STRATA Skin Sciences Reports $6.8 Million Revenue and Improved Gross Profit in Q1 2025

STRATA Skin Sciences, Inc. reported a net revenue of $6.8 million for the first quarter of 2025, reflecting a slight increase from $6.75 million in the same period of 2024. The company achieved a gross profit of $3.65 million, up from $3.08 million year-over-year, resulting in a gross profit margin of 53.5%, compared to 45.6% in the prior year. The improvement in gross profit percentage is attributed to the use of refurbished parts, which reduced costs, and the absence of significant inventory write-offs that impacted the previous year’s results.

The company’s operating expenses decreased to $5.66 million from $5.97 million in the prior year, primarily due to lower engineering and product development costs. STRATA reported a net loss of $2.43 million for the quarter, an improvement from a net loss of $3.37 million in the first quarter of 2024. The loss per share also improved to $0.58 from $0.96, with the weighted average shares outstanding increasing to 4,171,161 from 3,506,025.

Operationally, STRATA has placed 846 XTRAC systems in U.S. dermatology offices as of March 31, 2025, down from 864 at the end of 2024. The company continues to focus on expanding its market presence, particularly through its TheraClear Acne Therapy System, which has seen an increase in placements from 104 to 160 devices year-over-year. The company has also signed distribution agreements in new markets, including Mexico and India, enhancing its international reach.

In terms of liquidity, STRATA reported cash and cash equivalents of $6.51 million as of March 31, 2025, down from $7.26 million at the end of 2024. The company has a working capital of $0.7 million, a decrease from $2 million previously. STRATA has entered into a Senior Term Facility with MidCap Financial, which allows for borrowing up to $20 million, although it did not meet the conditions for an additional $5 million tranche. The company anticipates that its current cash reserves, along with expected revenues, will be sufficient to meet its operational needs for at least the next 12 months.

Looking ahead, STRATA aims to enhance its marketing efforts to increase awareness and adoption of its XTRAC treatments, particularly for psoriasis and vitiligo. The company is also monitoring external factors such as the ongoing impacts of the COVID-19 pandemic, geopolitical tensions, and supply chain disruptions, which could affect its operations and financial performance.