Venus Concept reduces debt by 54% in a year

TORONTO - Venus Concept Inc. (NASDAQ: VERO), a leader in medical aesthetic technology, has significantly reduced its debt obligations through a strategic transaction with Madryn Asset Management, LP. On Monday, the company announced it had converted $11.0 million of its subordinated convertible notes into 379,311 shares of Series Y preferred stock. This move has brought Venus Concept’s total debt down by 54% from $76.7 million as of March 31, 2024, to approximately $35.5 million. According to InvestingPro data, this debt restructuring is crucial as the company has been operating with a significant debt burden, reflected in its weak Financial Health Score of 1.6 out of 5.

The reduction also marks an 11% decrease from the $39.7 million debt reported on December 31, 2024. CEO Rajiv De Silva emphasized that the transaction is part of ongoing efforts to optimize the company’s capital structure and enhance balance sheet flexibility for sustained growth and profitability. This comes as the company faces challenging conditions, with revenue declining 15.09% in the last twelve months to $64.83 million. Avinash Amin, MD, Managing Partner at Madryn, expressed support for Venus Concept’s operational improvements and its future plans.

This development follows Venus Concept’s implementation of a transformation plan aimed at improving business operations. The company’s portfolio includes various aesthetic device platforms and hair restoration systems, serving over 60 countries and direct markets. InvestingPro analysis indicates the stock is currently undervalued, though investors should note that additional insights, including 11 more ProTips and a comprehensive Pro Research Report, are available for deeper analysis of the company’s transformation efforts.

The press release also contained forward-looking statements regarding the company’s strategic goals and profitability, cautioning that these statements involve risks and uncertainties. The information is based on the current expectations of the company’s management and may change over time.

Venus Concept’s actions reflect a continued focus on financial health and market presence in the medical aesthetic industry. This news is based on a press release statement from the company.

In other recent news, Venus Concept Inc. reported a decrease in revenue for the fourth quarter of 2024, totaling $15.8 million, marking a 13% decline year-over-year. This revenue was below the company’s guidance and analyst expectations of $17 million, largely due to a 58% drop in lease revenue. Despite the revenue shortfall, Venus Concept improved its gross margin to 69.1% from 66.5% in the previous year and reduced its net loss to $8 million from $11.1 million. The company has set a Q1 2025 revenue target of at least $14 million as it continues to prioritize cash system sales, which accounted for 87% of total system revenue in the U.S. during Q4.

BTIG analysts maintained a Neutral rating on Venus Concept, noting the company’s strategic focus on cost reduction and cash sales amidst challenging market conditions. The company is also exploring strategic alternatives and has undergone a 1-for-11 reverse stock split. Additionally, Venus Concept has reduced its total debt obligations by 47% to $39.7 million, reflecting ongoing efforts to strengthen its financial position. Looking ahead, Venus Concept plans to launch a new body device in the second half of 2025 and continues research and development on the Venus robot.

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