Liquidity is under pressure as the company burned through cash reserves, evidenced by a $9.1 million working capital outflow in 2026Q1 and erratic OCF/NI ratios.
| Cash from Operations | 28.93M | 37.5M | 16.13M | 21.75M | -106.6M | -28.36M | -12.44M | 1.73M |
| Operating CF Margin % | - | 12.47% | 4.83% | 5.46% | -29.14% | -10.9% | -10.44% | 1.04% |
| Operating CF Growth % | -244.05% | 132.43% | -25.82% | 120.4% | -275.87% | -128.06% | -819.68% | - |
| Net Income | -6.02M | -9.5M | -29.1M | -100.12M | 44.38M | -375.11M | -29.18M | -1.64M |
| Depreciation & Amortization | 17.6M | 0 | 33.68M | 34.67M | 22.02M | 21.14M | 14.4M | 13.88M |
| Stock-Based Compensation | 11.35M | 0 | 26.7M | 22.54M | 28.5M | 12.42M | 363K | 103K |
| Deferred Taxes | 409K | 0 | -3.75M | 0 | -1.79M | -3.76M | -4.34M | -4.65M |
| Other Non-Cash Items | 9.9M | 36.63M | 16M | 41.29M | -59.42M | 335.62M | 8.9M | 1.94M |
| Working Capital Changes | -4.29M | 10.37M | -27.39M | 23.36M | -140.28M | -18.66M | -2.58M | -7.91M |
| Change in Receivables | 3.67M | 8.59M | 20.8M | 12.85M | -32.02M | -31.01M | 3.7M | -11.05M |
| Change in Inventory | 11.89M | 15.8M | -10.5M | 19.57M | -82.1M | -9.44M | -3.21M | -4.77M |
| Change in Payables | -13.59M | -7.2M | -43.78M | 15.78M | 1.61M | 10.52M | 4.89M | 4.31M |
| Cash from Investing | -5.67M | -5.16M | -6.79M | -31.51M | -18.87M | -37.73M | -3.82M | -12.48M |
| Capital Expenditures | -121K | -5.16M | -6.79M | -13.05M | -17.39M | -15.62M | -3.82M | -10.42M |
| CapEx % of Revenue | 0.04% | 1.72% | 2.03% | 3.28% | 4.75% | 6% | 3.21% | 6.25% |
| Acquisitions | 0 | 0 | 0 | -18.46M | -1.48M | -22.9M | 0 | -2.06M |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | -5.55M | 0 | 0 | 0 | 0 | 781K | 0 | 0 |
| Cash from Financing | -195.58M | -174.9M | -158.34M | -37.45M | -205.24M | 959.03M | 18.27M | 14.58M |
| Debt Issued (Net) | -431.82M | -173.35M | -156.08M | 0 | 0 | 524.51M | 19.73M | 16.5M |
| Equity Issued (Net) | -895K | -1.57M | -1.96M | -35.63M | -160M | 938.38M | -154K | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -895K | 0 | -1.96M | -32.4M | -160M | 0 | -154K | 0 |
| Other Financing | 237.14M | 26K | -302K | -1.82M | -45.24M | -503.86M | -1.3M | -1.92M |
| Net Change in Cash | -168.66M | -137.4M | -152.96M | -45.17M | -333.69M | 892.4M | 2.18M | 3.73M |
| Free Cash Flow | 28.45M | 37.18M | 9.34M | 8.7M | -123.99M | -43.98M | -16.25M | -8.69M |
| FCF Margin % | 9.61% | 12.36% | 2.79% | 2.19% | -33.89% | -16.91% | -13.65% | -5.22% |
| FCF Growth % | -4.69% | 298.09% | 7.34% | 107.02% | -181.95% | -170.58% | -86.94% | - |
| FCF per Share | 0.22 | 0.27 | 0.07 | 0.07 | -0.83 | -0.43 | -0.47 | -0.27 |
| FCF Conversion (FCF/Net Income) | -4.72x | -3.94x | -0.55x | -0.22x | -2.41x | 0.07x | 0.43x | -1.05x |
| Interest Paid | 0 | 0 | 8.01M | 9.38M | 0 | 10.25M | 13.54M | 15.73M |
| Taxes Paid | 0 | 0 | 2.8M | 2.27M | 0 | 1.7M | 2.43M | 861K |
Hardware reliability and adoption
As reported in quarterly filings, the relationship between net income and operating cash flow is highly erratic, with OCF/NI ratios swinging from 30.70 in 2024Q2 to -1.88 in 2025Q4, indicating that reported earnings are currently poor proxies for the company's actual cash-generating capacity.
The persistent gap between net income and operating cash flow suggests that significant non-cash charges and working capital fluctuations are distorting the bottom line. Investors should monitor whether these discrepancies stem from aggressive revenue recognition or the ongoing costs associated with hardware warranty reserves.
Based on the provided cash flow data, FCF margins have exhibited extreme instability, ranging from a low of -22.9% in 2024Q1 to a peak of 18.7% in 2024Q4, highlighting the company's struggle to maintain consistent cash generation amidst its current operational turnaround.
The inability to sustain positive free cash flow suggests that the business model is currently sensitive to lumpy capital equipment sales rather than predictable consumable replenishment. This volatility warrants further investigation into whether the company can achieve self-sustaining cash flow without further external financing.
According to the cash flow statements, working capital changes have been a major source of cash flow volatility, with a significant $9.1 million outflow in 2026Q1 following a $7.9 million inflow in 2025Q4, reflecting inconsistent efficiency in managing inventory and accounts receivable.
These erratic working capital movements suggest that the company may be struggling to align its inventory levels with actual demand for its delivery systems. Such fluctuations may indicate potential build-ups of obsolete hardware or difficulties in collecting payments from med-spa partners during periods of market stress.
As evidenced by historical cash flow data, the company has prioritized significant share repurchases, including $156.1 million in 2024Q4, despite facing negative operating margins and revenue contraction, which appears to be a questionable use of capital given the firm's current operational challenges.
The decision to return capital to shareholders while the core business is burning cash suggests a potential misalignment between management's capital allocation strategy and the company's underlying financial health. This pattern of deployment may limit the firm's ability to fund necessary R&D or address hardware reliability issues.
Quick answers to the most common questions about buying SKIN stock.
The Beauty Health Company (SKIN) generated $37.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
The Beauty Health Company (SKIN) generated $37.2M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
The Beauty Health Company (SKIN) spent $5.2M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.