SkinHealth Systems (SKIN) 2026年第三季度财报电话会：耗材增长与上调EBITDA指引

核心要点

• 2026年第三季度净销售额同比下降2.1%至6920万美元，接近管理层6500万至7000万美元指引区间的高端。降幅较第二季度的7.8%和第一季度的6.7%有所收窄。
• 耗材收入重回增长，同比增长1.2%至5040万美元，约占总营收的73%。交付系统收入下降9.9%至1880万美元。
• GAAP毛利率从64.6%提升至68.2%。调整后毛利率上升380个基点至71.8%，其中包括关税退税带来的约100万美元一次性收益。
• 调整后EBITDA增长约50%至1340万美元，占营收的19.3%。SkinHealth Systems还连续第二个季度录得正向GAAP营业利润。
• 公司将全年调整后EBITDA指引从3900万至4600万美元上调至4800万至5000万美元。净销售额指引区间收窄至2.81亿至2.87亿美元。
• 设备销售和EMEA地区仍是主要承压点。管理层正通过调整领导层、推出美国租赁计划、加强大客户覆盖以及投资新产品来进行应对。

关键财务数据

调整后毛利率的改善，反映了上年同期Elite以旧换新成本的消除、库存管理的改善、滞销及废弃库存计提费用的减少，以及耗材产品组合占比的提升。其中约140个基点来自一次性关税退税。

GAAP营业支出从5190万美元降至约4220万美元。在亚太地区市场拓展策略调整、专业服务费用减少以及佣金降低的支撑下，调整后营业支出从3910万美元降至约3630万美元。

业务与运营表现

美洲地区净销售额增长1.4%至4890万美元，其中耗材增长4.3%。管理层将耗材业务的改善归因于主打核心产品的强劲表现、HydraScalp的重新推出、商业执行力的提升以及来自非医疗渠道的需求。

EMEA地区净销售额下降11.7%至1420万美元。交付系统是最大的承压点，而耗材则下降6.6%。管理层指出执行不力是主要原因，尤其是在德国市场，并表示已加强区域领导团队并进行了组织架构调整。降幅较第二季度的19%有所收窄。

亚太地区净销售额下降4.2%至610万美元，主要是由于澳大利亚和新西兰市场向经销商模式转型所致。

SkinHealth Systems在本季度推出了针对美国市场的租赁计划，以减轻合格服务提供商的前期资金负担。公司将每台设备出售给融资合作伙伴并确认前期收入。管理层表示，由于合作伙伴负责管理该计划并承担违约风险，因此这些交易的毛利率略低。

公司还在寻求提高现有海菲秀（Hydrafacial）装机设备的利用率。近期推出的新品包括HydraGlow导出前去角质焕肤产品、Hydralock HA生物纤维面膜以及HydraClear精华液。管理层表示，对一系列HydraClear护理疗程的临床评估显示，瑕疵总量平均减少了38%。

SkinStylus耗材同比增长39%。公司近期将SkinStylus拓展至六个欧洲市场，并正按计划推进于2027年推出另一款互补型设备。下一代海菲秀（Hydrafacial）平台的目标推出时间仍定在2028年。

管理层业绩指引

管理层预计第四季度调整后毛利率将环比回落，主要是由于设备占营收的比例预计将上升，且关税退税将不再重现。

营业支出预计也将较第三季度有所增加。公司表示，原计划在第三季度的约130万美元支出推迟至第四季度，其中包括约60万美元的市场营销费用、约60万美元的研发费用以及10万美元的一般及行政费用（G&A）。

随着2027年和2028年设备项目、临床研究以及其他创新项目的推进，研发支出预计将显著上升。管理层未提供2027年的财务指引。

风险与关注事项

• 由于资金成本高企、销售周期延长以及市场竞争推迟了服务提供商的采购决策，设备需求依然承压。
• 尽管环比有所改善，但EMEA地区的业绩表现依然疲软，其中德国被认为是执行层面的特殊挑战。
• 单台设备耗材收入仍低于上年同期水平，表明现有装机基础的产出效率持续承压。
• 第三季度的盈利能力受益于一次性关税退税和支出发生时点的变动，这两项因素都将影响后续环比对比。
• 租赁计划仍处于早期阶段，管理层正在评估潜在客户质量、转化率、服务提供商采纳情况以及疗程活跃度。
• 公司目前仍有约2.5亿美元未偿还的可转换债券将于2028年第四季度到期。管理层预计将在2027年着手处理该债务，并评估可行的替代方案。

分析师问答环节要点

管理层表示，销售团队的再培训、客户细分、宣传话术调整以及HydraScalp的重新推出推动了护理疗程活跃度，美国耗材业务趋势正在好转。公司还报告了59台设备的正向净变动（净流失转正），主要得益于美洲地区设备流失率降低以及此前休眠客户的重新激活。

关于消费者需求，管理层表示消费者依然关注护理效果，但支出分散在更多的疗程和服务提供商之间。美洲地区的单台设备收入依然承压，但第三季度的降幅已收窄至不到1%。

管理层将大客户和连锁多门诊客户视为在设备投放、服务商覆盖以及复购疗程方面实现规模效应的潜在来源。公司正从关系导向型的销售模式转向结构更完善的需求挖掘、基于价值的销售以及销售漏斗管理。

在产品研发方面，管理层重申，计划于2027年推出的设备不会是海菲秀（Hydrafacial）系统。计划于2028年推出的下一代海菲秀平台旨在提升临床疗效、优化服务提供商工作流程并改善护理体验，但这并不属于公司近期复苏计划的一部分。

业绩电话会完整纪要

完整财报电话会议逐字稿

管理层陈述

Operator

This call is being recorded on Thursday, November 5, 2026. I would now like to turn the conference over to Norberto Aja, Investor Relations. Thank you.

Norberto Aja

Thank you, operator, and good afternoon, everyone. Thank you for joining SkinHealth Systems' third quarter 2026 conference. We released our results earlier this afternoon, which can be found on our corporate website at skinhealthsystems.com. Joining me on the call today is SkinHealth Systems President and Chief Executive Officer Pedro Malo, along with our Chief Financial Officer, Mike Monahan.

Before we begin, I want to remind everyone of the company's safe harbor language. Management may make forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including guidance and underlying assumptions. Forward-looking statements are based on current expectations and beliefs and involve risks and uncertainties that could cause actual results to differ materially.

Listeners are cautioned not to place undue reliance on any forward-looking statements. For further discussion of risks related to our business, please refer to the Risk Factors contained in the company's filings with the Securities and Exchange Commission. In addition, this call will present non-GAAP financial measures. Management uses adjusted EBITDA and other non-GAAP measures as supplemental measures to evaluate operating performance and to facilitate period-to-period comparisons. These non-GAAP measures should be considered in addition to and not as a substitute for financial information prepared in accordance with GAAP.

A reconciliation of these non-GAAP financial measures to the most comparable GAAP measure is available in the earnings press release, which was furnished to the SEC, as well as available on our website. Following management's prepared remarks, we will open the call for a question-and-answer session. With that, I would now like to turn the call over to our President and CEO, Pedro Malo. Please go ahead, Pedro.

Pedro Malha

Thank you, Norberto, and good afternoon, everybody. Let me start with a central message from this quarter. We are making progress on the things that matter the most: the Hydrafacial business and improving the economics of the company. At the same time, we are developing new opportunities for growth. To be clear, the work isn't done. Equipment sales remain challenging, particularly in EMEA. Utilization in our installed base is still below where it should be, but we are making good progress against our plan, and the third quarter results provide tangible evidence that we are operating from a stronger foundation than 1 year ago.

Our third quarter revenue was $69.2 million, towards the upper end of our $65 million to $70 million guidance range, meaning that our quarterly revenue declined 2.1% year-over-year, which is a meaningful improvement from the declines of 7.8% in the second quarter and 6.7% in the first quarter. Importantly, global consumables returned to growth, up 1.2% on a year-over-year comparison. Equipment remained the primary headwind, but the rate of the overall revenue decline has moderated significantly. At the same time, the earnings profile of the business continues to improve.

On a GAAP basis, gross margin was 68.2%, operating income was approximately $5 million, and net loss was approximately $1 million. We delivered positive GAAP operating income for the second consecutive quarter, and adjusted gross margin was 71.8%, our third consecutive quarter above 70%. Adjusted EBITDA was $13.4 million. Some of our quarterly bottom-line outperformance benefited from 1-time items and expense timing, but we are also seeing the benefits of better margins, tighter cost management, and a more efficient operating model. The priority now is to sustain those improvements while returning revenue to growth.

Looking across our regions, we are seeing encouraging signs in the Americas, which grew 1.4%, with consumables growing 4.3% on a year-over-year comparison. EMEA remained challenging with revenues down approximately 12% on a year-over-year comparison, reflecting pressure in delivery systems, particularly in Germany, where execution has been below expectations. To address this, we have strengthened regional leadership, and we are taking actions to improve field execution and customer engagement. In APAC, revenue declined approximately 4% on a year-over-year comparison, primarily reflecting the transition in Australia and New Zealand to a distributor model. So while our performance varies across markets, we know where the pressure is, and we are taking actions to address it.

Let me turn now to our 3 strategic priorities and the progress we are making in building a stronger, more sustainable growth business. Our first priority is strengthening the core Hydrafacial franchise. We have a fantastic global brand and deep customer relationships, but we need to translate those advantages into better commercial execution. So over the past year, we reorganized our commercial teams, strengthened accountability, and invested in better training, processes, and selling tools. We are also taking a more targeted approach to customers, with a greater emphasis on Hydrafacial clinical differentiation and the economic value it creates for providers. Additionally, we are expanding our relationships with corporate and multi-location accounts, where we see opportunities to broaden our installed base and increase treatment volumes.

During the quarter, we introduced a U.S. rental program to address 1 of the key barriers to equipment adoption: upfront capital investment. It's still early, but the objective is to make Hydrafacial more accessible, bringing more providers into the Hydrafacial ecosystem and supporting long-term relationships with them. We are also advancing our next-generation Hydrafacial platform, currently targeted for 2028, with the goal of improving clinical outcomes, provider workflow, and overall treatment experience. On competition, we haven't seen a meaningful change in intensity from what we discussed last quarter. Our strategy isn't simply to compete on price; it's to strengthen our differentiation, improve commercial execution, and deliver greater value to our providers.

Our second strategic priority is getting more value from the Hydrafacial installed base. Throughout the years, we have built a substantial global network of providers, and that represents 1 of our biggest competitive advantages. But placing a system is only the beginning of the customer relationship. The real opportunity lies in helping providers perform more treatments, increase utilization, and generate more recurring consumables revenue. We saw encouraging progress in the quarter, with global consumables growing 1.2% on a year-over-year comparison, and Americas consumables returning to growth for the first time this year, supported by strong signature consumables performance, plus a Hydrafacial relaunch and other commercial initiatives.

But consumables revenue per system remained below last year, and we believe we can do more to improve productivity across the installed base. That's an important part of our innovation strategy: bringing providers clinically differentiated treatments that address real consumer needs and create more reasons for consumers to come back. So in September, we introduced our treatment enhancers: the HydraGlow pre-extraction peel and the Hydralock HA biocellulose mask. In October, we launched a new booster, HydraClear, for blemish-prone skin, which in clinical evaluation showed that a series of HydraClear treatments produced a 38% mean reduction in total blemishes.

So these launches are a good example of the direction we're taking with innovation: more targeted, clinically supported products that address specific customer needs. Our HydraScalp relaunch is another good example of how we are working to expand how providers can use their existing Hydrafacial system in the scalp and in hair health. Equally important is our work in helping providers turn this innovation into greater treatment volumes, and we are doing this with education programs like Hydrafacial Impact, which was built to help providers attract more customers, increase repeat visits, and improve their treatment economics.

The point isn't simply to launch more products; it's to make the systems already in the market more productive. If we execute well, we can create a meaningful recurring revenue opportunity without relying entirely on new equipment placements. Our third strategic priority is to build a broader skin health business. Our ambition is not to be limited to 1 product or 1 category. We want to participate in attractive, high-growth segments of the aesthetics market, offer providers complementary treatments, and give consumers more reasons to engage with our brands.

SkinStylus is a good example of that strategy in play. Microneedling is an attractive and growing segment that complements Hydrafacial, and SkinStylus gives us a strong platform to compete in that market, offering both microneedling and nano-channeling treatments. SkinStylus consumables grew 39% year-over-year this quarter, and very recently, we expanded SkinStylus into 6 key European markets, leveraging our existing international commercial infrastructure. We are also making good progress towards a planned introduction of another complementary device in 2027, with more details to come.

What's important strategically is that we believe we already have the customer relationships, the commercial infrastructure, and the clinical credibility, so we can leverage those advantages across a broader portfolio. That's how we can build a stronger company, not by moving away from what made it successful, but by building on it. So let me bring all of this together. The revenue decline has narrowed significantly. Overall, consumables have returned to growth, margins are substantially stronger, and we're making progress on the commercial and innovation initiatives that can drive the next phase of our business. We still have work to do on equipment sales, utilization, and EMEA.

When I look at SkinHealth Systems, I see a much bigger opportunity than the one we are capturing today. We have a strong global brand, a substantial installed base, a more efficient operating model, and an expanding portfolio. Our job now is to turn those advantages into sustainable growth through better execution in the core business, greater productivity from our installed base, and a disciplined expansion into new categories. That is exactly what we are focusing on delivering. With that, I'll turn the call over to Mike.

Michael Monahan

Thank you, Pedro. We are pleased with our company's performance this quarter. Our cross-functional teams were able to deliver on our revenue commitments, and we overperformed on driving adjusted EBITDA. The team was able to do this while continuing to invest in future growth initiatives. We're grateful for the hard work that everyone in this organization put into delivering. Thank you to the team.

Total net sales in the third quarter were $69.2 million, down 2.1% compared with the prior year. This was primarily driven by a decline in delivery system units sold year-over-year, partially offset by an increase in consumables revenue. Specifically, at the end of Q3, global active systems grew to [indiscernible]. We continue to grow our footprint and provider reach each quarter. Q3 delivery systems revenue was $18.8 million, down 9.9%. We placed 798 systems during the quarter compared with 875 in the prior year period, a decline of 8.8%. Average selling price was $23,509, down 1.2% year-over-year. Consumables revenue was $50.4 million, up 1.2% year-over-year, representing approximately 73% of total revenue.

On a year-over-year comparison, Americas net sales were $48.9 million, up 1.4%, with consumables up 4.3%, partially offset by continued pressure on equipment. EMEA net sales were $14.2 million, down 11.7%, with delivery systems the largest source of pressure, and consumables down 6.6%. APAC net sales were $6.1 million, down 4.2%, primarily reflecting the Australia and New Zealand distributor transition.

GAAP gross margin was 68.2% compared with 64.6% in the prior year period. Adjusted gross margin was 71.8% compared with 68% in Q3 2025, an improvement of approximately 380 basis points, and our third consecutive quarter above 70%. There were several drivers of the year-over-year improvement. First, the prior year period included higher costs associated with Elite trade-in systems that did not repeat. As a reminder, we sold through our fair market value Elite systems that were acquired prior to 2024, going through the same process. Going forward, this inventory is no longer on our balance sheet.

Second, we recorded approximately $1 million of tariff refunds during the quarter, which contributed approximately 140 basis points to adjusted gross margin. This was a 1-time benefit. Third, we continue to benefit from improved inventory management, including lower excess, obsolete, and scrap charges. And fourth, revenue mix benefited from a higher proportion of consumables as our consolidated consumables revenue reached 73% for the quarter. For the fourth quarter, we expect adjusted gross margin to moderate from third quarter levels as equipment becomes a larger percentage of the mix and the tariff benefit does not repeat.

GAAP operating expenses were approximately $42.2 million compared with $51.9 million in the prior year period. Adjusted operating expenses were approximately $36.3 million compared with $39.1 million. The year-over-year improvement reflects the benefit of our APAC go-to-market changes, lower professional fees, and lower commissions, partially offset by increased marketing and event spending. Approximately $1.3 million of planned third quarter expense also shifted into the fourth quarter: roughly $600,000 of marketing, $600,000 of research and development, and $100,000 of G&A.

As a result, we are projecting the fourth quarter run rate to be higher than the third quarter expense level. Research and development is expected to increase meaningfully in the fourth quarter as our device development programs, clinical studies, and other innovation initiatives advance. On a GAAP basis, income from operations was approximately $5 million compared with an operating loss of $6.2 million in the prior year quarter. This is our second consecutive quarter of positive GAAP operating income. Net loss was approximately $0.9 million. Adjusted EBITDA was $13.4 million, or 19.3% of revenue, compared with $8.9 million, or 12.6% in the prior year period, an increase of approximately 50%.

Cash flow from operations was approximately $11.3 million in the third quarter, and capital expenditures were approximately $1.1 million, resulting in free cash flow of approximately $10.2 million. On September 30, we repaid the remaining $103.2 million principal amount of our 1.25% convertible senior notes due in 2026. Together with approximately $645,000 of accrued and unpaid interest, the related indenture was satisfied and discharged. This completed the retirement of the 2026 notes and delivered on the plan we communicated earlier this year to address the maturity with cash on hand.

Following the repayment, we ended the quarter with approximately $112.4 million in cash and cash equivalents. We believe our liquidity position provides sufficient flexibility to operate and invest in the business. We have approximately $250 million in convertible debt remaining that matures in Q4 of 2028. We expect to address this in 2027 and will evaluate all alternatives thoughtfully as we move forward.

Turning to our outlook. Based on third quarter results and our current expectations for the balance of the year, we are updating our full year 2026 guidance. We now expect net sales of $281 million to $287 million compared with our previous guidance of $280 million to $290 million. We now expect adjusted EBITDA of $48 million to $50 million compared with our previous guidance of $39 million to $46 million.

Our fourth quarter assumptions reflect continued pressure on equipment and further work to improve the EMEA revenue performance. We expect adjusted gross margin to moderate sequentially as equipment represents a greater percentage of the mix and the 1-time tariff benefit does not repeat. Finally, the guidance reflects increased operating expenses quarter-over-quarter. This is primarily driven by increased sales and marketing expenses due to normal seasonal commission increases tied to revenue, along with some timing of marketing expenses that are now expected to impact the fourth quarter.

Research and development expenses are projected to increase meaningfully from the third quarter as a number of our 2027 and 2028 projects are beginning to ramp. Finally, we are projecting increased G&A expenses primarily due to increased professional fees, more normalized bad debt expense, and some timing of legal expenses. With that, I'll turn the call back to Pedro.

Pedro Malha

Thanks, Mike. Let me close with a few thoughts. We are not simply waiting for the equipment market to recover. We are taking action to build a stronger, more profitable business with multiple opportunities for growth. This quarter demonstrates that we are making progress. Revenue is stabilizing, consumables on an overall basis have returned to growth, and the economics of the business continue to improve.

At the same time, we are investing in the things that will drive our future: strengthening our Hydrafacial franchise, getting more value from our installed base, and building a broader portfolio of products and treatments. Like Mike mentioned, we also retired our near-term 2026 notes upon maturity as planned, while maintaining meaningful liquidity to continue investing in our business. So while there's still work ahead, we believe we are operating from a much stronger foundation than we were at the beginning of the year.

We also believe that we have the brand, the infrastructure, the relationships, and the innovation pipeline to build a substantially better and more diversified business. Our focus now is on execution: translating those advantages into consistent revenue growth, sustained profitability, and long-term value for our shareholders. Operator, you can now open the line for questions.

Operator

[Operator Instructions]

We have our first question from Olivia Tong with Raymond James.

分析师问答

Olivia Tong Cheang

First, can you talk about the growth in consumables? Do you think you've turned the corner and we can expect continued growth from here? Or was there anything particularly notable this quarter that doesn't repeat? And then what drove the growth? Was it more treatments, more boosters, pricing, or other factors there? And then secondly, can you give us a sense on the delivery—on the system side—what churn looks like? It's a bit difficult to assess now that you've got the leasing program in place, so would love to understand.

Pedro Malha

Thank you so much. Sure, Olivia. So on the consumables, let me bring you back. Global consumables increased 1.2% in this quarter, and actually the Americas consumables grew 4.3%—so good numbers. These are encouraging signals in terms of performance. To support that, the signature consumables are also performing better, and together with the HydraScalp relaunch, that basically added more treatments. So the Americas, specifically the U.S., is looking good.

This is the direct result of the execution work, the commercial work, the retraining of the sales force, the marketing resegmentation, remessaging—all that work is starting to pay off in the U.S. We feel also encouraged that in the quarter we launched HydraClear, a very promising booster, and also the non-medical channel is supporting that growth. So overall, I think things are starting to shape up on the consumable side, specifically in our most important market, which is the U.S. In terms of the system churn, Mike, do you want to take that one?

Michael Monahan

Sure, I'd love to. So we had positive net churn of 59 units if you roll it forward. This was primarily driven in the Americas, as we saw a lower falloff of devices and some consumers repurchasing that were previously dormant. So we're encouraged by some of the improvements that we've made, specifically around our outreach to past dormant accounts. We're seeing some of them come back.

Olivia Tong Cheang

Got it. Thank you.

Operator

We have our next question from Sydney Wagner with Jefferies.

Sydney Wagner

As wellness becomes a larger part of the med spa offering, are hair health concerns, including those associated just with GLP-1 use and the side effects from that, bringing new consumers to the ecosystem? And then if we think about HydraScalp and the opportunity there, are you primarily seeing deepened engagement with existing consumers or seeing incremental consumers coming in through that offering? And then just on EMEA, last quarter you cited personnel gaps and distributor order timing as temporary pressures, and they were expected to improve in the second half. So just curious how those issues are running now and what needs to change for that region to improve further? Thank you.

Pedro Malha

So in terms of scalp health, this is a segment that is getting a lot of attention and a lot of traction, independently of what's driving it. Obviously, GLP-1s could be a good contributor for that renewed interest in scalp health. HydraScalp for us, and HydraScalp with Keravive, is a particularly good example of the strategy that we put in place of getting more value out of our installed base. And basically, the whole premise of this is that we want to extend the use of our existing Hydrafacial system beyond just the facial treatments and going to the scalp and going to hair health, which, as I mentioned in the beginning, is getting some good traction as a segment overall in the market and getting a lot of growing consumer interest.

Basically, what is so appealing for us in terms of this treatment is that it offers and combines an in-office treatment with a home spray of peptides and basically creates another opportunity for providers. And we saw, and as I kept mentioning in the first answer to the first question, we saw this being a good contributor to the numbers of the consumables that we have seen in the U.S. in terms of the quarter. So now the opportunity is to expand that provider adoption of HydraScalp with Keravive and just build that recurring treatment volume on top of it.

In terms of EMEA, yes, definitely a point of pressure. It has been a point of pressure for our business for some quarters now. We have taken decisive action in terms of leadership and organization design to better address the needs and the dynamics of the EMEA market in the past quarter. I feel very encouraged and very positive with those changes and the tools and processes that we are bringing in place, and I feel optimistic that EMEA will start providing better results in the future.

Michael Monahan

The only thing I would add, Sydney, on the numbers: so we did see some improvement. Even though in EMEA we were down 19% year-over-year, as you might remember in Q2, that improved—still down, but down 11.7% in Q3. So to Pedro's point, even though the changes came throughout the summer, we're starting to see some improvement there.

Sydney Wagner

Great, thank you.

Operator

Our next question comes from Joe Federico with Stifel.

Joseph Federico

Maybe just to start a little high level, delivery systems in the quarter—placements were actually pretty impressive relative to our estimate. So I know it's now early days for the U.S. rental program, but maybe just any early learnings you're seeing from that program, and can you give us a bit of color on the economics of those placements from the system side?

Pedro Malha

Thanks. Yes, Joe, I appreciate the comment. So in terms of delivery systems, yes, the numbers were—I won't call it good, but they were less severe than they were in the last quarter. But definitely, and I can be straightforward with this, we're still below where we need to be. What we're seeing in the market is that capital decisions still remain a barrier, sales cycles are longer, and competition is there. And as I mentioned before, EMEA is the largest source of pressure that we have right now, but we are focused on making the product easier to access and the value proposition easier to sell.

I do believe that devices eventually will return to growth, but we have to improve conversion, bring more discipline to channel coverage, reduce adoption friction, and basically give customers and providers a compelling reason to invest. The rental program—and I will also add to this, the corporate account strategy that we have now in place—addresses today. The next-generation platform that is slated for 2028 will be the long-term innovation driver. So in terms of the U.S. rental program specifically, that program was introduced during the quarter, so it's still too early to attribute a meaningful share of Q3 performance to it.

But it was designed to remove the upfront capital hurdle for qualified providers. So the process that we are going through right now is that we are evaluating the lead quality, evaluating the conversion, evaluating the provider adoption, and importantly, the treatment activity after every placement. Our expectation is that this program will build contribution over time as it scales in the U.S. right now.

Michael Monahan

Joe, I would just add on the economics to follow up on that piece. The way the rental program works is our sales team is able to identify the sale, and if the end provider opts to enter into the rental program, we sell the unit to our financing partner who then administers the program. So for us, the revenue is booked upfront upon sale, very similarly to the way we do it when we go through our normal sale process. For the rental program, it has a slightly lower gross margin, as our financing partner captures some of the economics for administering the program and taking on the default risk. But net-net, it works in the same way as if we sell directly to the end provider.

Joseph Federico

Very helpful. I'll keep it to 1. Thanks for the color.

Operator

Our next question is from Navan Thai with BNP Paribas.

Navann Ty Dietschi

I don't know if you can comment, maybe some early thoughts on how growth and margins could trend next year with different factors like the expansion of corporate and multi-accounts, the rental program, and any other push and pull? Thank you.

Michael Monahan

Yes, I mean, we are not commenting on 2027, Navan, right now. What we can comment in terms of overall expectations is we're launching a number of initiatives next year. So my expectation—and we'll give more color when we get to our next call—is that as we start to roll out these initiatives during kind of the latter part of the first half of the year, you'll start to see the benefits, not just from some of the programs that we started investing in this year, but also from some of the new devices and partnerships Pedro had mentioned earlier that you'll see us start to announce as we get further into 2027.

Operator

Thank you. Our next question is from Jonah Kim with TD Cowen.

Unknown Speaker

First, just curiously, what are your key sales and marketing initiatives that you're implementing to drive better system sales going forward? Any color will be helpful there. And then just on the end consumer itself, how is the health of the consumer looking? Are you seeing any sort of delay in treatments just given where the macro backdrop is? Thank you.

Pedro Malha

Sure, Jonah. So in terms of the changes and the work that we're doing in terms of sales force excellence and corporate accounts within the commercial organization, we have strengthened the leadership and invested in more consistent training. The bigger change is basically moving from a relationship-led model to a more deliberate demand generation and conversion model. That includes better account segmentation, better value-based selling, very disciplined follow-up from the sales force down in the field, and very strong oversight from management over the health and the flow of the pipeline. All of that have been initiatives and a great focus of our commercial team and commercial leadership in the past quarter.

An example of programs that we drove in the quarter was Hydrafacial Impact. The concept of the thesis is that innovation only works when providers know how to sell it, basically, and know how to perform and bring customers back. So the Hydrafacial Impact program is really about helping our providers build better business, improving the treatment protocols, and improving the treatment economics. It's very straightforward: when providers are more successful with Hydrafacial, they perform more treatments, and utilization improves.

Another work that we've been doing—and a lot of organizational changes as well—is around corporate accounts. Here, we are taking a more targeted approach to this type of customer because they can provide scale. They can provide scale in placements, scale in provider coverage, and recurring treatments when implemented well. So a lot of work has been done in that organization, and we are very optimistic about the outcomes of that work.

Michael Monahan

The only thing I would add to that is we're seeing some encouraging signs in the Americas on overall revenue per system that we saw in Q3, where we still have some pressure, but we've seen that decline to less than 1%. So while we're a B2B business, and it doesn't tell us exactly what's happening at the end consumer, that gives us some insight that we're seeing some health in terms of utilization, as Pedro mentioned, for the demand for our consumables, which is encouraging.

Pedro Malha

I will just end by addressing the question around the market and the consumer sentiment in terms of dynamics. So consumers are still interested in outcomes; that's still clear in the market. But as we keep mentioning in prior calls, their dollars are spread across more treatments and providers, and that is why we as an organization have to work harder to be the preferred treatment and help providers monetize it better. This is why utilization, differentiation, and consumer experience matter in our business.

Also, the cost of capital is delaying equipment decisions, and that is why the response from us has to be better provider economics, more flexible access, like we kept discussing here—the rental program—and treatments need to drive repeat visits. That's why we are so focused on having our booster and treatment enhancers and extenders strategy.

Unknown Speaker

Thank you for the call.

Operator

Our next question comes from Bruce Jackson with StoneX.

Bruce Jackson

On new products, you said you're going to be increasing R&D here. Is it going to be going up sequentially and year-over-year? And you mentioned the new platform that you're working on. Is there anything else in the new product development that you're working on?

Pedro Malha

So in terms of the new devices, the program is progressing towards the planned 2027 launch. Again, this is not a Hydrafacial device. We are not going to give product specifics or economics today or commit to a launch date; the commitment is 2027. But the strategic logic here is to add another complementary treatment category through an infrastructure that we already have. Again, we will provide more details when the product and the commercial plans are ready.

In terms of the next-generation Hydrafacial, this is a very important long-term initiative for us, and that is targeted for 2028. But it's not part of the foundation of our near-term recovery plan because that is 2028. But we are designing and investing in a machine that will improve clinical outcomes, improve workflow, and improve treatment experience, and it will create reasons for both existing and prospective providers to invest in a new device. We are not disclosing any product features on this call, and we will release more information as we see fit.

Bruce Jackson

Okay, and then a quick follow-up just in terms of the product portfolio vitality: a rough idea of the percentage of the mix that the new products contribute to sales, and is this something that could be expected to help accelerate revenue at some point in the future?

Pedro Malha

So in terms of the strategy, absolutely. Basically, all these product launches are there to create more occasions to use the same system and serve customers in more ways. The booster addresses specific skin concerns. The enhancer or extender can personalize or broaden an existing treatment protocol. All of this supports premium treatments, repeat visits, and higher consumables per treatment. That is the strategy.

We are not going to give standalone revenue forecasts per product SKU, but the way to assess success is how this is contributing to recurring revenue over time. New consumables require providers to adopt the protocols and consumables to incorporate them into the treatment routines that they have in these practices. If you look at SkinStylus, that is already generating growth, and we're using SkinStylus to expand internationally. The other products are very early—we just launched them in commercialization. So I wouldn't expect everything to show up all at once in 1 quarter, but the benefits of all these launches and the cadence of all these launches should show over time progressively as we see adoption in the markets increase.

I think the most important part of all of this is that we are working as a company to build several complementary growth drivers rather than solely being focused on the recovery of equipment sales. That is the key work that we focus on.

Bruce Jackson

Okay, thank you very much. That's it for me.

Operator

There are no further questions. Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.

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