Headline Summary: Board-certified plastic surgeon brings extensive expertise in facial anatomy and injectable treatments to support nationwide rollout of breakthrough hyaluronic acid technology. Partnership underscores Evolus' commitment to patient safety and provider education for their new FDA-approved filler line. ...

Core Viewpoint - Evolus, Inc. has granted stock options and restricted stock units to newly hired employees, indicating a focus on incentivizing talent acquisition and retention in the performance beauty sector [1] Summary by Category Stock Options and RSUs - The company granted non-qualified stock options to purchase a total of 8,744 shares of common stock [1] - Additionally, 15,000 restricted stock units (RSUs) were awarded to 6 newly hired non-executive employees [1] - Evolus also allocated 143,403 shares of common stock and 104,603 RSUs to other employees, reflecting a broader strategy to enhance employee engagement and align interests with shareholders [1]

Financial Performance - Evolus, Inc. reported a quarterly loss of $0.24 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.09, representing an earnings surprise of -166.67% [1] - The company posted revenues of $69.39 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 16.33%, compared to year-ago revenues of $66.91 million [2] - Over the last four quarters, Evolus has not surpassed consensus EPS or revenue estimates [2] Stock Performance - Evolus shares have declined approximately 17.5% since the beginning of the year, while the S&P 500 has gained 7.6% [3] - The current Zacks Rank for Evolus is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is -$0.02 on revenues of $86.76 million, and -$0.11 on revenues of $350.01 million for the current fiscal year [7] - The outlook for the Medical - Products industry, to which Evolus belongs, is currently in the bottom 38% of over 250 Zacks industries, which may impact the stock's performance [8]

Financial Data and Key Metrics Changes - Global net revenue for Q2 2025 was $69.4 million, a 4% increase compared to 2024, driven by the successful launch of Evolisse and international revenue growth [28] - Reported gross margin for Q2 was 65.3%, with adjusted gross margin at 66.5%, impacted by a higher mix of international sales and introductory pricing for Evolisse [28][29] - GAAP operating expenses for Q2 were $55.5 million, down from $61.8 million in Q1, while non-GAAP operating expenses were $54 million compared to $52.9 million in Q1 [30][31] - Non-GAAP operating loss in Q2 was $7.9 million, compared to non-GAAP operating income of $1.1 million in 2024 [31] Business Line Data and Key Metrics Changes - Jeuveau experienced its first year-over-year decrease since launch, reflecting a decline in consumer sentiment and procedural volumes in the U.S. aesthetic toxin market [6][8] - Evolisse generated $9.7 million in revenue in its first quarter, marking the strongest first-quarter filler launch in over a decade [18] - The company maintained a 14% market share in the toxin market through the first half of the year, an increase from 13% in 2024 [15] Market Data and Key Metrics Changes - Procedural volumes in the U.S. toxin category have decreased over the past three consecutive quarters, with a notable impact on Jeuveau demand in Q2 [8][10] - Surveys indicated a potential rebound in patient volume in the second half of the year, with a majority of practices expecting growth of over 10% [9] Company Strategy and Development Direction - The company revised its 2025 revenue guidance to a range of $295 million to $305 million, reflecting 11% to 15% growth over 2024 [11][34] - Evolisse is expected to contribute 10% to 12% of total revenue for 2025, with a focus on maintaining long-term growth and profitability [20][34] - The company aims to achieve $700 million in revenue by 2028, with a non-GAAP operating income margin of 20% [33][34] Management's Comments on Operating Environment and Future Outlook - Management noted that the market environment has been challenging, with a significant slowdown in demand observed in the last two weeks of Q2 [6][10] - Despite the challenges, management expressed confidence in the company's ability to deliver sustainable growth, supported by strong early adoption of Evolisse and ongoing international expansion [21][90] Other Important Information - The company has implemented strategic reductions in operating expenses, resulting in over $25 million in annualized savings, while maintaining investment in customer-facing activities [13][34] - Evolus Rewards program saw record redemptions of over $224,000, with 65% coming from repeat patients, indicating strong brand loyalty [16] Q&A Session Summary Question: What dynamics are being seen regarding reduced demand? - Management indicated that procedural demand declined in the high single digits, with the slowdown not driven by competitive dynamics but rather overall market conditions [36][38] Question: What was the impact of inventory buying on recorded revenue? - Management suggested that the initial revenue from Evolisse included both stocking and pull-through elements, making it difficult to quantify precisely [40] Question: How do you explain the improvement seen in July? - Management noted a significant shift in business in July, correlating with internal and third-party research indicating a potential rebound [41] Question: What are the expectations for toxin demand trends? - Management highlighted that overall procedural volume did slow in the first half of the year, with some competitors experiencing significant declines [51] Question: What promotional activities are planned for Q4? - Management mentioned adjustments to promotional strategies to help practices with pull-through, including collaborations with beauty magazines [54] Question: What is driving the current consumer sentiment? - Management noted that consumers earning $150,000 or less are feeling the pinch from increased prices and tariffs, impacting their spending on aesthetic treatments [67] Question: How does the company plan to achieve its 2028 targets? - Management reiterated confidence in reaching the $700 million target, emphasizing that the revised guidance does not change the long-term outlook [87]

[Cover Page Information](index=1&type=section&id=Cover%20Page%20Information) EVOLUS, INC. filed a Quarterly Report on Form 10-Q for the period ended June 30, 2025, indicating its filer status and outstanding common stock - EVOLUS, INC. filed a Quarterly Report on Form 10-Q for the period ended June 30, 2025[2](index=2&type=chunk) Filer Status | Filer Status | Status | | :------------- | :----- | | Accelerated filer | ☒ | - As of August 1, 2025, there were **64,685,419 shares of common stock outstanding**[4](index=4&type=chunk) [Special Note Regarding Forward-Looking Statements](index=4&type=section&id=Special%20Note%20Regarding%20Forward-Looking%20Statements) This section cautions readers about forward-looking statements, which are subject to various risks and uncertainties regarding future events and financial conditions - The report contains forward-looking statements subject to risks and uncertainties, including future events, business, financial condition, and regulatory approvals, cautioning readers not to place undue reliance on these statements[8](index=8&type=chunk)[9](index=9&type=chunk)[10](index=10&type=chunk) [Summary of Risk Factors](index=4&type=section&id=Summary%20of%20Risk%20Factors) Key risks include significant historical losses, intense product competition, reliance on consumer spending, trade policy impacts, dependence on Symatese, potential financing needs, and Medytox settlement compliance - Key risks include significant losses since inception, intense competition for products like Jeuveau and Evolysse™, reliance on consumer discretionary spending, trade policy risks (tariffs), dependence on Symatese for regulatory approval, potential need for additional financing, and compliance with Medytox settlement agreements[11](index=11&type=chunk)[14](index=14&type=chunk) [PART I - FINANCIAL INFORMATION](index=7&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) This part presents the company's unaudited condensed consolidated financial statements and management's discussion and analysis of financial condition and results of operations [Item 1. Condensed Consolidated Financial Statements (unaudited)](index=7&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) This section presents the unaudited condensed consolidated financial statements, including the balance sheets, statements of operations and comprehensive loss, statements of stockholders' equity (deficit), and statements of cash flows, along with their accompanying notes, providing a detailed financial overview for the periods ended June 30, 2025, and December 31, 2024 [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This statement provides a snapshot of the company's assets, liabilities, and stockholders' equity at specific points in time, highlighting changes in financial position Condensed Consolidated Balance Sheets (in thousands) | (in thousands) | June 30, 2025 | December 31, 2024 | | :--------------- | :------------ | :---------------- | | Cash and cash equivalents | $61,738 | $86,952 | | Total current assets | $144,970 | $151,342 | | Total assets | $228,803 | $232,569 | | Total current liabilities | $63,750 | $62,960 | | Total liabilities | $247,455 | $227,047 | | Total stockholders' equity (deficit) | $(18,652) | $5,522 | - The company's total stockholders' equity shifted from a positive balance of **$5,522 thousand** at December 31, 2024, to a **deficit of $(18,652) thousand** at June 30, 2025[19](index=19&type=chunk) [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) This statement details the company's revenues, expenses, and net loss over specific reporting periods, reflecting operational performance and overall profitability Condensed Consolidated Statements of Operations and Comprehensive Loss (in thousands) | (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total net revenues | $69,387 | $66,909 | $137,909 | $126,242 | | Gross profit | $45,320 | $47,068 | $91,975 | $87,571 | | Loss from operations | $(10,210) | $(7,702) | $(25,382) | $(16,624) | | Net loss | $(17,142) | $(11,350) | $(36,034) | $(24,459) | | Net loss per share, basic and diluted | $(0.27) | $(0.18) | $(0.56) | $(0.40) | - Total net revenues increased by **3.7%** for the three months ended June 30, 2025, and by **9.2%** for the six months ended June 30, 2025, compared to the respective prior periods[21](index=21&type=chunk) - Net loss increased significantly, from **$(11,350) thousand to $(17,142) thousand** for the three months ended June 30, 2025, and from **$(24,459) thousand to $(36,034) thousand** for the six months ended June 30, 2025[21](index=21&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity (Deficit)](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity%20(Deficit)) This statement tracks changes in the company's equity accounts, including common stock, additional paid-in capital, and accumulated deficit, over specified periods Condensed Consolidated Statements of Stockholders' Equity (Deficit) (in thousands, except share data) | (in thousands, except share data) | Balance at December 31, 2024 | Balance at June 30, 2025 | | :-------------------------------- | :--------------------------- | :----------------------- | | Common Stock Shares | 63,497,548 | 64,638,978 | | Common Stock Amount | $1 | $1 | | Additional Paid In Capital | $615,825 | $627,379 | | Accumulated Deficit | $(609,399) | $(645,433) | | Total Stockholders' Equity (Deficit) | $5,522 | $(18,652) | - The company's accumulated deficit increased from **$(609,399) thousand** at December 31, 2024, to **$(645,433) thousand** at June 30, 2025, reflecting ongoing net losses[24](index=24&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This statement reports the cash generated and used by the company across operating, investing, and financing activities, illustrating liquidity and solvency Condensed Consolidated Statements of Cash Flows (in thousands) | (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(40,423) | $(17,085) | | Net cash used in investing activities | $(4,128) | $(2,051) | | Net cash provided by financing activities | $19,032 | $50,143 | | Net increase (decrease) in cash and cash equivalents | $(25,214) | $30,833 | | Cash and cash equivalents, end of period | $61,738 | $93,671 | - Net cash used in operating activities more than doubled, from **$(17,085) thousand** in H1 2024 to **$(40,423) thousand** in H1 2025[27](index=27&type=chunk) - Cash provided by financing activities decreased significantly from **$50,143 thousand** in H1 2024 (due to a follow-on offering) to **$19,032 thousand** in H1 2025 (primarily from debt modification proceeds)[27](index=27&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed disclosures on the company's business, significant accounting policies, fair value measurements, goodwill and intangible assets, accrued expenses, property and equipment, term loans, operating leases, commitments and contingencies, stockholders' equity, Medytox settlement agreements, and segment reporting, offering crucial context to the condensed consolidated financial statements [Note 1. Description of Business](index=12&type=section&id=Note%201.%20Description%20of%20Business) This note describes Evolus, Inc.'s core business as a global performance beauty company, its key products, recent launches, financial performance, and significant financing activities - Evolus, Inc. is a global performance beauty company focused on the cash-pay aesthetic market, with products including Jeuveau (botulinum toxin type A) and Evolysse™ (injectable HA gels)[32](index=32&type=chunk) - Evolysse™ Form and Evolysse™ Smooth launched in the U.S. in April 2025, with plans for European launch in Q1 2026 and two additional U.S. Evolysse™ products in 2026-2027[32](index=32&type=chunk) - The company incurred net losses of **$17,142 thousand** (Q2 2025) and **$36,034 thousand** (H1 2025), with an accumulated deficit of **$645,433 thousand** as of June 30, 2025[34](index=34&type=chunk) - In May 2025, Evolus entered an Amended and Restated Loan Agreement with Pharmakon for up to **$250 million**, with an initial **$150 million tranche funded**[37](index=37&type=chunk) [Note 2. Basis of Presentation and Summary of Significant Accounting Policies](index=12&type=section&id=Note%202.%20Basis%20of%20Presentation%20and%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines the basis for financial statement preparation, adherence to GAAP, interim reporting considerations, key manufacturing dependencies, and revenue recognition policies - Financial statements are prepared in accordance with GAAP and SEC interim reporting requirements, with interim results not necessarily indicative of full-year performance[38](index=38&type=chunk)[40](index=40&type=chunk) - The company relies on Daewoong for Jeuveau manufacturing and Symatese for Evolysse™ manufacturing, with termination of these agreements posing a material adverse risk[44](index=44&type=chunk) - Revenue is recognized when control of goods/services is transferred to customers, net of sales-related adjustments like volume-based rebates and loyalty programs[81](index=81&type=chunk)[82](index=82&type=chunk)[86](index=86&type=chunk) [Note 3. Fair Value Measurements](index=24&type=section&id=Note%203.%20Fair%20Value%20Measurements) This note details the fair value measurement of financial instruments, particularly the contingent royalty obligation, and the valuation inputs used Contingent Royalty Obligation (in thousands) | (in thousands) | June 30, 2025 | December 31, 2024 | | :--------------- | :------------ | :---------------- | | Contingent royalty obligation payable to Evolus Founders | $38,586 | $44,765 | - The fair value of the contingent royalty obligation decreased by **$6,179 thousand** from December 31, 2024, to June 30, 2025, primarily due to an unrealized gain of **$3,914 thousand** in Q2 2025[114](index=114&type=chunk)[118](index=118&type=chunk) - The fair value is determined using **Level 3 inputs** (discounted cash flows) with a discount rate of **13%** as of June 30, 2025, reflecting changes in market risk premium[115](index=115&type=chunk)[117](index=117&type=chunk) [Note 4. Goodwill and Intangible Assets](index=25&type=section&id=Note%204.%20Goodwill%20and%20Intangible%20Assets) This note provides a breakdown of the company's goodwill and intangible assets, including distribution rights and capitalized software, along with future amortization estimates Goodwill and Intangible Assets (in thousands) | (in thousands) | June 30, 2025 | December 31, 2024 | | :--------------- | :------------ | :---------------- | | Distribution rights, net | $43,597 | $45,207 | | Capitalized software, net | $5,750 | $3,547 | | Intangible assets, net | $49,347 | $48,754 | | Goodwill | $21,208 | $21,208 | | Total as of period end | $70,555 | $69,962 | - Estimated future amortization expense for intangible assets totals **$49,347 thousand**, with **$3,320 thousand** remaining in 2025 and **$6,540 thousand** in 2026[123](index=123&type=chunk) [Note 5. Accrued Expenses](index=26&type=section&id=Note%205.%20Accrued%20Expenses) This note presents the composition of accrued expenses, including revenue contract liabilities, payroll, and royalties, and their changes over the reporting period Accrued Expenses (in thousands) | (in thousands) | June 30, 2025 | December 31, 2024 | | :--------------- | :------------ | :---------------- | | Accrued revenue contract liabilities | $8,726 | $14,454 | | Accrued payroll and related benefits | $6,522 | $14,127 | | Accrued royalties | $4,279 | $4,743 | | Other accrued expenses | $8,422 | $7,467 | | Total Accrued expenses | $27,949 | $40,791 | - Accrued expenses decreased from **$40,791 thousand** at December 31, 2024, to **$27,949 thousand** at June 30, 2025, primarily due to a reduction in accrued revenue contract liabilities and payroll-related benefits[125](index=125&type=chunk) [Note 6. Property, Plant and Equipment](index=27&type=section&id=Note%206.%20Property,%20Plant%20and%20Equipment) This note details the company's property, plant, and equipment, net of accumulated depreciation, and changes in these assets Property, Plant and Equipment (in thousands) | (in thousands) | June 30, 2025 | December 31, 2024 | | :--------------- | :------------ | :---------------- | | Total property, plant, and equipment | $7,710 | $6,745 | | Less: accumulated depreciation | $(4,057) | $(3,523) | | Property, plant and equipment, net | $3,653 | $3,222 | - Net property, plant and equipment increased to **$3,653 thousand** at June 30, 2025, from **$3,222 thousand** at December 31, 2024[127](index=127&type=chunk) [Note 7. Term Loans](index=27&type=section&id=Note%207.%20Term%20Loans) This note describes the company's new senior secured term loan agreement with Pharmakon, including its terms, funding, interest rates, and compliance with debt covenants - On May 5, 2025, Evolus entered into an Amended and Restated Loan Agreement with Pharmakon for up to **$250 million** in senior secured term loans, replacing the Prior Pharmakon Loan Agreement[130](index=130&type=chunk) - The initial tranche of **$150 million** was funded, including **$125 million** to refinance prior loans and **$25 million** in incremental borrowings, with net proceeds of **$23.39 million** received[130](index=130&type=chunk) - The New Pharmakon Term Loans accrue interest at 3-month SOFR (floor **3.5%**) plus **5.0%** per annum, with a maturity date of May 5, 2030[130](index=130&type=chunk) - As of June 30, 2025, the company was in compliance with its debt covenants, and the effective interest rate was approximately **10.42%**[134](index=134&type=chunk)[135](index=135&type=chunk) [Note 8. Operating Leases](index=28&type=section&id=Note%208.%20Operating%20Leases) This note outlines the company's operating lease commitments, including the corporate headquarters lease, remaining lease term, discount rate, and future payment obligations - The company's corporate headquarters lease was amended in October 2024 to include additional office space, expiring January 31, 2030[136](index=136&type=chunk) Operating Lease Metrics | Metric | June 30, 2025 | December 31, 2024 | | :----- | :------------ | :---------------- | | Weighted-average remaining lease term (years) | 4.6 | 5.1 | | Weighted-average discount rate | 9.9% | 9.7% | - Future minimum operating lease payments total **$12,025 thousand**, with a present value of **$9,431 thousand** as of June 30, 2025[140](index=140&type=chunk) [Note 9. Commitments and Contingencies](index=29&type=section&id=Note%209.%20Commitments%20and%20Contingencies) This note details the company's contractual commitments, including minimum purchase requirements, milestone payments under licensor agreements, and the status of legal proceedings - The Daewoong Agreement includes minimum annual purchase requirements to maintain exclusivity, contingent on governmental approvals and market share[141](index=141&type=chunk) - Under the Symatese U.S. Agreement, Evolus is required to make up to **€16,200 thousand** in milestone payments, contingent on FDA approval of three Evolysse™ products; as of June 30, 2025, these approvals have not been achieved, and no annual milestone payments have been made[146](index=146&type=chunk) - The Symatese Europe Agreement includes two milestone payments totaling **€3,100 thousand**, triggered by European Union MDR approval in October 2024 for three injectable HA gel products[147](index=147&type=chunk)[148](index=148&type=chunk) - A shareholder derivative lawsuit filed in 2020 remains stayed pending a related federal securities class action, which was dismissed in September 2024[149](index=149&type=chunk) [Note 10. Stockholders' Equity](index=31&type=section&id=Note%2010.%20Stockholders'%20Equity) This note provides information on the company's common stock, equity incentive plans, and stock-based compensation expense, reflecting changes in equity - As of June 30, 2025, **64,638,978 shares of common stock** were issued and outstanding[155](index=155&type=chunk) - The 2024 Employee Stock Purchase Plan (ESPP) was adopted in June 2024, reserving **579,648 shares**, with no shares issued under it during the three and six months ended June 30, 2025[156](index=156&type=chunk) - The company has **2,125,024 shares** available for future issuance under the 2017 Omnibus Incentive Plan and **886,669 shares** under the 2023 Inducement Incentive Plan[159](index=159&type=chunk)[160](index=160&type=chunk) Stock-Based Compensation (in thousands) | Stock-Based Compensation (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total stock-based compensation expense | $4,523 | $5,794 | $10,489 | $10,885 | - Unrecognized compensation cost related to unvested service-based stock options and RSUs totaled **$48,630 thousand** as of June 30, 2025, expected to be expensed over **2.4 and 2.6 years**, respectively[175](index=175&type=chunk) [Note 11. Medytox Settlement Agreements](index=36&type=section&id=Note%2011.%20Medytox%20Settlement%20Agreements) This note details the company's ongoing royalty obligations to Medytox related to net sales of Jeuveau® under settlement agreements - Evolus is obligated to pay Medytox a quarterly, mid-single digit royalty on net sales of Jeuveau from September 17, 2022, to September 16, 2032[176](index=176&type=chunk) Accrued Royalties (in thousands) | Accrued Royalties (in thousands) | June 30, 2025 | December 31, 2024 | | :------------------------------- | :------------ | :---------------- | | Accrued for royalties under Medytox Settlement Agreements | $3,577 | $4,743 | [Note 12. Segment Reporting](index=36&type=section&id=Note%2012.%20Segment%20Reporting) This note clarifies that the company operates as a single segment and provides a breakdown of total net revenues by product, including Jeuveau® and Evolysse™ - The company operates as a single operating and reportable segment focused on performance beauty in the cash-pay aesthetic market[177](index=177&type=chunk) Revenue (in thousands) | Revenue (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Jeuveau® | $58,968 | $66,222 | $127,042 | $125,186 | | Evolysse™ | $9,731 | — | $9,731 | — | | Total product revenue, net | $68,699 | $66,222 | $136,773 | $125,186 | | Service revenue | $688 | $687 | $1,136 | $1,056 | | Total net revenues | $69,387 | $66,909 | $137,909 | $126,242 | - Evolysse™ generated **$9,731 thousand** in product revenue for the three and six months ended June 30, 2025, following its April 2025 U.S. launch[180](index=180&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=38&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial performance, including an overview of its business, key developments, detailed analysis of results of operations for the three and six months ended June 30, 2025, and a discussion of liquidity and capital resources [Overview](index=38&type=section&id=Overview) This overview introduces Evolus as a global performance beauty company, highlights recent product launches and financing, and discusses relevant market trends - Evolus is a global performance beauty company focused on the cash-pay aesthetic market, with Jeuveau® and the newly launched Evolysse™ HA gels[183](index=183&type=chunk) - Evolysse™ Form and Evolysse™ Smooth launched in the U.S. in April 2025, contributing **$9.7 million** in revenue for Q2 2025[185](index=185&type=chunk) - The company secured a new **$250 million** senior secured term loan with Pharmakon in May 2025, with an initial **$150 million tranche funded**[186](index=186&type=chunk) - Market trends show volatility, increased inflation, and rising interest rates, potentially impacting consumer discretionary spending for aesthetic procedures[184](index=184&type=chunk) [Results of Operations](index=39&type=section&id=Results%20of%20Operations) This section provides a detailed analysis of the company's financial performance, comparing revenues, expenses, and net loss for the three and six months ended June 30, 2025, and 2024 [Comparison of the Three Months Ended June 30, 2025 and 2024](index=39&type=section&id=Comparison%20of%20the%20Three%20Months%20Ended%20June%2030,%202025%20and%202024) This analysis compares the company's financial performance for the second quarter of 2025 against the same period in 2024, detailing changes in revenues, expenses, and profitability Financial Performance (in thousands) | (in thousands) | June 30, 2025 | June 30, 2024 | Change ($) | Change (%) | | :--------------- | :------------ | :------------ | :--------- | :--------- | | Total net revenues | $69,387 | $66,909 | $2,478 | 3.7% | | Cost of goods sold | $24,067 | $19,841 | $4,226 | 21.3% | | Gross profit | $45,320 | $47,068 | $(1,748) | -3.7% | | Gross profit margin | 65.3% | 70.3% | -5.0 pp | | | Selling, general and administrative | $56,675 | $50,152 | $6,523 | 13.0% | | Research and development | $1,837 | $2,350 | $(513) | -21.8% | | Revaluation of contingent royalty obligation | $(3,914) | $1,605 | $(5,519) | -343.9% | | Loss from operations | $(10,210) | $(7,702) | $(2,508) | 32.6% | | Net loss | $(17,142) | $(11,350) | $(5,792) | 51.0% | - Net revenues increased by **$2.5 million (3.7%)** due to the launch of Evolysse™ in the U.S., partially offset by a decline in Jeuveau® sales[188](index=188&type=chunk) - Gross profit margin decreased to **65.3%** from **70.3%** due to product mix between Jeuveau® and Evolysse™[189](index=189&type=chunk)[190](index=190&type=chunk) - Selling, general and administrative expenses rose by **$6.5 million (13.0%)** due to higher personnel costs for Evolysse™ launch activities[191](index=191&type=chunk) [Comparison of the Six Months Ended June 30, 2025 and 2024](index=41&type=section&id=Comparison%20of%20the%20Six%20Months%20Ended%20June%2030,%202025%20and%202024) This analysis compares the company's year-to-date financial performance for the first half of 2025 against the same period in 2024, detailing changes in revenues, expenses, and net loss Financial Performance (in thousands) | (in thousands) | June 30, 2025 | June 30, 2024 | Change ($) | Change (%) | | :--------------- | :------------ | :------------ | :--------- | :--------- | | Total net revenues | $137,909 | $126,242 | $11,667 | 9.2% | | Cost of goods sold | $45,934 | $38,671 | $7,263 | 18.8% | | Gross profit | $91,975 | $87,571 | $4,404 | 5.0% | | Gross profit margin | 66.7% | 69.4% | -2.7 pp | | | Selling, general and administrative | $113,315 | $95,275 | $18,040 | 18.9% | | Research and development | $4,049 | $4,428 | $(379) | -8.6% | | Revaluation of contingent royalty obligation | $(1,763) | $3,183 | $(4,946) | -155.4% | | Loss from operations | $(25,382) | $(16,624) | $(8,758) | 52.7% | | Net loss | $(36,034) | $(24,459) | $(11,575) | 47.3% | - Year-to-date net revenues increased by **$11.7 million (9.2%)** driven by Evolysse™ launch, despite a decline in Jeuveau® sales[199](index=199&type=chunk) - Selling, general and administrative expenses increased by **$18.0 million (18.9%)** due to higher personnel costs and training for Evolysse™ launch[202](index=202&type=chunk) - Net loss for the six months ended June 30, 2025, was **$(36.0) million**, compared to **$(24.5) million** in the prior year, reflecting increased operating and non-operating expenses[197](index=197&type=chunk) [Liquidity and Capital Resources](index=42&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's cash position, working capital, accumulated deficit, recent financing activities, and future material cash requirements - As of June 30, 2025, Evolus had **$61.7 million** in cash and cash equivalents, positive working capital of **$81.2 million**, and a stockholders' deficit of **$18.7 million**[208](index=208&type=chunk) - The company incurred an accumulated deficit of **$645.4 million** as of June 30, 2025, and used **$40.4 million** in cash from operating activities during the first six months of 2025[209](index=209&type=chunk) - In March 2024, a follow-on offering generated **$46.8 million** in net proceeds, with an additional **$4.2 million** from underwriters' option exercise in April 2024[210](index=210&type=chunk) - The New Pharmakon Term Loans provide up to **$250 million**, with an initial **$150 million tranche funded** in May 2025, providing **$23.4 million** in net proceeds[213](index=213&type=chunk) - Material cash requirements include principal and interest payments on the New Pharmakon Term Loans (**$68.3 million** in future interest, **$14.1 million** due within 12 months), quarterly royalties to Evolus Founders and Medytox, and milestone payments under Symatese agreements[230](index=230&type=chunk) [Critical Accounting Policies and Estimates](index=48&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section confirms that there have been no material changes to the company's critical accounting policies and estimates since its last annual report - There have been no material changes to the company's critical accounting policies and estimates as discussed in its Annual Report on Form 10-K for the year ended December 31, 2024[232](index=232&type=chunk) [Recently Issued and Adopted Accounting Pronouncements](index=48&type=section&id=Recently%20Issued%20and%20Adopted%20Accounting%20Pronouncements) This section outlines the company's evaluation of the potential impact of recently issued accounting standards on its financial statements - The company is evaluating the impact of ASU No. 2023-09 (Income Tax Disclosures) and ASU No. 2024-03 (Expense Disaggregation Disclosures) on its financial statements[111](index=111&type=chunk)[112](index=112&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=48&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section addresses the company's exposure to market risks, primarily from fluctuations in interest rates and foreign currency exchange rates, noting no material changes from previous disclosures - Evolus is exposed to market risk from fluctuations in interest rates and foreign currency exchange rates[234](index=234&type=chunk) - As of the report date, there were no material changes in financial market risks compared to those disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024[235](index=235&type=chunk) [Item 4. Controls and Procedures](index=49&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of the company's disclosure controls and procedures as of June 30, 2025, and reports no material changes in internal control over financial reporting during the quarter - Management concluded that disclosure controls and procedures were effective at a reasonable assurance level as of June 30, 2025[236](index=236&type=chunk) - No changes in internal control over financial reporting materially affected, or are reasonably likely to materially affect, internal control during the three months ended June 30, 2025[238](index=238&type=chunk) [PART II - OTHER INFORMATION](index=50&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) This part covers other significant information not included in the financial statements, such as legal proceedings, risk factors, equity sales, defaults, and exhibits [Item 1. Legal Proceedings](index=50&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 9, 'Commitments and Contingencies,' for information regarding the company's legal proceedings - Information regarding legal proceedings is detailed in Note 9. Commitments and Contingencies[241](index=241&type=chunk) [Item 1A. Risk Factors](index=51&type=section&id=Item%201A.%20Risk%20Factors) This section outlines various risks that could materially and adversely affect the company's business, financial condition, and results of operations, categorized into risks related to business and strategy, relationships with licensors, intellectual property, government regulation, and common stock [Risks Related to Our Business and Strategy](index=51&type=section&id=Risks%20Related%20to%20Our%20Business%20and%20Strategy) This section details risks inherent to the company's business model and strategic execution, including profitability challenges, competition, market demand, regulatory reliance, financing needs, and compliance - Evolus has incurred significant losses since inception, with an accumulated deficit of **$645.4 million** as of June 30, 2025, and profitability is not guaranteed[244](index=244&type=chunk) - The company faces significant competition from larger, more experienced companies in the medical aesthetics market, including those with greater financial resources, brand recognition, and product portfolios[245](index=245&type=chunk)[247](index=247&type=chunk) - Commercial success depends on broad aesthetic practitioner adoption and consumer demand for Jeuveau® and Evolysse™, which are sensitive to global economic conditions and discretionary spending[251](index=251&type=chunk)[252](index=252&type=chunk)[253](index=253&type=chunk) - Reliance on Symatese for regulatory approval of Evolysse™ products in the U.S. poses risks of delays or denials, impacting commercialization[257](index=257&type=chunk)[258](index=258&type=chunk) - The company may require additional financing to fund future operations and corporate development, and failure to obtain capital on acceptable terms could force delays or termination of operations[260](index=260&type=chunk)[263](index=263&type=chunk) - Non-compliance with Medytox settlement terms could lead to litigation or loss of ability to market Jeuveau®, materially affecting business and going concern status[264](index=264&type=chunk)[266](index=266&type=chunk) - The company's digital technology and applications are critical, and system failures or cybersecurity incidents could disrupt operations and harm business[271](index=271&type=chunk)[273](index=273&type=chunk) - Focusing exclusively on the cash-pay healthcare market may limit sales growth and profitability, as it restricts product offerings to cosmetic indications[294](index=294&type=chunk) [Risks Related to Our Relationship with Our Licensors](index=63&type=section&id=Risks%20Related%20to%20Our%20Relationship%20with%20Our%20Licensors) This section highlights risks stemming from the company's critical dependence on licensor agreements for product commercialization and manufacturing, and the potential impact of their termination or operational issues - Evolus's ability to exclusively commercialize Jeuveau® and Evolysse™ is entirely dependent on the Daewoong Agreement and Symatese agreements, respectively; any breach or termination could severely impact revenues and business opportunities[301](index=301&type=chunk) - The company relies solely on Daewoong for Jeuveau® manufacturing and Symatese for Evolysse™ manufacturing, making it vulnerable to production problems or regulatory non-compliance by either licensor[302](index=302&type=chunk)[304](index=304&type=chunk) - Inaccurate demand forecasts for products purchased from licensors could lead to shipment delays, increased inventory costs, or inadequate inventory, negatively affecting financial performance[306](index=306&type=chunk) [Risks Related to Intellectual Property](index=64&type=section&id=Risks%20Related%20to%20Intellectual%20Property) This section addresses risks concerning intellectual property, including potential infringement claims, the need to protect trademarks and trade secrets, and the costs and challenges of enforcing IP rights globally - Third-party claims of intellectual property infringement, particularly in the competitive medical aesthetics market, could prevent or delay commercialization efforts and interrupt product supply[307](index=307&type=chunk)[308](index=308&type=chunk)[309](index=309&type=chunk) - The company and its licensors (Daewoong and Symatese) rely on trademarks, trade secret protection, and confidentiality agreements; failure to maintain or protect these rights could impair competitive advantage[311](index=311&type=chunk)[312](index=312&type=chunk)[314](index=314&type=chunk) - Lawsuits to protect or enforce intellectual property rights are expensive and time-consuming, potentially diverting management attention and risking patent invalidation or narrow interpretation[315](index=315&type=chunk)[316](index=316&type=chunk) - Inability to protect intellectual property rights globally, due to varying laws and enforcement, could allow competitors to use inventions and export infringing products[319](index=319&type=chunk)[320](index=320&type=chunk) [Risks Related to Government Regulation](index=70&type=section&id=Risks%20Related%20to%20Government%20Regulation) This section outlines risks associated with extensive government regulation, including the need for regulatory approvals, ongoing compliance obligations, potential penalties for non-compliance, and the impact of healthcare reforms - The company's business and products are subject to extensive and evolving government regulation by agencies like the FDA and EMA; non-compliance can lead to severe penalties and operating restrictions[330](index=330&type=chunk)[331](index=331&type=chunk) - Delays or failure to obtain regulatory approval for future product candidates would harm commercial prospects and revenue generation[332](index=332&type=chunk)[334](index=334&type=chunk) - Ongoing regulatory obligations and review, including post-marketing requirements and compliance with cGMP, can result in significant additional expense and penalties for non-compliance[338](index=338&type=chunk) - Failure to report adverse medical events to regulatory agencies could lead to sanctions, including criminal prosecution or civil monetary penalties[342](index=342&type=chunk) - Future exposure to healthcare fraud and abuse laws (e.g., Anti-Kickback Statute, False Claims Act) could result in fines, penalties, and exclusion from federal programs if violations occur[343](index=343&type=chunk)[345](index=345&type=chunk) - Legislative or regulatory healthcare reforms, such as the overturning of the Chevron doctrine, may increase costs, lengthen review times, and create regulatory uncertainty[348](index=348&type=chunk)[350](index=350&type=chunk) [Risks Related to Our Common Stock](index=74&type=section&id=Risks%20Related%20to%20Our%20Common%20Stock) This section discusses risks related to the company's common stock, including price volatility, potential dilution from future sales, anti-takeover provisions, dividend policy, and the burdens of public company compliance - The trading price of Evolus's common stock has been volatile, influenced by various factors including financial estimates, product announcements, regulatory actions, and market speculation[352](index=352&type=chunk)[353](index=353&type=chunk) - Future sales of common stock by the company or significant stockholders, or the perception of such sales, could depress the market price[355](index=355&type=chunk)[356](index=356&type=chunk) - Anti-takeover provisions in the company's charter, bylaws, and Delaware law could discourage takeovers and make it difficult for stockholders to change management or the Board of Directors[357](index=357&type=chunk)[358](index=358&type=chunk) - The company has not paid dividends in the past and does not expect to in the future; any return on investment will be limited to stock value appreciation[366](index=366&type=chunk)[367](index=367&type=chunk) - Being a public company strains resources, diverts management attention, and increases compliance costs due to reporting requirements and corporate governance standards[368](index=368&type=chunk)[369](index=369&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=81&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section states that there were no unregistered sales of equity securities or use of proceeds to report for the period - No unregistered sales of equity securities or use of proceeds to report[371](index=371&type=chunk) [Item 3. Defaults Upon Senior Securities](index=81&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section indicates that there are no defaults upon senior securities to report - Not applicable; no defaults upon senior securities[372](index=372&type=chunk) [Item 4. Mine Safety Disclosures](index=81&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section states that mine safety disclosures are not applicable to the company - Not applicable; no mine safety disclosures[373](index=373&type=chunk) [Item 5. Other Information](index=81&type=section&id=Item%205.%20Other%20Information) This section indicates that there is no other information to report - No other information to report[374](index=374&type=chunk) [Item 6. Exhibits](index=82&type=section&id=Item%206.%20Exhibits) This section provides a comprehensive list of exhibits filed with the Quarterly Report on Form 10-Q, including corporate documents, loan agreements, certifications, and XBRL data files - Includes Amended and Restated Certificate of Incorporation, Bylaws, Amended and Restated Loan Agreement (May 5, 2025), and various certifications (Rule 13a-14(a), 18 U.S.C. Section 1350)[376](index=376&type=chunk) - Contains Inline XBRL Instance Document and Taxonomy Extension Documents for financial data[376](index=376&type=chunk) [Signatures](index=83&type=section&id=Signatures) This section contains the signature of the authorized officer, David Moatazedi, President and Chief Executive Officer, confirming the filing of the report - The report was signed by David Moatazedi, President and Chief Executive Officer (Principal Executive and Principal Financial Officer), on August 5, 2025[382](index=382&type=chunk)

Market Position and Growth - Evolus is gaining market share in the fast-growing neurotoxin market[16] - Jeuveau's share of the toxin market has increased from 4% in 2019 to 14% in 2025[19] - The global addressable market for neurotoxins and fillers is expected to grow to $7 billion in 2028[20] - Evolus International is expected to achieve $100 million in 2028[23] Financial Performance - The company has exhibited double-digit revenue growth for the fifth consecutive year[28] - Net revenue is projected to be between $295 million and $305 million in 2025, representing 11% to 15% growth over 2024[29, 118] - Evolysse contributed 10%-12% of total revenue for the full year 2025[108, 118] - The company is projecting $700 million total net revenue by 2028[119] Product and Strategy - The company's total addressable market expands by 78% with the addition of the injectable HA gel portfolio[16] - Evolysse was the strongest first quarter filler launch in over a decade[106] - Evolus Rewards program has over 1.2 million total enrollments in Q2 2025[62, 113] - 70% of toxin consumers also use a filler[74]

[Executive Summary & Business Updates](index=1&type=section&id=Executive%20Summary%20%26%20Business%20Updates) This section provides an overview of Evolus's Q2 2025 financial and operational performance, highlighting key achievements, strategic initiatives, and the CEO's perspective on market conditions and future outlook [Second Quarter 2025 Highlights and Recent Developments](index=1&type=section&id=Second%20Quarter%202025%20Highlights%20and%20Recent%20Developments) Evolus reported Q2 2025 global net revenue of $69.4 million, up 4% YoY, driven by the successful launch of Evolysse™ ($9.7 million revenue) and continued strength in international markets, despite a softened U.S. toxin market. The company expects meaningful profitability in Q4 2025 and annual profitability from 2026, supported by strategic cost optimization yielding at least $25 million in non-GAAP operating expense savings for 2025. Key performance indicators demonstrated continued momentum with increased purchasing accounts, loyalty program growth, and record redemptions - Global Net Revenue of **$69.4 Million** for Q2 2025, **Up 4%** from Q2 2024, driven by Evolysse™ launch and international strength, despite decreased overall U.S. aesthetic procedures[5](index=5&type=chunk) - Evolysse™ delivered **$9.7 Million** in Revenue for Q2 2025, marking the strongest filler launch quarter in over a decade[5](index=5&type=chunk) - Expects to achieve meaningful profitability in **Q4 2025** and annual profitability beginning in **2026**[5](index=5&type=chunk) - Strategic cost structure optimization is expected to yield at least **$25 Million** in Non-GAAP Operating Expense Savings for 2025[5](index=5&type=chunk) - Resets 2025 Net Revenue Guidance to **$295 Million to $305 Million** and rebases 2025 Non-GAAP Operating Expenses to **$208 Million to $213 Million**[5](index=5&type=chunk) - Maintains projected total net revenue goal of **$700 Million** and Non-GAAP Operating Income Margin of **20% by 2028**[5](index=5&type=chunk) - Total purchasing accounts increased by **565** in Q2, bringing the total to over **16,500** and surpassing **55% account penetration** in the U.S. The reorder rate remains at approximately **70%**[6](index=6&type=chunk) - Members in the Evolus Rewards™ consumer loyalty program grew by over **83,000** to over **1.2 million**, representing a total increase of **36%** compared to Q2 2024[6](index=6&type=chunk) - Total Evolus Rewards™ redemptions for the quarter hit an all-time high of over **224,000**, with existing patients receiving repeat treatments at approximately **65%**[7](index=7&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO David Moatazedi acknowledged a softened U.S. toxin market due to decreased consumer sentiment but highlighted Jeuveau's outperformance (14% market share) and the exceptional launch of Evolysse™. He also noted strong international growth and decisive actions taken to optimize cost structure to achieve Q4 positive non-GAAP operating income and the 2028 revenue target - U.S. toxin demand softened in Q2 2025 due to reduced patient demand and a sharp decrease in consumer sentiment[3](index=3&type=chunk) - Jeuveau continues to outperform the market, maintaining a **14% market share** through the first half of 2025[3](index=3&type=chunk) - The launch of Evolysse™ surpassed expectations, marking the strongest first quarter for any filler entrant in over a decade[3](index=3&type=chunk) - International business delivered exceptional growth, highlighting increasing demand outside the U.S.[3](index=3&type=chunk) - Decisive action was taken to optimize cost structure and thoughtfully reduce operating expenses to offset revenue reduction[3](index=3&type=chunk) - Aims to maintain the ability to achieve positive non-GAAP operating income in the **fourth quarter**[3](index=3&type=chunk) - Projects meaningful growth in the back half of the year, remaining on track to achieve the **$700 million revenue target by 2028**[3](index=3&type=chunk) [Financial Performance](index=2&type=section&id=Financial%20Performance) This section details Evolus's Q2 2025 financial results, including revenue, profitability, and cash position, alongside updated full-year guidance and strategic plans for future product launches and long-term financial targets [Q2 2025 Financial Overview](index=2&type=section&id=Q2%202025%20Financial%20Overview) Evolus reported Q2 2025 total net revenues of $69.4 million, a 4% increase YoY, with toxin revenue at $59.7 million and Evolysse™ HA gels revenue at $9.7 million. Gross profit margin was 65.3% (adjusted 66.5%), impacted by international sales mix and introductory pricing. GAAP operating expenses were $55.5 million, leading to a GAAP operating loss of $10.2 million and a non-GAAP operating loss of $7.9 million, reflecting investments in Evolysse™ launch. Cash and cash equivalents decreased to $61.7 million - Total net revenues for Q2 2025 were **$69.4 million**, a **4% increase** over Q2 2024, driven by the successful launch of Evolysse™ and strong international growth[11](index=11&type=chunk) - Net revenue for Q2 2025 included **$59.7 million** of toxin revenue and **$9.7 million** of injectable hyaluronic acid (HA) gels revenue[11](index=11&type=chunk) - Gross profit margin and adjusted gross profit margin were **65.3%** and **66.5%**, respectively, impacted by a higher mix of international sales and introductory pricing for Evolysse™[11](index=11&type=chunk) - GAAP operating expenses for Q2 2025 were **$55.5 million**, including investments for Evolysse™ launch, compared to **$61.8 million** in Q1 2025[11](index=11&type=chunk) - Non-GAAP operating expenses for Q2 2025 were **$54.0 million**, compared to **$52.9 million** in Q1 2025[11](index=11&type=chunk) - GAAP loss from operations for Q2 2025 was **$10.2 million**, compared to **$7.7 million** in Q2 2024[11](index=11&type=chunk) - Non-GAAP loss from operations in Q2 2025 was **$7.9 million**, compared to non-GAAP income from operations of **$1.1 million** in Q2 2024, reflecting investments in Evolysse™ Form and Smooth[11](index=11&type=chunk) - Cash and cash equivalents on June 30, 2025, were **$61.7 million**, down from **$67.9 million** on March 31, 2025, primarily due to increased inventory purchases ahead of tariffs[11](index=11&type=chunk) [Current Outlook and Future Plans](index=2&type=section&id=Current%20Outlook%20and%20Future%20Plans) Evolus updated its full-year 2025 net revenue guidance to $295 million to $305 million (11% to 15% growth YoY), with Evolysse™ HA gels expected to contribute 10% to 12% of total revenue. Full-year non-GAAP operating expenses are projected to be $208 million to $213 million, reflecting cost optimization. The company aims for meaningful profitability in Q4 2025 and annual profitability from 2026, with plans to launch Evolysse™ Sculpt in 2026 and Evolysse™ Lips in 2027 in the U.S., and a broader European launch for Estyme® in Q1 2026. The long-term goal remains $700 million total net revenue and 20% non-GAAP operating income margin by 2028 - Evolysse™ will be subject to a **15% tariff** starting August 7 due to a trade deal with the European Union, with minimal expected impact and fully incorporated into guidance[10](index=10&type=chunk) - Total net revenues for the full-year 2025 are expected to be between **$295 million and $305 million**, representing **11% to 15% growth** over 2024 results[11](index=11&type=chunk) - Evolysse™ injectable HA gels contribution is increased to **10% to 12%** of total revenue for the full-year 2025[11](index=11&type=chunk) - Full-year non-GAAP operating expenses for 2025 are projected to be between **$208 million and $213 million**, reflecting strategic cost structure optimization yielding at least **$25 million** in savings[11](index=11&type=chunk) - Aims to achieve meaningful profitability in **Q4 2025** and annual profitability beginning in **2026**[11](index=11&type=chunk) - Plans to launch Evolysse™ Sculpt in the United States in **2026** and Evolysse™ Lips in **2027**[11](index=11&type=chunk) - Estyme® will continue limited experience program in Europe in H2 2025, with a broader European launch planned for **Q1 2026**[11](index=11&type=chunk) - Targets total net revenue of **$700 million by 2028**, based on existing neurotoxin business and launches of Evolysse™ and Estyme®[11](index=11&type=chunk) - Aims to achieve non-GAAP operating income margins of **20% by 2028** by leveraging its highly synergistic, existing infrastructure[11](index=11&type=chunk) [Company Information & Disclosures](index=3&type=section&id=Company%20Information%20%26%20Disclosures) This section provides essential company information, including its business overview, policies on non-GAAP financial measures, forward-looking statement disclaimers, and investor communication details [About Evolus, Inc.](index=3&type=section&id=About%20Evolus%2C%20Inc.) Evolus is a global performance beauty company focused on redefining the aesthetic injectable market with a customer-centric model and digital platform. Its flagship products are Jeuveau® (neurotoxin) and Evolysse™ (HA gels) - Evolus (NASDAQ: EOLS) is a global performance beauty company redefining the aesthetic injectable market for the next generation of beauty consumers[14](index=14&type=chunk) - Its mission is to become a global leader in aesthetics, anchored by flagship products: Jeuveau® (prabotulinumtoxinA-xvfs) and Evolysse™ (injectable hyaluronic acid gels)[14](index=14&type=chunk) [Use of Non-GAAP Financial Measures](index=3&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) Evolus uses non-GAAP financial measures like adjusted gross profit, adjusted gross profit margin, non-GAAP operating expenses, and non-GAAP (loss) from operations to provide insights into core operating performance, excluding items such as revaluation of contingent royalty obligations, stock-based compensation, and depreciation/amortization. Management believes these measures help investors assess performance consistently, but they should not be considered substitutes for GAAP results - Non-GAAP financial measures include adjusted gross profit, adjusted gross profit margin, non-GAAP operating expenses, non-GAAP (loss) from operations, and non-GAAP operating income margin[16](index=16&type=chunk) - These measures exclude revaluation of contingent royalty obligations, stock-based compensation expense, depreciation and amortization, and amortization of intangible assets[16](index=16&type=chunk) - Management believes non-GAAP measures are important for identifying core operating performance, consistent period-to-period analysis, and comparison with comparable companies[16](index=16&type=chunk) - Non-GAAP measures have limitations as analytical tools, may differ from other companies, and should not be considered substitutes for or superior to GAAP results[16](index=16&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section contains forward-looking statements regarding future events, financial condition, and prospects, which are subject to risks and uncertainties. These include market conditions, regulatory approvals, competition, and the ability to fund operations, and actual results may differ materially from projections. Readers are cautioned not to place undue reliance on these statements - The press release contains forward-looking statements about future events, business, financial condition, results of operations, prospects, industry, and regulatory environment[19](index=19&type=chunk) - These statements are subject to risks and uncertainties that could cause actual results to differ materially, including compliance with Medytox Settlement Agreements, funding operations, global economic conditions, customer adoption, competition, and regulatory approvals[20](index=20&type=chunk) - Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof[20](index=20&type=chunk) [Conference Call Information](index=3&type=section&id=Conference%20Call%20Information) Evolus hosted a conference call and live webcast on August 5, 2025, to discuss financial results. Replay information is provided for 48 hours, and an archived webcast is available for 30 days - Management hosted a conference call and live webcast to discuss financial results on **August 5, 2025, at 4:30 p.m. ET**[12](index=12&type=chunk) - An audio replay can be accessed for **48 hours**, and an archived webcast will remain available for **30 days** on the Investor Relations page of www.evolus.com[13](index=13&type=chunk) [Evolus Contacts](index=5&type=section&id=Evolus%20Contacts) Contact information for Evolus's investor relations and media inquiries - Investor Relations contact: Nareg Sagherian, Vice President, Head of Global Investor Relations and Corporate Communications (ir@evolus.com)[21](index=21&type=chunk) - Media contact: media@evolus.com[21](index=21&type=chunk) [Financial Statements and Reconciliations](index=6&type=section&id=Financial%20Statements%20and%20Reconciliations) This section provides the unaudited consolidated financial statements, including statements of operations, balance sheet, and cash flows, along with reconciliations of GAAP to non-GAAP financial measures [Consolidated Statements of Operations and Comprehensive Loss ($ in thousands)](index=6&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) This section presents the unaudited consolidated statements of operations and comprehensive loss for Evolus, Inc. for the three and six months ended June 30, 2025, and 2024, detailing revenues, cost of goods sold, operating expenses, and net loss | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Product revenue, net | $68,699 | $66,222 | $136,773 | $125,186 | | Service revenue | $688 | $687 | $1,136 | $1,056 | | Total net revenues | $69,387 | $66,909 | $137,909 | $126,242 | | Cost of goods sold | $24,067 | $19,841 | $45,934 | $38,671 | | Gross profit | $45,320 | $47,068 | $91,975 | $87,571 | | Total operating expenses | $55,530 | $54,770 | $117,357 | $104,195 | | Loss from operations | $(10,210) | $(7,702) | $(25,382) | $(16,624) | | Net loss | $(17,142) | $(11,350) | $(36,034) | $(24,459) | | Net loss per share, basic and diluted | $(0.27) | $(0.18) | $(0.56) | $(0.40) | [Summary of Consolidated Balance Sheet Data ($ in thousands)](index=7&type=section&id=Summary%20of%20Consolidated%20Balance%20Sheet%20Data) This section provides a summary of Evolus, Inc.'s unaudited consolidated balance sheet data as of June 30, 2025, and December 31, 2024, detailing assets, liabilities, and stockholders' equity (deficit) | Metric | June 30, 2025 | December 31, 2024 | | :------------------------------------ | :-------------- | :---------------- | | Cash and cash equivalents | $61,738 | $86,952 | | Accounts receivable, net | $47,709 | $47,682 | | Inventories | $26,457 | $12,158 | | Prepaid expenses and other current assets | $9,066 | $4,550 | | Total current assets | $144,970 | $151,342 | | Noncurrent assets | $83,833 | $81,227 | | Total assets | $228,803 | $232,569 | | Accounts payable and accrued expenses | $51,261 | $50,027 | | Other current liabilities | $12,489 | $12,933 | | Total current liabilities | $63,750 | $62,960 | | Long-term portion of term loan, net of discount and issuance costs | $145,475 | $121,506 | | Other noncurrent liabilities | $38,230 | $42,581 | | Total liabilities | $247,455 | $227,047 | | Total stockholders' equity (deficit) | $(18,652) | $5,522 | [Summary of Consolidated Cash Flows ($ in thousands)](index=7&type=section&id=Summary%20of%20Consolidated%20Cash%20Flows) This section presents the unaudited consolidated cash flow summary for Evolus, Inc. for the six and three months ended June 30, 2025, and 2024, showing net cash flows from operating, investing, and financing activities | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Three Months Ended June 30, 2025 | | :-------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Operating activities | $(40,423) | $(17,085) | $(24,791) | | Investing activities | $(4,128) | $(2,051) | $(2,267) | | Financing activities | $19,032 | $50,143 | $20,663 | | Effect of exchange rates on cash and cash equivalents | $305 | $(174) | $239 | | Change in cash and cash equivalents | $(25,214) | $30,833 | $(6,156) | | Cash and cash equivalents, beginning of period | $86,952 | $62,838 | $67,894 | | Cash and cash equivalents, end of period | $61,738 | $93,671 | $61,738 | [Reconciliation of Gross Profit Margin to Adjusted Gross Profit Margin ($ in thousands)](index=8&type=section&id=Reconciliation%20of%20Gross%20Profit%20Margin%20to%20Adjusted%20Gross%20Profit%20Margin) This section provides a reconciliation of Evolus, Inc.'s GAAP gross profit margin to its adjusted gross profit margin for the three and six months ended June 30, 2025, and 2024, by adding back amortization of distribution right intangible assets | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Total net revenues | $69,387 | $66,909 | $137,909 | $126,242 | | Cost of goods sold | $24,067 | $19,841 | $45,934 | $38,671 | | Gross profit | $45,320 | $47,068 | $91,975 | $87,571 | | Gross profit margin | 65.3% | 70.3% | 66.7% | 69.4% | | Add: Amortization of distribution right intangible asset | $806 | $764 | $1,545 | $1,527 | | Adjusted gross profit | $46,126 | $47,832 | $93,520 | $89,098 | | Adjusted gross profit margin | 66.5% | 71.5% | 67.8% | 70.6% | [Reconciliation of GAAP Operating Expenses to Non-GAAP Operating Expenses ($ in thousands)](index=8&type=section&id=Reconciliation%20of%20GAAP%20Operating%20Expenses%20to%20Non-GAAP%20Operating%20Expenses) This section reconciles Evolus, Inc.'s GAAP operating expenses to non-GAAP operating expenses for the three and six months ended June 30, 2025, and 2024, and for the three months ended March 31, 2025, by adjusting for revaluation of contingent royalty obligation, stock-based compensation, and depreciation and amortization | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Three Months Ended March 31, 2025 | | :------------------------------------ | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :-------------------------------- | | GAAP operating expense | $55,530 | $54,770 | $117,357 | $104,195 | $61,827 | | Revaluation of contingent royalty obligation | $(3,914) | $1,605 | $(1,763) | $3,183 | $2,151 | | Stock-based compensation | $4,488 | $5,784 | $10,416 | $10,863 | $5,928 | | Depreciation and amortization | $932 | $663 | $1,756 | $1,309 | $824 | | Non-GAAP operating expense | $54,024 | $46,718 | $106,948 | $88,840 | $52,924 | [Reconciliation of GAAP (Loss) from Operations to Non-GAAP Income (Loss) from Operations ($ in thousands)](index=9&type=section&id=Reconciliation%20of%20GAAP%20%28Loss%29%20from%20Operations%20to%20Non-GAAP%20Income%20%28Loss%29%20from%20Operations) This section reconciles Evolus, Inc.'s GAAP (loss) from operations to non-GAAP income (loss) from operations for the three and six months ended June 30, 2025, and 2024, by adjusting for revaluation of contingent royalty obligation, stock-based compensation, depreciation and amortization, and amortization of distribution right intangible assets | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | GAAP (loss) from operations | $(10,210) | $(7,702) | $(25,382) | $(16,624) | | Revaluation of contingent royalty obligation | $(3,914) | $1,605 | $(1,763) | $3,183 | | Stock-based compensation | $4,488 | $5,784 | $10,416 | $10,863 | | Depreciation and amortization | $932 | $663 | $1,756 | $1,309 | | Amortization of distribution right intangible assets | $806 | $764 | $1,545 | $1,527 | | Non-GAAP income (loss) from operations | $(7,898) | $1,114 | $(13,428) | $258 |

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Evolus, Inc. despite higher revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Evolus is expected to report a quarterly loss of $0.09 per share, reflecting a year-over-year change of -28.6%, while revenues are projected to be $82.93 million, an increase of 23.9% from the previous year [3]. - The earnings report is scheduled for August 5, and better-than-expected results could lead to a stock price increase, whereas missing estimates may result in a decline [2]. Estimate Revisions - The consensus EPS estimate for Evolus has remained unchanged over the last 30 days, indicating a stable outlook from covering analysts [4]. - The Most Accurate Estimate for Evolus is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -28.57%, suggesting a bearish sentiment among analysts [11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict deviations from consensus estimates, but its predictive power is stronger for positive readings [8][9]. - Evolus currently holds a Zacks Rank of 3, making it challenging to predict an earnings beat based on the combination of a negative Earnings ESP and the rank [11]. Historical Performance - In the last reported quarter, Evolus was expected to post a loss of $0.10 per share but actually reported a loss of -$0.18, resulting in a surprise of -80.00% [12]. - The company has not beaten consensus EPS estimates in any of the last four quarters, indicating a trend of underperformance [13]. Industry Comparison - ResMed, a peer in the Zacks Medical - Products industry, is expected to report earnings per share of $2.46 for the same quarter, reflecting a year-over-year change of +18.3%, with revenues projected at $1.32 billion, up 8.2% from the previous year [17]. - ResMed's consensus EPS estimate has been revised up by 0.5% over the last 30 days, and it has a positive Earnings ESP of +5.16%, suggesting a likelihood of beating consensus estimates [18].

Group 1 - The article discusses the importance of staying updated on stocks in the biotech, pharma, and healthcare sectors, highlighting the potential for investment opportunities driven by key trends and catalysts [1] - Evolus (NASDAQ: EOLS) has been previously covered with a "Buy" recommendation issued in March 2024, which has been reiterated in a more recent note [1] - The investing group Haggerston BioHealth provides insights for both novice and experienced biotech investors, including product sales forecasts, integrated financial statements, and market analysis [1] Group 2 - The author, Edmund Ingham, has over 5 years of experience in covering biotech, healthcare, and pharma, having prepared detailed reports on more than 1,000 companies [1]

Financial Performance and Goals - Evolus aims to achieve over 20% non-GAAP operating income with at least $700 million in revenue by 2028[10] - The company is targeting $700 million in global sales by 2028, representing a 28% CAGR from 2023[20] - Evolus expects to launch Evolysse and gain approval within the next 12 months[10] - The company's revenue guidance for 2024 is between $260 million and $270 million[21] Market and Product Expansion - The total addressable market for injectables is projected to reach $10 billion by 2028[20] - Evolus plans to expand internationally to achieve $100 million in international revenue by 2028[23] - The company has filed for filler approval with a launch planned in the second half of 2025[23] Clinical Study Results - In a Phase III study, Jeuveau demonstrated non-inferiority to Botox, with responder rates of 87.2% for Jeuveau and 82.8% for Botox at day 30[38] - A post-hoc analysis of a Phase III clinical study showed comparable results between Jeuveau and Botox in improving glabellar line scale and subject satisfaction[44, 48] Evolysse Dermal Fillers - US NLF pivotal study results for Evolysse Form vs Restylane-L showed non-inferiority at 6 months[120] - US NLF pivotal study results for Evolysse Smooth vs Restylane-L also met the primary endpoint of non-inferiority at 6 months[128]