📊 SKIN Key Takeaways
Is Beauty Health Co (SKIN) a Good Investment?
SkinHealth Systems exhibits severe financial distress with declining revenue, negative operating and net cash flows, and unsustainable leverage of 6.58x debt-to-equity. While gross margins of 68.5% demonstrate strong product economics, the company cannot cover interest from operations (negative interest coverage ratio), burns cash operationally, and has negligible equity cushion relative to massive debt burden.
Beauty Health Co Key Strengths (SKIN)
- Strong gross margin of 68.5% indicates favorable product pricing and cost structure
- Adequate cash reserves of $204.4M provide near-term operational runway
- Improving EPS trend (-0.05 vs prior year) suggests loss reduction trajectory
SKIN Stock Risks: Beauty Health Co Investment Risks
- Extreme leverage of 6.58x debt-to-equity with inability to service debt from operations (interest coverage of -0.6x)
- Negative operating cash flow of -$5.6M indicates unsustainable burn rate despite $204.4M cash
- Declining revenue trend (-10% YoY) combined with operating losses suggests deteriorating business fundamentals
- Negligible stockholders' equity of $55.2M against $363.4M long-term debt creates insolvency risk
Key Metrics to Watch
- Operating cash flow trend and path to positive FCF
- Revenue stabilization and return to growth
- Debt reduction strategy and refinancing risk
- Gross margin sustainability amid revenue decline
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 |
|---|---|---|---|
| Q1 2026 | $64.9M | -$6.6M | $-0.05 |
| 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 |
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
❓ Frequently Asked Questions about SKIN
What is the AI rating for SKIN?
Beauty Health Co (SKIN) has an AI grade of C with 85% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SKIN's key strengths?
Claude: Strong gross margin of 68.5% indicates favorable product pricing and cost structure. Adequate cash reserves of $204.4M provide near-term operational runway.
What are the risks of investing in SKIN?
Claude: Extreme leverage of 6.58x debt-to-equity with inability to service debt from operations (interest coverage of -0.6x). Negative operating cash flow of -$5.6M indicates unsustainable burn rate despite $204.4M cash.
What is SKIN's revenue and growth?
Beauty Health Co reported revenue of $64.9M.
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 $-0.05.
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 grade reflects both perspectives for balanced insights.
What is SKIN's fundamental grade?
Based on our AI fundamental analysis in May 2026, Beauty Health Co has a C grade with 85% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is SKIN stock overvalued or undervalued?
Valuation metrics for SKIN: ROE of -12.0% (sector avg: 15%), net margin of -10.2% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is SKIN's AI grade for 2026?
Our dual AI analysis gives Beauty Health Co a combined C grade 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 $-5.6M, with capital expenditures of $224.0K. FCF margin is -8.9%.
How does SKIN compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin -10.2% (avg: 12%), ROE -12.0% (avg: 15%), current ratio 1.79 (avg: 2).
Is Beauty Health Co carrying too much debt?
SKIN has a debt-to-equity ratio of 6.58x, which is above the Healthcare sector average of 0.6x. However, the current ratio of 1.79 suggests adequate short-term liquidity.