Beauty Health Company reported fourth‑quarter 2025 results that included a revenue of $82.4 million, beating the consensus estimate of $79.3 million. The company posted a non‑GAAP earnings‑per‑share loss of $0.06, wider than the expected loss of $0.0525. Gross margin expanded to 65.3% from 54.5% in 2024, while full‑year net sales fell 10.0% to $300.8 million, driven by a 29.7% decline in equipment sales and a modest 1.8% increase in consumables sales to $212.7 million.
The revenue beat was largely driven by the consumables segment, which saw higher demand and a favorable mix shift toward higher‑margin products. The EPS miss can be attributed to the continued impact of the China sales transition, higher operating costs, and a decline in equipment revenue, which offset the margin gains from consumables and inventory charge reductions.
Gross‑margin improvement reflects lower inventory write‑downs and a stronger mix of consumables, which carry higher margins than equipment. The company’s cost‑control initiatives and the completion of the China distributor partnership in Q2 2025 have helped reduce operating expenses, supporting the margin expansion despite the decline in equipment sales.
For 2026, Beauty Health guided revenue of $285 million to $305 million and adjusted EBITDA of $35 million to $45 million, both below analyst expectations. Management described 2026 as an “execution year,” expecting flat revenue growth after normalizing for the China transition and focusing on commercial execution, utilization improvement, and investment in innovation.
Investors reacted cautiously to the earnings, with the EPS miss and conservative 2026 outlook tempering enthusiasm for the company’s margin gains and strategic shift toward consumables.
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