HORSHAM, PA — STRATA Skin Sciences, Inc. (NASDAQ: SSKN) reported third-quarter results that reflect a company navigating short-term revenue pressure while securing regulatory and reimbursement wins that could significantly expand its addressable market in the years ahead.
The dermatology technology firm highlighted progress toward broadening CPT code reimbursement for inflammatory and autoimmune skin diseases — a shift that could triple the eligible patient population for its XTRAC excimer laser treatment. The Centers for Medicare and Medicaid Services’ 2026 final Physician Fee Schedule formally acknowledges the expanded codes, a key milestone for long-term growth.
Regulatory momentum extended overseas as well, with Mexican authorities granting clearance for TheraClearX and the company reporting its first commercial placements in the region.
Clinical validation also continued to build. Multiple peer-reviewed publications reinforced XTRAC’s performance in combination therapies for vitiligo, psoriasis, and atopic dermatitis, as well as its use in treating mycosis fungoides, a rare form of cutaneous lymphoma. STRATA holds patents on these combination treatments, strengthening its competitive position and intellectual property protection.
The company also reported favorable developments in its lawsuit against LaserOptek, adding additional defendants and improving prospects for recovering damages. STRATA said it has already recaptured dozens of partner clinics previously lost to LaserOptek after operators allegedly misrepresented reimbursement eligibility for non-excimer devices.
Operationally, recurring revenue trends were solid. Average gross billings per device rose 8.5 percent year over year to $5,981 — the highest level since late 2022 — and EBITDA turned slightly positive, compared with a $0.2 million loss in the same quarter last year. The U.S. XTRAC install base slipped by six units to 838, while TheraClearX reached 161 installed devices nationwide.
Total revenue for the quarter fell 21 percent to $6.9 million, with global recurring revenue up 3 percent but equipment sales down sharply due to weaker international demand tied to instability in global trade policy. Gross margin remained steady at 60 percent. Operating expenses dropped to $5.4 million from $6.9 million a year earlier, reflecting cost controls and restructuring efforts.
STRATA closed the quarter with $7.1 million in cash following a $2.4 million registered direct offering.
President and CEO Dr. Dolev Rafaeli said the company remains focused on strengthening recurring revenue, expanding patient access through newly approved reimbursement codes, and supporting clinicians with enhanced practice resources. He added that positive litigation developments and renewed customer interest are expected to contribute to revenue growth in coming quarters.
While international headwinds weighed on top-line performance, STRATA’s regulatory progress, intellectual property advantages, and growing clinical evidence base position the company for a potentially stronger trajectory as expanded reimbursement takes effect in 2026.
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