HORSHAM, PA — STRATA Skin Sciences, Inc. (NASDAQ: SSKN) is betting on newly expanded reimbursement codes and emerging treatment applications for its XTRAC excimer laser to drive long-term growth, even as second-quarter 2025 revenue fell 9% year over year to $7.7 million.
The company highlighted a “historic expansion” of CPT codes for inflammatory and autoimmune skin diseases, a move it says could triple its covered patient population in the U.S. STRATA has also applied for G-codes in hopes of accelerating broader reimbursement access by the 2026 cycle and has submitted economic data to support higher reimbursement rates.
CEO Dr. Dolev Rafaeli said the expanded coverage “has the potential to more than triple our available patient population,” noting that while seasonal slowdowns affect first-half results, the long-term impact should be “extremely positive for STRATA’s bottom line.”
The quarter also saw the release of multiple peer-reviewed studies validating XTRAC’s use for vitiligo and demonstrating its safety and efficacy when combined with JAK inhibitors — a combination treatment area where STRATA holds intellectual property rights.
Operationally, STRATA reported average gross billings per device rose 2.7% to $5,512. The company removed 21 underperforming devices from accounts and placed 19 new units, its highest quarterly placement count in 18 months. Adjusted for legal and one-time tax-related payments, STRATA was nearly cashflow breakeven for the quarter, ending with $6 million in cash.
Still, the bottom line reflected higher costs. Gross profit dropped to $4.3 million from $5 million a year earlier, and operating expenses climbed to $6.5 million from $5.5 million. The net loss widened to $2.5 million, or $0.60 per share, compared to a $0.1 million loss last year, which had been boosted by CARES Act funds.
Alongside its reimbursement strategy, STRATA is pursuing legal action against LaserOptek, adding LaserOptek Korea and C. Dalton, LLC as defendants, and is continuing direct-to-consumer marketing and consulting services to expand its patient base.
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