Financial Data and Key Metrics Changes - Total net sales for Q3 2025 were $70.7 million, down 10.3% year-over-year, slightly ahead of the high end of the forecast for the quarter [7][10] - Device segment revenues decreased by 24.6% year-over-year to $20.8 million, reflecting continued pressure on equipment sales globally [7][10] - Consumable segment revenues were $49.8 million, a decrease of 2.6% year-over-year, primarily due to the change in the China business model [8][10] - Adjusted gross margins were 68%, a decline of approximately 150 basis points from Q3 of last year [8][12] - Adjusted EBITDA was $8.9 million, up 11% from Q3 of last year, reflecting tight cost control and solid operational execution [9][12] Business Line Data and Key Metrics Changes - The consumable mix increased from 65% of net sales in Q3 of last year to 71% this quarter [8] - New product launches contributed to a 14% growth in the booster sales category this quarter [8] - Device placements in the Americas were down 16.3%, while consumables were down about 2.7% [21] Market Data and Key Metrics Changes - Revenue in the Americas declined by 7% to $48.3 million, while APAC revenue decreased by 41.5% to $6.3 million [11] - EMEA revenue was relatively flat at $16.1 million, with strong momentum in Germany [11][22] - The decline in APAC was attributed to the transition to a distributor model in China [11][23] Company Strategy and Development Direction - The company aims to protect and grow its HydroFacial install base of over 35,000 devices worldwide, focusing on driving consumable utilization [6][7] - Innovation across both devices and consumable platforms is a priority, with plans to launch clinically backed products [6][7] - The company is committed to operational discipline around commercial execution, cost control, and margin expansion [6][7] Management's Comments on Operating Environment and Future Outlook - The management acknowledged a tough and unpredictable environment, citing inflation and uneven consumer confidence as challenges [17] - Despite macroeconomic pressures, the company is optimistic about building the HydroFacial global brand and accelerating revenue growth [17] - The company raised the low end of its full-year 2025 revenue guidance to between $293 million and $300 million [16] Other Important Information - The company ended the quarter with $219.4 million in cash and equivalents, down from $370.1 million at year-end 2024 [15] - Inventory declined to $56.1 million, reflecting stronger demand planning and improved supply chain efficiency [15] Q&A Session Summary Question: Thoughts on trends in the Americas and EMEA - The Americas saw a 7% decline, with device sales down 16.3%, but there are signs of stabilization [21][22] - EMEA was flat, with strong performance in Germany offsetting device sales challenges [22] Question: Focus areas for the company - The company will focus on driving utilization, device placement, and innovation in consumables [26][27] Question: International strategy and distributor models - The company will continue to leverage an extensive distributor network while investing in education and training [31][32] Question: Reception of consumable price increases - The market has positively received the 5% price increase on consumables, contributing to higher average selling prices [34] Question: Stabilizing device systems and growth initiatives - The company is encouraged by the stabilization of device sales and is focused on expanding its global footprint [39] Question: Trends in different channels and consumer behavior - The medical segment is facing challenges, but there are growth opportunities in both medical and non-medical channels [44][46] Question: Prioritizing top-line growth versus profitability - The company will focus on both top-line growth and profitability, leveraging its strong business model [50][52] Question: Updated guidance dynamics and revenue expectations - The company raised its revenue and EBITDA guidance, reflecting improved execution and sales initiatives [56][58] Question: Addressing elevated churn rates - The company is proactively reengaging low-volume providers to reduce churn and improve utilization [60][61]