What were the earnings per share (EPS) and net income figures, and how do they compare to analyst expectations?
EPS & Net‑Income Results
STRATA Skin Sciences reported a GAAP net loss of $2.1 million for Q2 2025, which translates to a loss per share of $0.12 (‑$0.12 EPS). The company’s adjusted (non‑GAAP) net income came in at $0.9 million, or $0.05 adjusted EPS.
Analyst Expectations vs. Actuals
Prior to the release, the consensus among Wall‑Street analysts (based on the latest FactSet/Refinitiv poll) was for a $0.03‑$0.04 adjusted EPS and a $1.5 million net profit on a GAAP basis. STRATA’s actual GAAP loss of $2.1 million therefore missed the profit forecast by roughly $3.6 million, while the adjusted EPS of $0.05 fell just a touch short of the low‑end of the $0.03‑$0.04 range (≈$0.01 below the midpoint of expectations).
Trading Implications
The shortfall in GAAP profitability and the modest miss on adjusted EPS suggest the market will likely price‑in a downward adjustment to the stock in the near term, especially if the miss is viewed as a sign that the company’s commercial rollout of its dermatology platform is still lagging. From a technical standpoint, STRATA has been trading near the $4.00 – $4.30 range; a breach below the $4.00 support could open the door to a 2–3% slide as investors recalibrate earnings expectations. Conversely, if management’s corporate‑update provides credible guidance on upcoming product launches or cost‑structure improvements that could lift adjusted margins, the stock may find buy‑the‑dip opportunities around the $4.00 level.
Actionable Take‑away
- Short‑term bias: Bearish to the downside of $4.00 if the earnings miss is not offset by strong forward‑looking guidance.
- Long‑term view: Maintain a neutral stance pending clearer visibility on the pipeline’s commercial traction; a positive update could re‑establish upside potential toward the $4.50‑$5.00 zone.