Cutera, Inc., a longtime player in aesthetic and dermatological technology, recently filed for Chapter 11 bankruptcy protection in the US Bankruptcy Court for the Southern District of Texas. The company hopes this move will help it restructure its debt, raise new capital, and strengthen its foundation as it transitions to a private entity.
At first glance, the restructuring plan looks promising. Cutera will reduce its debt by nearly $400 million and raise $65 million in fresh funds from existing lenders.
Its management team says the company will continue operations without disruption during the process. However, a deeper look at the data reveals some of the underlying issues that pushed the business into this situation, and how it can avoid repeating the same mistakes.
Warning signs in supplier payments
Cutera has avoided severe payment delays, but its financial behavior over the last year points to mounting stress. One of the clearest signs is its Days Beyond Terms (DBT), a metric used to track how late a company pays its suppliers.
The industry average for DBT is about three days. Cutera, by contrast, has consistently recorded DBTs between 16 and 26 for nearly 12 months. But Cutera’s financial challenges didn’t happen overnight.
In fact, Creditsafe’s data showed the company had high-risk behavior six months prior to bankruptcy, reflecting early signs of liquidity pressures that became evident as DBT climbed steadily. In March 2025, the company reached a DBT high of 26 days, signaling growing cash flow constraints.
Although Cutera kept its 91+ day delinquencies at zero, the shorter-term delays grew steadily. In February 2025, 43.92% of invoices were 1–30 days overdue, and 22.18% were 31–60 days late.
The following month, those numbers shifted to 18.34% and 31.41%, respectively. That’s a significant portion of unpaid bills pushing into mid-range aging buckets.
These delays suggest Cutera was facing increasing liquidity problems, even if it wasn’t in crisis territory. If pressures continue without correction, they could cascade into more severe overdue balances. That’s why payment delays matter – they are often the first sign that a company is drifting off track.
Industry and economic pressures
Cutera’s challenges didn’t happen in isolation. Broader trends in the beauty industry have added pressure on many companies in this space.
For instance, inflation has shifted consumer spending habits. According to an article from The Street, Bank of America reported that 25% of US households were living paycheck-to-paycheck in 2024.
Morning Consult data also showed that shoppers were purchasing fewer beauty and personal care items, with more consumers opting for budget brands. Even for those prioritizing appearance, the focus has shifted to less expensive treatments and at-home products. For a company like Cutera, which is known for premium aesthetic devices and services, these trends may have had a direct impact on sales.
The Chapter 11 pivot
Despite these challenges, Cutera’s Chapter 11 filing is structured to be relatively swift and strategic. According to their March 2025 announcement, the company entered bankruptcy with a pre-packaged plan and the backing of 74% of its noteholders.
CEO Taylor Harris said that the goal is to emerge stronger and better equipped to serve customers and support future innovation.
The company has requested approval to continue paying vendors in full for goods and services delivered before and after the filing. It has also clarified that operations outside the US are not affected.
There’s reason to be cautiously optimistic. The debt reduction plan and new funding give Cutera an opportunity to reset its capital structure. However, avoiding deeper issues will require meaningful changes to internal financial management.
A roadmap to recovery
To avoid slipping back into financial instability, Cutera should make payment discipline a core focus. Late payments damage supplier relationships and erode trust over time, leading to supply chain issues and product delivery.
The company also needs to strengthen forecasting practices, invest in liquidity planning, and create tighter controls around accounts payable. These changes are just as critical as product improvement when it comes to building resilience.
If Cutera can emerge from bankruptcy with a more balanced capital structure and a stronger grip on its cash flow, it will be well-positioned to regain customer confidence and compete more effectively. But restructuring alone won’t fix the problem. Operational discipline will have to become part of the company’s culture.
What comes next
Cutera’s story is a reminder that brand reputation and technological advancements are not enough to guarantee financial stability. Payment patterns tell their own story, and for Cutera, the data showed a pattern of pressure that built slowly over time.
With the right strategy and financial controls, Cutera has a chance to recover and rebuild. But the next phase of its journey will depend on whether it can turn that opportunity into lasting change.
CosmeticsDesign reached out to Cutera for comment but has not received a response as of publication. This article will be updated if a response is provided.