📊 SKIN Key Takeaways
Is Beauty Health Co (SKIN) a Good Investment?
Beauty Health is operationally unprofitable with -6.9% operating margins and declining revenue (-10% YoY), yet burdened with an unsustainable 5.95x debt-to-equity ratio that cannot be serviced from operations. While strong 65.3% gross margins and $232.7M cash position provide near-term cushion, the combination of negative operating income, negative interest coverage, and deteriorating top-line momentum creates significant financial distress risk.
Why Buy Beauty Health Co Stock? SKIN Key Strengths
- Strong gross margin of 65.3% indicates healthy unit economics at the product level
- Positive free cash flow of $37.2M (12.4% FCF margin) despite operating losses
- Substantial cash position of $232.7M provides runway for turnaround or debt management
- Improving EPS trend with +55.6% YoY improvement shows operational momentum in right direction
SKIN Stock Risks: Beauty Health Co Investment Risks
- Extreme leverage with 5.95x debt-to-equity ratio and $363.4M long-term debt on only $61.1M equity
- Negative interest coverage (-6.9x) means operating losses cannot support debt service
- Declining revenue (-10% YoY) suggests structural demand challenges or market share loss
- Operating losses of -$20.8M with negative ROE (-15.6%) and ROA (-1.9%) show poor capital efficiency
- Positive FCF driven by minimal CapEx ($303K) rather than operational strength - may be underinvestment
Key Metrics to Watch
- Operating cash flow sustainability and trend reversal in revenue decline
- Debt refinancing ability and any covenant violations given negative interest coverage
- Path to operating profitability with timeline for positive operating margins
- Cash burn rate relative to $232.7M runway given current operational losses
Beauty Health Co (SKIN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Beauty Health Co presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
SKIN Profit Margin, ROE & Profitability Analysis
SKIN vs Healthcare Sector: How Beauty Health Co Compares
How Beauty Health Co compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Beauty Health Co Stock Overvalued? SKIN Valuation Analysis 2026
Based on fundamental analysis, Beauty Health Co shows some fundamental concerns relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Beauty Health Co Balance Sheet: SKIN Debt, Cash & Liquidity
SKIN Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Beauty Health Co's revenue has grown significantly by 53% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.76 indicates the company is currently unprofitable.
SKIN Revenue Growth, EPS Growth & YoY Performance
SKIN Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $70.7M | $202.0K | $-0.09 |
| Q2 2025 | $78.2M | $202.0K | $-0.02 |
| Q1 2025 | $69.6M | -$679.0K | $-0.08 |
| Q3 2024 | $78.8M | $202.0K | $-0.15 |
| Q2 2024 | $90.6M | $202.0K | $0.03 |
| Q1 2024 | $81.4M | -$679.0K | $-0.10 |
| Q3 2023 | $88.8M | -$81.0K | $-0.03 |
| Q2 2023 | $103.5M | $3.4M | $0.03 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Beauty Health Co Dividends, Buybacks & Capital Allocation
SKIN SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Beauty Health Co (CIK: 0001818093)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Apr 13, 2026 | 4 | xslF345X06/wk-form4_1776112022.xml | View → |
| Apr 13, 2026 | 4 | xslF345X06/wk-form4_1776111961.xml | View → |
| Mar 24, 2026 | 4 | xslF345X06/wk-form4_1774386383.xml | View → |
| Mar 24, 2026 | 4 | xslF345X06/wk-form4_1774386300.xml | View → |
| Mar 24, 2026 | 4 | xslF345X06/wk-form4_1774386239.xml | View → |
❓ Frequently Asked Questions about SKIN
What is the AI rating for SKIN?
Beauty Health Co (SKIN) has an AI rating of SELL with 75% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SKIN's key strengths?
Claude: Strong gross margin of 65.3% indicates healthy unit economics at the product level. Positive free cash flow of $37.2M (12.4% FCF margin) despite operating losses.
What are the risks of investing in SKIN?
Claude: Extreme leverage with 5.95x debt-to-equity ratio and $363.4M long-term debt on only $61.1M equity. Negative interest coverage (-6.9x) means operating losses cannot support debt service.
What is SKIN's revenue and growth?
Beauty Health Co reported revenue of $300.8M.
Does SKIN pay dividends?
Beauty Health Co does not currently pay dividends.
Where can I find SKIN SEC filings?
Official SEC filings for Beauty Health Co (CIK: 0001818093) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is SKIN's EPS?
Beauty Health Co has a diluted EPS of $-0.16.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is SKIN a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Beauty Health Co has a SELL rating with 75% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is SKIN stock overvalued or undervalued?
Valuation metrics for SKIN: ROE of -15.6% (sector avg: 15%), net margin of -3.2% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy SKIN stock in 2026?
Our dual AI analysis gives Beauty Health Co a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is SKIN's free cash flow?
Beauty Health Co's operating cash flow is $37.5M, with capital expenditures of $303.0K. FCF margin is 12.4%.
How does SKIN compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin -3.2% (avg: 12%), ROE -15.6% (avg: 15%), current ratio 1.66 (avg: 2).
Is Beauty Health Co carrying too much debt?
SKIN has a debt-to-equity ratio of 5.95x, which is above the Healthcare sector average of 0.6x. However, the current ratio of 1.66 suggests adequate short-term liquidity.