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

Core Insights - STRATA Skin Sciences, Inc. reported a revenue of $6.9 million for Q3 2025, a decrease of 21% compared to Q3 2024, with global recurring revenue increasing by 3% year-over-year [4][7] - The company anticipates growth due to newly approved reimbursement codes for its XTRAC Excimer laser treatment, which is expected to enhance patient and practitioner interest [3][6] - STRATA's ongoing litigation has resulted in positive outcomes, potentially leading to increased revenue from new customers [3][6] Financial Performance - Total revenue for Q3 2025 was $6.9 million, down from $8.8 million in Q3 2024, with gross profit at $4.2 million, representing a gross margin of 60% [4][24] - Operating expenses decreased to $5.4 million in Q3 2025 from $6.9 million in the prior-year period [5][24] - The net loss for Q3 2025 was $1.6 million, or EPS of negative $0.36, an improvement from a net loss of $2.1 million, or EPS of negative $0.51, in Q3 2024 [7][24] Business Developments - STRATA is making progress in expanding CPT codes for reimbursement, effectively tripling the covered patient population in the U.S. [6] - The company received clearance for TheraClearX in Mexico, marking its first commercial placements [6] - XTRAC has been validated through multiple peer-reviewed publications for its clinical outcomes in treating autoimmune diseases [6] Market Position - The average gross billings per XTRAC device increased by 8.5% year-over-year to $5,981, the highest since Q4 2022 [6] - The U.S. install base of XTRAC devices decreased by 6 to 838, while the install base of TheraClearX stands at 161 [6] - STRATA continues to manage costs carefully while expanding its patient pool through direct-to-consumer efforts [3][6]