Core Viewpoint - Venus Concept Inc. reported financial results for Q3 2025, highlighting challenges in the aesthetics market but showing signs of stabilization in its Energy Based Device (EBD) business. The company is focused on long-term success through cash management and targeted investments, alongside a new product launch and ongoing strategic transactions [3][5]. Financial Results Summary - 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 [5][6]. - EBD revenues showed signs of stabilization with total sales of $9.6 million, up 2% year-over-year [5]. - GAAP net loss for Q3 2025 was $22.5 million, compared to a loss of $9.3 million in Q3 2024. Adjusted EBITDA loss was $7.8 million, compared to a loss of $5.9 million in the prior year [5][11]. Revenue Breakdown - U.S. revenue decreased by $1.1 million, or 12%, year-over-year, while international revenue decreased by $0.2 million, or 3% [6][7]. - Revenue by product category showed a 12% decrease in products – systems revenue, a 15% decrease in products – other revenue, and a 5% decrease in services revenue, partially offset by a 9% increase in lease systems revenue [7]. Operating Performance - Gross profit for Q3 2025 decreased by $1.1 million, or 11%, to $8.8 million, with a gross margin of 64.0%, down from 66.1% in Q3 2024 [8]. - Operating expenses increased by $1.2 million, or 7%, to $18.3 million, driven by higher general and administrative and selling and marketing expenses [9]. Strategic Developments - The company announced FDA 510(k) clearance for the Venus NOVA, its next-generation multi-application platform, marking a significant step in its R&D strategy [5]. - The company is actively pursuing the sale of its Venus Hair Business, facing challenges with the counterparty and seeking court assistance to close the transaction [3]. Balance Sheet and Cash Flow - As of September 30, 2025, the company had cash and cash equivalents of $5.9 million and total debt obligations of approximately $30.1 million, a reduction from $39.7 million at the end of 2024 [11]. - The company executed a debt-to-equity exchange transaction totaling $11.5 million, resulting in a 24% reduction in total debt compared to December 31, 2024 [5].

Core Insights - Venus Concept Inc. has received FDA 510(k) clearance for its new product, Venus NOVA, marking a significant milestone in the company's R&D strategy [1][3] - Venus NOVA is designed to provide a comprehensive solution for non-invasive body, face, and skin treatments, integrating multiple advanced technologies [2][3] Product Features - Venus NOVA incorporates Adaptive Electrical Muscle Stimulation (EMS), Multi-Polar Radio Frequency (RF) combined with Pulsed Electromagnetic Fields (PEMF), and Advanced VariPulse™ technology [2][4] - The platform aims to enhance body contouring, muscle conditioning, skin treatments, and reduce wrinkles and cellulite [2] Strategic Initiatives - The launch of Venus NOVA aligns with the company's turnaround strategy initiated in 2023 and the Venus AI strategic initiative, focusing on innovation and customer partnerships [3] - The product is expected to support the growing demand for aesthetic treatments, particularly for patients using GLP-1 medications, with an anticipated increase to over 32 million users globally by 2030 [3] Market Positioning - Venus NOVA is positioned to penetrate the multi-billion-dollar body and skin market, contributing to the company's long-term growth profile [3] - The product will be available in the U.S. starting December 2025, with global rollouts planned for 2026 and beyond [6] Support Programs - The Venus Jumpstart Program will provide a 30-day roadmap for advanced clinical education and marketing enablement to ensure successful integration of Venus NOVA into existing practices [4][5]