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Jun 30, 2025
Beauty Health Q2 2025 Earnings Report
Beauty Health reported strong second quarter 2025 financial results, exceeding revenue and Adjusted EBITDA expectations, driven by robust consumables sales and significant gross margin improvement.
Key Takeaways
Beauty Health delivered a strong performance in Q2 2025, exceeding revenue and Adjusted EBITDA expectations. The company reported net sales of $78.2 million and a net income of $19.7 million, a significant increase from the prior year. This was primarily driven by strong consumables sales and improved gross margins, despite a decrease in delivery systems sales.
Net sales for Q2 2025 were $78.2 million, a decrease of 13.7% compared to Q2 2024, primarily due to lower delivery systems net sales.
Gross margin significantly improved to 62.8% in Q2 2025 from 45.2% in Q2 2024, driven by lower inventory charges and a favorable mix shift towards consumables.
Net income increased substantially to $19.7 million in Q2 2025, up from $0.2 million in Q2 2024, attributed to lower operational spend and higher gross margin.
Adjusted EBITDA improved to $13.9 million in Q2 2025 from $(5.2) million in Q2 2024, reflecting better operational efficiency and gross margin.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Beauty Health raised its full-year 2025 guidance for net sales and Adjusted EBITDA, reflecting strong first-half performance. The company expects Q3 2025 net sales between $65 million and $70 million, and full-year net sales between $285 million and $300 million.
Positive Outlook
- Increased full-year guidance reflects strong first-half performance.
- Assumes no further material deterioration in current general market conditions.
- Guidance excludes any unannounced acquisitions, dispositions, or financings.
- Q3 2025 Adjusted EBITDA expected to be between $2 million and $4 million.
- Fiscal Year 2025 Adjusted EBITDA expected to be between $27 million and $35 million.
Challenges Ahead
- Guidance assumes no unforeseen circumstances beyond the Company's control, such as foreign currency exchange rates, tariffs, and trade restrictions.
- Does not provide a reconciliation of adjusted EBITDA guidance to net income due to inherent difficulties in forecasting certain amounts.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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