BeautyHealth (NASDAQ:SKIN) Beats Q3 Sales Expectations, Stock Jumps 16.7%

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]