Financial Data and Key Metrics Changes - The company reported Q2 2025 revenue of $78.2 million, exceeding expectations, with adjusted EBITDA of $13.9 million, also above guidance [6][18][23] - GAAP gross margin improved to 62.8%, while adjusted gross margin reached 65.9%, reflecting significant year-over-year improvements [21][22] - Operating expenses decreased by nearly 18% to $51.8 million, contributing to an operating loss of $2.7 million, an improvement from a loss of $22.1 million in the prior year [22][23] Business Line Data and Key Metrics Changes - Consumables revenue accounted for over 70% of total revenue, totaling $55.8 million, up 0.8% year-over-year, driven by growth in The Americas and EMEA [6][18][19] - Device sales faced pressure, resulting in a 36.5% year-over-year decline in global device revenue, attributed to macroeconomic factors [19][20] - The company expanded its active devices to over 35,000 globally, up from 33,500 the previous year [6][9] Market Data and Key Metrics Changes - Revenue in The Americas declined by 9.8%, while APAC and EMEA revenues fell by 43% and 4.2%, respectively, due to the transition to a distributor model in China [19][20] - In EMEA, consumables grew well into double digits, indicating strong market performance [55] Company Strategy and Development Direction - The company focuses on a three-pillar strategy: commercial execution, innovation acceleration, and provider-centric growth [8][12] - The transition to a distributor model in China is expected to streamline operations and reduce tariff exposure [20][25] - Upcoming product launches include HydraFacial Backbar and a new skincare line in Q4 2025, with further expansions planned for 2026 [12][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term growth despite current macroeconomic pressures affecting device sales [7][17] - The company anticipates a seasonally slower Q3 but remains optimistic about achieving full-year guidance of $285 million to $300 million in net sales [18][19] - Management highlighted the importance of maintaining a strong relationship with providers, which is crucial for driving sales and market share [13][14] Other Important Information - The company completed a strategic debt restructuring, enhancing financial flexibility and extending debt maturity profiles [23][24] - A price increase of nearly 5% across the consumables portfolio was implemented on July 3, 2025, marking the first increase in three years [25][75] Q&A Session Summary Question: Insights on Q3 guidance and July/August performance - Management indicated that Q3 guidance reflects expected revenue trends similar to the first half, influenced by the transition in China and anticipated ASP pressure [31][32] Question: Installed base growth and churn rates - Device sales were pressured by macroeconomic conditions, with higher churn rates observed, prompting management to develop an action plan to address this [36][37] Question: EBITDA dynamics and guidance - The projected EBITDA decline in the second half is attributed to tariff headwinds and increased R&D spending [41][42] Question: Trends across different provider channels - Growth was noted in the non-medical channel, while the medical channel showed strong adoption of new booster products [81][92] Question: Consumables growth and ASP expectations - Consumables grew 5.3% excluding China, with expectations for ASPs to remain under pressure in the second half due to the distributor transition [86][89]