What Happened?
Shares of skincare company BeautyHealth (NASDAQ:SKIN)
jumped 4.3% in the afternoon session after the company reported third-quarter 2025 financial results that showed improved profitability and an increased full-year outlook, even as sales declined.
Although net sales fell by 10.3% year-over-year to $70.7 million, the figure surpassed revenue forecasts. Investors focused on several positive signs in the report. The company's gross margin improved to 64.6% from 51.5% in the same quarter of the previous year, and its GAAP loss per share narrowed to $0.09 from $0.15. Furthermore, adjusted EBITDA came in at $8.9 million, a significant beat compared to analyst estimates of $2.58 million. Capping off the positive news, BeautyHealth raised its full-year 2025 guidance, projecting net sales to a midpoint of $296.5 million and adjusted EBITDA to a midpoint of $38 million.
Is now the time to buy BeautyHealth? Access our full analysis report here.
What Is The Market Telling Us
BeautyHealth’s shares are extremely volatile and have had 70 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 4 days ago when the stock dropped 7.4% on the news that investor concern grew ahead of its upcoming third-quarter 2025 earnings report, following the release of negative analyst estimates. Analysts projected that the company's revenue would fall by 13.29% compared to the previous year, landing at $68.33 million. Furthermore, estimates pointed to a loss per share of $0.083. These forecasts suggested potential financial weakness for the company, which likely led to the negative reaction from investors before the official results were announced.
BeautyHealth is down 12.4% since the beginning of the year, and at $1.41 per share, it is trading 46.4% below its 52-week high of $2.63 from September 2025.
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