STRATA Skin Sciences, Inc. reported a decline in financial performance for the second quarter of 2025, with net revenues of $7.7 million, down from $8.4 million in the same period last year. For the first half of 2025, revenues totaled $14.5 million, compared to $15.2 million in the first half of 2024. The company experienced a net loss of $2.5 million for the quarter, significantly higher than the $99,000 loss reported in the prior year. The loss per share for the second quarter was $0.60, compared to $0.03 in the same quarter of 2024.
The decrease in revenue was attributed to lower sales in both the dermatology recurring procedures and dermatology procedures equipment segments. Specifically, revenues from dermatology recurring procedures fell to $5.1 million from $5.3 million year-over-year, while equipment sales dropped to $2.5 million from $3.1 million. The company noted that the number of XTRAC treatments performed decreased, which was influenced by reduced direct-to-patient advertising efforts. Additionally, the company reported a decrease in deferred revenue, which negatively impacted revenue recognition in the first quarter of 2025.
Operationally, STRATA Skin Sciences has placed 844 XTRAC systems in U.S. dermatologists' offices as of June 30, 2025, a decrease from 864 systems at the end of 2024. The company has also expanded its international distribution agreements, with recent contracts signed in Mexico and India. However, the overall customer engagement metrics have shown a decline, with fewer treatments being performed compared to previous periods. The company continues to focus on increasing awareness and acceptance of its XTRAC treatments among patients and providers.
In terms of financial health, STRATA reported total assets of $30.7 million as of June 30, 2025, down from $36.2 million at the end of 2024. The company’s cash and cash equivalents decreased to $6.0 million from $8.6 million, contributing to a negative working capital of $0.2 million. The company has a senior term loan facility with MidCap Financial, which has been amended to provide additional borrowing capacity, although the company did not draw on this facility in the latest quarter.
Looking ahead, STRATA Skin Sciences anticipates that its cash reserves, combined with expected revenues from product sales, will be sufficient to meet its operational needs for at least the next 12 months. However, the company acknowledges potential risks from ongoing geopolitical tensions, supply chain disruptions, and changes in trade policies that could impact its financial performance. The management is actively monitoring these factors and is prepared to adjust its strategies accordingly to navigate the evolving market conditions.
About STRATA Skin Sciences, Inc.
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