10-Q · November 14, 2025
STRATA reported Q3 2025 revenue of $6,929,000 and GAAP loss per share of $(0.36). Revenue declined versus both prior year (Q3 2024: $8,797,000) and prior quarter, while gross margin remained healthy at ~60.4% and net…
Earnings analysis · 10-K
SSKN earnings analysis
Filed March 26, 2026 · Our reading of the company's report
The latest report
STRATA positions itself as a phototherapy-focused med‑tech company centered on its XTRAC excimer laser recurring‑revenue model (842 systems in the U.S. recurring program as of December 31, 2025). Gross economics are…
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STRATA positions itself as a phototherapy-focused med‑tech company centered on its XTRAC excimer laser recurring‑revenue model (842 systems in the U.S. recurring program as of December 31, 2025). Gross economics are strong (multiple quarters at ~60% gross margin), management highlights regulatory/reimbursement changes (CPT descriptor revisions effective January 1, 2027) that could expand addressable indications, but revenue slipped year‑over‑year and cash burn / free cash flow remain negative despite a profitable operating quarter in Q4 2025. Key strategic assets: FDA 510(k) cleared XTRAC/VTRAC devices, TheraClear acquisition (Jan 2022), 16 U.S. patents in force or pending and an ISO 13485 17,000 sq. ft. manufacturing facility in Carlsbad.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Segment
- Dermatology recurring procedures (XTRAC) - U.S. recurring revenue model (842 systems as of 12/31/2025)
- Segment
- Dermatology equipment sales and international recurring (VTRAC and equipment distributors)
- Segment
- TheraClear acne therapy system (acquired Jan 2022)
What stood out
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Scale in recurring‑revenue model
Company reports 842 XTRAC systems were included in its U.S. dermatology recurring procedures revenue model as of December 31, 2025 (Business—'we estimate ... 842 systems were, as of December 31, 2025, included in our dermatology recurring procedures revenue model').
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Sustained gross margins (~60%)
Multiple recent quarters show gross margin around 60% (for example, Q3 and Q4 2025 gross margin 60.4% each per quarterly results), supporting attractive unit economics for procedures revenue.
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Positive operating inflection in Q4 2025
Q4 2025 shows an operating margin of 12.6% and GAAP diluted EPS of $0.13 (quarterly financial history), indicating an operational inflection versus prior quarters.
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Reimbursement expansion potential (CPT changes)
Filing notes national CPT reimbursement in 2025 ranged $137–$183 per treatment and states revised CPT descriptors effective January 1, 2027 (CPT 96920–96922) may broaden Medicare reimbursement eligibility (Business—'the national CPT code reimbursement ... ranged ... between $137 per treatment to $183 per treatment for 2025' and 'revised CPT code descriptors effective January 1, 2027').
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Regulatory clearances and IP
XTRAC and TheraClear are FDA 510(k) cleared and the Company reports 16 issued U.S. patents in force or pending as of December 31, 2025 (Business—'we have received FDA 510(k) clearance...' and 'As of December 31, 2025, 16 issued U.S. patents are in force or pending').
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Owned manufacturing capacity
Company manufactures XTRAC at a 17,000 sq. ft. ISO 13485‑certified facility in Carlsbad, CA and states current capacity is sufficient for foreseeable demand (Business—'We manufacture our XTRAC products at our 17,000 sq. ft. facility ... ISO 13485 compliant').
What to watch
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Revenue decline year‑over‑year
Quarterly results sum to roughly $34.0M in 2024 (7+8+9+10) versus $31.0M in 2025 (7+8+7+9), indicating a revenue decline year over year (quarterly financial history).
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Worsening free cash flow / cash burn
Free cash flow by quarter shows FY2024 roughly -$1.919M (-2.0 +0.246 -0.364 +0.199) versus FY2025 roughly -$4.300M (-0.749 -2.0 -1.0 -0.551), i.e., larger negative FCF in 2025 (quarterly financial history).
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Exposure to U.S. tariffs and trade policy
Filing explicitly warns that 2025 U.S. trade policy actions increased import tariffs and that increased tariffs could adversely affect revenues, costs or gross profit in the Dermatology Procedures Equipment segment ('In 2025, the U.S. introduced trade policy actions that have increased import tariffs ... the revenues, costs, or gross profit ... may be adversely affected').
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Reimbursement uncertainty until 2027
Although CMS confirmed continued reimbursement under existing CPT codes through December 31, 2026, the filing states future reimbursement levels and coverage determinations remain subject to CMS rulemaking and third‑party payer policies (Business—'CMS confirmed continued reimbursement ... through December 31, 2026' and 'future reimbursement levels and coverage determinations remain subject to CMS rulemaking and third‑party payer policies').
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Thin R&D resources limit pipeline
The Company reports its R&D team consists of two employees, which constrains new product development and engineering capacity ('Our research and development team, including engineers, consists of two employees').
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IP validity risk
While the Company cites 16 U.S. patents in force or pending, it discloses that patent validity and enforceability can be challenged and if invalidated could reduce competitive advantage ('we cannot be certain that, if challenged, our patented methods and apparatus ... would be upheld').
Management's outlook
The 10‑K does not provide numeric FY26 revenue or EPS guidance; MD&A discusses reimbursement timing and risks (e.g., CPT descriptor changes effective Jan 1, 2027) but no explicit numeric annual outlook is given. Annual outlook appears deferred to quarterly earnings releases/calls.
Earlier filings 4
10-Q · August 14, 2025
STRATA Skin Sciences missed consensus in Q2: revenue of $7,663 (thousands) and GAAP EPS of $(0.60), with operating loss and cash usage widening year-over-year. Management says existing cash and expected revenues should…
10-K · March 28, 2025
STRATA Skin Sciences positions itself as a niche medical‑technology company in dermatology built around its XTRAC excimer laser franchise, a recurring‑procedure revenue model (864 systems in the recurring model as of…
10-Q · November 14, 2024
STRATA reported Q3 revenue of $8,797,000, essentially flat versus $8,852,000 in Q3 2023 (down $55,000) and above the street. Gross profit remained strong at $5,307,000 (≈60.3% gross margin) but operating loss widened to…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.