Beauty Health Company Under Investigation for Restructuring Charges, Sales Guidance Revised to $385-$400 Million
- Declining Financial Performance: Beauty Health Company reported lower-than-expected U.S. revenue in its Q3 2023 results, incurring $63.1 million in restructuring charges related to early-generation Syndeo device upgrades, indicating significant financial strain.
- Sales Guidance Revision: The company has revised its fiscal year 2023 net sales guidance to a range of $385 to $400 million, with adjusted EBITDA margin guidance lowered to 5% to 6%, reflecting uncertainty in future profitability.
- Executive Changes: CEO Stanleick will depart from his roles as President and CEO and relinquish his board seat, which may impact the company's strategic direction and market confidence.
- Legal Litigation Risks: The company and certain executives are facing a securities class action lawsuit for failing to disclose material information, with KSF investigating potential breaches of fiduciary duties, which could negatively affect the company's reputation and stock price.
Trade with 70% Backtested Accuracy
Analyst Views on SKIN
About SKIN
About the author


- Declining Financial Performance: Beauty Health Company reported lower-than-expected U.S. revenue in its Q3 2023 results, incurring $63.1 million in restructuring charges related to early-generation Syndeo device upgrades, indicating significant financial strain.
- Sales Guidance Revision: The company has revised its fiscal year 2023 net sales guidance to a range of $385 to $400 million, with adjusted EBITDA margin guidance lowered to 5% to 6%, reflecting uncertainty in future profitability.
- Executive Changes: CEO Stanleick will depart from his roles as President and CEO and relinquish his board seat, which may impact the company's strategic direction and market confidence.
- Legal Litigation Risks: The company and certain executives are facing a securities class action lawsuit for failing to disclose material information, with KSF investigating potential breaches of fiduciary duties, which could negatively affect the company's reputation and stock price.
- Rapid Growth: Skinesa® achieved a remarkable 665% CAGR over the past three years, earning the No. 2 spot on the University of Florida's Gator100 list, which underscores its leadership and commitment to scientific excellence in the probiotic skincare industry.
- Market Expansion: This year, the company launched chewable skin probiotics for kids, which not only diversifies its product line but also enhances its competitive edge and market share in the skincare sector.
- Strengthened Partnerships: Skinesa® is reinforcing its collaborations with doctors and healthcare professionals to solidify its research position in the skincare industry, which will help enhance brand credibility and customer trust.
- Leadership Remarks: CEO Ryan Walters expressed that earning the No. 2 spot on the Gator100 is a tremendous honor, reflecting the company's values in innovation, leadership, and problem-solving, further motivating the team to pursue purposeful and integrity-driven growth.

- Consumer Trend Shift: The 2025 report reveals that 75% of consumers now prioritize treatments that enhance overall skin quality over volume-enhancing procedures, indicating a significant shift towards skin regeneration in the market.
- New Product Launch: In June 2025, Hydrafacial introduced the HydraFillic with Pep9™ Booster, a clinically proven booster that visibly improves fine lines and wrinkles, deeply hydrates, and strengthens the skin barrier, addressing the growing consumer demand for skin regeneration.
- Increased Treatment Frequency: Hydrafacial consumers receive an average of 3.6 treatments per year, demonstrating the brand's success in driving customer return visits and loyalty, thereby solidifying its market position in the aesthetics industry.
- Clear Market Positioning: The report highlights a rising consumer demand for “notox” and “skinimalism” treatments, and Hydrafacial is aligning with this trend by offering scientifically-backed, safe treatment options that promote a shift towards more natural beauty standards in the industry.

- Shareholder Rights Investigation: Halper Sadeh LLC is investigating whether certain officers and directors of The Beauty Health Company (NASDAQ:SKIN) breached their fiduciary duties, potentially impacting corporate governance.
- Legal Relief Options: Long-term shareholders of Beauty Health may seek corporate governance reforms, fund returns, or court-approved financial awards, aimed at enhancing the company's transparency and accountability.
- Importance of Shareholder Participation: Shareholder involvement can improve company policies and oversight mechanisms, thereby enhancing shareholder value, highlighting the necessity and urgency of effective corporate governance.
- Legal Fee Arrangement: Halper Sadeh LLC will handle the case on a contingency fee basis, meaning shareholders will not incur out-of-pocket legal fees, reducing the financial burden of participation.
Globus Medical Earnings Surge: Globus Medical's stock rose 24.37% after reporting a Q3 net income of $119 million and raising its 2025 revenue outlook to $2.86-$2.90 billion, with non-GAAP EPS guidance increased to $3.75-$3.85.
Tandem Diabetes Care Recovery: Tandem Diabetes Care's stock rebounded 20.03% after narrowing its Q3 net loss to $21.2 million and reaffirming its 2025 sales guidance of approximately $1 billion.
Organogenesis Holdings Growth: Organogenesis Holdings saw a 19.28% increase in stock price following a Q3 net income of $21.6 million and an updated 2025 revenue forecast of $500-$525 million.
ICU Medical and 10x Genomics Updates: ICU Medical's stock rose 14.14% after narrowing its Q3 net loss, while 10x Genomics advanced 8.92% despite a Q3 net loss, with both companies revising their 2025 guidance.
Real-time Intelligence: Benzinga Pro offers the fastest news alerts to help traders stay informed and make winning trades in the stock market.
Exclusive Community: Joining Benzinga Pro connects users with over 10,000 serious traders and provides access to exclusive stories and insights from Benzinga reporters.








