STRATA Skin Sciences 2025 Q2 Earnings Widening Losses Amid Revenue Drop

STRATA Skin Sciences (SSKN) reported its fiscal 2025 Q2 earnings on August 14, 2025. The results reflect a challenging quarter marked by declining revenue and significantly wider losses, underscoring ongoing financial pressures for the dermatology-focused company. While the company continues to push forward with its growth strategy, the earnings report highlights the need for clearer near-term guidance and stronger top-line performance.

STRATA Skin Sciences reported total revenue of $7.66 million for Q2 2025, a 9.2% decline compared to $8.44 million in the same quarter of 2024. Dermatology recurring procedures accounted for the largest portion of revenue at $5.12 million, with dermatology procedures equipment contributing $2.54 million. The results reflect a notable slowdown in key business segments, particularly during the traditionally slower first and second quarters.

The company’s earnings performance deteriorated sharply, with a net loss of $2.49 million in Q2 2025, compared to a loss of $99,000 in Q2 2024, representing a 2,414.1% increase in losses. On a per-share basis, the loss widened to $0.60 from $0.03, marking a 1,900% increase in per-share losses. The continued losses reflect persistent financial challenges, with the company now in its 14th consecutive year of reporting losses for the same fiscal period.

Despite the CEO’s confidence in long-term growth, the earnings results point to a struggling business model. The deepening losses and declining revenue underscore a disconnect between the company’s strategic ambitions and its current financial realities.

Post-earnings price action was weak, with the stock falling 2.69% during the latest trading day, 5.23% over the past week, and 23.31% month-to-date. A historical review of the stock’s performance following revenue-raising quarters over the past three years revealed underwhelming returns. The strategy yielded a total return of -78.16% and an annualized compound return of -40.31%, with a Sharpe ratio of -0.42, indicating poor risk-adjusted performance. The maximum drawdown of 0% suggests no further losses beyond the initial investment, but the overall results remain dismal.

Dr. Dolev Rafaeli, STRATA Skin Sciences President and CEO, emphasized the company’s ongoing efforts to expand its market through newly approved reimbursement codes for inflammatory and autoimmune skin diseases. He noted the potential for temporary G-code applications to accelerate patient access and highlighted cost management, direct-to-consumer initiatives, and consulting services as key drivers of growth. However, he provided no specific financial guidance for the current or future quarters, leaving investors with limited visibility.

Additional News
On the same day as STRATA’s earnings release, Nigeria's Federal Government announced the launch of the Tertiary Institutions Staff Support Fund, offering 0% interest loans for tertiary workers. This initiative aims to empower academic and non-academic staff through financial support. Meanwhile, in Cross River State, Governor Bassey Otu signed a supplementary budget allocating an additional ₦104 billion to address urgent state needs. Additionally, the Federal Government unveiled a strategy to empower 10,000 women-owned export-ready businesses by 2030, emphasizing gender inclusivity in economic development. These developments highlight broader economic and social initiatives in Nigeria, though none directly relate to STRATA Skin Sciences.