HORSHAM, PA — STRATA Skin Sciences, Inc. (NASDAQ: SSKN) has announced its financial results for the first quarter of 2025, showcasing modest revenue growth, improved gross margins, and expanding international operations, underscoring the company’s ongoing commitment to enhancing its performance in the dermatology market.
Revenue for Q1 2025 totaled $6.8 million, up 1% compared to the same period in 2024. International markets demonstrated robust growth, with revenues climbing 27% year-over-year, offsetting a 4% decline domestically. Recurring revenue contributed $4.7 million, while equipment revenue added $2.1 million, each reflecting a slight increase from the prior-year period.
Gross margins rose to 53.5%, a significant improvement from 45.6% in Q1 2024, driven by operational efficiencies and cost optimization. Operating expenses declined by 5% year-over-year, resulting in a net loss reduction to $2.4 million, or $0.58 per share, compared to a $3.4 million net loss and $0.96 per share in the previous year’s first quarter.
“STRATA made solid progress in the first quarter in executing our strategic plan,” said Dr. Dolev Rafaeli, the company’s President and CEO. “Along with a modest increase in revenue, we have significantly improved our gross margins, expanding nearly 800 basis points year over year. We have also maintained disciplined cost control resulting in a decline in operating expenses and improvement in our seasonally low first quarter adjusted EBITDA.”
Internationally, STRATA’s business continues to gain momentum, with international revenue now accounting for 36% of total revenue. This follows 41% growth in the prior quarter and demonstrates the company’s strength in global markets.
Dr. Rafaeli highlighted the company’s direct-to-consumer strategy, which has driven greater demand and efficiency. “Our existing DTC strategy continues to strengthen, driving 32% and 128% more unique Psoriasis and Acne patients respectively, as compared to prior year period, demonstrating both growing demand and improved marketing efficiency,” he noted.
With $7.8 million in cash at quarter’s end and significant progress in both revenue generation and operational efficiency, STRATA is building a solid foundation for future growth.
The company remains focused on stabilizing its U.S. business while capitalizing on international growth opportunities. By prioritizing innovative dermatology solutions and strategic marketing, STRATA Skin Sciences positions itself to play an increasingly influential role in expanding access to advanced treatment options in the global dermatology market.
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