The Beauty Health pany(SKIN) - 2025 Q3 - Quarterly Results

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]