NEW YORK and NEW ORLEANS, Jan. 20, 2026 /PRNewswire/ -- Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC ("KSF"), announces that KSF has commenced an investigation into The Beauty Health Company ("Beauty Health" or the "Company") (NasdaqCM: SKIN).   In November 2023, the Company announced its financial results for the third quarter of 2023, disclosing that "[t]he quarter was overshadowed by lower-than-expected U.S. revenue and $63.1 milli ...

Core Insights - The Beauty Health Company released Volume Three of its Skintuition Report, highlighting significant consumer-driven shifts in skin health and aesthetics for 2025 and trends for 2026 [1][17] - The report emphasizes a transition from skin correction to skin regeneration as the new beauty standard, driven by consumer preferences [2][3] Consumer Trends - 75% of consumers now prioritize treatments that enhance overall skin quality over volume-enhancing procedures, indicating a shift towards a skin-first approach [3] - There is an increasing demand for firmer, smoother, and more hydrated skin, leading to a focus on treatments that strengthen and renew the skin over time [3] - Hydrafacial introduced the HydraFillic with Pep9™ Booster in June 2025, which is clinically proven to improve fine lines, hydrate, and strengthen the skin barrier [3][4] Industry Response - Hydrafacial has been a key player in innovating treatments that align with the evolving needs of consumers, focusing on skin regeneration rather than correction [4] - The report identifies five major trends that are reshaping consumer and provider perspectives on skin health, positioning Hydrafacial as a growth driver in this new era [5] Emerging Insights - The report outlines several key trends for 2026 and beyond, including the medicalization of beauty, the rise of "notox" and "skinimalism," cumulative care, whole-body glow, and the integration of advanced technologies like peptides and microbiome solutions [13] - Hydrafacial consumers typically receive an average of 3.6 treatments per year, indicating strong customer loyalty and repeat business [13] - 50% of clients purchasing additional treatments or retail products during their visits highlights Hydrafacial's role as an entry point for deeper skin health journeys [13]

Core Viewpoint - Halper Sadeh LLC is investigating potential breaches of fiduciary duties by certain officers and directors of The Beauty Health Company, which may affect shareholder rights and corporate governance [1][2]. Group 1: Shareholder Rights and Legal Options - Long-term shareholders of Beauty Health may seek corporate governance reforms, financial incentives, or other benefits through legal action [2]. - Shareholder involvement is emphasized as a means to improve company policies and enhance shareholder value [3]. Group 2: Firm's Background and Services - Halper Sadeh LLC represents global investors affected by securities fraud and corporate misconduct, having recovered millions for defrauded investors [4].

Group 1 - The article does not provide any specific content related to a company or industry [1]

Core Insights - The Beauty Health Company (SKIN) reported a revenue of $70.7 million for the quarter ended September 2025, reflecting a 10.3% decline year-over-year [1] - The company's EPS was -$0.09, an improvement from -$0.15 in the same quarter last year, but below the consensus estimate of -$0.08, resulting in a surprise of -12.5% [1] - The revenue exceeded the Zacks Consensus Estimate of $68.75 million by 2.84% [1] Revenue Breakdown - Geographic Revenue in the Americas was $48.3 million, surpassing the estimated $46.45 million, but down 6.9% from the previous year [4] - EMEA revenue stood at $16.1 million, slightly above the estimated $15.94 million, with no year-over-year change [4] - Asia Pacific revenue was $6.3 million, exceeding the estimate of $6 million, but down significantly by 41.7% compared to the year-ago quarter [4] Sales Performance - Delivery Systems Net Sales reached $20.8 million, exceeding the estimate of $17.03 million, but down 24.6% year-over-year [4] - Consumables Net Sales were reported at $49.8 million, slightly below the estimated $51.36 million, reflecting a 2.7% decline from the previous year [4] Stock Performance - Over the past month, shares of Beauty Health have declined by 13.5%, contrasting with a 1.3% increase in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Financial Data and Key Metrics Changes - Total net sales for Q3 2025 were $70.7 million, down 10.3% year-over-year, slightly ahead of the high end of the forecast for the quarter [7][10] - Device segment revenues decreased by 24.6% year-over-year to $20.8 million, reflecting continued pressure on equipment sales globally [7][10] - Consumable segment revenues were $49.8 million, a decrease of 2.6% year-over-year, primarily due to the change in the China business model [8][10] - Adjusted gross margins were 68%, a decline of approximately 150 basis points from Q3 of last year [8][12] - Adjusted EBITDA was $8.9 million, up 11% from Q3 of last year, reflecting tight cost control and solid operational execution [9][12] Business Line Data and Key Metrics Changes - The consumable mix increased from 65% of net sales in Q3 of last year to 71% this quarter [8] - New product launches contributed to a 14% growth in the booster sales category this quarter [8] - Device placements in the Americas were down 16.3%, while consumables were down about 2.7% [21] Market Data and Key Metrics Changes - Revenue in the Americas declined by 7% to $48.3 million, while APAC revenue decreased by 41.5% to $6.3 million [11] - EMEA revenue was relatively flat at $16.1 million, with strong momentum in Germany [11][22] - The decline in APAC was attributed to the transition to a distributor model in China [11][23] Company Strategy and Development Direction - The company aims to protect and grow its HydroFacial install base of over 35,000 devices worldwide, focusing on driving consumable utilization [6][7] - Innovation across both devices and consumable platforms is a priority, with plans to launch clinically backed products [6][7] - The company is committed to operational discipline around commercial execution, cost control, and margin expansion [6][7] Management's Comments on Operating Environment and Future Outlook - The management acknowledged a tough and unpredictable environment, citing inflation and uneven consumer confidence as challenges [17] - Despite macroeconomic pressures, the company is optimistic about building the HydroFacial global brand and accelerating revenue growth [17] - The company raised the low end of its full-year 2025 revenue guidance to between $293 million and $300 million [16] Other Important Information - The company ended the quarter with $219.4 million in cash and equivalents, down from $370.1 million at year-end 2024 [15] - Inventory declined to $56.1 million, reflecting stronger demand planning and improved supply chain efficiency [15] Q&A Session Summary Question: Thoughts on trends in the Americas and EMEA - The Americas saw a 7% decline, with device sales down 16.3%, but there are signs of stabilization [21][22] - EMEA was flat, with strong performance in Germany offsetting device sales challenges [22] Question: Focus areas for the company - The company will focus on driving utilization, device placement, and innovation in consumables [26][27] Question: International strategy and distributor models - The company will continue to leverage an extensive distributor network while investing in education and training [31][32] Question: Reception of consumable price increases - The market has positively received the 5% price increase on consumables, contributing to higher average selling prices [34] Question: Stabilizing device systems and growth initiatives - The company is encouraged by the stabilization of device sales and is focused on expanding its global footprint [39] Question: Trends in different channels and consumer behavior - The medical segment is facing challenges, but there are growth opportunities in both medical and non-medical channels [44][46] Question: Prioritizing top-line growth versus profitability - The company will focus on both top-line growth and profitability, leveraging its strong business model [50][52] Question: Updated guidance dynamics and revenue expectations - The company raised its revenue and EBITDA guidance, reflecting improved execution and sales initiatives [56][58] Question: Addressing elevated churn rates - The company is proactively reengaging low-volume providers to reduce churn and improve utilization [60][61]

Financial Performance - Net sales for the three months ended September 30, 2025, decreased by $8.1 million, or 10.3%, compared to the same period in 2024, totaling $70.7 million[107]. - Net sales for the nine months ended September 30, 2025 decreased by $32.4 million, or 12.9%, compared to the same period in 2024, with Delivery Systems sales down by $35.2 million, or 35.7%[118]. - Consumables net sales increased by $2.8 million, or 1.9%, for the nine months ended September 30, 2025, primarily due to increased placements of Delivery Systems[119]. - The net loss for the nine months ended September 30, 2025, was $1.4 million, an improvement from a loss of $18.8 million in 2024[147]. Sales Breakdown - Delivery Systems net sales fell by $6.8 million, or 24.6%, to $20.8 million, while Consumables net sales decreased by $1.4 million, or 2.6%, to $49.8 million[107]. - The transition to a distributor partner in China impacted Consumables net sales, although excluding this effect, sales increased slightly[108]. Profitability - Gross profit increased by $5.0 million, or 12.3%, to $45.6 million, with a gross margin improvement to 64.6% from 51.6%[109]. - Gross profit for the nine months ended September 30, 2025 was $143.3 million, an increase of $13.4 million, or 10.3%, compared to $130.0 million in 2024, with gross margin improving to 65.6% from 51.8%[120]. Expenses - Selling and marketing expenses decreased by $6.7 million, or 24.2%, to $20.9 million, representing 29.6% of net sales[110]. - Total operating expenses decreased by $26.3 million, or 13.8%, to $164.3 million for the nine months ended September 30, 2025, driven by lower selling and marketing expenses[121]. - Selling and marketing expenses decreased by $21.7 million, or 23.7%, to $70.1 million, representing 32.1% of net sales compared to 36.6% in 2024[121]. - Research and development expenses rose by $0.6 million, or 53.2%, to $1.7 million, accounting for 2.4% of net sales[111]. - Research and development expenses decreased by $1.1 million, or 22.2%, to $3.9 million, representing 1.8% of net sales compared to 2.0% in 2024[122]. - General and administrative expenses decreased by $4.2 million, or 12.5%, to $29.3 million, making up 41.4% of net sales[112]. - General and administrative expenses decreased by $3.4 million, or 3.7%, to $90.3 million, representing 41.3% of net sales compared to 37.4% in 2024[123]. Interest and Debt - Interest expense increased by $3.8 million, or 155.7%, to $6.3 million, primarily due to debt issuance costs related to the 2028 Notes[115]. - Interest expense increased by $5.0 million, or 63.0%, to $13.0 million for the nine months ended September 30, 2025, primarily due to interest and amortization of debt issuance costs related to the 2028 Notes[126]. - The Company exchanged and repurchased $413.2 million of existing notes, resulting in a net gain of $16.6 million[139]. - The 2028 Notes were issued at a weighted-average price of 95%, totaling $250.0 million principal amount[140]. - The Company incurred $11.4 million in debt issuance costs related to the exchange and repurchase of its existing notes, amortized over the term of the 2028 Notes[139]. Cash Flow and Liquidity - As of September 30, 2025, the company had cash, cash equivalents, and restricted cash totaling $219.4 million[130]. - Net cash provided by operating activities for the nine months ended September 30, 2025, was $22.3 million, compared to a net cash used of $0.3 million in the same period of 2024[148]. - Net cash used for financing activities was $174.4 million for the nine months ended September 30, 2025, compared to $157.6 million in 2024[150]. - Cash, cash equivalents, and restricted cash at the end of the period were $219.4 million, down from $358.9 million in the previous year[147]. - Cash used for investing activities decreased to $3.8 million in 2025 from $5.9 million in 2024, attributed to lower capital expenditures[149]. Strategic Outlook - The company continues to explore strategies to mitigate cost pressures, including potential price increases and optimizing supplier contracts[101]. - The company remains attentive to macroeconomic conditions that may impact its business and is implementing risk mitigation strategies[102]. - The Company faced macroeconomic challenges, including potential recession and financial market instability, which could adversely impact revenues[144]. - The Company continues to monitor risks that may affect its business, including industry consolidations and economic conditions[145]. - The company plans to evaluate potential acquisitions and may use available cash for such transactions, which could require substantial capital resources[132].

Q3 2025 Performance - Net sales reached $70.7 million, a decrease of 10.3% year-over-year[11] - Consumables net sales were $49.8 million, a decrease of 2.6% year-over-year, but would have increased modestly excluding the China distributor transition[11] - Delivery systems net sales were $20.8 million, a decrease of 24.6% year-over-year due to macroeconomic challenges[11] - Adjusted EBITDA was $8.9 million, an increase year-over-year due to lower operational spend partially offset by lower adjusted gross profit[11] - Net loss was $(11.0) million, an improvement of $7.3 million year-over-year due to lower operational spend and higher gross margin, partially offset by lower net sales[11] Financial Guidance - The company estimates Q4 2025 net sales to be between $74.5 million and $81.5 million[14] - The company projects Q4 2025 adjusted EBITDA to be between $6.9 million and $8.9 million[14] - The company forecasts FY 2025 net sales to be between $293 million and $300 million[14] - The company anticipates FY 2025 adjusted EBITDA to be between $37 million and $39 million[14] Market Position - Hydrafacial holds the 1 market share, with 41% of aesthetic practices with microdermabrasion offering Hydrafacial[18] - Hydrafacial has a 64% market share in the U S microdermabrasion category[42]

Core Insights - BeautyHealth reported Q3 CY2025 revenue of $70.7 million, which was above Wall Street's expectations but represented a 10.3% decline year-on-year [1][7] - The company's full-year revenue guidance is set at $296.5 million, slightly above analysts' estimates by 0.8% [1][7] - GAAP loss per share was $0.09, aligning with analysts' consensus [1][7] Company Overview - BeautyHealth operates in the emerging beauty health category, primarily known for its Hydrafacial product that cleanses and hydrates skin [4] Revenue Growth - Over the past 12 months, BeautyHealth generated $302 million in revenue, indicating challenges in competing with larger companies [5] - The company has experienced a 4.4% annual decline in sales over the last three years, highlighting difficulties in demand generation [6] Financial Performance - Q3 revenue of $70.7 million exceeded analyst estimates of $68.91 million, marking a 2.6% beat despite the year-on-year decline [7] - Adjusted EBITDA was reported at $8.9 million, significantly above analyst estimates of $2.58 million, with a margin of 12.6% [7] - The company improved its full-year EBITDA guidance to $38 million, surpassing analyst expectations of $30.5 million [7] - Operating margin improved to -8.8%, up from -27.3% in the same quarter last year, while free cash flow margin increased to 13.7% from 10.4% [7] - Market capitalization stands at $186.4 million [7] Future Outlook - Analysts project that revenue will remain flat over the next 12 months, indicating that newer products may enhance top-line performance but still fall below sector averages [8]

Financial Performance - Revenue for Q3 2025 was $70.7 million, a decrease of 10.3% compared to Q3 2024[7] - Adjusted EBITDA for Q3 2025 was $8.9 million, up from $8.1 million in Q3 2024, reflecting lower operational spend[7] - Gross margin improved to 64.6% in Q3 2025, compared to 51.6% in Q3 2024, driven by lower inventory-related charges[7] - Net sales for Q3 2025 were $70.7 million, a decrease of 10.3% from $78.8 million in Q3 2024[17] - Gross profit increased to $45.6 million in Q3 2025, up 12.3% from $40.6 million in Q3 2024, resulting in a gross margin of 64.6%[24] - Operating expenses for Q3 2025 totaled $51.9 million, down from $62.2 million in Q3 2024, reflecting a reduction of 16.5%[17] - The net loss for Q3 2025 was $11.0 million, compared to a net loss of $18.3 million in Q3 2024, indicating an improvement of 40.5%[17] - Adjusted EBITDA for Q3 2025 was $8.9 million, representing an adjusted EBITDA margin of 12.6%, compared to 10.2% in Q3 2024[25] - The company reported a comprehensive loss of $10.6 million for Q3 2025, compared to a comprehensive loss of $17.1 million in Q3 2024[17] Sales and Market Activity - Total delivery systems sold in Q3 2025 was 875, down from 1,118 in Q3 2024, indicating a challenging macroeconomic environment[7] - Total consumables net sales for Q3 2025 were $49.8 million, slightly down from $51.2 million in Q3 2024[9] - Active install base reached 35,409 as of September 30, 2025, compared to 34,162 in the prior year[3] Cash and Assets - Cash and cash equivalents were approximately $219 million as of September 30, 2025, down from $370 million at the end of 2024[7] - Cash, cash equivalents, and restricted cash at the end of Q3 2025 were $219.4 million, down from $370.1 million at the end of 2024[19] - Total assets decreased to $503.6 million as of September 30, 2025, from $685.7 million at the end of 2024[19] - Total liabilities were $438.0 million as of September 30, 2025, down from $633.9 million at the end of 2024[19] Strategic Focus and Guidance - Updated financial guidance for FY 2025 projects net sales between $293 million and $300 million[6] - The company aims to expand its device footprint and strengthen commercial execution moving forward[2] - The company is focused on expanding its product offerings and enhancing its market presence through innovative technologies and strategic initiatives[26] Risks and Forward-Looking Statements - The Beauty Health Company acknowledges that forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from expectations[30] - Key factors affecting actual results include the company's ability to manage growth and execute its business plan[31] - Potential litigation and changes in applicable laws or regulations may adversely affect the company's performance[31] - The company does not undertake any obligation to update or revise forward-looking statements unless required by law[31]