STRATA Skin Sciences, Inc. (SSKN): Business Model Canvas [Dec-2025 Updated]

You're looking for a clear, no-fluff breakdown of STRATA Skin Sciences, Inc.'s business model as of late 2025; here's the nine-block canvas. As someone who's spent two decades mapping out these medical device plays, I can tell you this isn't just about selling hardware; it's a sophisticated recurring revenue machine built around their installed base of roughly $\mathbf{838}$ XTRAC devices, which generated $\mathbf{\$5.5}$ million in recurring revenue in Q3 2025 alone. We'll see exactly how they use their Elevate 360 consulting model to drive a reported $\mathbf{7\%}$ average revenue lift for partner clinics, all while defending their intellectual property and fighting for broader reimbursement codes that could unlock millions of new patients. Dive in below to see the precise structure balancing equipment sales ($\mathbf{\$1.4}$ million in Q3 2025) against their operating costs and key partnerships.

STRATA Skin Sciences, Inc. (SSKN) - Canvas Business Model: Key Partnerships

You're looking at the critical external relationships STRATA Skin Sciences, Inc. relies on to drive adoption and secure revenue streams. These partnerships are the backbone of their go-to-market strategy, especially given their focus on the XTRAC excimer laser platform.

Dermatology and aesthetic partner clinics in the U.S.

The core of STRATA Skin Sciences, Inc.'s domestic business model is its Partnership Program, which shifts the model from outright equipment sales to a fee-per-treatment structure, covering service, training, and support. As of June 30, 2025, 844 clinics were actively participating in this partnership program. This is a significant portion of the estimated 1,200 U.S. dermatology clinics that currently use excimer laser therapy for conditions like psoriasis and vitiligo. The company is actively working to increase device utilization, as evidenced by the average gross billings per device for all 838 U.S. partner clinics reaching $5,981 for the third quarter of 2025, the highest level since the fourth quarter of 2022. Furthermore, 99 of those clinics have entered the Elevate 360 consulting program, showing an average year-over-year growth of 7% for those specific businesses.

Here's a quick look at the domestic clinic engagement metrics as of mid-2025:

It's defintely clear that maximizing the performance of this installed base is key to recurring revenue stability.

International distributors for global device sales.

STRATA Skin Sciences, Inc. maintains relationships with long-standing exclusive distributors to manage global device sales. In April 2024, the company renewed three-year exclusive distribution agreements with its partners in China and Japan, which, along with a renewed agreement in South Korea (announced December 2023), provides better visibility into the international segment. These three key territories collectively accounted for 46% of STRATA Skin Sciences, Inc.'s total international revenue back in 2023. More recently, in late 2025, the company announced regulatory clearance from COFEPRIS (Mexico's regulatory agency) for its TheraClearX product, marking the first commercial placements there, signaling a focus on new international growth vectors beyond the established Asian markets.

The international focus is on:

• Distributors in China and Japan with agreements carrying minimum unit placements.
• The South Korea distributor, Kosmo Meditech (Cutech, Inc.), has purchase requirements through December 31, 2026.
• New market entry with TheraClearX in Mexico (Q3 2025).

Centers for Medicare & Medicaid Services (CMS) for reimbursement codes.

Reimbursement certainty is a massive driver for adoption. The Centers for Medicare & Medicaid Services (CMS) issued its CY 2026 Medicare Physician Fee Schedule Final Rule in November 2025, which is a major win. This rule confirms continued reimbursement for excimer laser treatments under CPT codes 96920, 96921, and 96922. Moreover, the payment for these codes is set to increase by approximately 3.5% for Calendar Year 2026 compared to 2025 rates. The most transformative element is the recognition of the upcoming expansion of CPT code descriptors, effective January 1, 2027, to include inflammatory and autoimmune skin conditions beyond just psoriasis. STRATA Skin Sciences, Inc. has submitted extensive clinical and real-world cost data to support this, which is expected to expand the addressable patient population by threefold to over 30 million patients.

Key CMS/CPT Milestones:

• Current reimbursement confirmed for CPT codes 96920-96922 through January 1, 2027.
• 3.5% payment increase confirmed for CY 2026.
• Future expansion to cover up to 30 dermatologic conditions, effective January 1, 2027.
• STRATA Skin Sciences, Inc. is working to obtain temporary codes to accelerate access by the 2026 cycle.

Research institutions for clinical studies validation.

STRATA Skin Sciences, Inc. partners with the clinical research community to validate its technology and build an intellectual property moat. This includes supporting peer-reviewed publications that validate the use of the XTRAC excimer laser in combination with systemic treatments like JAK inhibitors for conditions such as vitiligo. The company holds patents around these combination methods, which establishes XTRAC as the only clinically proven and IP-protected solution for these emerging treatment paradigms. This scientific validation is crucial for supporting reimbursement arguments with payers.

Legal counsel for ongoing litigation against competitors like LaserOptek.

Protecting the exclusivity of the excimer laser CPT codes is a key partnership function, often executed through legal counsel. STRATA Skin Sciences, Inc. has been prosecuting litigation against LaserOptek America Corp., LaserOptek Co. Ltd. ("LaserOptek Korea"), and affiliated entities. A significant development was the November 2024 preliminary injunction order, which barred LaserOptek from marketing Pallas laser systems in the U.S. implying reimbursement under CPT Codes 96920-96922. The court also added LaserOptek Korea and C. Dalton, LLC as defendants. This legal success has translated directly into recaptured business; STRATA reports that over 20 former LaserOptek buyers have partnered back, which represents more than $1 million in annualized capital and recurring revenue for STRATA Skin Sciences, Inc. The company noted that legal expenses for cases pursued, primarily against LaserOptek, amounted to approximately $340 thousand in Q2 2025.

STRATA Skin Sciences, Inc. (SSKN) - Canvas Business Model: Key Activities

You're looking at the core engine of STRATA Skin Sciences, Inc. (SSKN) as of late 2025-the day-to-day work that keeps the lights on and drives future growth. Honestly, the numbers show a company in transition, heavily leaning on operational execution to offset international softness.

Manufacturing and deploying XTRAC and TheraClearX devices

This activity is about getting the hardware out and, crucially right now, making sure the existing hardware is actually working hard. Equipment revenue took a real hit in the third quarter of 2025, dropping 60% year-over-year to just $1.4 million for the quarter. That tells you the focus shifted away from new sales toward utilization of what's already installed.

The deployment goal for the newer TheraClearX device is to hit 200 units in the U.S. by the end of 2025. For context, the U.S. installed base for the core XTRAC system was down slightly to 838 systems in Q3 2025 as the company continued its pruning strategy of removing underperformers. The full deployment of the entire existing installed base is expected by the end of 2025 or early 2026, which is when they anticipate capital expenditure will ramp up again.

Executing the Elevate 360 consulting model for partner clinics

This consulting model is central to boosting the productivity of the installed base, and you can see the results in the utilization metrics. The company had 99 clinics enrolled in the Elevate 360 rollout as of Q3 2025.

For those clinics in the program, management reported an average of +7% revenue growth. This focus on utilization, along with DTC efforts, helped push the average gross billings per device up to $5,981 in Q3 2025, which is the highest level seen since Q4 2022 and represents an 8.5% year-over-year increase. The breakeven revenue target for a TheraClearX device is about $2,500 per quarter, needing roughly 200 procedures annually.

Direct-to-Consumer (DTC) marketing to drive patient leads

DTC is about feeding the funnel for your partner clinics. In Q1 2025, the combined organic and DTC efforts generated over 1,000 appointments. More importantly, the number of unique patients for whom STRATA Skin Sciences handled insurance benefits increased by 33% versus Q1 2024.

The volume of patients submitted for reimbursement saw a massive 138% year-over-year increase in Q1 2025. To put a dollar value on that activity, the company estimates the value of a patient to be between $50-$60 per treatment, with an average of six treatments per patient, netting $300-$360 per patient overall.

• Patient submissions for reimbursement (Q1 2025 YoY): +138%
• Unique patients handled by STRATA (Q1 2025 YoY): +33%
• Estimated total value per patient: $300-$360

Protecting and enforcing Intellectual Property (IP) rights

This is a defensive and offensive key activity, particularly with the ongoing litigation against LaserOptek. STRATA Skin Sciences reported positive developments in this lawsuit, specifically adding entities like LaserOptek Korea and C. Dalton as defendants. This enforcement is translating into tangible revenue; over 20 former LaserOptek Pallas buyers have since partnered with STRATA or purchased XTRAC lasers, which represents over $1 million in annualized capital and recurring revenue for STRATA Skin Sciences.

The company's IP portfolio includes issued patents covering methods for localized treatment using JAK inhibitors and a dosimeter-guided Excimer Laser dose.

Securing expanded reimbursement codes for new indications

This is a major future growth lever. The company is working with CMS to accelerate access to expanded reimbursement, which is expected to triple the covered patient population in the U.S.. This expansion broadens the addressable patient TAM to over 30 million patients.

The AMA CPT Board reaffirmed the exclusive use of excimer lasers under codes 96920-96922 through January 1, 2027, and the expansion covers up to 30 dermatologic conditions. CMS recognized both existing and expanded codes in its 2026 calendar year rule, with an anticipated payment increase of approximately 3.5% for the expanded descriptors effective in 2026, though the full benefit is tied to the 2027 descriptor effective date.

In the near term, pre-authorized rates for treatments exceeded 85% as of Q1 2025.

STRATA Skin Sciences, Inc. (SSKN) - Canvas Business Model: Key Resources

You're looking at the core assets STRATA Skin Sciences, Inc. (SSKN) relies on to run the business as of late 2025. These are the tangible and intangible things the company owns or controls that are essential for its value proposition.

The most concrete physical assets are the installed base of its core technology. As of September 30, 2025, the installed base of XTRAC devices in U.S. partner clinics stood at exactly 838 units. The company also has 161 TheraClearX installed units as of the same date. STRATA Skin Sciences, Inc. (SSKN) is focused on maximizing utilization from this installed base, evidenced by the average gross billings per device in the U.S. reaching $5,981 for the third quarter of 2025, which was an 8.5% increase year-over-year.

Financially, the company held $7.1 million in cash and cash equivalents as of September 30, 2025. This liquidity supports ongoing operations while the company works to capitalize on regulatory advancements. For context on the business performance supporting this cash position in Q3 2025, global recurring revenue was $5.5 million, a 3% year-over-year increase, while equipment revenue was $1.4 million, marking a 60% decrease year-over-year. The gross profit for the quarter was $4.2 million, representing a 60% margin on revenue.

Intangible assets are critical here, especially the technology itself. STRATA Skin Sciences, Inc. (SSKN) possesses the proprietary XTRAC excimer laser and VTRAC lamp technology. Furthermore, the company holds Intellectual Property (IP) in the form of patents for combination therapies, such as those involving JAK inhibitors, which further positions XTRAC as a clinically proven and protected solution.

The operational support structure is also a key resource, especially given the partnership model. STRATA Skin Sciences, Inc. (SSKN) maintains dedicated field service and clinical support teams. This support is formalized through the Partnership Program, which includes on-site training for practice personnel, service and maintenance of the equipment, dedicated account and customer service associates, and co-op advertising support.

Here are the key quantitative resources and related metrics from Q3 2025:

The company's ability to generate recurring revenue, which was $5.5 million in the quarter, is directly tied to the utilization of this installed base. Total operating expenses for the period were $5.4 million, resulting in a net loss of $1.6 million.

The strategic advantage of the IP is reinforced by clinical validation; multiple new peer-reviewed publications further validate the XTRAC gold standard in treating autoimmune diseases in combination therapy.

Finance: draft 13-week cash view by Friday.

STRATA Skin Sciences, Inc. (SSKN) - Canvas Business Model: Value Propositions

The value proposition STRATA Skin Sciences, Inc. offers centers on shifting the financial burden and risk from the clinic to a performance-based model, while delivering clinically superior, non-systemic treatment options.

For partner clinics, the core offering is the Partnership Program, which utilizes a fee-per-treatment cost structure instead of requiring upfront capital expenditure for equipment purchase. This model directly reduces the initial financial risk for providers adopting the XTRAC excimer laser technology.

The clinical superiority of the XTRAC system is validated by recent data, particularly when used in combination therapies. For plaque-type psoriasis, a study combining the XTRAC 308nm Excimer Laser with 0.1% tacrolimus ointment showed markedly superior results compared to topical monotherapy:

Furthermore, the treatment is inherently non-invasive and targeted, offering fewer side effects than systemic drugs, a key differentiator in chronic condition management. This is reinforced by data showing promising results for vitiligo treatment using the Excimer Laser combined with a Janus kinase inhibitor, demonstrating superior safety and unprecedented response rates.

STRATA Skin Sciences, Inc. actively helps clinics maximize the revenue potential of existing assets through the Elevate 360 (E360) consulting platform. Since the start of 2025, 99 of the approximately 838 clinics operating under an XTRAC usage agreement have enrolled, reporting an average 7% year-over-year revenue increase for those businesses completing the review.

One case study illustrated the operational impact: a partner clinic group increased its revenue contribution to STRATA Skin Sciences, Inc. from $10,500 in the first half of 2024 to $61,800 in the first half of 2025, while expanding from 2 clinics to 9 clinics after adopting E360 in Q3 2024.

Market access is being significantly broadened by the American Medical Association's revision to CPT codes 96920-96922. This change expands reimbursement eligibility beyond psoriasis to include multiple inflammatory and autoimmune skin conditions. This is expected to unlock access for over 30 million U.S. patients, a threefold expansion from the roughly 10 million psoriasis patients previously covered. STRATA Skin Sciences, Inc. is working to make these expanded indications reimbursable as early as the 2026 rule cycle via temporary CMS codes, aiming for the official January 1, 2027, effective date.

Here's a quick look at some key operational and financial metrics as of late 2025:

• Number of U.S. partner clinics under XTRAC usage agreement: Approximately 838.
• Average gross billings per device (Q3 2025): $5,981.
• Q3 2025 Total Revenue: $6.9 million.
• Q3 2025 Gross Margin: 60%.
• Cash and cash equivalents (End of Q3 2025): $7.1 million.
• Potential addressable patient population unlocked by CPT expansion: Over 30 million.

The expected expansion in addressable market size, combined with the recurring revenue stream from the fee-per-treatment model, underpins the long-term value proposition for providers utilizing the E360 support structure.

STRATA Skin Sciences, Inc. (SSKN) - Canvas Business Model: Customer Relationships

The relationship STRATA Skin Sciences, Inc. maintains with its key customer segments-physician practices utilizing their devices and the end-patients-is structured around high-touch support and direct patient acquisition initiatives.

The foundation of practice support involves personnel dedicated to service and account management, which underpins the consultative offerings. This structure is designed to ensure optimal utilization of their capital equipment, such as the XTRAC excimer laser systems.

High-touch, consultative support via the Elevate 360 program.

The Elevate 360 (E360) consulting services platform is a core component of the relationship strategy, focusing on implementing best practices in marketing, reimbursement optimization, and patient retention for partner clinics. Since the start of 2025, 99 out of approximately 844 clinics operating under STRATA Skin Sciences, Inc.'s XTRAC usage agreement have enrolled in this program. Participating clinics have demonstrated an average 7% year-over-year growth. This consultative approach directly impacts the revenue stream flowing back to STRATA Skin Sciences, Inc.

A specific case study illustrates the impact of this high-touch support:

This partner began implementing E360 in Q3 2024.

Partnership Program offering on-site training and co-op advertising.

The Partnership Program, which often utilizes a fee-per-treatment cost structure rather than outright equipment purchases, integrates the E360 consulting services, which include turn-key marketing solutions and business system optimization. This relationship focus is also reflected in device performance metrics. For the second quarter of 2025, the average gross billings per device reached $5,512, showing a 2.7% increase over the comparable prior-year period. Furthermore, the installed base for the TheraClearX Acne Therapy System reached 160 devices in the U.S. by the end of Q1 2025, up from 104 devices at the end of Q1 2024.

Key elements of the support structure include:

• Optimizing the end-to-end treatment process.
• Securing reimbursement and patient insurance benefits.
• Scheduling follow-up patient visits for retention.

Direct engagement with patients through DTC marketing efforts.

STRATA Skin Sciences, Inc. actively engages patients directly to drive appointment volume for its partners. The company's direct-to-consumer (DTC) strategy is a key driver of patient acquisition. In the first quarter of 2025, DTC marketing efforts generated over 1,000 appointments. This, combined with organic growth, resulted in the number of unique patients for whom STRATA Skin Sciences, Inc. handled insurance benefits increasing by 33% year-over-year in Q1 2025. The number of patients submitted for reimbursement in Q1 2025 increased 138% year-over-year, with pre-authorized rates exceeding 85%.

The President and CEO noted in November 2025 that the company continues to strategically expand its patient pool through these DTC efforts while strengthening practice partners through consulting services.

STRATA Skin Sciences, Inc. (SSKN) - Canvas Business Model: Channels

You're looking at how STRATA Skin Sciences, Inc. gets its products and services to the customer, which is a mix of direct engagement and partner reliance. Here's the breakdown of the channels they use, grounded in the latest figures we have through Q3 2025.

Direct sales force for U.S. dermatology practices

The core U.S. channel relies on a direct engagement model, primarily through the Partnership Program, which focuses on recurring revenue rather than outright equipment sales for the XTRAC system. This program provides equipment, training, maintenance, and co-op advertising support to clinics. The structure is based on a fee per treatment cost, not just an equipment purchase. As of June 30, 2025, STRATA Skin Sciences, Inc. reported that 844 U.S. dermatology clinics were utilizing the XTRAC excimer laser technology under this partnership program. This is out of an estimated total of around 1,200 U.S. clinics using excimer laser therapy subject to CPT codes 96920 - 96922. The TheraClearX device, aimed at acne, also has a direct component; its installed base in the U.S. reached 160 devices by the end of Q1 2025, up from 104 devices in Q1 2024. The XTRAC system under the recurring procedures model is placed in the office, and fees are charged per procedure or periodically. The company is working to grow the number of clinics, especially those owned by private equity backed national accounts, which present a potential expansion of over 2,000 additional clinics.

Here's a quick look at the U.S. installed base metrics:

International distribution partners for global sales

Global sales are heavily reliant on exclusive distribution partners, a channel that historically contributed significantly to the top line. International revenue in Q1 2025 was $2.5 million, marking an 8% increase YoY, and accounted for 36% of total revenue. This contrasts with Q2 2025 equipment revenue from international business, which decreased 18% YoY. The company has renewed key agreements, such as the three-year extensions with distributors in China and Japan, which collectively accounted for 46% of total international revenue in 2023. The Korean agreement with Kosmo Meditech (Cutech) is extended through December 31, 2026. A risk to this channel is the potential impact of tariffs, with outbound rates into non-US markets like Asia potentially reaching 145% on free parts under warranty, which could lead to a "meaningful reduction in international revenue."

Direct-to-Consumer (DTC) digital and traditional advertising

STRATA Skin Sciences, Inc. actively uses DTC marketing to drive patient volume to its partner clinics, which in turn boosts recurring revenue. This strategy is focused on geographies where partner clinics are effective at converting leads. In Q1 2025, DTC efforts generated over 1,000 patient appointments. The efficiency of this channel improved significantly in the second half of 2025, with a much lower cost per acquisition driven by better media costs and conversion rates. The impact on patient volume was clear:

• DTC drove 32% more unique Psoriasis patients YoY in Q1 2025.
• DTC drove 128% more unique Acne patients YoY in Q1 2025.
• Overall unique patients for whom STRATA handled insurance benefits increased 33% YoY in Q1 2025.

Company website and investor relations for corporate communication

The corporate communication channel primarily serves investors and stakeholders, providing updates on financial health and strategic positioning. For the third quarter of 2025, the company reported total revenue of approximately $6.9 million, with a gross margin that remained stable at 60%. The company ended Q3 2025 with $7.1 million in cash, following $6.0 million in cash and cash equivalents at June 30, 2025. The latest analyst consensus reflected a Hold rating with a price target of $1.50. The company is also using IR communications to highlight strategic legal wins, such as the litigation against LaserOptek, which is expected to bring in over $1 million in annualized capital and recurring revenue from recaptured clients. The company's ability to secure temporary CMS codes is also communicated here, aiming to accelerate access for expanded indications as early as the 2026 rule cycle.

STRATA Skin Sciences, Inc. (SSKN) - Canvas Business Model: Customer Segments

You're looking at the specific groups STRATA Skin Sciences, Inc. targets with its medical devices and recurring revenue streams as of late 2025. It's a mix of clinical providers and the patients they treat, with a clear focus on maximizing utilization of installed equipment.

U.S. Dermatology and Plastic Surgery Practices

These practices form the core of the recurring revenue base, primarily through the use of the XTRAC system for chronic conditions and the newer TheraClearX for acne. STRATA Skin Sciences, Inc. focuses on optimizing the performance of the existing installed base through programs like Elevate 360.

• U.S. partner clinics operating under XTRAC usage agreement (Q3 2025): approximately 838 clinics.
• Clinics enrolled in the Elevate 360 program since the beginning of 2025: 99.
• Average gross billings per XTRAC device for all U.S. partner clinics (Q3 2025): $5,981.
• Average net revenue per domestic XTRAC system (Q1 2025): $4,776.
• Domestic XTRAC Gross Recurring Billings (Q3 2025): $4.8 million.

The company is actively managing its installed base; for example, the domestic installed base of XTRAC units was reported at 873 units in Q2 2025, following a strategic removal of underperforming units from the previous count of 882 in Q2 2024.

International Clinics and Medical Spas

This segment shows strong growth momentum, though it is subject to external factors like tariff uncertainty. STRATA Skin Sciences, Inc. is also establishing new commercial models internationally, such as in Mexico.

• International revenue growth (Q1 2025 vs Q1 2024): 8%.
• International revenue as a percentage of total revenue (Q1 2025): 36%.
• International equipment sales growth (Q1 2025 vs Q1 2024): 13%.
• Average patient payment for an acne visit in Mexico: equivalent of about $140.

The company has achieved regulatory clearance in Mexico from COFEPRIS for its TheraClearX device as of Q3 2025, with plans to announce a significant number of placements there by the end of 2025.

Patients with Chronic Dermatologic Conditions (psoriasis, vitiligo, eczema)

These patients are primarily served through the established XTRAC platform, which is positioned as the gold standard for conditions like psoriasis and vitiligo. Direct-to-Consumer (DTC) marketing is directly impacting patient volume.

• Unique Psoriasis patients driven by DTC efforts (Q1 2025): 32% more than the prior year period.
• Unique patients for whom STRATA handled insurance benefits (Q1 2025): increased 33% year-over-year.

Clinical validation continues to support this segment, with multiple new peer-reviewed publications in Q3 2025 validating XTRAC for vitiligo in combination therapy with JAK inhibitors and for localized atopic dermatitis.

Patients with Mild-to-Moderate Acne (via TheraClearX)

The TheraClearX device targets the most common skin condition in dermatology, offering a reimbursable option to practices. The focus here is on driving procedure volume and device utilization.

The company is executing a strategy to increase TheraClearX placements within existing XTRAC partner clinics, aiming for a total installed base of 200 devices by the end of 2025.

STRATA Skin Sciences, Inc. (SSKN) - Canvas Business Model: Cost Structure

You're looking at the cost side of the STRATA Skin Sciences, Inc. (SSKN) engine as of late 2025. Honestly, cost control looks like a major theme, especially when you see how they managed expenses coming out of Q1.

The overall picture for the third quarter of 2025 shows that Total Operating Expenses were $5.4 million, which is a meaningful reduction from the $6.9 million reported in the prior-year period. This reduction helped push the company to a slightly positive Adjusted EBITDA for Q3 2025, compared to negative $240,000 in Q3 2024.

Here's a quick look at how the major operating expense buckets stacked up in Q3 2025 versus the cost-cutting quarter of Q1 2025, where they were clearly tightening the belt:

The Selling and Marketing expenses in Q3 2025 were $3,201 thousand. You'll note the CEO mentioned strategically expanding the patient pool through Direct-to-Consumer (DTC) efforts, so you'd expect that line item to reflect that spend, even as they manage overall costs.

For General and Administrative (G&A) costs, the Q3 2025 figure was $2,668 thousand. That Q3 number is easier to digest than Q3 2024, which included a one-time $1.8 million accrual for New York State sales tax. Also, keep an eye on legal fees here; the company noted positive developments in the ongoing lawsuit against LaserOptek, which is a cost that can swing G&A depending on litigation phases.

The aggressive cost management in Engineering and Product Development is clear from the first quarter data. For Q1 2025, these expenses were down 60% versus the prior-year period, driven by reduced headcount and project-specific consulting. The actual spend in Q1 2025 for this category was only $96 thousand.

Regarding the cost tied to recurring revenue, STRATA Skin Sciences operates on a Partnership Program that includes a fee per treatment cost structure. This structure covers the use of the device, on-site training, and crucially, service and maintenance of the equipment. In Q3 2025, the Global recurring revenue component was strong at $5.5 million, which increased 3% year-over-year. The cost associated with generating this revenue would include the direct costs of servicing those devices and providing ongoing support, which is embedded within the overall operating expenses.

• Cost of recurring revenue is covered by the fee per treatment model, which includes service and maintenance.
• Global recurring revenue in Q3 2025 was $5.5 million.
• Selling and Marketing expenses in Q3 2025 were $3,201 thousand.
• G&A costs in Q3 2025 were $2,668 thousand.
• Engineering and Product Development expenses were down 60% in Q1 2025.

Finance: draft 13-week cash view by Friday.

STRATA Skin Sciences, Inc. (SSKN) - Canvas Business Model: Revenue Streams

You're looking at the core ways STRATA Skin Sciences, Inc. brings in cash, which really boils down to two main buckets as of late 2025: the ongoing services and the one-time sales of hardware. It's important to see how these pieces fit together to form the total picture.

The recurring side of the business, which includes revenue from treatment codes and service fees, is the foundation. For the third quarter of 2025, STRATA Skin Sciences reported $5.5 million in Global Recurring Revenue. This stream saw a modest increase, with net U.S. recurring XTRAC revenue up 2.8% and gross code sales up 4.1% for the period.

The other major component is equipment sales, which is the revenue from selling the actual devices. For Q3 2025, Equipment Revenue was $1.4 million. This segment experienced a significant year-over-year drop, decreasing 60% compared to the prior year period.

When you put those two streams together, the Total Revenue for STRATA Skin Sciences for the third quarter of 2025 was $6.9 million. This total was down about 20% compared to Q3 2024, largely due to the softness in international equipment sales.

Here's a quick breakdown of how those revenue components stacked up for the quarter:

Drilling down into the utilization of the installed base, which directly impacts recurring revenue, we see positive trends in efficiency. The Average gross billings per domestic XTRAC device was $5,981 in Q3 2025. Honestly, that figure represents the highest average gross billings per device since the fourth quarter of 2022, showing increased utilization across the 838 U.S. partner clinics.

The revenue streams are also influenced by non-operating items, like legal outcomes. While the core business is recurring and equipment sales, there is potential future upside from litigation. For instance, in Q3 2025, STRATA Skin Sciences booked settlement gains for roughly $680,000, which contributed to lower operating expenses for the quarter.

You should keep an eye on the following factors that influence these revenue streams:

• Expansion of CPT codes for reimbursement, which is expected to triple the covered patient population in the U.S.
• The success of strategic device placements, such as the clearance received in Mexico for the TheraClearX device.
• The ongoing lawsuit against LaserOptek, which has positive developments that could lead to increased revenue or damages collection.
• The performance of the Elevate 360 program, which has shown significant revenue contribution increases from participating partners.

Finance: draft 13-week cash view by Friday.