Earnings call transcript: Beauty Health Co reports Q2 2025 earnings beat, stock surges 22%

Beauty Health Co (SKIN) reported its second-quarter earnings for 2025, showcasing a strong performance that exceeded market expectations. The company posted an earnings per share (EPS) of $0.03, significantly outperforming the forecasted EPS of -$0.06. Revenue also surpassed projections, coming in at $78.2 million against an expected $74.51 million. Following the earnings announcement, Beauty Health Co’s stock saw a significant premarket surge of 22.01%, reaching $1.94 per share. According to InvestingPro analysis, the company maintains impressive gross profit margins and shows strong liquidity, with current assets significantly exceeding short-term obligations.

Beauty Health Co demonstrated robust performance in the second quarter of 2025, driven by strategic cost management and successful product innovations. Despite a 36.5% year-over-year decline in device sales, the company managed to grow its consumables revenue by 0.8% year-over-year, highlighting the strength of its recurring revenue model. The company also completed a debt restructuring and implemented its first price increase in three years, contributing to improved financial results.

Revenue: $78.2 million, exceeding forecasts and showing resilience in a challenging market. Earnings per share: $0.03, a substantial beat over the forecasted -$0.06. Adjusted EBITDA: $13.9 million, surpassing expectations. Gross Margin: 62.8% GAAP, 65.9% adjusted, indicating improved operational efficiency. Cash Position: $212 million at the end of the quarter.

Beauty Health Co’s actual EPS of $0.03 outperformed the forecast by 150%, marking a significant positive surprise for investors. The revenue surprise stood at 4.95% above projections, underscoring the company’s ability to exceed market expectations. This performance is a notable improvement compared to previous quarters, where the company faced challenges in meeting earnings forecasts.

Following the earnings announcement, Beauty Health Co’s stock experienced a notable increase, rising by 22.01% in premarket trading to $1.94 per share. This surge reflects investor optimism driven by the company’s strong financial performance and raised guidance. The stock’s movement positions it closer to its 52-week high of $2.375, indicating renewed investor confidence. InvestingPro data shows the stock typically trades with high price volatility, presenting both risks and opportunities for investors. Based on InvestingPro’s Fair Value analysis, the stock currently appears undervalued, suggesting potential upside opportunity.

The company has raised its full-year 2025 net sales guidance to $285-$300 million and adjusted EBITDA guidance to $27-$35 million, reflecting expectations of continued growth. For the third quarter of 2025, Beauty Health Co anticipates net sales of $65-$70 million and adjusted EBITDA of $2-$4 million. Upcoming product launches, including new skincare and device innovations, are expected to drive future growth.

"Q2 marked another strong quarter, demonstrating the momentum of our transformation strategy," said Marla Beck, CEO. Michael Monahan, CFO, added, "We’re successfully controlling our costs to drive increased adjusted EBITDA and cash flow." Beck also highlighted the company’s scalable model, stating, "Our razor razorblade model continues to scale with consumables driving recurring revenue."

During the earnings call, analysts inquired about the impact of macroeconomic conditions on device sales and the company’s strategy to mitigate these challenges. Beauty Health Co executives addressed concerns by highlighting ongoing efforts to enhance consumables growth and redesign loyalty programs to strengthen customer engagement.

Earnings call transcript: Beauty Health Co reports Q2 2025 earnings beat, stock surges 22%

Beauty Health Co (SKIN) reported Q2 2025 earnings that exceeded market expectations, with revenue of $78.2 million and EPS of $0.03, surpassing forecasts of $74.51 million and -$0.06. The stock surged 22.01% to $1.94 per share, driven by improved financial performance, debt restructuring, and guidance upgrades. The company highlighted strong gross margins, recurring revenue growth, and upcoming product launches.