification of our suppliers and supplier contracts, increasing natural foreign currency hedging, as applicable, and reducing discretionary spending. However, our pricing actions could have an adverse impact on demand, and may in turn, cause our providers to halt or decrease Delivery Systems and/or Consumables spending, and our actions may not be sufficient to cover unexpected increased costs that we may experience.

Business and macroeconomic factors may also negatively impact, in the short-term or long-term, the global economy, the beauty health industry, our providers and their budgets with us, our business, the Company’s brand reputation, financial condition, and results of operations. We remain attentive to these business and macroeconomic conditions that may materially impact our business, and we continue to explore and implement reporting and quality management systems and risk mitigation strategies in the face of these unfolding conditions to remain agile in adapting to changing circumstances.

Australia and New Zealand Market

After evaluating the Company's global distribution strategy to align with its go-to-market strategy with in-market partner capabilities and market opportunity, the Company transitioned sales in the Australia and New Zealand market to a distributor partner in June 2026. As a result, the Company has discontinued its direct sales presence in Australia and New Zealand. The change in go-to-market strategy is expected to be accretive to the Company’s long-term profitability, as reductions in operating spend are partially offset by a reduction to revenue.

25

Comparison of Three Months Ended June 30, 2026 to Three Months Ended June 30, 2025

The following tables set forth our consolidated results of operations in dollars and as a percentage of net sales for the periods presented. The period-to-period comparisons of our historical results are not necessarily indicative of the results that may be expected in the future. The results of operations data for the three months ended June 30, 2026 and June 30, 2025, have been derived from the condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q. Amounts and percentages may not foot due to rounding.

[[GREPCENT_TABLE]]
[["","Three Months Ended June 30,"],["(in millions)","2026","","% of Net Sales","","2025","","% of Net Sales"],["Net sales","$","72.1","","","100.0","%","","$","78.2","","","100.0","%"],["Cost of sales","22.8","","","31.6","","","29.1","","","37.2"],["Gross profit","49.3","","","68.4","","","49.1","","","62.8"],["Operating expenses"],["Selling and marketing","21.0","","","29.1","","","23.1","","","29.6"],["Research and development","1.4","","","2.0","","","1.3","","","1.6"],["General and administrative","23.3","","","32.4","","","27.5","","","35.1"],["Total operating expenses","45.8","","","63.5","","","51.8","","","66.3"],["Income (loss) from operations","3.6","","","5.0","","","(2.7)","","","(3.5)"],["Interest expense","6.3","","","8.7","","","4.1","","","5.3"],["Interest income","(1.3)","","","(1.8)","","","(3.2)","","","(4.0)"],["Other income, net","\u2014","","","\u2014","","","(18.1)","","","(23.2)"],["Change in fair value of warrant liabilities","\u2014","","","\u2014","","","0.2","","","0.3"],["Foreign currency transaction loss (gain), net","\u2014","","","\u2014","","","(4.5)","","","(5.7)"],["(Loss) income before provision for income taxes","(1.5)","","","(2.0)","","","18.7","","","23.9"],["Income tax expense (benefit)","1.2","","","1.7","","","(1.0)","","","(1.3)"],["Net (loss) income","$","(2.7)","","","(3.7)","%","","$","19.7","","","25.2","%"]]
[[/GREPCENT_TABLE]]

Net Sales

[[GREPCENT_TABLE]]
[["","Three Months Ended June 30,","","Change"],["(in millions)","2026","","2025","","Amount","","%"],["Net sales"],["Delivery Systems","$","18.3","","","$","22.4","","","$","(4.1)","","","(18.4)","%"],["Consumables","53.9","","","55.8","","","(2.0)","","","(3.5)","%"],["Total net sales","$","72.1","","","$","78.2","","","$","(6.1)","","","(7.8)","%"],["","Three Months Ended June 30,"],["Percentage of net sales","2026","","2025"],["Delivery Systems","25.3%","","28.6%"],["Consumables","74.7%","","71.4%"],["Total","100.0%","","100.0%"]]
[[/GREPCENT_TABLE]]

Total net sales for the three months ended June 30, 2026 decreased $6.1 million, or 7.8%, compared to the three months ended June 30, 2025. Delivery Systems net sales for the three months ended June 30, 2026 decreased $4.1 million, or 18.4%, compared to the three months ended June 30, 2025, with decreases across all regions. Delivery Systems net sales were negatively impacted globally by unfavorable macroeconomic and credit conditions.

Consumables net sales for the three months ended June 30, 2026 decreased $2.0 million, or 3.5%, compared to the three months ended June 30, 2025, with decreases in Europe, the Middle East, and Africa, and the Americas, impacted by pressure on treatment volume and timing of booster launches in the prior year.

26

Cost of Sales, Gross Profit, and Gross Margin

[[GREPCENT_TABLE]]
[["","Three Months Ended June 30,","","Change"],["(in millions)","2026","","2025","","Amount","","%"],["Cost of sales","$","22.8","","","$","29.1","","","$","(6.3)","","","(21.7)%"],["Gross profit","$","49.3","","","$","49.1","","","$","0.2","","","0.5%"],["Gross margin","68.4","%","","62.8","%"]]
[[/GREPCENT_TABLE]]

Cost of sales for the three months ended June 30, 2026 decreased $6.3 million, compared to the three months ended June 30, 2025, primarily due to lower net sales in 2026 and higher product costs related to the sell through associated with Delivery Systems received back as part of the Company’s previous trade-in program and higher inventory related charges in 2025. Gross margin increased to 68.4% for the three months ended June 30, 2026 from 62.8% for the three months ended June 30, 2025 primarily due to higher product costs related to the sell through associated with Delivery Systems received back as part of the Company’s previous trade-in program and higher inventory related charges in 2025.

Selling and Marketing

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1818093/000162828026017376/skin-20251231.htm
Complete FY 2025 MD&A: /company/SKIN/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2026-03-12
Report date: 2025-12-31

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion should be read in conjunction with the consolidated financial statements and accompanying notes included in Part II, Item 8 of this Annual Report on Form 10-K. This section of this Annual Report on Form 10-K generally discusses 2025 and 2024 items and year-to-year comparisons between 2025 and 2024. Discussions of 2023 items and year-to-year comparisons between 2024 and 2023 are not included in this Annual Report on Form 10-K, and can be found in Part II, Item 7 of the Company’s Annual Report on Form 10-K filed on March 12, 2025 under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

Company Overview

The Beauty Health Company 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 powered by Keravive, the Company combines advanced device technology, proprietary consumables, and clinical validation to deliver trusted treatment experiences through an omnichannel network of providers worldwide.

Factors Affecting Our Performance

We remain attentive to economic and geopolitical conditions that may materially impact our business. We continue to explore and implement risk mitigation strategies in the face of these unfolding conditions and remain agile in adapting to changing circumstances. Such conditions have or may have global implications which may impact the future performance of our business in unpredictable ways.

Business and Macroeconomic Conditions

In 2025, we continued to strengthen the foundation of the business while expanding our footprint by selling and placing Delivery Systems worldwide, driving Consumables, investing in our community of providers, partners, and consumers, driving brand awareness, advancing our science-backed innovation product pipeline, and optimizing our global infrastructure. Consumables include serums, solutions, tips, and other products. Although we believe we can be successful in our current operating environment, various factors may impact our business in unpredictable ways such as:

•Global economic conditions, including inflation, recession, changes in foreign currency exchange rates, higher interest rates, and other changes in economic conditions;

•The imposition of tariffs and/or trade restrictions may impact material costs and pricing;

•Changes in applicable laws, regulations, regulatory interpretations, or enforcement policies in countries in which we operate;

•Disruptions in transportation and other supply chain related constraints, such as labor strife in the transportation industry; and

•Issues related to older models of Syndeo and our actions to remediate such issues

We may be able to offset cost pressures through increasing the selling prices of some of our products, increasing value engineering efforts to optimize product costs, increasing the diversification of our suppliers and supplier contracts, increasing natural foreign currency hedging, as applicable, and reducing discretionary spending. However, our pricing actions could have an adverse impact on demand, and may in turn, cause our providers to halt or decrease Delivery Systems and/or Consumables spending, and our actions may not be sufficient to cover unexpected increased costs that we may experience.

Business and macroeconomic factors may also negatively impact, in the short-term or long-term, the global economy, the beauty health industry, our providers and their budgets with us, our business, the Company’s brand reputation, financial condition, and results of operations. We remain attentive to these business and macroeconomic conditions that may materially impact our business, and we continue to explore and implement reporting and quality management systems and risk mitigation strategies in the face of these unfolding conditions to remain agile in adopting to changing circumstances.

89

China Market

The Company evaluated its global distribution strategy to align its go-to-market strategy with in-market partner capabilities and market opportunity. 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.

Components of our Results of Operations

Net Sales

The Company generates revenue through manufacturing and selling Delivery Systems. In conjunction with the sale of Delivery Systems, the Company also sells its Consumables. Original Consumables are sold solely and exclusively by the Company and our authorized retailers and are available for purchase separately from the purchase of Delivery Systems. For both Delivery Systems and Consumables, revenue is recognized upon transfer of control to the customer, which generally takes place at the point of shipment.

Cost of Sales

Costs of sales primarily consists of Delivery Systems and Consumables product costs, including the cost of materials, labor costs, overhead, depreciation and amortization of developed technology, shipping and handling costs, and the costs associated with excess and obsolete inventory.

Selling and Marketing

Selling and marketing expense primarily consists of personnel-related expenses, sales commissions, travel costs, training, and advertising expenses incurred in connection with the sale of our products. Selling and marketing expense as a percentage of net sales may fluctuate from period to period based on net sales, and the timing of our investments in our sales and marketing functions may vary in scope and scale over future periods.

Research and Development

Research and development expense primarily consists of personnel-related expenses, tooling and prototype materials, technology investments, and other expenses incurred in connection with the development of new products and internal technologies.

General and Administrative

General and administrative expense primarily consists of personnel-related expenses, credit card and wire fees, and facilities-related costs primarily for our executive, corporate affairs, finance, accounting, legal, human resources, and information technology (“IT”) functions. General and administrative expense also includes fees for professional services principally comprising legal, audit, tax and accounting services, and insurance.

Interest Expense

Interest expense consists of interest accrued on the Company’s Notes and amortization of debt issuance costs relating to the Notes. The 2026 Notes mature on October 1, 2026 and accrue interest at a rate of 1.25% per annum. The 2028 Notes mature on November 15, 2028 and accrue interest at a rate of 7.95% per annum. Debt issuance costs are being amortized over the term of the Notes using the effective interest method. If the Notes are repurchased, redeemed, or converted prior to the maturity date, the interest on the Notes would no longer be accrued and the amortization of debt issuance costs would be accelerated for the portion of the Notes which are repurchased, redeemed, or converted.

Interest Income

Interest income primarily consists of interest earned from investments in money market funds that the Company classifies as cash equivalents. Interest income, as a percentage of revenue, will fluctuate period to period along with fluctuations in interest rates, which are not related to normal business operations.

90

Change in Fair Value of Warrant Liabilities

In October 2020, in connection with Vesper’s initial public offering, the Company issued 9,333,333 warrants to purchase shares of the Company’s Class A common stock at $11.50 per share (the “Private Placement Warrants”), to BLS Investor Group LLC, which will expire five years after the Business Combination. The Private Placement Warrants are accounted for as liabilities on the Consolidated Balance Sheets and measured at fair value at inception and on a recurring basis. The fair value of the Private Placement Warrants was determined using a Monte Carlo simulation model. Changes in fair value of warrant liabilities as a percentage of revenue will fluctuate period to period along with fluctuations in fair value, which are not related to normal business operations.

Foreign Currency Transaction (Gain) Loss, Net

Foreign currency transaction gains and losses are generated by intercompany balances and transactions denominated in other currencies other than the functional currency of the entity. Foreign currency transaction gains and losses as a percentage of revenue will fluctuate period to period along with fluctuations in exchange rates, which are not related to normal business operations.

Income Tax Expense (Benefit)

The provision for income taxes consists of income taxes related to federal, state and foreign jurisdictions in which we conduct business.

Results of Operations

The following tables set forth our consolidated results of operations in dollars and as a percentage of net sales for the periods presented. The period-to-period comparisons of our historical results are not necessarily indicative of the results that may be expected in the future. The results of operations data for the years ended December 31, 2025 and December 31, 2024 have been derived from the consolidated financial statements included elsewhere in this Annual Report on Form 10-K. Amounts and percentages may not foot due to rounding.

Comparison of Year Ended December 31, 2025 to Year Ended December 31, 2024

[[GREPCENT_TABLE]]
[["","Year Ended December 31,"],["(Dollars in millions)","2025","","% of Net Sales","","2024","","% of Net Sales"],["Net sales","$","300.8","","","100.0","%","","$","334.3","","","100.0","%"],["Cost of sales","104.4","","","34.7","","","152.0","","","45.5"],["Gross profit","196.4","","","65.3","","","182.3","","","54.5"],["Operating expenses"],["Selling and marketing","93.6","","","31.1","","","118.3","","","35.4"],["Research and development","5.6","","","1.9","","","6.3","","","1.9"],["General and administrative","117.9","","","39.2","","","125.5","","","37.5"],["Total operating expenses","217.2","","","72.2","","","250.1","","","74.8"],["Loss from operations","(20.8)","","","(6.9)","","","(67.8)","","","(20.3)"],["Interest expense","19.3","","","6.4","","","10.4","","","3.1"],["Interest income","(9.0)","","","(3.0)","","","(16.6)","","","(5.0)"],["Other income, net","(18.9)","","","(6.3)","","","(33.6)","","","(10.0)"],["Change in fair value of warrant liabilities","(0.5)","","","(0.2)","","","(3.1)","","","(0.9)"],["Foreign currency transaction (gain) loss, net","(5.8)","","","(1.9)","","","4.6","","","1.4"],["Loss before provision for income taxes","(5.9)","","","(2.0)","","","(29.6)","","","(8.8)"],["Income tax expense (benefit)","3.6","","","1.2","","","(0.5)","","","(0.1)"],["Net loss","$","(9.5)","","","(3.2)","%","","$","(29.1)","","","(8.7)","%"]]
[[/GREPCENT_TABLE]]

91

Net Sales

[[GREPCENT_TABLE]]
[["","Year Ended December 31,","","Change"],["(Dollars in millions)","2025","","2024","","","","Amount","","%"],["Net sales"],["Delivery Systems","$","88.1","","","$","125.4","","","","","$","(37.3)","","","(29.8)%"],["Consumables","212.7","","","208.9","","","","","3.8","","","1.8%"],["Total net sales","$","300.8","","","$","334.3","","","","","$","(33.5)","","","(10.0)%"],["Percentage of net sales"],["Delivery Systems","29.3%","","37.5%"],["Consumables","70.7%","","62.5%"],["Total","100.0%","","100.0%"]]
[[/GREPCENT_TABLE]]

Total net sales for the year ended December 31, 2025, decreased $33.5 million, or 10.0%, compared to the year ended December 31, 2024. Delivery Systems net sales for the year ended December 31, 2025, decre

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/SKIN/mda/fy2025/
All MD&A years: /company/SKIN/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/SKIN/mda/fy2024/): filed 2025-03-12; accession 0001628280-25-012407 (https://www.sec.gov/Archives/edgar/data/1818093/000162828025012407/skin-20241231.htm)
- [FY 2023 MD&A](/company/SKIN/mda/fy2023/): filed 2024-03-12; accession 0001628280-24-010638 (https://www.sec.gov/Archives/edgar/data/1818093/000162828024010638/skin-20231231.htm)
- [FY 2022 MD&A](/company/SKIN/mda/fy2022/): filed 2023-03-01; accession 0001818093-23-000006 (https://www.sec.gov/Archives/edgar/data/1818093/000181809323000006/skin-20221231.htm)
- [FY 2021 MD&A](/company/SKIN/mda/fy2021/): filed 2022-03-01; accession 0001818093-22-000046 (https://www.sec.gov/Archives/edgar/data/1818093/000181809322000046/skin-20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 3841 Surgical & Medical Instruments & Apparatus) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/SKIN.md · JSON record: /company/SKIN.json · verified financials: /company/SKIN/financials.json / /company/SKIN/financials.csv · machine TOC for the whole site: /llms.txt