The Beauty Health Company (BeautyHealth), parent company of Hydrafacial, SkinStylus and Keravive, has beaten financial expectations in Q2 despite a slump in revenues.
Net sales for the second quarter sank 13.7% to US$78.2m, compared with $90.6m in 2024, impacted by lower delivery systems income.
However, the business reported an earnings per share (EPS) of $0.03, the measure of a company's profitability, surpassing the forecasted loss of $0.06.
Gross margins held at 62.8%, compared with 42.5% for the same period in 2024, with adjusted gross margin landing at 65.9% versus 49.4% in 2024.
Net income also increased to $19.7m on the previous year’s $200,000, attributed to lower operational spend and higher gross margin, as well as a partial offset from lower net sales.
“Momentum continued to build in the second quarter, as BeautyHealth delivered another strong performance aligned with our strategic transformation goals,” said BeautyHealth CEO Marla Beck.
BeautyHealth also reported that Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) exceeded expectations, bringing in $13.9m – an $8.7m increase on the same period the previous year.
“We exceeded revenue and Adjusted EBITDA expectations and raised the full year outlook, driven by demand for consumables sales and meaningful gross margin improvement.
“With over 35,000 active devices now in the field and consumables driving more than 70% of revenue, we’re seeing the power of our recurring revenue model.”
Innovation has also been a key driver in the last quarter, according to the brand owner.
Beach added: “In addition, our innovation engine is delivering, as shown by the successful launch of the HydraFillic with Pep9 Booster and continued standout performance of the Hydralock HA Booster.
“With a strong foundation in place following our debt restructuring, we’re encouraged by our momentum and confident in our ability to drive long-term value for our stakeholders.”