STRATA Skin Sciences, Inc. reported a net loss of approximately $6.3 million for the fiscal year ending December 31, 2025, a significant improvement compared to a net loss of $10.3 million in the previous year. The company’s total revenues decreased by 9% to $30.7 million, down from $33.6 million in 2024. This decline was primarily attributed to a 26% drop in revenues from dermatology procedures equipment, which fell to $9.2 million, while revenues from dermatology recurring procedures saw a slight increase of 1% to $21.5 million. The decrease in equipment sales was largely due to international market challenges, including tariffs and retaliatory trade practices.
In terms of operational metrics, STRATA reported that as of December 31, 2025, there were 842 XTRAC systems in use under its dermatology recurring procedures model, a decrease from 864 systems in 2024. The company continues to focus on expanding its customer base, which includes approximately 3,500 dermatologists in the U.S. The TheraClear Acne Therapy System, acquired in January 2022, has seen a slight increase in installations, with 166 devices placed in dermatologists' offices by the end of 2025, up from 144 the previous year.
Strategically, STRATA has made significant changes to its business model, transitioning from a master distributor model to a direct distribution approach in international markets. This shift has allowed the company to establish distributor contracts in various countries, including Mexico and India in 2023. Additionally, the company has been actively engaging in direct-to-patient advertising campaigns to increase awareness and utilization of its XTRAC treatments for psoriasis and vitiligo, targeting an estimated 10 million patients in the U.S.
Despite these efforts, STRATA faces ongoing challenges, including a default on its long-term debt due to the delisting of its shares from The Nasdaq Capital Market in February 2026. This situation raises substantial doubt about the company's ability to continue as a going concern. Management is exploring various strategies to address liquidity concerns, including potential financing alternatives and cost-cutting measures. The company has also indicated that it may need to raise additional capital to support its operations, which could lead to further dilution of existing shareholders.
Looking ahead, STRATA anticipates that its revenues may stabilize as it continues to expand its product offerings and increase patient utilization. However, the company remains cautious about potential impacts from geopolitical tensions, trade policies, and market conditions that could affect its operations and financial performance.
About STRATA Skin Sciences, Inc.
Strata Skin Sciences develops and markets dermatology medical devices, including excimer lasers and lamp systems, for treating skin conditions like psoriasis, vitiligo, and eczema. Its core products, such as XTRAC lasers, serve dermatologists and clinics worldwide, offering non-invasive, effective therapies with proven clinical benefits. The company operates through recurring revenue models, emphasizing product innovation, regulatory compliance, and strategic acquisitions in the dermatology sector.
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