Release Date: May 08, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

• The Beauty Health Co (NASDAQ:SKIN) exceeded revenue expectations with $69.6 million, surpassing the high end of their guidance.

• Consumables grew over 8% and now represent over 70% of the company’s revenue, indicating strong demand.

• The company reported a significant improvement in gross margin, reaching 71.9% compared to 63.4% in the prior year.

• The transition to a third-party distribution model in China is underway, preserving access to a high-growth market while simplifying operations.

• The company is launching new products, such as the Hydralock HA booster and a dedicated skincare line, to drive consumer traffic and provider revenue.

• Macroeconomic pressures have led to a 43.5% year-over-year decline in global device sales.

• Revenue in the Americas, AIPAC, and EMEA regions declined by 8.1%, 30.4%, and 21.6% respectively.

• The company faces a $5 million impact from tariffs in 2025, which could affect profitability.

• There is a noted softness in the plastic surgeon channel, impacting overall growth.

• The company remains cautious about the macro environment, which could affect future growth and profitability.

Q: What are the key drivers behind better profitability for the year, and are there any potential risks to the full-year guidance? Also, are there any signs of consumer pullback due to macroeconomic uncertainties? A: (Mike Monaghan, CFO) Our guidance implies slight improvement in the back half of 2025, but we remain cautious due to macroeconomic uncertainties. We are executing initiatives like lower-priced equipment options and improved sales execution to drive growth. (Marla Beck, CEO) Our consumable sales growth is strong, particularly in our core treatments, indicating that Hydrofacial is part of consumers’ regular skin health routines. However, there is slightly lower adoption of luxury treatments.

Q: Can you provide insights into the strong performance of consumables across regions, and how new launches like Hydralock HA are contributing to this growth? A: (Marla Beck, CEO) Hydralock HA is a significant traffic driver for practices, encouraging additional visits and provider revenue. We are excited about the upcoming hydrophilic booster launch. (Mike Monaghan, CFO) In the APAC region, particularly China, we saw improvement due to less discounting and effective sales strategies.

Q: With the strong gross margin in Q1, is this the new run rate, and what are the main drivers for the positive EBITDA despite unchanged top-line guidance? A: (Mike Monaghan, CFO) The strong gross margin was due to supply chain efficiencies and a high percentage of consumables. However, we expect it to step down in future quarters due to higher equipment purchases and tariff impacts.