Loading...
01/11 03:23
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Despite some positive aspects like increased recurring revenue and improved operating expenses, the overall sentiment is negative due to a significant decline in total and equipment revenue, persistent international challenges, and unclear guidance on key metrics like DTC campaign impact. The Q&A revealed management's avoidance of direct answers, which adds uncertainty. The lack of temporary CPT codes for 2026 and tariff impacts further contribute to a negative outlook. The absence of a market cap suggests a potentially stronger reaction, leaning towards a negative stock price movement.
Total Revenue $6.9 million, down 20% compared to Q3 of 2024. This decline was primarily driven by the challenging international environment.
Recurring Revenue Global recurring revenue of $5.5 million increased 3% year-over-year. Net U.S. recurring XTRAC revenue was up 2.8%, and gross code sales increased by 4.1%.
Equipment Revenue $1.4 million, decreased 60% in the third quarter of 2025 compared with the prior year period. This decline was attributed to the challenging international environment.
Gross Profit $4.2 million, or 60% of revenue. Gross margin was roughly flat versus the prior year period.
Operating Expenses $5.4 million in the third quarter of 2025 versus $6.9 million in the prior year period. The reduction was primarily due to higher costs in the prior year period related to a onetime $1.8 million accrual for sales tax in New York State and settlement gains of roughly $680,000 booked this quarter.
Net Loss $1.6 million, or EPS of negative $0.36 per basic and diluted common share, compared to a net loss of $2.1 million, or EPS of negative $0.51 per basic and diluted common share in Q3 2024.
Adjusted EBITDA Slightly positive in the quarter compared to negative $240,000 in the comparable quarter of the prior year. The improvement was driven primarily by lower operating expenses.
Cash and Cash Equivalents $7.1 million as of September 30, 2025.
Expansion of CPT codes for XTRAC 308-nanometer excimer laser: The codes will expand reimbursement eligibility to include multiple inflammatory and autoimmune skin conditions beyond psoriasis, effective January 1, 2027. This will triple the addressable market to over 30 million patients and significantly increase potential revenue.
TheraClearX: Achieved regulatory approval and initial commercial placement in Mexico, marking progress in international expansion.
International expansion: Continued international expansion of XTRAC and TheraClearX technologies, though challenges persist due to U.S. trade policies.
Litigation impact on market positioning: Litigation against LaserOptek led to recovery of over 20 dermatology clinics, generating more than $1 million in annual revenue and reinforcing XTRAC's market position as the gold standard in targeted UVB therapy.
Elevate 360 consulting model: 99 clinics adopted the program, resulting in 7% year-over-year growth for participating clinics. Gross billings per device increased 8.5% to $5,981, the highest since Q4 2022.
Financial performance: Q3 2025 revenue was $6.9 million, down 20% year-over-year due to international challenges. Recurring revenue grew 3% globally, and operating expenses decreased significantly, leading to a reduced net loss of $1.6 million.
Reimbursement strategy: Efforts to expand private payer adoption of new CPT codes and submission of economic data to increase reimbursement rates.
Litigation strategy: Legal actions against LaserOptek to address false marketing claims, resulting in favorable outcomes and market recovery.
International Business Challenges: The company is experiencing challenges in its international business, primarily attributed to the current trade policy of the United States government, creating uncertainty and pressuring total revenue for the quarter.
Litigation Risks: The company is involved in litigation against LaserOptek regarding false and misleading marketing statements. While the company believes it is strongly positioned, litigation outcomes are inherently uncertain and could impact financials and operations.
Revenue Decline: Total revenue for the third quarter of 2025 was $6.9 million, down 20% compared to Q3 of 2024, driven primarily by the challenging international environment.
Equipment Revenue Drop: Equipment revenue decreased by 60% in the third quarter of 2025 compared to the prior year period, indicating potential challenges in selling new devices.
Tariff Impact: Lingering tariffs have negatively impacted the company's international business, particularly in China, with continued weakness observed in the third quarter.
Expansion of CPT codes for XTRAC 308-nanometer excimer laser: Effective January 1, 2027, CPT codes will expand reimbursement eligibility for excimer laser treatments to include multiple inflammatory and autoimmune skin conditions beyond psoriasis, enabling coverage for conditions such as vitiligo, atopic dermatitis, mycosis fungiodes, lichen planus, alopecia areata, and cutaneous T-cell lymphoma. This expansion is expected to triple the addressable market to over 30 million patients and significantly increase potential revenue from procedures.
Private payer expansion: Efforts are underway to expand the revised CPT code changes to private payers, further broadening reimbursement opportunities.
Economic data submission for reimbursement rate increase: Economic data has been submitted to support a potential increase in reimbursement rates for the expanded codes, which will be reviewed by CMS for consideration in the 2026 Final Rule.
Elevate 360 program impact: The Elevate 360 consulting model has shown a 7% year-over-year growth in partner clinics participating in the program. This initiative is expected to drive exponential improvements in clinic performance with the addition of new reimbursement opportunities.
TheraClearX international expansion: Regulatory approval and initial commercial placement in Mexico have been achieved, with continued international expansion of both XTRAC and TheraClearX technologies anticipated to drive growth.
Litigation outcomes and market recovery: Litigation against LaserOptek has resulted in favorable outcomes, including the return of over 20 dermatology clinics to STRATA's program, representing more than $1 million in annual revenue. This is expected to strengthen the company's market position.
The selected topic was not discussed during the call.
Despite some positive aspects like increased recurring revenue and improved operating expenses, the overall sentiment is negative due to a significant decline in total and equipment revenue, persistent international challenges, and unclear guidance on key metrics like DTC campaign impact. The Q&A revealed management's avoidance of direct answers, which adds uncertainty. The lack of temporary CPT codes for 2026 and tariff impacts further contribute to a negative outlook. The absence of a market cap suggests a potentially stronger reaction, leaning towards a negative stock price movement.
The earnings call summary indicates a decline in total revenue and gross profit, increased operating expenses, and significant cash usage in operations, leading to liquidity concerns. The Q&A section highlights uncertainties around international business due to potential tariffs and ongoing legal issues. Management's reluctance to provide specific guidance further adds to the negative sentiment. Despite the positive impact of the Elevate 360 model, the overall outlook remains negative due to these challenges.
The earnings call summary presents a mixed picture. Financial performance shows modest growth with improved margins and reduced expenses, but concerns about tariffs and competitive pressures weigh negatively. The Q&A section highlights management's unclear responses about tariffs, adding uncertainty. While international sales growth is a positive, the overall sentiment remains cautious due to flat growth in the installed base and operational challenges. Given the absence of strong catalysts or negative surprises, a neutral stock price movement is predicted.
The earnings call summary presents mixed signals. While there are improvements in gross margin, cash flow, and certain revenues, overall revenue growth is minimal. The Q&A reveals concerns about tariffs and unclear management responses, impacting sentiment negatively. The positive factors such as improved cash burn and gross margin are offset by competitive pressures and regulatory issues. Given these mixed results and uncertainties, the stock price reaction is likely to be neutral in the absence of significant catalysts.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
