Venus cept (US:VERO)2025-11-13 12:05Financial Performance - Total revenue for Q3 2025 was $13.8 million, down 8% year-over-year and down 12% quarter-over-quarter, primarily due to a decline in the Hair Restoration business[6] - GAAP net loss for Q3 2025 was $22.5 million, compared to a net loss of $9.3 million in Q3 2024[6] - Adjusted EBITDA loss for Q3 2025 was $7.8 million, compared to a loss of $5.9 million in Q3 2024[13] - Gross profit for Q3 2025 decreased by $1.1 million, or 11%, to $8.8 million, with a gross margin of 64.0%[10] - Operating expenses increased by $1.2 million, or 7%, to $18.3 million in Q3 2025, driven by higher general and administrative and selling expenses[11] - Total revenue for the three months ended September 30, 2025, was $13,776, a decrease of 8.2% compared to $15,007 in the same period of 2024[24] - Gross profit for the nine months ended September 30, 2025, was $27,003, down 19.1% from $33,417 in the prior year[24] - Net loss for the nine months ended September 30, 2025, was $46,657, compared to a net loss of $38,955 for the same period in 2024, representing a 19.1% increase in losses[26] - The company reported a loss from operations of $9,496 for the three months ended September 30, 2025, compared to a loss of $7,157 in the same period of 2024[24] - For the three months ended September 30, 2025, the net loss was $22,549 thousand compared to a net loss of $9,302 thousand for the same period in 2024, representing an increase in loss of 142%[30] - Adjusted EBITDA for the three months ended September 30, 2025, was $(7,823) thousand, a decline from $(5,874) thousand in the prior year, indicating a deterioration of 33%[30] Assets and Liabilities - Total current liabilities increased significantly to $50,650 as of September 30, 2025, from $30,287 as of December 31, 2024[22] - Total assets decreased to $61,624 as of September 30, 2025, from $68,184 as of December 31, 2024[22] - Cash and cash equivalents at the end of the period were $5,931, up from $4,271 at the beginning of the period[26] - The company exchanged $11.5 million of subordinated convertible notes for preferred stock, resulting in a total debt reduction of 24% compared to December 31, 2024[6] - The company’s additional paid-in capital increased to $358,190 as of September 30, 2025, from $311,238 as of December 31, 2024[22] Sales and Revenue Sources - Energy-Based Device (EBD) system sales totaled $9.6 million, reflecting a 2% year-over-year increase[6] - The percentage of total systems revenue from internal lease programs was approximately 27% in Q3 2025, up from 23% in the prior year[9] Regulatory and Strategic Developments - The company received FDA 510(k) clearance for the Venus NOVA on November 10, 2025, marking a significant product launch[6] - The company is not providing financial guidance for FY 2025 due to ongoing evaluations of strategic alternatives and potential trade disruptions[15] Other Financial Adjustments - The company incurred a loss on debt extinguishment of $11,297 thousand for the three months ended September 30, 2025, compared to $454 thousand in the same period of 2024, reflecting a significant increase in costs[30] - Finance expenses decreased to $1,016 thousand in Q3 2025 from $1,665 thousand in Q3 2024, showing a reduction of 39%[30] - The company reported a foreign exchange loss of $35 thousand for Q3 2025, contrasting with a gain of $57 thousand in Q3 2024[30] - Other adjustments for the three months ended September 30, 2025, included legal and professional fees related to the sale of the Venus Hair Business[31] - The company is disputing a CRA assessment regarding the Canada Emergency Wage Subsidy Claim, which could result in a repayment request of $418 thousand[30] - Stock-based compensation expense decreased to $135 thousand in Q3 2025 from $239 thousand in Q3 2024, a reduction of 43%[30] - The company recognized a loss on disposal of subsidiaries amounting to $244 thousand for both the three and nine months ended September 30, 2025[30] - The company has made a provision under the Voluntary Correction Plan for discrepancies noted by the IRS regarding its 401(k) plan[32]