One-glance verdict
Undervalued
$5.95 our estimate vs market $0.66
Wall Street consensus: $0.99 (-83.3% lower than our fair-value estimate)
89% below our estimate, below the bear case
Fundamentals snapshot
SkinHealth Systems Inc.
SKIN · NCM · Consumer Defensive · Household & Personal Products
Current price
$0.66
52-week range
$0.55 - $2.03
Market cap
$86.52M
Balance sheet
Distressed
-1.08x Concerning
Net debt $162.97M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
1 Risk
1 rewards · 1 risks
- Reward Free cash flow was positive in 3/10 years.
- Risk Return on equity was -43.9% last year — the company lost money on shareholders' equity.
What this company does
SkinHealth Systems Inc.
SkinHealth Systems sells professional skincare devices, like its popular HydraFacial machine, to spas and clinics. A large part of its business comes from selling the single-use tips and serums needed for every treatment, which creates recurring revenue (sales that are predictable because customers must keep buying these supplies). This is important because every new machine the company sells also creates a new, long-term customer for its disposable products.
How the company got here
Founded in 1997 as a skincare technology company called Edge Systems, the business hit a major turning point when it introduced its HydraFacial treatment in 2001. [1] This multi-step facial treatment became so popular that the company eventually renamed itself after its star product. After a period of growth under private ownership, the company went public in 2021, becoming known as The Beauty Health Company. [4, 5] To reflect a broader focus on science-backed skin health, it rebranded again in 2026 to its current name, SkinHealth Systems Inc. [9, 12]
What it actually does
SkinHealth Systems is a medical aesthetics company that creates treatments and products to improve skin and scalp health. [9] You wouldn't buy its products in a regular store; instead, you would find them at professional places like dermatology offices, spas, and beauty clinics. The company's best-known offering is the HydraFacial, a popular professional facial treatment that uses a special machine to deeply clean, exfoliate, and moisturize the skin in about 30 minutes. [5] It also makes a microneedling device (a tool with tiny needles to help improve the skin's appearance) and a treatment for scalp health. [9]
Delivery Systems
This part of the business involves selling the actual machines, which the company calls 'delivery systems', to skincare professionals. [4, 9] Think of it like a razor and blade model, where the company first sells the razor—in this case, a sophisticated device like the HydraFacial or Syndeo machine. Spas and dermatology clinics buy these systems to be able to offer the company's signature treatments to their own clients. This is the starting point of the company's business model (a plan for making money).
Consumables
This is the other, and very important, half of the company's business, making up roughly half of its revenue (the total money it brings in from sales). [4] For every treatment a professional performs using a SkinHealth machine, they must use single-use items like patented tips, special serums, and treatment solutions. [9] These items, called 'consumables', have to be repurchased over and over again by the clinics. This creates a steady, recurring stream of income for SkinHealth Systems that grows as more treatments are performed worldwide.
What management is betting on now
The company's leadership is focused on building a complete 'ecosystem' of skin health products that are backed by science. [12] A key priority is to get providers to use the machines they already own more often, which helps drive sales of the profitable consumables. [13, 14] The recent name change signals a strategic shift toward operating with the discipline of a medical device company, emphasizing clinical results and reliability. [14] Their goal is to build on the strength of the popular HydraFacial brand while expanding with related treatments like microneedling to become a more essential partner to skincare professionals. [12]
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$10.31M
FY2024 Q4
$16.40M
FY2025 Q1
$2.95M
FY2025 Q2
$9.55M
FY2025 Q3
$9.62M
FY2025 Q4
$15.06M
FY2026 Q1
$-5.78M
FY2026 Q2
$2.24M
Revenue
$72.11M
Net income
$-2.67M
Diluted EPS
-0.02
Operating cash flow
$2.67M
Free cash flow
$2.24M
Fetching…
Sources
Revenue
$64.91M
Net income
$-6.63M
Diluted EPS
-0.05
Operating cash flow
$-5.55M
Free cash flow
$-5.78M
Fetching…
Sources
Revenue
$82.37M
Net income
$-8.10M
Diluted EPS
-0.02
Operating cash flow
$15.20M
Free cash flow
$15.06M
Fetching…
Sources
Revenue
$70.66M
Net income
$-11.03M
Diluted EPS
-0.09
Operating cash flow
$9.65M
Free cash flow
$9.62M
Fetching…
Sources
Revenue
$78.19M
Net income
$19.71M
Diluted EPS
0.03
Operating cash flow
$9.65M
Free cash flow
$9.55M
Fetching…
Sources
Revenue
$69.58M
Net income
$-10.10M
Diluted EPS
-0.08
Operating cash flow
$3.00M
Free cash flow
$2.95M
Fetching…
Sources
Revenue
$83.50M
Net income
$-10.33M
Diluted EPS
-0.01
Operating cash flow
$16.47M
Free cash flow
$16.40M
Fetching…
Sources
Revenue
$78.80M
Net income
$-18.29M
Diluted EPS
-0.15
Operating cash flow
$10.31M
Free cash flow
$10.31M
Fetching…
Sources
Is it cheap or expensive?
Fair value $5.95 vs current price $0.66
Wall Street consensus is the average analyst price target: $0.99 (-83.3% lower than our fair-value estimate).
Our most-likely fair value is $5.95 a share — about 795.3% above today's price of $0.66, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $163.0M. Interest coverage -1.1x.
Net debt
$162.97M
Interest coverage
-1.08x
SkinHealth Systems Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
SKIN
BASELINE
SkinHealth Systems Inc.
Total debt $367.04M Interest coverage -1.08x This is the baseline the peer rows are being compared against.
Total debt $4.45M Interest coverage 3.42x This peer still has a real interest-payment cushion, while SKIN does not.
Total debt $16.27M Interest coverage -2.98x Neither company has much profit cushion over interest right now.
What you should know
The case for and against SKIN
1 Reward
1 Risk
Rewards
-
Free cash flow was positive in 3/10 years.
Risks
-
Return on equity was -43.9% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
—
Forward P/E
3.50x
P/B
1.56x
P/S
0.30x
EV/EBITDA
12.42x
PEG ratio
0.93x
Profitability
How much profit each dollar creates
Gross margin
66.4%
Operating margin
5.0%
Net margin
-9.8%
ROE
-43.9%
ROA
-0.5%
Health
Liquidity and balance-sheet strength
Debt / equity
6.61x
Current ratio
1.75x
Quick ratio
1.33x
Total debt
$367.04M
Total cash
$204.07M
Growth
How the business has been compounding
Revenue TTM
$290.05M
Revenue 5Y CAGR
3.7%
EPS TTM
-0.23
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$21.96M
Free CF TTM
$37.18M
FCF margin
12.8%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
—