SkinHealth Systems Inc.

Good afternoon, ladies and gentlemen, and welcome to the Skin Health Systems 2026 first quarter earnings call. At this time, all participants are in listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Thursday, May 7, 2026. I would now like to turn the conference over to Norberto Aja, Investor Relations. Please go ahead.

Thank you, Operator, and good afternoon, everyone. Thank you for joining us today to discuss Skin Health Systems' 2026 first quarter results. 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 Skin Health Systems Chief Executive Officer, Pedro Mala, along with her 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, including guidance and underlying assumptions. Forward-looking statements are based on expectations 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 these risks related to our business, please see the company's filings with the SEC. This call will present GAAP financial measures. A reconciliation of these GAAP non-financial measures to the most comparable GAAP measure is available in the earnings press release, which was furnished to the SEC and 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 CEO, Pedro Mala. Please go ahead, Pedro.

Thank you, Norberto. So, as you know, two weeks ago, we rebranded SkinHealth to SkinHealth Systems. And this was not simply a name change. It reflects a deliberate shift in how we operate as a company. and that we are building a company with the clinical rigor, the commercial discipline, and the operational mindset of a leading medical device company. Hydrofacial remains at the center of that strategy as one of the most recognized specialty aesthetic treatments globally. And around it, we are building a broader platform that includes skin stylus, our micro-needling and nano-channeling technology, and the up-and-coming relaunch of our CaraViv for Scout Health. So the objective is straightforward. It's to build a clinically differentiated platform that improves provider economic, strengthens utilization, and drives durable recurrent revenue growth. I also want to take the time to acknowledge the addition of three new independent directors to our board. Kenneth Tripp, Dr. Shashin Shirarani, and Scott Betty. Together, they bring deep experience across medtech, aesthetics, and global consumer brands. And we believe we now have the right boards to support the company's next phase. So now turning to the quarter. First quarter net sales were $64.9 million. So within our guidance range. while adjusted EBITDA was $8.5 million, up 17% year-over-year, and well above the high end of our guidance range. So the quarter clearly demonstrated two things. First, that the top-line growth has not yet returned, but second, that the operational foundation of the business continues to strengthen. So let's go over, first, our system's revenues. Here, device placements came below our expectations during the quarter. Several factors came into play here. On the macro side, the market had gone through rapid expansion, followed consolidation, and some of the tailwinds that drove growth in prior years are not as strong today. So as a result, capital equipment demands continues to be constrained by tighter credit conditions and longer purchasing cycles. Also competition has intensified and providers have more choices than they did two years ago. So all that I just mentioned are structural headwinds and not one quarter occurrences. But the market conditions are only part of this story. We see opportunities to improve our commercial execution, and we are taking the steps to strengthen our sales discipline, to sharpen the focus across the organization, and to improve how we convert the opportunity in front of us. So, given the strengths of the Hydrofacial brand and our current market position, we believe there is meaningful room to perform better, and this is where the focus is. One relevant fact is that we continue to see the softness in device placements in Q2. So we are not expecting a near-term inflection of this trend because the commercial fixes that we are implementing, more structural sales processes, tighter pipeline management, better account prioritization, and an improved commercial leadership, all will take time to fully translate into results. Therefore, we are revising our full-year revenue outlook to a range of $280 million to $295 million, which represents a reduction of approximately 2.5%, or roughly $7.5 million at the midpoint. This revision reflects a more cautious near-term view on capital equipment demand. as well as the time required for the commercial initiatives now underway to translate into improved trends. Also, as part of our efforts, we recently made a key leadership change within their commercial organization. And I'm now taking on a more direct role in the global sales organization, particularly around how we sell and how we improve conversion across our pipeline. So, as importantly, despite the revised revenue outlook, we are maintaining our adjusted EBITDA guidance range of $35 million to $45 million, which reflects the underlying margin strength, the operational discipline, and the resilience of our business model. Moving on now to our consumables business. Revenues for the quarter was $46.4 million, down 6.1% year-over-year. But approximately two-thirds of this drop was related to a transition of China to a distributed model last year, which continues to impact the year-over-year comparisons. So outside of China, consumables performance was impacted primarily by the timing-related variability across certain regions, which we expect that to normalize. Moving into our install base, despite the placement softness, our active install base grew this quarter to 36,400 devices, up 4% year-over-year. More encouragingly, device churn in Q1 declined 40% year-over-year, and that is a meaningful earning signal that our provider retention and reactivation programs are working. to close up our quarterly financial results. On profitability, the quarter demonstrated again the strength of our operating model. Adjusted EBITDA was $8.5 million, up 17% year-over-year, and well above the high end of our guidance range, while adjusted growth margin expanded to 72.2%. Importantly, this performance was achieved while continued to invest in R&D, in provider education, in commercial capabilities, and in our innovation pipeline. Now, let's step back and look at the longer term. Innovation remains a central focus as we build the next phase of growth for the business. We are advancing our innovation pipeline across three key priorities, boosters, strategic partnerships, and the next generation hydrafacial platform. First on boosters. Here, we are restructuring our booster portfolio around clearly defined clinical use cases, differentiated outcomes, and tier pricing designed to improve both provider economics and utilization. Later this quarter, we will relaunch KeraViv, our scalp health treatment. We updated marketing, enhanced protocols, and improved integration into the hydrafacial platform. Given the growing consumer focus on scalp health, including GLP-1-related hair loss concerns, we believe timing is favorable for us. And in the fourth quarter, we also expect to introduce a new booster backed by strong clinical data. Second, we are in the late stages of diligence, exploring strategic partnerships that will bring complementary technologies into the skin health systems portfolio. These solutions will expand treatment options for providers, while at the same time strengthening the broader hydrafacial ecosystem. And third, we continue to advance the development of our next generation hydrafacial device, targeting a 2028 launch. Our objective here with the next generation of hydrofacial is to deliver a meaningful advancement in clinical outcomes and treatment experience while creating a compelling upgrading opportunity for our installed base of more than 36,000 active systems. We are also making sure we are applying the lessons learned from prior launches, particularly around quality standards, partner selections, and field readiness as we continue, and we will continue to update you on the development progress. With that, I'll turn over to Mike to walk you through the financials in more detail. Mike.