Q2 2025 Performance - Net sales decreased by 13.7% year-over-year to $78.2 million[10] - Delivery Systems net sales decreased by 36.5% year-over-year to $22.4 million[10] - Consumables net sales increased slightly by 0.8% year-over-year to $55.8 million[10] - Net income increased by $19.5 million year-over-year to $19.7 million[10] - Adjusted EBITDA increased by $19.1 million year-over-year to $13.9 million[10] Financial Outlook - The company expects 3Q 2025E net sales to be between $65 million and $70 million[20] - The company expects 3Q 2025E adjusted EBITDA to be between $2 million and $4 million[21] - The company expects FY 2025E net sales to be between $285 million and $300 million[21] - The company expects FY 2025E adjusted EBITDA to be between $27 million and $35 million[21] Market Position - Hydrafacial holds the 1 market share and 41% of aesthetic practices with microdermabrasion offer Hydrafacial[25] - Hydrafacial is the 2 best-known brand[26]

Core Insights - The Beauty Health Company has launched the Hydrafacial HydraFillic with Pep9™ Booster, a new skin treatment designed to visibly improve fine lines, wrinkles, and overall skin health through a proprietary complex of nine peptides [1][19] - The product aims to meet the rising consumer demand for non-invasive treatments that address aging signs and enhance skin health, as 81% of beauty consumers prioritize fine lines and wrinkles as their main skin concern [2][3] Product Details - The HydraFillic with Pep9™ Booster is clinically proven to enhance skin appearance, hydration, and barrier strength, resulting in a firmer and more youthful complexion [1][19] - Clinical testing showed significant improvements in skin firmness (100%), overall glow (96%), and reduced appearance of fine lines (83%) among participants after treatment [6][9] - Key ingredients include a proprietary complex of nine peptides, Triple Hyaluronic Acid Complex, and fruit extracts, which work synergistically to improve skin hydration and minimize aging signs [7][8] Market Context - The launch reflects the company's commitment to innovation in non-invasive aesthetic treatments, leveraging advanced device technology and novel skincare formulations [1][3] - The HydraFillic with Pep9™ Booster is positioned to empower providers to customize treatments based on individual client needs, aligning with current aesthetic trends focused on longevity and skin health [2][4]

Core Insights - The BeautyHealth Company has reached a significant milestone with 35,000 Hydrafacial devices installed globally, solidifying its leadership in the hydradermabrasion market [1][2] - The Hydrafacial treatment has seen approximately 5 million treatments delivered in the past year, indicating strong demand and consumer trust [2][5] - Hydrafacial ranks as the second most recognized facial treatment in the U.S., with a 96% "Worth It" rating on RealSelf and a Net Promoter Score of 52, showcasing high consumer satisfaction [2][4] Company Performance - The Hydrafacial treatment is responsible for driving about 7% of new patients to medical spas and aesthetic practices annually, highlighting its role in practice growth [2][4] - The treatment combines seven skin therapies, resulting in visible improvements and a boost in consumer confidence with no downtime [2][3] Market Trends - There is a growing trend towards non-invasive aesthetic treatments that prioritize skin health, which aligns with the offerings of Hydrafacial [2][3] - The success of Hydrafacial reflects a shift in beauty trends favoring a natural and effortless look [2]

First Quarter 2025 Earnings Presentation May 8, 2025 Disclaimer This Presentation contains certain forward-looking statements. These statements may relate to, but are not limited to, expectations of future operating results or financial performance of The Beauty Health Company (the "Company"), capital expenditures, the introduction of new products, market strategy and the ability to execute certain strategic initiatives. Some of the forward-looking statements can be identified by the use of forward- looking ...

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]