SkinHealth Systems Inc. Class A Common Stock (SKIN)

FairStock Score: 47/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach SkinHealth as a Graham-style bargain hunter, and the numbers demand caution. It sells medical-aesthetics devices such as HydraFacial and Syndeo, with recurring serum and consumable potential. That is a decent business in theory, but the financial record is that of a turnaround, not a fortress. Revenue slipped from $398.0M in FY2023 to $334.3M in FY2024 and $300.8M in FY2025. The company lost $100.1M in FY2023, $29.1M in FY2024, and $9.5M in FY2025, so losses are narrowing, but the latest reported quarter—fiscal Q2 2026 ended 2026-06-30—still showed $72.1M revenue and a $2.7M net loss. FairStock's price-based metrics, using the 2026-10-13 close of $10.81, show a negative P/E of -47.01, P/B of 25.14, ROE of -43.89%, ROCE of -0.54%, D/E of 6.61, FCF yield of only 1.2%, and EV/EBITDA of 60.34. Altman Z of 0.93 signals financial stress, while Piotroski 5/9 is mediocre. Free cash flow of $16.6M is positive, which is a lifeline, but against a $1.4B market cap it is thin. The stock trades near the top of its 52-week range of $0.55–$11.97, despite no durable earnings. The HydraFacial brand may provide some switching costs, but the figures do not yet prove a wide moat. I would want evidence of stabilizing revenue, lower leverage, and real owner earnings before calling this cheap. Until then, the margin of safety is unclear, and the price appears to reflect hope more than demonstrated earning power.

In plain English: SkinHealth Systems makes skin-treatment devices and products, including HydraFacial, for clinics around the world. Sales have been falling and the company is losing money, though the losses have become smaller recently. At the 2026-10-13 closing price of $10.81, the shares look expensive compared with the company's earnings and net worth, and the cash it generates is small next to its $1.4 billion market value.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer