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1. Company Snapshot

1.a. Company Description

STRATA Skin Sciences, Inc., a medical technology company, develops, commercializes, and markets products for the treatment of dermatologic conditions in the United States, Europe, the Middle East, Asia, Australia, South Africa, and Central and South America.The company operates in two segments, Dermatology Recurring Procedures and Dermatology Procedures Equipment.Its products include XTRAC and Pharos excimer lasers, VTRAC lamp systems, and TheraClear treatment systems that are used for the treatment of psoriasis, vitiligo, acne, and other skin conditions.


The company distributes its products internationally through distributors, and domestically directly to physicians.The company was formerly known as MELA Sciences, Inc and changed its name to STRATA Skin Sciences, Inc.in January 2016.


STRATA Skin Sciences, Inc.was incorporated in 1989 and is based in Horsham, Pennsylvania.

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1.b. Last Insights on SSKN

STRATA Skin Sciences' recent performance was negatively impacted by Nasdaq delisting, which triggered suspension of trading on February 19, 2026. The company plans to terminate registration and suspend reporting obligations. Additionally, Laseroptek America filed counterclaims alleging anticompetitive practices. Despite a meta-analysis confirming efficacy of its 308 nm excimer laser, the stock fell 8%. Johns Hopkins Dermatology's adoption of XTRAC excimer laser was a positive development, but may not offset overall negative sentiment.

1.c. Company Highlights

2. STRATA Skin Sciences' Q3 2025 Earnings: Challenges and Opportunities

STRATA Skin Sciences reported total revenue of $6.9 million for Q3 2025, down 20% from the same period in 2024, primarily due to international environment challenges. However, recurring revenue remained solid, with gross code sales up 4.1% and net U.S. recurring XTRAC revenue up 2.8%. The company reported a net loss of $1.6 million or EPS of negative $0.36 per basic and diluted common share, compared to a net loss of $2.1 million or EPS of negative $0.51 per basic and diluted common share in 2024. Adjusted EBITDA was slightly positive in the quarter, a significant improvement from the negative $240,000 in Q3 2024.

Publication Date: Nov -24

📋 Highlights
  • Revenue Decline & Recurring Growth:: Total revenue fell to $6.9M (-20% YoY), but U.S. recurring XTRAC revenue rose 2.8% to $5.5M.
  • CPT Code Expansion:: New CPT codes for XTRAC laser (effective 2027) will expand addressable markets to 30M patients, tripling available markets.
  • Elevate360 Program Impact:: 99 clinics joined the program in 2025, driving 7% YoY revenue growth and 8.5% average gross billings per device ($5,981).
  • Net Loss Improvement:: Net loss narrowed to $1.6M (-$0.36 EPS) from $2.1M (-$0.51 EPS) in 2024; adjusted EBITDA turned slightly positive.
  • TheraClear & Mexico Expansion:: Partnered with TheraClear in Mexico (161 devices installed), aiming to deploy 200 devices by 2025 end; 67% use CPT code 10040 for reimbursement.

Revenue Growth and Challenges

Despite the decline in total revenue, STRATA Skin Sciences saw growth in its recurring revenue streams. Global recurring revenue was $5.5 million, up 3% year-over-year. The company's XTRAC usage agreement clinics showed an average gross billings per device of $5,981, up 8.5% versus 2024. The Elevate360 consulting model has been successful, with 99 clinics participating, resulting in a 7% year-over-year growth in revenue for those businesses.

Expansion and Future Prospects

The company has made significant progress in expanding its addressable markets, with the historic expansion of CPT codes for its XTRAC 308-nanometer excimer laser expected to become effective January 1, 2027. This change is expected to open the company's addressable markets to over 30 million patients, expanding its total available markets by threefold. STRATA Skin Sciences is also excited about its partnership with TheraClear in Mexico, gaining access to over 3,000 dermatologists, and expects to see results as early as Q4 2025.

Valuation and Outlook

With a P/S Ratio of 0.17 and an EV/EBITDA of -0.21, the market seems to be pricing in the challenges faced by STRATA Skin Sciences. The company's ROE of -467.06% and ROIC of -53.26% indicate significant losses. However, the expansion of CPT codes and the growth in recurring revenue streams are positive indicators for future growth. Analysts estimate next year's revenue growth at 8.3%, which could be a positive catalyst for the stock.

Litigation and DTC Marketing Campaign

The company is actively pursuing the return of 75 to 100 accounts damaged by false claims, which could potentially lead to a significant increase in revenue. Additionally, STRATA Skin Sciences is expected to provide an update on the number of patients driven by the DTC marketing campaign through a press release, which could be a positive development.

3. NewsRoom

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STRATA Skin Sciences Confirms Nasdaq Delisting

Feb -19

Source: globenewswire.com

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SSKN Stock Falls Despite Meta-Analysis Backs Excimer Laser's Efficacy

Feb -18

Source: zacks.com

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Johns Hopkins Dermatology Expands Advanced Care for Inflammatory and Autoimmune Skin Conditions with Addition of XTRAC® Excimer Laser

Feb -18

Source: globenewswire.com

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Reviewing Clover Health Investments (NASDAQ:CLOV) & Strata Skin Sciences (NASDAQ:SSKN)

Feb -18

Source: defenseworld.net

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STRATA Skin Sciences Highlights Meta-Analysis Confirming Clinical Efficacy of 308 nm Excimer Laser for Plaque Psoriasis

Feb -17

Source: globenewswire.com

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Laseroptek America Files Counterclaims Alleging Anticompetitive and Unfair Business Practices in Ongoing Litigation with Strata Skin Sciences

Feb -11

Source: globenewswire.com

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Contrasting Butterfly Network (NYSE:BFLY) & Strata Skin Sciences (NASDAQ:SSKN)

Feb -09

Source: defenseworld.net

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Analyzing Strata Skin Sciences (NASDAQ:SSKN) and Outset Medical (NASDAQ:OM)

Dec -30

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.84%)

6. Segments

Dermatology Recurring Procedures

Expected Growth: 1.8%

STRATA Skin Sciences' 1.8% growth in Dermatology Recurring Procedures is driven by increasing demand for non-invasive aesthetic treatments, rising awareness of skin health, and an aging population seeking preventative measures. Additionally, the company's expanding product portfolio and strategic partnerships contribute to its growth momentum.

Dermatology Procedures Equipment

Expected Growth: 1.9%

The 1.9% growth in Dermatology Procedures Equipment from STRATA Skin Sciences, Inc. is driven by increasing demand for non-invasive aesthetic treatments, rising prevalence of skin disorders, and advancements in technology leading to more effective and minimally invasive procedures.

7. Detailed Products

XTRAC

A laser treatment for psoriasis, vitiligo, and other skin conditions

Nexodyn

A topical solution for wound care and skin ulcers

TheraClear

A acne treatment system for mild to moderate acne

Aurora

A laser treatment for hair removal, skin rejuvenation, and pigmented lesions

8. STRATA Skin Sciences, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for STRATA Skin Sciences, Inc. is low due to the company's focus on specialized skin treatment products and services, making it difficult for substitutes to emerge.

Bargaining Power Of Customers

The bargaining power of customers for STRATA Skin Sciences, Inc. is medium, as customers have some flexibility to choose from alternative products and services, but the company's strong brand reputation and customer loyalty programs help to mitigate this power.

Bargaining Power Of Suppliers

The bargaining power of suppliers for STRATA Skin Sciences, Inc. is low, as the company has a diversified supplier base and is not heavily dependent on any single supplier.

Threat Of New Entrants

The threat of new entrants for STRATA Skin Sciences, Inc. is medium, as the company operates in a highly regulated industry with significant barriers to entry, but new entrants can still emerge with innovative products and services.

Intensity Of Rivalry

The intensity of rivalry for STRATA Skin Sciences, Inc. is high, as the company operates in a highly competitive industry with many established players, and the company must continually innovate and differentiate itself to maintain market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 54.82%
Debt Cost 10.58%
Equity Weight 45.18%
Equity Cost 11.60%
WACC 11.04%
Leverage 121.34%

11. Quality Control: STRATA Skin Sciences, Inc. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Strata Skin Sciences

A-Score: 2.4/10

Value: 8.0

Growth: 2.1

Quality: 3.6

Yield: 0.0

Momentum: 0.0

Volatility: 0.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

0.17$

Current Price

0.17$

Potential

-0.00%

Expected Cash-Flows