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. reported financial results for Q2 2025, showing a total revenue of $15.7 million, which is a 5% decrease year-over-year but a 15% increase quarter-over-quarter [5][6] - The company experienced a 20% growth in total systems and subscription sales quarter-over-quarter, with U.S. revenue increasing by 5% year-over-year [3][5] - The company is focusing on cash burn management and strategic initiatives to enhance long-term growth, including the sale of its Venus Hair business for $20 million [3][5] Financial Performance - Total revenue for Q2 2025 was $15.7 million, down from $16.6 million in Q2 2024, with U.S. revenue increasing by $0.4 million to $9.7 million [5][6] - Gross profit decreased by 20% to $9.4 million, with a gross margin of 60.1%, down from 71.5% in the prior year [8] - Operating expenses rose by 6% to $18.5 million, driven by increases in general and administrative and selling and marketing expenses [9] Losses and Adjusted EBITDA - The net loss for Q2 2025 was $11.7 million, or $8.03 per share, compared to a net loss of $20.0 million, or $30.93 per share, in Q2 2024 [11] - Adjusted EBITDA loss for Q2 2025 was $8.8 million, worsening from a loss of $4.1 million in the same quarter last year [11][28] Cash Position and Debt - As of June 30, 2025, the company had cash and cash equivalents of $4.9 million and total debt obligations of approximately $34.3 million, down from $39.7 million at the end of 2024 [12] - The company has made efforts to enhance its balance sheet through various financing transactions, including raising $3.9 million in gross proceeds from equity capital transactions [3][12] Strategic Initiatives - The company announced a definitive agreement to sell its Venus Hair business for $20 million, aiming to focus on its core medical aesthetics business [3][5] - Management emphasized the importance of disciplined cost management and targeted investments to support long-term growth [3]