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]

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]

Financial Data and Key Metrics Changes - For Q4 2024, revenue totaled $39.2 million, a decline of 17.7% from Q4 2023, with case volume down 16.7% year-over-year [13][33] - Adjusted EBITDA was $1.9 million or 4.7% of revenue, compared to $10.1 million or 21.2% of revenue in the same quarter last year [16][38] - For the full year, revenues were $180.4 million, a decline of 7.9% from fiscal 2023, with adjusted EBITDA of $20.7 million and an adjusted EBITDA margin of 11.5% [18][39] Business Line Data and Key Metrics Changes - Same-store revenue declined 22.6% year-over-year in Q4 2024, reflecting challenges in the aesthetics market [13][33] - The percentage of patients using financing for procedures was 50%, down from 53% in previous quarters [34] Market Data and Key Metrics Changes - The company operates in a $11 billion total addressable market in the U.S. [11] - The consumer backdrop remains challenging, impacting sales across the aesthetics space [14] Company Strategy and Development Direction - The company aims to enhance its culture and align on a singular vision while improving its go-to-market strategy to drive consistent revenue growth [20] - Five key priorities include marketing to drive consumer interest, sales to convert leads, new services to tap into demand, customer experience improvements, and technology enhancements [20][28] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that Q4 2024 was a challenging period but remains confident in the strategy to restore growth and profitability [44] - The company expects Q1 same-store revenue performance to mirror Q4 2024 trends, with sequential improvement anticipated as marketing spend increases [30][42] Other Important Information - The company has paused new center openings to focus on improving same-center performance [29] - A revised credit agreement enhances the company's ability to invest in the business during the transformation [31][41] Q&A Session Summary Question: Can you provide more color on sequential growth expectations? - Management expects to see a similar seasonal trend with sequential improvement in same-store performance year-over-year, anticipating Q2 to be higher than Q1 [51] Question: What are the liquidity improvement actions being taken? - The company drew down on its revolving credit facility to maintain marketing efforts while facing challenges in Q4 results [56] Question: Can you elaborate on the marketing spend versus customer acquisition cost (CAC)? - The elevated CAC was driven by lower case volumes and reduced lead volumes due to decreased marketing spend [62] Question: What is the status of the cost savings program? - The company has executed a $3 million annual savings plan primarily from corporate headcount reductions, with benefits expected to start in Q1 [67] Question: Can you provide specifics on new marketing efforts? - The company is utilizing a combination of paid search and social marketing, with a focus on returns-based approaches and testing new channels like online video [72] Question: What are the plans for new services, particularly skin tightening? - The company plans to pilot skin tightening as a standalone service, capitalizing on consumer interest and trends [76]