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Beauty Health, which executives now refer to as SkinHealth Systems following a recent rebrand, reported first-quarter 2026 net sales of $64.9 million, down 6.7% year over year. The company attributed the decline to weaker device placements.
Adjusted EBITDA increased 17% year over year to $8.5 million, exceeding the high end of the company’s guidance.
Delivery systems revenue fell to $18.5 million, down 8.3% from the prior year. The company placed 746 systems, compared with 862 in the first quarter of 2025.
Consumables revenue was $46.4 million, down 6.1% year over year. Management said about two-thirds of the decline was tied to China’s transition to a distributor model that began last year. Americas consumables declined 1.6%, which the company linked primarily to fourth-quarter promotions pulling some demand forward. EMEA consumables were down 5.6% due to distributor order timing, while APAC declined 29.9% due to the China distributor transition.
Despite softer device placements, the active installed base grew to 36,400 systems globally, up 4% year over year. Device churn declined 40% year over year in the quarter, which management said indicates provider retention and reactivation programs are working.
Adjusted gross margin expanded to 72.2% from 71.9% a year earlier. GAAP gross margin was 68.5%, down from 69.8%, with management attributing the decline primarily to higher amortization expense.
GAAP operating expenses were $46.2 million, compared with $60.6 million in the prior-year period. Selling and marketing expenses declined to $23.2 million from $26.0 million, while general and administrative expenses fell to $21.9 million from $33.6 million.
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.
Management said the company’s October 2026 debt maturity totals about $103 million and stated it is confident it can address the maturity using its cash position and expected cash generation.
SkinHealth Systems lowered its full-year revenue outlook to $280 million to $295 million, down from its prior range of $285 million to $305 million. Management said the revision reflects a more cautious view of near-term capital equipment demand and the time required for commercial improvements to affect results.
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.
CEO Pedro Malha said the quarter showed that top-line growth has not yet returned, but that the operating foundation is strengthening. He characterized 2026 as an execution and stabilization year, expecting 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.
Management 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 improved 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, Malha said the company is moving toward simplicity and clinical impact after historically having many boosters and SKUs. He said boosters are expected to help drive utilization, provider engagement, and consumer demand.
Management also said it 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 developing a next-generation Hydrafacial device targeted for a 2028 launch, with the goal of improving clinical outcomes and treatment experience and creating an upgrade opportunity for the company’s installed base of more than 36,000 active systems.
Beauty Health is a US-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 beauty and self-care needs. Through proprietary e-commerce platforms and retail partnerships, Beauty Health seeks to deliver premium experiences and tangible results to a global customer base.
Its brand portfolio includes Sol de Janeiro, Elemis, NuFACE and Dermaflash, two at-home beauty device brands specializing in microcurrent facial toning and gentle exfoliation, respectively, and Nutrafol, a hair wellness supplement clinically designed to support hair growth.
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