Evolus(EOLS) - 2025 Q2 - Quarterly Results

Executive Summary & Business Updates 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 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] - Evolysse™ delivered $9.7 Million in Revenue for Q2 2025, marking the strongest filler launch quarter in over a decade[5] - Expects to achieve meaningful profitability in Q4 2025 and annual profitability beginning in 2026[5] - Strategic cost structure optimization is expected to yield at least $25 Million in Non-GAAP Operating Expense Savings for 2025[5] - 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] - Maintains projected total net revenue goal of $700 Million and Non-GAAP Operating Income Margin of 20% by 2028[5] - 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] - 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] - 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] CEO Commentary 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] - Jeuveau continues to outperform the market, maintaining a 14% market share through the first half of 2025[3] - The launch of Evolysse™ surpassed expectations, marking the strongest first quarter for any filler entrant in over a decade[3] - International business delivered exceptional growth, highlighting increasing demand outside the U.S.[3] - Decisive action was taken to optimize cost structure and thoughtfully reduce operating expenses to offset revenue reduction[3] - Aims to maintain the ability to achieve positive non-GAAP operating income in the fourth quarter[3] - Projects meaningful growth in the back half of the year, remaining on track to achieve the $700 million revenue target by 2028[3] Financial Performance 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 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] - Net revenue for Q2 2025 included $59.7 million of toxin revenue and $9.7 million of injectable hyaluronic acid (HA) gels revenue[11] - 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] - GAAP operating expenses for Q2 2025 were $55.5 million, including investments for Evolysse™ launch, compared to $61.8 million in Q1 2025[11] - Non-GAAP operating expenses for Q2 2025 were $54.0 million, compared to $52.9 million in Q1 2025[11] - GAAP loss from operations for Q2 2025 was $10.2 million, compared to $7.7 million in Q2 2024[11] - 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] - 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] Current Outlook and Future Plans 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] - 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] - Evolysse™ injectable HA gels contribution is increased to 10% to 12% of total revenue for the full-year 2025[11] - 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] - Aims to achieve meaningful profitability in Q4 2025 and annual profitability beginning in 2026[11] - Plans to launch Evolysse™ Sculpt in the United States in 2026 and Evolysse™ Lips in 2027[11] - Estyme® will continue limited experience program in Europe in H2 2025, with a broader European launch planned for Q1 2026[11] - Targets total net revenue of $700 million by 2028, based on existing neurotoxin business and launches of Evolysse™ and Estyme®[11] - Aims to achieve non-GAAP operating income margins of 20% by 2028 by leveraging its highly synergistic, existing infrastructure[11] Company Information & Disclosures 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. 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] - Its mission is to become a global leader in aesthetics, anchored by flagship products: Jeuveau® (prabotulinumtoxinA-xvfs) and Evolysse™ (injectable hyaluronic acid gels)[14] Use of Non-GAAP Financial Measures 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] - These measures exclude revaluation of contingent royalty obligations, stock-based compensation expense, depreciation and amortization, and amortization of intangible assets[16] - Management believes non-GAAP measures are important for identifying core operating performance, consistent period-to-period analysis, and comparison with comparable companies[16] - 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] Forward-Looking Statements 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] - 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] - Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof[20] Conference Call Information 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] - 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 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] - Media contact: media@evolus.com[21] Financial Statements and Reconciliations 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) 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) 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) 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) 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) 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) 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 |