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Evolus, Inc. (EOLS)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 net revenue was $69.4M (+4% YoY) but below Wall Street consensus; revenue softness stemmed from a sharp decline in U.S. toxin demand and acute order pullback in the last two weeks of June .
  • EPS missed consensus materially as margins compressed on international mix and introductory Evolysse pricing; management reset FY25 revenue and OpEx guidance and targeted positive non‑GAAP operating income in Q4 2025, with annual profitability beginning 2026 .
  • Evolysse launched strongly ($9.7M in Q2), called “the strongest first quarter filler launch in over a decade,” and management raised FY25 filler contribution to 10–12% of revenue .
  • Catalysts: guidance reset and cost actions (~$25M OpEx savings), tariff impact deemed minimal (15% on Evolysse from Aug 7), and surveys indicating incremental H2 demand improvement; international performance remained strong .

What Went Well and What Went Wrong

What Went Well

  • Evolysse launch outperformed expectations with $9.7M revenue, “strongest first quarter filler launch in over a decade,” supported by 4,000+ HCP trainings and >1,000 accounts ordering; FY25 filler mix raised to 10–12% .
  • International business delivered “exceptional growth,” and Jeuveau maintained 14% U.S. market share through H1 2025 despite category softness .
  • Strategic cost optimization: FY25 non‑GAAP OpEx rebased to $208–$213M (≥$25M savings), majority in G&A, while preserving commercial investments; management expects positive non‑GAAP operating income in Q4 2025 .
    • Quote: “We took decisive action to…optimiz[e] our cost structure…to maintain our ability to achieve positive non‑GAAP operating income in the fourth quarter” .

What Went Wrong

  • U.S. toxin demand softened significantly; accounts curtailed end‑of‑quarter orders, driving revenue shortfall and margin compression (international mix, introductory pricing) .
  • Non‑GAAP operating swung to a loss: $(7.9)M in Q2 vs $1.1M income in Q2 2024; GAAP loss from operations widened YoY to $(10.2)M .
  • FY25 outlook reset: revenue cut to $295–$305M (from $345–$355M) and EU Estyme broader launch pushed to Q1 2026 (from H2 2025), reflecting demand headwinds and pacing of launches .

Financial Results

Core P&L vs Prior Periods

MetricQ2 2024Q1 2025Q2 2025
Total Net Revenues ($USD Millions)$66.9 $68.5 $69.4
Net Loss per Share (Basic & Diluted, $)$(0.18) $(0.30) $(0.27)
Gross Profit Margin (%)70.3% 68.1% 65.3%
Adjusted Gross Margin (%)71.5% 69.2% 66.5%
GAAP Operating Expenses ($USD Millions)$54.8 $61.8 $55.5
Non‑GAAP Operating Expenses ($USD Millions)$46.7 $52.9 $54.0
GAAP Loss from Operations ($USD Millions)$(7.7) $(15.2) $(10.2)
Non‑GAAP Income (Loss) from Operations ($USD Millions)$1.1 $(5.5) $(7.9)

Q2 2025 Actuals vs Wall Street Consensus (S&P Global)

MetricConsensusActual
Revenue ($USD)$82.0M*$69.387M
Primary EPS ($)$(0.093)*$(0.257)
  • Revenue and EPS were significant misses versus consensus. Values retrieved from S&P Global.*

Segment Breakdown (Q2 2025)

SegmentRevenue ($USD Millions)
Jeuveau (Toxin)$59.7
Injectable HA Gels (Evolysse)$9.7

KPIs

KPIQ2 2025Change/Context
Purchasing accounts added (quarter)+565 Consistent with ≥500 target
Total customers purchasing since launch>16,500 >55% U.S. account penetration
Reorder rate~70% Cumulative since launch
Evolus Rewards members>1.2M (+83k QoQ) +36% YoY vs Q2 2024
Rewards redemptions (quarter)>224,000 ~65% from repeat patients

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total Net RevenuesFY 2025$345M–$355M $295M–$305M Lowered
Non‑GAAP OpExFY 2025$230M–$240M $208M–$213M Lowered
Profitability (non‑GAAP op income)FY 2025Positive for full year Positive in Q4 2025; annual in 2026 Deferred
HA Gels Revenue MixFY 20258%–10% 10%–12% Raised
Estyme EU broader launchEuropeH2 2025 Q1 2026 Deferred
Tariffs (Evolysse)From Aug 7, 2025N/A15% tariff; minimal impact, in guidance New item

Earnings Call Themes & Trends

TopicQ4 2024 (Q-2)Q1 2025 (Q-1)Q2 2025 (Current)Trend
Demand/MacroStrong growth; positive non‑GAAP op income in Q4 +15.5% YoY revenue; reaffirms FY25 guide U.S. toxin softness; acute late‑Q2 order pullback Deteriorated
Product PerformanceJeuveau growth; Estyme EU approval Preparing Evolysse launch; KPIs strong Evolysse $9.7M launch; raised mix to 10–12% Improving
Pricing/MarginsAdj. GM 67.5% in Q4 Adj. GM 69.2% GM 65.3% on international mix and intro pricing Down
Cost StructureNon‑GAAP OpEx $185M FY24 Non‑GAAP OpEx guide $230–$240M FY25 Rebased to $208–$213M; ≥$25M savings Leaner
Tariffs/Supply ChainN/ATariffs incorporated; no change 15% on Evolysse from Aug 7; minimal impact; inventory pulled forward New headwind, managed
Technology/AIN/AN/AConsolidation and automation “including AI” to enhance productivity Emerging
Regulatory/R&DEstyme EU approval; PMA paths Evolysse launch timing reiterated PMA filing for Sculpt targeted; approval expected 2026; Lips 2027 On track

Management Commentary

  • CEO on demand softness: “U.S. toxin demand softened…a sharp decrease in consumer sentiment…acutely felt in the final two weeks of the quarter” .
  • On Evolysse launch: “the strongest first quarter for any filler entrant in over a decade” .
  • Cost discipline: “strategic reductions…allow us to rebalance resources toward customer‑facing areas” and ~70% of reductions were non‑customer facing .
  • Margins/tariffs: GM 65.3%; adjusted 66.5%; Evolysse to face 15% tariff Aug 7 with minimal impact; Jeuveau unaffected .
  • Surveys: internal and third‑party surveys of ~200 providers point to “meaningful rebound” and incremental improvement in H2 .

Q&A Highlights

  • Demand vs competition: Management attributed weakness to consumer sentiment and transactional data showing category declines; competitive sampling (e.g., Hugel) was “a very small part” of the picture .
  • Sequencing: July showed incremental improvement; guidance assumes no full rebound—expect stronger Q4 than Q3 .
  • Evolysse mix/stocking: Roughly “relatively even” split between initial stocking and pull‑through, with third‑quarter demand expected softer than fourth .
  • Promotions: Adjusted Jeuveau promotional strategy and Rewards subsidies; gift‑with‑purchase to support clinic pull‑through .
  • Cost actions/AI: ~70% reductions in non‑commercial functions; consolidation and automation (including AI) to preserve growth .

Estimates Context

  • Q2 2025 revenue missed consensus by ~$12.6M ($69.387M actual vs $82.0M consensus*), driven by late‑quarter order pullback and international mix . Values retrieved from S&P Global.*
  • Q2 2025 EPS missed by ~$0.16 ($‑0.257 actual vs $‑0.093 consensus*), reflecting margin compression and launch investments . Values retrieved from S&P Global.*
  • Near‑term estimate revisions likely lower FY25 revenue/earnings, partially offset by raised filler contribution (10–12%) and OpEx savings .

Key Takeaways for Investors

  • Significant miss vs consensus and FY25 guidance reset highlight near‑term demand headwinds; management sees incremental H2 improvement but does not assume full rebound .
  • Evolysse’s robust launch and raised FY25 mix provide a second growth engine; watch reorder velocity and Q4 seasonal uplift .
  • Margin trajectory should improve as intro pricing normalizes and mix balances; cost actions provide cushion to achieve Q4 non‑GAAP profitability .
  • Tariff impact appears contained; Jeuveau exempt; inventory strategies mitigate exposure—monitor execution and EU developments .
  • International expansion progressing; PMA milestones for Sculpt (2026) and Lips (2027) support medium‑term growth path .
  • Expect sell‑side estimate cuts on revenue/EPS for FY25; potential narrative shift if Q3 trends confirm July improvement and Evolysse pull‑through .
  • Long‑term targets ($700M revenue, 20% non‑GAAP OI margin by 2028) reiterated; credibility now hinges on near‑term execution and demand stabilization .