SkinHealth Systems reported mixed second quarter results as top-line sales felt the impact of distributor transitions and lower system placements. While total net sales of $72.1 million fell short of expectations, the company achieved significant adjusted EBITDA outperformance through aggressive cost discipline and a focus on high-margin consumables.
Key Highlights
- Net sales decreased 7.8% year-over-year to $72.1 million, primarily driven by a drop in delivery systems sold (770 vs. 957 in the prior year).
- Adjusted gross margin expanded 590 basis points to 71.8%, benefiting from lower inventory charges and reduced product costs compared to 2025.
- Consumables revenue of $53.9 million accounted for 74.8% of total sales, representing a higher percentage of the mix versus 71.4% in the year-ago period.
- Adjusted operating expenses were reduced to $34.8 million from $37.6 million, reflecting management's commitment to personnel-related cost savings.
- The company revised its fiscal year 2026 revenue guidance to a range of $280 million to $290 million while maintaining cost discipline targets.