$SKIN

SkinHealth Systems Inc.

CIK:0001818093|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Net sales	$ 72,113	$ 78,187	$ 137,023	$ 147,767
Cost of sales	22,775	29,075	43,246	50,075
Gross profit	49,338	49,112	93,777	97,692
Operating expenses:
Selling and marketing	21,018	23,109	44,213	49,149
Research and development	1,407	1,251	2,509	2,249
General and administrative	23,341	27,452	45,284	61,017
Total operating expenses	45,766	51,812	92,006	112,415
Income (loss) from operations	3,572	(2,700)	1,771	(14,723)
Interest expense	6,295	4,144	12,641	6,642
Interest income	(1,290)	(3,158)	(2,775)	(6,186)
Other income, net	(19)	(18,146)	(1,063)	(18,206)
Change in fair value of warrant liabilities	0	210	0	(139)
Foreign currency transaction loss (gain), net	47	(4,469)	1,243	(6,349)
(Loss) income before provision for income taxes	(1,461)	18,719	(8,275)	9,515
Income tax expense (benefit)	1,208	(993)	1,024	(101)
Net (loss) income	(2,669)	19,712	(9,299)	9,616
Comprehensive (loss) income, net of tax:
Foreign currency translation adjustments	313	3,629	35	4,757
Comprehensive (loss) income	$ (2,356)	$ 23,341	$ (9,264)	$ 14,373
Net (loss) income per share
Basic (in dollars per share)	$ (0.02)	$ 0.16	$ (0.07)	$ 0.08
Diluted (in dollars per share)	$ (0.02)	$ 0.03	$ (0.07)	$ (0.02)
Weighted average common stock outstanding
Basic (in shares)	129,596,886	126,072,603	128,699,733	125,578,780
Diluted (in shares)	129,596,886	140,294,291	128,699,733	140,589,807

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net (loss) income	$ (9,299)	$ 9,616
Adjustments to reconcile net (loss) income to net cash from operating activities
Share-based compensation	4,974	8,784
Amortization of intangible assets	7,067	6,801
Depreciation of property and equipment	1,092	2,567
Amortization of other assets	2,448	2,197
Amortization of debt issuance costs	2,000	1,640
Inventory write-down	742	2,478
Provision for estimated credit losses	651	1,577
Change in fair value of warrant liabilities	0	(139)
Gain on exchange and repurchases of convertible senior notes, net	(1,019)	(18,089)
Deferred income taxes	(450)	818
Other, net	3,406	(3,998)
Changes in operating assets and liabilities:
Accounts receivable	3,375	2,281
Inventories	469	9,089
Prepaid expenses, other current assets, and income tax receivable	(17,640)	568
Accounts payable, accrued expenses, and income tax payable	3,105	(9,721)
Other, net	(3,804)	(3,827)
Net cash (used for) provided by operating activities	(2,883)	12,642
Cash flows from investing activities:
Cash paid for intangible assets	(2,203)	(2,560)
Cash paid for property and equipment	(651)	(137)
Net cash used for investing activities	(2,854)	(2,697)
Cash flows from financing activities:
Repurchase of 2026 Notes in connection with exchange	0	(392,583)
Issuance of 2028 Notes in connection with exchange, net	0	238,302
Repurchase of 2026 Notes	(20,161)	(18,372)
Payment of tax withholdings on vested stock awards	(969)	(958)
Net cash used for financing activities	(21,130)	(173,611)
Net change in cash, cash equivalents, and restricted cash	(26,867)	(163,666)
Effect of foreign currency translation on cash	268	5,603
Cash, cash equivalents, and restricted cash beginning of period	232,673	370,063
Cash, cash equivalents, and restricted cash end of period	$ 206,074	$ 212,000

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash, cash equivalents, and restricted cash	$ 206,074	$ 232,673
Accounts receivable, net of allowances for estimated credit losses of $3,652 and $6,022 at June 30, 2026 and December 31, 2025, respectively	17,640	21,741
Inventories	46,842	48,012
Income tax receivable	1,992	1,696
Prepaid expenses and other current assets	22,693	5,395
Total current assets	295,241	309,517
Property and equipment, net	2,088	2,538
Right-of-use assets, net	19,397	11,570
Intangible assets, net	30,218	35,763
Goodwill	126,349	126,621
Deferred income tax assets, net	2,350	1,925
Other assets	10,930	11,869
TOTAL ASSETS	486,573	499,803
Current liabilities:
Current portion of convertible senior notes, net	103,089	123,959
Accounts payable	16,051	15,631
Accrued payroll-related expenses	13,114	24,947
Lease liabilities, current	3,857	5,128
Income tax payable	482	1,226
Other accrued expenses	31,605	15,384
Total current liabilities	168,198	186,275
Lease liabilities, non-current	17,975	9,238
Deferred income tax liabilities, net	393	393
Convertible senior notes, net	242,120	240,431
Other long-term liabilities	2,319	2,410
Total liabilities	431,005	438,747
Commitments and Contingencies (Note 6)
Stockholders’ equity:
Class A Common Stock, $0.0001 par value; 320,000,000 shares authorized; 130,104,671 and 127,520,823 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively	13	13
Additional paid-in capital	583,737	579,961
Accumulated other comprehensive loss	(1,399)	(1,434)
Accumulated deficit	(526,783)	(517,484)
Total stockholders’ equity	55,568	61,056
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 486,573	$ 499,803