STRATA Skin Sciences SSKN

STRATA Skin Sciences, Inc. is a medical technology company that develops, commercializes and markets products for the treatment of dermatologic conditions. Its primary offerings are the XTRAC line of excimer laser systems and the VTRAC lamp series, which deliver targeted ultraviolet B light to treat psoriasis, vitiligo, atopic dermatitis, and other skin disorders. The company also provides the TheraClear Acne Therapy System, which combines a vacuum mechanism with broadband light to reduce inflammatory acne lesions. All of these devices have received regulatory clearance, including FDA 510(k) approvals for the XTRAC and VTRAC systems and FDA clearance for the TheraClear device. The XTRAC technology originated from work conducted by PhotoMedex, Inc., and was acquired by STRATA in June 2015, while the Pharos device obtained through a later acquisition has since been discontinued.

Revenue is generated mainly through a recurring revenue model in which STRATA places XTRAC excimer laser systems in physicians’ offices without an upfront charge and receives a fee for each treatment performed. As of December 31, 2025, 842 of the estimated 1,000 XTRAC units in the United States were enrolled in this per‑use program, providing a steady stream of procedure‑based income. In addition, the company sells VTRAC lamp systems and related equipment to international distributors and derives income from the outright sale of TheraClear units and associated service contracts. Service and warranty support for legacy products, including the previously offered Pharos laser system, also contributes to revenue. Internationally, the company generates revenue from the sale of VTRAC systems and, in certain markets, from the placement of XTRAC units under similar recurring arrangements.

The company operates through the following segments. This segmentation reflects the distinct nature of its dermatology procedures equipment business.

• Dermatology Procedures Equipment: This segment includes the XTRAC excimer laser platforms, the VTRAC lamp systems and the associated recurring revenue arrangement where devices are placed in clinics for per‑use fees, as well as the direct sale of this equipment to distributors in overseas markets.

Within the dermatology device market, STRATA Skin Sciences maintains a competitive stance due to the demonstrated clinical efficacy, favorable side‑effect profile and established reimbursement pathways for its XTRAC technology. The XTRAC system is reimbursed under three CPT codes that vary by treated skin area, with 2025 Medicare rates ranging from $137 to $183 per treatment, and it is endorsed by the National Psoriasis Foundation and covered by most major insurers, including Medicare. The device has been cited in over 45 clinical studies and research publications, demonstrating an 89% efficacy rate in clearing psoriasis lesions with minimal side effects. Key competitors consist of The Daavlin Company, National Biologic Corporation, and pharmaceutical firms that supply topical corticosteroids, vitamin D analogues, systemic agents, and biologic therapies for psoriasis and related skin conditions. The TheraClear system faces competition from over‑the‑counter acne products, prescription medications, and other in‑office procedures, but differentiates itself with a short treatment time, suitability for all skin types, and a low incidence of adverse effects.

The company’s customer base consists principally of dermatologists and dermatology group clinics that partner with STRATA under its recurring revenue model in the United States, representing 842 active partner clinics as of the end of 2025. Internationally, STRATA relies on a network of distributors in countries such as Korea, Japan, China, Israel, Saudi Arabia, Kuwait, Oman, Qatar, Bahrain, United Arab Emirates, Jordan, Iraq, Mexico, and India to sell its equipment, provide technical support and manage service agreements. These distributors enable the company to offer the VTRAC lamp system exclusively outside the United States and to extend the reach of its XTRAC technology in select global markets. Historically, the XTRAC laser had been marketed in more than 25 countries through distributors before the company shifted to a direct country‑by‑country approach in recent years.