Free cash flow remains deeply negative at a -5.9% margin, exacerbated by a chronic inability to convert net income into operating cash flow, as shown by a 2025Q4 OCF/NI ratio of -4.12.
| Metric | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 |
|---|
| Cash from Operations | -2.79M | 188K | -519K | -1.11M | 1.51M | 2.1M | 2.23M | 2.9M | 4.14M | 322K | -6.58M | -17.71M | -19.41M | -19.22M | -17.46M | -18.82M | -17.3M | -16.2M | -11.05M | -10.14M | -5.87M | -3.06M | -1.7M |
| Operating CF Margin % | -9.1% | 0.56% | -1.56% | -3.06% | 5.03% | 9.08% | 7.06% | 9.7% | 13.16% | 1.01% | -35.6% | -1935.41% | -3621.83% | -6903.54% | - | - | - | - | - | - | - | - | - |
| Operating CF Growth % | -1586.17% | 136.22% | 53.16% | -173.47% | -28.05% | -5.97% | -23.03% | -30.05% | 1185.71% | 104.89% | 62.82% | 8.78% | -0.98% | -10.11% | 7.24% | -8.77% | -6.78% | -46.66% | -8.95% | -72.91% | -91.38% | -80.27% | - |
| Net Income | -6.26M | -10.09M | -10.83M | -5.55M | -2.71M | -4.41M | -3.79M | -4.03M | -18.83M | -3.33M | -24.95M | -14.14M | -25.95M | -22.67M | -20.38M | -19.92M | -18.45M | -17.61M | -11.97M | -11.37M | -6.73M | -3.62M | -1.95M |
| Depreciation & Amortization | 4.47M | 5.31M | 5.9M | 5.69M | 4.09M | 3.91M | 4.82M | 5.4M | 6.34M | 6.37M | 4.05M | 1.79M | 2.44M | 969.5K | 562.8K | 552.86K | 314.35K | 308.98K | 210.87K | 138.36K | 15.6K | 25.86K | 30K |
| Stock-Based Compensation | 643K | 427K | 1.3M | 1.47M | 1.64M | 1.63M | 1.2M | 904K | 186K | 113K | 1.75M | 413K | 1.3M | 1.49M | 3.36M | 727.16K | 826.75M | 860.75K | 437.31M | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | -186K | -120K | 40K | 12K | 254K | -111K | -303K | 55K | 240K | 119K | -6.98M | 2.7M | -1.43M | 0 | -735.97K | -826.73M | 0 | -437.31M | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -757K | 4.04M | 3.29M | 316K | -1.85M | 114K | 247K | 717K | 15.03M | -2.48M | 12.81M | 2.13M | 250K | 1.49M | 0 | 727.16K | 826.75K | 519 | 577.01K | 1.04M | 809.8K | 437.15K | 650K |
| Working Capital Changes | -886K | 688K | -69K | -3.07M | 324K | 596K | -133K | 214K | 1.36M | -583K | -375K | -918K | -157K | 929.41K | -991.08K | -169.18K | -11.16K | 230.27K | 128.44K | 56.6K | 35.82K | 91.53K | -430K |
| Change in Receivables | 1M | -631K | 141K | -1.15M | -490K | 1.35M | -1.04M | -222K | 184K | 558K | -186K | -215K | 77K | -179.96K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -288K | 572K | 689K | -1.52M | -45K | -417K | -233K | 215K | -193K | 1.31M | -508K | -784K | 121K | -675.6K | 0 | 0 | 0 | 0 | 0 | -132.69K | -16.12K | 3.11K | 0 |
| Change in Payables | 350K | -954K | -100K | 603K | 58K | 884K | 116K | -513K | 381K | -2.6M | 542K | -241K | -484K | 1.39M | 0 | -121.32M | 311.18M | 0 | 124.8M | 0 | 0 | 0 | 0 |
| Cash from Investing | -1.47M | -1.64M | -5.02M | -4.18M | -7.13M | -2.16M | -2.79M | -1.78M | -2.19M | -868K | -44.22M | 17K | -5.19M | -6.16M | -104.09K | -1.03M | -853.83K | 1.02M | -1.52M | -44.04K | 6.5M | -6.68M | -10K |
| Capital Expenditures | -1.47M | -1.64M | -5.02M | -3.55M | -3.65M | -2.16M | -2.79M | -1.76M | -1.74M | -1.01M | -1.69M | 0 | -5.19M | -6.16M | -104.09K | -1.04M | -1.25M | -313.02K | -292.85K | -544.04K | -121.24K | -88.88K | -10K |
| CapEx % of Revenue | 4.78% | 4.87% | 15.05% | 9.82% | 12.19% | 9.35% | 8.84% | 5.9% | 5.53% | 3.17% | 9.13% | - | 967.91% | 2211.56% | - | - | - | - | - | - | - | - | - |
| Acquisitions | 0 | 0 | 0 | -631K | -3.47M | 0 | 0 | 0 | 0 | 125K | -42.5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -23K | -455K | 15K | -35K | 17K | 0 | 0 | 0 | 10.28K | -397.38M | 0 | 500K | 500K | -5.32K | -3.17K | 0 |
| Cash from Financing | 3.58M | 1.93M | 6.86M | -500K | 92K | 2.55M | -296K | 11.31M | -1.8M | 1.17M | 42.67M | 25.34M | 20.52M | 5.25M | 15.04M | 20.7M | 32.76M | 11.06M | 10.83M | 12.62M | 17.76M | 9.73M | 1.82M |
| Debt Issued (Net) | 0 | 0 | 7M | 0 | 225K | 2.53M | -296K | -3.36M | -1.8M | 1.17M | 42.8M | 15M | -425K | 0 | 0 | 0 | 0 | 0 | 10.72M | 0 | 21.35M | 872K | 0 |
| Equity Issued (Net) | 3.58M | 1.94M | 0 | 0 | 0 | 18K | 0 | 17M | 0 | 0 | 0 | 0 | 21.17M | 5.25M | 15.02M | 18.98M | 30.37M | 10.97M | 114.53K | 114.49K | 34.5K | 8.86M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -936.27K | 0 | 0 | 0 | -447.55K | 1.5M |
| Other Financing | 0 | -18K | -139K | -500K | -133K | 0 | 0 | -2.34M | 0 | 0 | -134K | 10.34M | -227K | 5.24B | 13.35K | 1.72M | 2.39M | 83.96K | 0 | 12.51M | -3.62M | 0 | 1.82M |
| Net Change in Cash | -683K | 477K | 1.32M | -5.79M | -5.53M | 2.48M | -858K | 12.42M | 141K | 625K | -8.13M | 7.65M | -4.08M | -20.14M | -2.52M | 847.39K | 14.6M | -4.13M | -1.74M | 2.43M | 18.4M | -7.99K | 110K |
| Free Cash Flow | -4.26M | -1.45M | -5.54M | -4.66M | -2.15M | -63K | -562K | 1.13M | 2.4M | -686K | -8.27M | -17.71M | -24.6M | -25.38M | -17.56M | -19.86M | -18.55M | -16.52M | -11.34M | -10.69M | -5.99M | -3.15M | -1.71M |
| FCF Margin % | -13.88% | -4.31% | -16.6% | -12.89% | -7.16% | -0.27% | -1.78% | 3.8% | 7.63% | -2.16% | -44.74% | -1935.41% | -4589.74% | -9115.1% | - | - | - | - | - | - | - | - | - |
| FCF Growth % | -194.34% | 73.85% | -18.84% | -117.25% | -3304.76% | 88.79% | -149.56% | -52.77% | 450% | 91.71% | 53.28% | 28.02% | 3.08% | -44.53% | 11.59% | -7.06% | -12.33% | -45.63% | -6.14% | -78.5% | -89.83% | -84.41% | - |
| FCF per Share | -0.09 | -0.04 | -0.16 | -0.13 | -0.06 | -0.00 | -0.02 | 0.04 | 0.36 | -0.30 | -48.46 | -36.20 | -50.29 | -41.25 | -34.55 | -41.31 | -48.08 | -50.72 | -39.88 | -47.31 | -85.31 | -89.25 | -52.95 |
| FCF Conversion (FCF/Net Income) | 0.45x | -0.02x | 0.05x | 0.20x | -0.56x | -0.48x | -0.59x | -0.72x | -0.19x | -0.10x | 0.24x | 1.10x | 0.75x | 0.85x | 0.86x | 0.94x | 0.94x | 0.92x | 0.93x | 0.96x | 0.87x | 0.85x | 0.87x |
| Interest Paid | 0 | 1.97M | 1.42M | 744K | 0 | 0 | 766K | 1.01M | 2.21M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 23K | 22K | 19K | 0 | 0 | 0 | 17K | 28K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Insufficient liquidity for scaling
According to the provided cash flow data, SSKN exhibits a chronic inability to convert net income into operating cash flow, evidenced by a 2025Q4 OCF/NI ratio of -4.12, which suggests that reported accounting profits are frequently decoupled from the actual cash generated by core business operations.
The wide variance between net income and operating cash flow indicates that non-cash items and working capital fluctuations are masking the underlying cash burn. Investors should monitor this divergence closely, as it implies that the company's profitability metrics may not accurately reflect its immediate liquidity requirements.
As reported in financial statements, SSKN's free cash flow trajectory remains deeply negative, with the company recording a -5.9% FCF margin in 2025Q4, underscoring the ongoing struggle to achieve self-sustaining operations despite the recurring nature of the firm's primary revenue model.
The persistent negative FCF suggests that the capital intensity required to maintain the installed laser fleet continues to outpace the cash inflows from procedure fees. This trend warrants further investigation into whether the current business model can reach a sustainable cash-flow breakeven point without additional external funding.
Based on historical data, SSKN's capital expenditure remains a significant drain on liquidity, with CapEx/Revenue ratios peaking as high as 21.3% in 2023Q4, reflecting the heavy investment required to deploy and maintain the company's proprietary laser systems across its clinical partner network.
While these investments are intended to secure long-term recurring revenue, the high maintenance capex relative to revenue suggests that the company is trapped in a cycle of constant reinvestment. This capital intensity limits the firm's ability to generate excess cash, leaving the balance sheet vulnerable to operational shocks.
Analysis of recent filings reveals that SSKN's working capital dynamics are highly erratic, with a significant $987,000 outflow in 2025Q4 alone, suggesting that fluctuations in receivables and inventory management are creating substantial, unpredictable swings in the company's quarterly cash position.
The lack of stability in working capital management may indicate inefficiencies in the collection of per-procedure fees or challenges in managing inventory for the TheraClear X rollout. Such volatility complicates the assessment of the company's true operational health and necessitates a cautious outlook on short-term liquidity.
Based on reported figures, the cash flow statement is heavily influenced by significant depreciation and amortization charges, which consistently exceed $900,000 per quarter, effectively obscuring the true cash cost of maintaining the aging laser fleet and the impact of stock-based compensation on shareholder dilution.
These non-cash adjustments are critical to understanding the company's cash-on-cash returns, as they mask the actual cash required to replace or upgrade the installed base. Investors should be wary of relying on EBITDA-based metrics, as they fail to account for the tangible cash outflows required to sustain the business.
Quick answers to the most common questions about buying SSKN stock.
STRATA Skin Sciences, Inc. (SSKN) generated $-2.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
STRATA Skin Sciences, Inc. (SSKN) reported negative free cash flow of $4.3M in 2025, indicating capital requirements exceeded cash from operations.
STRATA Skin Sciences, Inc. (SSKN) spent $1.5M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.