What Happened?
Shares of skincare company BeautyHealth (NASDAQ: SKIN) jumped 20.6% in the morning session after the company reported second-quarter financial results that significantly beat analyst expectations on profitability and raised its full-year outlook. The company posted earnings per share of $0.03, decisively beating analyst estimates of a $0.05 loss, while revenue of $78.2 million also topped forecasts. Although total sales decreased by 13.7% compared to the previous year, investors were encouraged by a significant improvement in profitability, with adjusted EBITDA of $13.9 million significantly exceeding the consensus estimate of $3.59 million. The strong results were driven by a notable increase in gross profit margin, which expanded by 17.6 percentage points year on year. Bolstered by this performance, Beauty Health raised its full-year guidance for both net sales and adjusted EBITDA, signaling confidence in its ongoing strategy.
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What Is The Market Telling Us
BeautyHealth’s shares are extremely volatile and have had 73 moves greater than 5% over the last year. But moves this big are rare even for BeautyHealth and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 3 months ago when the stock gained 42.7% on the news that the company reported strong first quarter 2025 results which included significant beats on sales, gross margin and EBITDA. BeautyHealth planned to manage some of its tariff risk by moving its production to the U.S. and changing how it sells in China, which could help over time. Overall, we think this was still a decent quarter with some key metrics above expectations.
BeautyHealth is up 20.9% since the beginning of the year, but at $1.95 per share, it is still trading 14.6% below its 52-week high of $2.28 from July 2025.
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