STRATA Skin Sciences Reports First Quarter 2025 Financial Results and Provides a Corporate Update

Core Insights - STRATA Skin Sciences, Inc. reported a modest revenue increase of 1% year-over-year for Q1 2025, totaling $6.8 million, with gross margins improving significantly by nearly 800 basis points to 53.5% [6][10][24] - The company has successfully executed its direct-to-consumer strategy, resulting in a 32% increase in unique psoriasis patients and a 128% increase in unique acne patients compared to the prior year [4] - International revenue grew by 8% in Q1 2025, contributing to 36% of total revenue, and is expected to continue growing as global tariff uncertainties resolve [5] Financial Performance - Revenue for Q1 2025 was$ 6.8 million, a 1% increase from Q1 2024, with global recurring revenue at $4.7 million and equipment revenue at$ 2.1 million, both up approximately 1% [6][10] - Gross profit for Q1 2025 was $3.6 million, representing 53.5% of revenue, compared to$ 3.1 million or 45.6% of revenue in Q1 2024 [6][24] - Total operating expenses decreased by 5% to $5.7 million, with significant reductions in engineering and product development expenses by 60% [7][24] Loss and Cash Position - The net loss for Q1 2025 was$ 2.4 million, or a loss per share of $0.58, an improvement from a net loss of$ 3.4 million or $0.96 per share in Q1 2024 [7][24] - Cash, cash equivalents, and restricted cash at the end of Q1 2025 were$ 7.8 million, down from $8.6 million at the beginning of the period [8][26] Strategic Developments - The company is focused on enhancing its direct-to-consumer marketing efforts and building a strong franchise in dermatology and aesthetics [20] - STRATA's partnership program offers innovative treatment technologies with a fee-per-treatment cost structure, which is expected to drive further growth [19][18]