The Beauty Health Co. Q1 FY2026 earnings call

• Rebranded to SkinHealth Systems reflecting shift to leading medical device company strategy, with Hydrofacial at center and broader platform including skin stylus and CaraViv relaunch. - Added three new independent directors to board. - First quarter net sales within guidance range, adjusted EBITDA $8.5 million, up 17% year-over-year and above guidance range. - Focus on improving commercial execution, sales discipline, and converting opportunities. - Innovation focus on boosters, strategic partnerships, and next generation hydrafacial platform; relaunching KeraViv, exploring strategic partnerships, advancing next generation device.

First quarter net sales were $64.9 million. System's revenues: device placements came below expectations due to macro factors like market consolidation, tighter credit, longer purchasing cycles, and intensified competition; revising full-year revenue outlook to $280 million to $295 million. Consumables business: revenues were $46.4 million, down 6.1% year-over-year, with ~two-thirds drop related to China transition, and outside China, impact from timing-related variability; active install base grew to 36,400 devices, up 4% year-over-year, and device churn declined 40% year-over-year.

• Revising full-year revenue outlook to $280 million to $295 million from prior $285 million to $305 million due to continued softness in capital equipment demand and time needed for commercial initiatives. - Maintaining adjusted EBITDA guidance of $35 million to $45 million. - Expecting Q2 revenue of $72 to $77 million and adjusted EBITDA of $11 to $13 million.

Q: Regarding competition, role in sales organization, innovation inning, and October maturity; A: Discussed competition pressure, innovation agenda, commercial organizational changes, and CapEx/working capital for October maturity.

Q: On guide cadence; A: Expecting execution and stabilization year, gradual improvement in second half.

Q: What gets to upper/lower end of ranges, shortfall in devices vs consumables; A: Consumables stable but utilization below potential, market impacted by credit and purchasing cycles.

Q: Color on partnerships; A: In late stages of diligence, partnerships on device and consumable sides.

Q: EMEA consumer trends, EBITDA outperformance; A: EMEA softness in devices, EBITDA beat from gross margin and OPEX management.

Q: Booster portfolio restructuring; A: Redoing booster selection for simplicity and impact, planned launches.

Q: Competition positioning; A: Competing with low end and adjacent treatments.

Q: Macro effects, booster details; A: No material impact from oil prices, booster in late stages of development.