Financial Data and Key Metrics Changes - Revenue for Q1 2025 was reported at $69.6 million, exceeding guidance, with adjusted gross margin at 71.9% and adjusted EBITDA at $7.3 million [16][20][22] - Consumable sales totaled $49.4 million, reflecting an 8.2% increase year-over-year, with gross margins improving significantly from 63.4% in the prior year [16][20] - Operating loss for Q1 2025 was $12 million, an improvement from a loss of $17 million in the prior year [21] Business Line Data and Key Metrics Changes - Consumables now represent over 70% of total revenue, growing over 8% [6][16] - Total active devices in the field increased to 35,014 units, up from 32,530 units year-over-year [16] - Non-SENDAO systems accounted for 36% of total device sales in Q1 2025, indicating a successful shift in product strategy [17] Market Data and Key Metrics Changes - Consumable net sales increased by 3.5% in The Americas, 40.2% in APAC, and 7.9% in EMEA [16][17] - Revenue in The Americas declined by 8.1%, while APAC and EMEA saw declines of 30.4% and 21.6% respectively, largely due to macroeconomic pressures and strategic shifts in China [18] - The transition to a third-party distribution model in China is underway, expected to simplify operations and lower capital intensity [8][18] Company Strategy and Development Direction - The company is focused on three strategic priorities: enhancing commercial execution, accelerating science-backed innovation, and deepening provider partnerships [7][12][26] - New product launches, including the HydraLock booster and a dedicated skincare line, are aimed at driving consumer traffic and provider revenue [11][12] - The company is also investing in brand and consumer engagement to elevate awareness and drive traffic to providers [14] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the macro environment, with expectations for slight improvement in the back half of 2025 [32] - The company anticipates continued pressure on capital equipment sales due to financing challenges and uncertainty in global markets [22][23] - Tariff impacts are expected to be approximately $5 million in 2025, with ongoing adjustments to mitigate these costs [24][90] Other Important Information - Total operating expenses decreased by 7.3% to $60.6 million, with significant reductions in selling and marketing expenses [21] - The company ended Q1 2025 with approximately $373 million in cash, reflecting the benefits of cost reductions and operational efficiencies [22] Q&A Session Summary Question: Key drivers behind better profitability and potential areas of upside - Management highlighted initiatives such as lower price equipment options and improved sales execution as key drivers for profitability [32] Question: Signs of consumer pullback amid macro uncertainty - Management noted strong growth in signature treatments, with some softness in luxury treatments, particularly in day spas and plastic surgery channels [33][34] Question: Impact of new product launches on consumables - The HydraLock launch is expected to drive consumer traffic and provider revenue, with excitement around upcoming product launches [40] Question: Progress on the distributor model in China - The transition to a distributor model is well underway, with expectations to complete the transition within the quarter [87] Question: Competition and market share - The company maintains over 60% market share in the U.S. and is focused on clinical backing to differentiate from competitors [90]

Financial Performance - Total net sales for the three months ended March 31, 2025, decreased by $11.8 million, or 14.5%, compared to the same period in 2024, with Delivery Systems net sales down by $15.6 million, or 43.5%[106] - Consumables net sales increased by $3.7 million, or 8.2%, for the three months ended March 31, 2025, primarily due to increased placements of Delivery Systems[107] - Gross profit for the three months ended March 31, 2025, was $48.6 million, with a gross margin of 69.8%, up from 59.4% in the same period of 2024[108] - The Company recognized a loss from operations of $12.0 million for the three months ended March 31, 2025, compared to a loss of $17.0 million in the same period of 2024[105] - The company reported a net loss of $10.1 million for the three months ended March 31, 2025, compared to a net loss of $0.7 million in the same period of 2024[128] Expenses - Selling and marketing expenses decreased by $7.6 million, or 22.7%, for the three months ended March 31, 2025, primarily due to lower personnel-related expenses[109] - Research and development expenses decreased by $1.8 million, or 64.4%, for the three months ended March 31, 2025, driven by lower personnel-related expenses[110] - General and administrative expenses increased by $4.7 million, or 16.3%, for the three months ended March 31, 2025, primarily due to higher legal fees and severance expenses[111] Cash Flow and Liquidity - As of March 31, 2025, the company had cash, cash equivalents, and restricted cash totaling $373.0 million[116] - For the three months ended March 31, 2025, net cash provided by operating activities was $3.0 million, a significant improvement from net cash used of $16.9 million in the same period of 2024[129] - Net cash used for investing activities was $1.1 million for the three months ended March 31, 2025, compared to $1.8 million in the same period of 2024, indicating lower capital expenditures[130] - Cash, cash equivalents, and restricted cash at the end of the period increased to $373.0 million from $370.1 million at the beginning of the period[128] - The company believes it has sufficient liquidity to meet anticipated working capital requirements for at least the next 12 months[119] Market and Strategic Outlook - The Company expects to transition sales in the China market to a distributor partner during the second quarter of 2025, incurring approximately $3 million in severance and restructuring charges[102] - The company may seek additional debt or equity financing for potential acquisitions, which could require substantial capital resources[118] - The company faces macroeconomic challenges, including potential recession and financial market instability, which could adversely impact revenues and earnings[125] - The company continues to monitor risks that may affect its business, including economic conditions and industry consolidations[126] Interest and Financing - Interest income decreased by $2.3 million, or 43.5%, for the three months ended March 31, 2025, primarily due to lower average invested balances[113] - The company repurchased $75.0 million principal amount of its Notes for $57.8 million during the three months ended March 31, 2024, but no repurchases occurred in the same period of 2025[123] - The gross margin increase to 69.8% was primarily due to lower inventory-related charges and a favorable shift towards consumable net sales[108]

Exhibit 99.1 BeautyHealth Reports First Quarter 2025 Financial Results Long Beach, Calif., May 8, 2025 – The Beauty Health Company (NASDAQ: SKIN) ("BeautyHealth" or the "Company"), home to flagship brand Hydrafacial, today announced financial results for the first quarter ended March 31, 2025 ("Q1 2025"). "Our first quarter results reflect strong execution and continued momentum in our transformation strategy," said CEO Marla Beck. "We exceeded both revenue and adjusted EBITDA guidance, driven by gross prof ...

Core Insights - The Beauty Health Company reported strong execution and momentum in its transformation strategy, exceeding revenue and adjusted EBITDA guidance despite macroeconomic pressures impacting device sales [2][5] - The company is transitioning its China operations to a distributor model and relocating production to the U.S. to mitigate tariff risks, aiming to enhance profit margins and shareholder value [2][5] Financial Performance - Net sales for Q1 2025 were $69.6 million, a decrease of 14.5% compared to Q1 2024, primarily due to lower delivery systems net sales [7][10] - Gross margin improved to 69.8% in Q1 2025 from 59.4% in Q1 2024, with adjusted gross margin at 71.9% compared to 63.4% in the prior year [7][10] - The company reported a net loss of $10.1 million in Q1 2025, compared to a net loss of $0.7 million in Q1 2024 [10][20] Operational Metrics - Delivery systems net sales were $20.2 million in Q1 2025, down from $35.8 million in Q1 2024, with total delivery systems sold decreasing from 1,417 to 862 units year-over-year [3][12] - Consumables net sales increased to $49.4 million in Q1 2025 from $45.6 million in Q1 2024, supported by an active install base growth from 32,530 to 35,014 units [3][5] Guidance and Outlook - The company updated its financial guidance for Q2 2025, projecting net sales between $71 million and $76 million and adjusted EBITDA between $2 million and $4 million [9][11] - For the fiscal year 2025, net sales are expected to be between $270 million and $300 million, with adjusted EBITDA projected between $15 million and $25 million [9][11]

Core Viewpoint - The Beauty Health Company will report its first quarter 2025 financial results on May 8, 2025, and will host an investor conference call shortly after the announcement [1]. Group 1: Financial Reporting - The financial results will be released after market close on May 8, 2025 [1]. - An investor conference call is scheduled for 4:30 p.m. Eastern Time on the same day [1]. Group 2: Investor Relations - A live webcast of the investor call will be available on the company's investor relations website [2]. - A recording of the call will be accessible approximately three hours after its conclusion [2]. Group 3: Company Overview - The Beauty Health Company (NASDAQ: SKIN) focuses on skin health experiences through its flagship brand Hydrafacial™ and other brands like SkinStylus™ and Keravive™ [4]. - The company aims to personalize skin health for diverse demographics and is committed to positive community and environmental impact [4].

BEAUTYHEALTH™ Fourth Quarter & Full Year 2024 Earnings Presentation March 12, 2025 Disclaimer This Presentation contains serbain from ward-looking statements. These stabenents may relate to, but are not linnited to expectations of financial perfumance of The Bauth "Company") , casida lecpenditures, the introduction of new products, expansion into new markets and the ability to execute certain strationes some of the forward-looking d of forward-fooling words such as "antidipate;" "exped:" "plan," "believe," ...

Financial Data and Key Metrics Changes - For the full year 2024, the company reported net revenue of $334 million and adjusted EBITDA of $12.3 million, both exceeding guidance [9] - Fourth quarter revenue was $83.5 million, representing a 13.8% year-over-year decline [26] - Gross profit for Q4 was $52.3 million, compared to $45.7 million in the prior year, with adjusted gross margin improving to 67.1% from 54.6% [32] Business Line Data and Key Metrics Changes - Consumable sales for Q4 totaled $56.7 million, an 8.7% increase year-over-year, with full year consumable sales reaching $208.9 million compared to $191.4 million in 2023 [29] - Non-Syndeo device sales represented 29% of total systems sold in Q4, up from 21% in the prior year [28] - Total units sold in Q4 were 1,087, down from 1,551 units sold in Q4 2023 [28] Market Data and Key Metrics Changes - In the Americas, Q4 revenue was down 3.9%, while APAC and EMEA saw declines of 50.5% and 8.3% respectively [30] - In APAC, China accounted for $23.9 million of the region's revenue, reflecting a 56.4% year-over-year decline [30] - The decline in China was attributed to a 70.2% drop in system sales and an 8.3% decrease in consumables revenue [31] Company Strategy and Development Direction - The company identified three transformation priorities: sales execution, operational excellence, and financial discipline [11] - A new commercial leadership team has been established to drive device and consumable sales, increasing utilization and deepening provider relationships [14] - The company is transitioning its direct business in China to a third-party distributor model to capture market potential while maintaining a capital-light approach [17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing macroeconomic uncertainty and industry headwinds but expressed confidence in the company's strategic direction [23] - The company expects full year 2025 sales between $270 million to $300 million, with adjusted EBITDA of $10 million to $25 million [37] - Management emphasized the importance of driving long-term shareholder value through strong sales execution and operational efficiency [39] Other Important Information - The company reduced operating expenses by over $30 million year-over-year, demonstrating a commitment to financial discipline [10] - The Hydralock HA Booster was launched in Q3 2024, marking the most successful Hydrafacial branded booster launch to date [19] - The company ended Q4 with approximately $370 million in cash and projected capital expenditures of $10 million to $15 million for 2025 [36][38] Q&A Session Summary Question: What is the outlook for delivery systems given macroeconomic conditions? - Management noted that providers are taking longer to make purchasing decisions due to macro uncertainty and high interest rates, impacting sales [44] Question: How is consumer demand for consumables expected to trend in 2025? - Management indicated consistent growth in consumables, with macro trends favoring continued demand [48][50] Question: What improvements have been made regarding machine reliability? - Management reported significant improvements in manufacturing quality and customer service, addressing minor technical issues promptly [57] Question: What is the strategy for the distributor model in China? - Management explained that the decision to move to a distributor model was based on the need for focused investment and expertise in the Chinese market [102] Question: How will the company manage operating expenses in 2025? - Management expects to maintain discipline in operating expenses while leveraging improvements in gross margins [135] Question: What is the expected cash flow situation for 2025? - Management anticipates being cash neutral throughout the year, with a typical use of cash in the first half transitioning to a source of cash in the second half [136]

Financial Performance - Net sales for the year ended December 31, 2024, decreased by $63.7 million, or 16.0%, compared to 2023, with Delivery Systems net sales down by $81.2 million, or 39.3%[440] - Consumables net sales increased by $17.5 million, or 9.2%, for the year ended December 31, 2024, primarily due to increased placements of Delivery Systems[441] - Gross profit for the year ended December 31, 2024, was $182.3 million, representing a 17.5% increase from $155.1 million in 2023[442] - Gross margin improved from 39.0% in 2023 to 54.5% in 2024, primarily due to the absence of prior year charges associated with the Syndeo Program[443] Cost and Expenses - Cost of sales for the year ended December 31, 2024, decreased by $90.9 million, or 37.4%, compared to 2023, largely due to the absence of charges related to the Syndeo Program[443] - Total operating expenses for the year ended December 31, 2024, were $250.1 million, compared to $286.0 million in 2023, reflecting a decrease in selling and marketing expenses[439] - Selling and marketing expenses decreased by $26.2 million, or 18.1%, to $118.3 million for the year ended December 31, 2024, primarily due to lower personnel-related expenses[444] - Research and development expenses decreased by $3.8 million, or 37.7%, to $6.3 million for the year ended December 31, 2024, driven by lower personnel-related expenses[445] - General and administrative expenses decreased by $6.0 million, or 4.5%, to $125.5 million for the year ended December 31, 2024, primarily due to lower losses on the sale of assets[446] Interest and Income - Interest expense for the year ended December 31, 2024, was $10.4 million, down from $13.6 million in 2023[439] - Interest income decreased by $6.5 million, or 28.2%, to $(16.6) million for the year ended December 31, 2024, primarily due to lower average invested balances[447] - The company recognized other income, net of $33.6 million for the year ended December 31, 2024, compared to $5.2 million in 2023, including a net gain of $33.4 million related to the repurchase of the Company's Notes[450] Cash Flow and Investments - As of December 31, 2024, the company had cash, cash equivalents, and restricted cash of $370.1 million, down from $523.0 million at the beginning of the period[468] - Net cash provided by operating activities was $16.1 million for the year ended December 31, 2024, compared to $21.8 million in 2023, primarily due to higher working capital usage[469] - Capital expenditures for property and equipment and intangible assets for the year ended December 31, 2024, were $6.8 million[454] - Net cash used for investing activities decreased to $6.8 million in 2024 from $31.5 million in 2023, primarily due to prior year's asset acquisitions totaling $18.5 million[470] - Net cash used for financing activities increased significantly to $158.3 million in 2024 from $37.4 million in 2023, mainly due to the repurchase of $192.3 million in Notes at a weighted average price of 81%[471] Inventory and Trade-in Programs - The Syndeo Program resulted in an inventory write-down of $19.6 million and costs of $24.6 million during the year ended December 31, 2023[427] - The company recognized approximately $7 million in inventory charges related to the write-down of trade-in Delivery Systems to net realizable value in 2024[474] - Revenue from trade-in programs was approximately $17 million in 2023 and $9 million in 2022, with no trade-in revenue recognized in 2024[473] Future Expectations and Risks - The Company expects to transition sales in the China market to a distributor partner by Q2 2025, discontinuing its direct sales presence in China[425] - The company continues to evaluate potential acquisitions of businesses and products, which may require substantial capital resources[453] - A hypothetical 100 basis points increase in interest rates would result in an approximate $3 million increase in the fair market value of the investment portfolio as of December 31, 2024[493] - An adverse 10% change in foreign currency exchange rates would have resulted in an approximate $6 million and $8 million negative impact on income before income taxes for the years ended December 31, 2024 and 2023, respectively[495] - Inflation has the potential to increase the overall cost structure, affecting liquidity and financial condition, with expectations of further cost increases if inflation persists[498] - The company has not engaged in hedging foreign currency transactions to date, which may expose it to fluctuations in net loss due to foreign currency transaction gains or losses[496] - The company does not rely on projected income to support the realization of deferred tax assets due to cumulative pre-tax losses as of December 31, 2024[482] Remediation and Charges - As of December 31, 2023, the company accrued $21.0 million for the estimated cost of its remediation plan for Syndeo devices, which was completed by December 31, 2024[490]

Financial Performance - Fourth quarter net sales were $83.5 million, a decrease of 13.8% compared to Q4 2023, primarily due to lower delivery systems net sales[8] - Full year net sales for 2024 totaled $334.3 million, down 16.0% from the previous year, attributed to reduced delivery systems net sales[8] - Net sales for Q4 2024 were $83.5 million, a decrease of 13.6% from $96.8 million in Q4 2023[18] - Gross profit increased to $52.3 million in Q4 2024, up 14.4% from $45.7 million in Q4 2023, resulting in a gross margin of 62.7% compared to 47.2%[24] - Total operating expenses decreased to $59.5 million in Q4 2024, down 7.0% from $64.0 million in Q4 2023[18] - The net loss for the year ended December 31, 2024, was $29.1 million, significantly improved from a net loss of $100.1 million in 2023[23] - Adjusted EBITDA for Q4 2024 was $9.0 million, compared to $3.4 million in Q4 2023, reflecting lower operational spending and higher gross margins[8] - Adjusted EBITDA for Q4 2024 was $9.0 million, with an adjusted EBITDA margin of 10.8%, compared to $3.4 million and 3.5% in Q4 2023[26] Cash and Assets - Cash and cash equivalents were approximately $370.1 million as of December 31, 2024, down from $523.0 million a year earlier, mainly due to the repurchase of convertible senior notes[8] - Cash, cash equivalents, and restricted cash decreased to $370.1 million as of December 31, 2024, down from $523.0 million at the end of 2023[20] - Total assets decreased to $685.7 million in 2024, down from $929.1 million in 2023[20] Market and Operational Insights - The company placed 1,087 delivery systems in Q4 2024, down from 1,551 in the prior year, indicating challenges in the macroeconomic environment[8] - The active install base grew to 34,735 units in 2024, up from 31,446 in 2023, contributing to increased consumable net sales[5] - The company plans to convert its China market from a direct sales to a distributor model in 2025, as part of its strategic evaluation[5] - Research and development expenses were $1.2 million in Q4 2024, a decrease from $3.0 million in Q4 2023[18] Risks and Forward-Looking Statements - The Beauty Health Company emphasizes the importance of managing growth and executing its business plan effectively[31] - The company acknowledges potential litigation risks that may impact its operations[31] - Changes in applicable laws or regulations are identified as a significant factor that could affect the company's performance[31] - The Beauty Health Company warns that actual results may differ materially from forward-looking statements due to various risks and uncertainties[30] - The company does not undertake any obligation to update or revise forward-looking statements unless required by law[30] - The Beauty Health Company filed its Annual Report on Form 10-K for the year ended December 31, 2024, with the SEC, detailing risk factors[31] - The company highlights the potential adverse effects from economic, business, and competitive factors[31] - The forward-looking statements are not guarantees of future performance and involve known and unknown risks[30] - The company encourages caution in relying on forward-looking statements due to inherent uncertainties[30] Investor Relations - Contact information for investor relations and press inquiries is provided for further communication[32]

Core Insights - The Beauty Health Company reported fourth quarter net sales of $83.5 million, a decrease of 13.8% compared to Q4 2023, and full year net sales of $334.3 million, down 16.0% year-over-year [10][3][4] - The company achieved an adjusted EBITDA of $9 million in Q4 2024, significantly up from $3.4 million in Q4 2023, driven by increased consumable sales and reduced operating expenses [2][10] - Gross margin improved to 62.7% in Q4 2024 from 47.2% in Q4 2023, attributed to lower inventory-related charges and a favorable shift towards consumable sales [10][3] Financial Performance - For Q4 2024, delivery systems net sales were $26.8 million, down from $44.6 million in Q4 2023, while consumables net sales increased to $56.7 million from $52.2 million [3][11] - The full year gross profit was $182.3 million, up from $155.1 million in 2023, with an adjusted gross margin of 62.0% compared to 62.8% in the previous year [10][3] - The net loss for 2024 was $(29.1) million, an improvement from $(100.1) million in 2023, reflecting reduced costs associated with the Syndeo Program [10][3] Operational Metrics - The company placed 1,087 delivery systems in Q4 2024, down from 1,551 in Q4 2023, and a total of 4,907 systems for the year, compared to 8,287 in 2023 [10][3] - The active install base grew to 34,735 units by the end of 2024, up from 31,446 units in 2023, contributing to the increase in consumable sales [4][3] - The company plans to transition its China market from a direct sales model to a distributor model in 2025 [4] Guidance and Future Outlook - For Q1 2025, the company expects net sales between $61 million and $66 million, with an adjusted EBITDA loss projected between $(6) million and $(4) million [8] - Full year 2025 guidance anticipates net sales of $270 million to $300 million and adjusted EBITDA of $10 million to $25 million, reflecting ongoing challenges in delivery systems sales [8][9] - The company aims to deepen partnerships and accelerate science-backed innovations in 2025 despite macroeconomic uncertainties [2]