skin-20250630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2025

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________.

Commission File Number: 001-39565

The Beauty Health Company

(Exact name of registrant as specified in its charter)


Delaware						85-1908962
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)


2165 Spring Street Long Beach, CA 90806						(800) 603-4996
(Address of principal executive offices, including zip code)						Registrant's telephone number, including area code


N/A
(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Class A Common Stock, par value $0.0001 per share

SKIN

The Nasdaq Capital Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☐

Accelerated filer

☒

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of August 5, 2025, there were 126,825,397 shares of Class A Common Stock, par value $0.0001 per share issued and outstanding.

THE BEAUTY HEALTH COMPANY

FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2025

TABLE OF CONTENTS


		Page
PART I—FINANCIAL INFORMATION
Item 1.	Financial Statements	3
	Condensed Consolidated Balance Sheets (Unaudited)	3
	Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)	4
	Condensed Consolidated Statements of Stockholders’ Equity (Unaudited)	5
	Condensed Consolidated Statements of Cash Flows (Unaudited)	6
	Notes to Condensed Consolidated Financial Statements (Unaudited)	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	33
Item 4.	Controls and Procedures	33
PART II—OTHER INFORMATION
Item 1.	Legal Proceedings	35
Item 1A.	Risk Factors	41
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	41
Item 3.	Defaults Upon Senior Securities	42
Item 4.	Mine Safety Disclosures	42
Item 5.	Other Information	42
Item 6.	Exhibits	43
SIGNATURES

PART I— FINANCIAL INFORMATION

Item 1. Financial Statements.

THE BEAUTY HEALTH COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except for share amounts)

(Unaudited)


	June 30, 2025		December 31, 2024
ASSETS
Current assets:
Cash, cash equivalents, and restricted cash	$	212,000	$	370,063
Accounts receivable, net of allowances for estimated credit losses of $8,014 and $9,597 at June 30, 2025 and December 31, 2024, respectively	25,046		27,643
Inventories	59,187		69,113
Income tax receivable	2,080		818
Prepaid expenses and other current assets	7,794		9,487
Total current assets	306,107		477,124
Property and equipment, net	3,704		5,978
Right-of-use assets, net	11,535		13,590
Intangible assets, net	43,489		47,512
Goodwill	126,273		123,499
Deferred income tax assets, net	3,157		3,894
Other assets	13,300		14,086
TOTAL ASSETS	$	507,565	$	685,683
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	22,976	$	21,941
Accrued payroll-related expenses	14,981		17,636
Lease liabilities, current	5,165		5,147
Income tax payable	2,676		3,426
Other accrued expenses	13,643		20,002
Total current liabilities	59,441		68,152
Lease liabilities, non-current	8,470		10,813
Deferred income tax liabilities, net	217		396
Warrant liabilities	349		488
Convertible senior notes, net	363,096		552,198
Other long-term liabilities	1,989		1,833
Total liabilities	433,562		633,880
Commitments (Note 6)
Stockholders’ equity:
Class A Common Stock, $0.0001 par value; 320,000,000 shares authorized; 126,764,562 and 124,924,185 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively	13		12
Additional paid-in capital	574,535		566,709
Accumulated other comprehensive loss	(2,196)		(6,953)
Accumulated deficit	(498,349)		(507,965)
Total stockholders’ equity	74,003		51,803
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	507,565	$	685,683

The accompanying notes are an integral part of these unaudited financial statements.

THE BEAUTY HEALTH COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(in thousands, except for share and per share amounts)

(Unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Net sales	$	78,187	$	90,594	$	147,767	$	171,997
Cost of sales	29,075		49,654		50,075		82,696
Gross profit	49,112		40,940		97,692		89,301
Operating expenses:
Selling and marketing	23,109		30,482		49,149		64,166
Research and development	1,251		1,159		2,249		3,966
General and administrative	27,452		31,410		61,017		60,271
Total operating expenses	51,812		63,051		112,415		128,403
Loss from operations	(2,700)		(22,111)		(14,723)		(39,102)
Interest expense	4,144		2,452		6,642		5,481
Interest income	(3,158)		(4,194)		(6,186)		(9,550)
Other income, net	(18,146)		(17,319)		(18,206)		(33,406)
Change in fair value of warrant liabilities	210		(4,043)		(139)		(2,579)

Foreign currency transaction (gain) loss, net	(4,469)		1,144		(6,349)		2,441
Income (loss) before provision for income taxes	18,719		(151)		9,515		(1,489)
Income tax benefit	(993)		(353)		(101)		(1,012)
Net income (loss)	19,712		202		9,616		(477)
Comprehensive income (loss), net of tax:
Foreign currency translation adjustments	3,629		(816)		4,757		(1,863)
Comprehensive income (loss)	$	23,341	$	(614)	$	14,373	$	(2,340)
Net income (loss) per share
Basic	$	0.16	$	0.00	$	0.08	$	0.00
Diluted	$	0.03	$	(0.10)	$	(0.02)	$	(0.20)
Weighted average common stock outstanding
Basic	126,072,603		123,718,797

SEC Form 10-Q filed by The Beauty Health Company