Earnings call transcript: Evolus Q2 2025 misses EPS and revenue forecasts

Evolus Inc. reported a wider-than-expected loss for the second quarter of 2025, with earnings per share (EPS) of -$0.27, missing the forecast of -$0.10. Revenue also fell short, reaching $69.4 million against a forecast of $82.18 million. Following the report, Evolus shares dropped 2.2% in after-hours trading, closing at $9.11. According to InvestingPro data, the company’s market capitalization stands at $576.41 million, with the stock trading near its 52-week low of $8.65. Despite current challenges, analysts maintain optimistic price targets ranging from $20 to $27.

Key Takeaways

• Evolus reported a higher-than-expected EPS loss of -$0.27.
• Revenue of $69.4 million fell short of expectations, showing a 4% increase year-over-year.
• The company’s stock declined by 2.2% in after-hours trading.
• Evolus maintains a 14% market share in the neurotoxin market.
• Strategic cost reductions of $25 million aim for profitability by 2026.

Company Performance

Evolus continues to navigate a challenging market environment, with its Q2 2025 performance reflecting both successes and setbacks. The company achieved a 4% year-over-year increase in global net revenue, driven by its toxin and HHL revenue streams. However, the higher-than-expected EPS loss and revenue shortfall highlight the pressures faced in the competitive neurotoxin market. Despite these challenges, Evolus maintained a 14% market share and outperformed the market in unit growth.

Financial Highlights

• Revenue: $69.4 million, up 4% year-over-year.
• EPS: -$0.27, compared to a forecast of -$0.10.
• Gross margin: 65.3% reported, 66.5% adjusted.
• Non-GAAP operating loss: $7.9 million.
• Cash balance: $61.7 million at the end of Q2.

Earnings vs. Forecast

Evolus reported an EPS of -$0.27, significantly missing the forecast of -$0.10 by 170%. Revenue also fell short, with actual figures at $69.4 million against a forecast of $82.18 million, a 15.55% negative surprise. This marks a notable deviation from expectations, impacting investor sentiment.

Market Reaction

Following the earnings announcement, Evolus’ stock declined by 2.2% in after-hours trading, settling at $9.11. This movement is within its 52-week range of $8.65 to $17.82, with the stock down 31.56% over the past year. The stock’s decline reflects investor concerns over the earnings miss and revenue shortfall. InvestingPro analysis indicates strong long-term potential, with analysts maintaining a strong buy consensus and significant upside potential from current levels.

Outlook & Guidance

Evolus reaffirmed its full-year 2025 revenue guidance of $295-$315 million, representing an 11-15% growth. The company targets positive operating income by Q4 2025 and aims for annual profitability in 2026. Evolus also reiterated its $700 million revenue target by 2028, with a 20% non-GAAP operating income margin.

Executive Commentary

CEO David Motazedi emphasized, "The fundamentals of our business remain intact," highlighting confidence in the company’s strategic direction. Motazedi also noted, "We are well capitalized and operating with a leaner, more efficient cost structure," reflecting efforts to streamline operations.

Risks and Challenges

• Consumer sentiment: Economic pressures impacting lower-income brackets could affect demand.
• Market competition: Maintaining market share amidst a stable competitive landscape.
• Cost management: Achieving strategic cost reductions without impacting growth.
• Revenue growth: Meeting ambitious revenue targets amid economic uncertainties.
• Product innovation: Sustaining momentum with new product launches like Evolisse.

Q&A

During the earnings call, analysts questioned the unexpected slowdown in the last two weeks of Q2 and consumer spending challenges. Executives addressed these concerns, noting incremental market improvements in July and highlighting the strong market reception of the Evolisse launch.

Full transcript - Evolus Inc (EOLS) Q2 2025:

Conference Operator: Good afternoon, everyone, and thank you for standing by. Welcome to Evolus Second Quarter Earnings Conference Call. As a reminder, today’s conference is being recorded and webcast live. All participants are in a listen only mode. After the speakers’ remarks, there will be a question and answer session.

I would now like to turn the conference over to Narek Segarian, Vice President and Head of Global Investor Relations and Corporate Communications. Please go ahead.

Narek Segarian, VP of Global Investor Relations and Corporate Communications, Evolus: Thank you, operator, and welcome to everyone joining us on today’s call to review Evolus’ second quarter financial results. Our second quarter press release is now on our website at evolus.com. With me today are David Motazedi, President and Chief Executive Officer and Rui Avilar, Chief Medical Officer and Head of R and D. Today’s call will include forward looking statements. Actual results may differ materially due to risks and uncertainties outlined in our earnings press release and SEC filings.

These forward looking statements are based on current assumptions, and we undertake no obligation to update them. Additionally, we will discuss certain non GAAP financial measures. These measures should be considered in addition to and not as a substitute for our GAAP results. A reconciliation of GAAP to non GAAP measures is included in today’s earnings release. As a reminder, our earnings release and SEC filings are available on the SEC’s website and on our Investor Relations website.

Following the conclusion of today’s call, a replay will be available on our website at investors. Evolus dot com. With that, I’ll turn the call over to our CEO, David Motizetti.

David Motazedi, President and CEO, Evolus: Thank you, Narek, and good afternoon, everyone. Our second quarter results came in below expectations, reflecting one of the most challenging market environments we’ve seen in recent years. Jeuveau experienced its first ever year over year decrease since launch more than six years ago, underscoring a sharp reduction in consumer sentiment, resulting in broad softness across The U. S. Aesthetic toxin market.

Procedural volumes across The U. S. Toxin category decelerated further in the second quarter, following a slower than expected start to the year. Throughout the majority of the quarter, we were outperforming on the launch of Evolisse and Jeuveau was tracking to our internal forecast. In the final two weeks of the quarter, we started to experience lower order volumes compared to prior quarter closes.

This was the first time we felt the effects of the market slowing, which resulted in accounts holding back their order volumes. While procedural volumes across The U. S. Toxin market decreased over the past three consecutive quarters, the second quarter marked the first time we felt the impact on Jeuveau demand. Despite these domestic headwinds, we continued to gain market share through the first half of the year and are beginning to see early signs of positive momentum entering the third quarter.

Given the unusually slow finish to the quarter, we conducted an Evolus led survey of nearly 200 U. S. Customers to better understand their market outlook in the coming six months. The results pointed to a meaningful rebound in patient volume in the second half of the year. A majority of practices expect growth of more than 10%, while very few anticipate any decline, a stark contrast to the first half of the year.

These findings were further validated by an independent survey of 200 providers, reinforcing our view that demand is expected to improve incrementally in the back half of the year, even as consumer discretionary spending remains under pressure. Given these market challenges, we’ve taken decisive action to ensure we maintain our commitment to long term value creation. This includes revising our 2025 outlook to reflect current U. S. Market trends while realigning our operating model to preserve profitability and sustain investment and growth.

We’ve reset our 2025 revenue expectations, rebased our spend to align accordingly and maintain our long term outlook of reaching $700,000,000 by 2028. We’ve reset our 2025 revenue guidance range to $295,000,000 to $3.00 $5,000,000 representing 11% to 15% growth over 2024. This new guide reflects a meaningful increase over first half performance and benefits from two full quarters of Evolese revenue, which is off to a great start and incremental improvement in The U. S. Toxin market from the front half of the year.

We’ve rebased our non GAAP operating expense guidance to two zero eight million to $213,000,000 This results in more than $25,000,000 in operating expense cost savings with the majority of reductions concentrated in G and A while maintaining investment in our customer facing activities. We are committed to achieving meaningful profitability in the fourth quarter and annual profitability starting in 2026. We have implemented strategic reductions that are designed to preserve growth and sharpen execution. These were not fraud based cuts. They were intentional, long term changes that allow us to rebalance resources toward customer facing areas of the business.

Approximately 70 of the reductions were non customer facing and non commercial in nature, ensuring no disruptions to the team driving top line growth. We also consolidated functions to reduce overhead while continuing to invest in our commercial infrastructure and further leaned into automation, including AI to enhance productivity. These actions reflect our commitment to disciplined execution and position us for sustainable growth. Despite softness in the quarter, Jeuveau remains resilient and it continued to outperform The U. S.

Market with unit growth in the front half of the year. We’ve maintained our 14% market share through the first half of the year, which reflects an increase of our over full one which reflects an increase over our full year 2024 share of 13%. In the quarter, we added five sixty five new purchasing accounts, consistent with our goal of at least 500, indicating strong interest in Evolus in a challenged market. Our unique cash pay model continues to differentiate us in the market, while our co branded media and digital platform deepened customer engagement even as consumer spending patterns remain cautious. Our consumer loyalty program also delivered strong results.

Evolus Rewards redemptions hit a record high of over $224,000 with sixty five percent coming from repeat patients, highlighting the strength of our brand and consumer satisfaction. Importantly, Evolus is now launched within Evolus Rewards, further enhancing patient retention and adding another lever of growth to our consumer engagement platform. As the market stabilizes, the consistent demand we’re seeing through our loyalty program, combined with our advancing market share, puts Evolus in a strong position to continue to outperform the market in the near term and as the market recovers. Internationally, the business continues to deliver strong performance and is increasingly contributing to our growth trajectory as we expand our global footprint in key markets. In early July, we introduced Nucyva in France through our partnership with Cimatase.

While we view this launch as a strategic step forward, we expect its near term revenue contribution to be modest. We are now active in nine markets outside The U. S, representing over 70% of our international total addressable market. This progress not only reflects the increasing demand abroad, but reinforces the rising global relevance of our brand. We remain on track to achieve $100,000,000 in international revenue by 2028.

A highlight of the quarter was The U. S. Launch of Evolese, which exceeded our internal expectations. In its first quarter, Evolese delivered $9,700,000 in revenue, making it the strongest first quarter filler launch in over a decade. This performance was supported by a combination of initial stocking of Evolisse and strong demand following a successful launch.

The initial response from customers continues to be overwhelmingly positive with strong feedback on the product’s performance. They continue to praise the line’s unique natural gel properties, which offer precision and control, key attributes they prioritize in daily practice. Our focused launch strategy backed by Evolus Academy and the science of ColdEX technology has been very successful. Since launch, we have trained over 4,000 health care providers and over 1,000 accounts have already ordered Evolese with several thousand trialing. We’re in the early stages of penetrating the filler market and see a meaningful runway for continued growth and account expansion.

Based on this early momentum, we are raising Evolese full year revenue contribution to 10% to 12%. The strong early adoption and enthusiasm confirm our confidence in Evolese as a long term growth pillar. We’re applying the same disciplined approach to a theme in Europe, prioritizing education, market preparation and launch excellence to ensure long term success. Our experience program is well underway with a broader launch expected in early twenty twenty six. Based on these key business drivers, the continued share gains in our toxin business, the record setting launch of Evolisse and strong performance internationally, we have confidence in our ability to deliver sustainable growth.

The fundamentals of our business remain intact and our recalibrated cost structure positions us to scale profitably as market conditions improve. With that, I’ll turn it over to Rui to walk through the results of the first ever head to head study of four U. S. FDA approved neurotoxins that was recently published in JAMA Dermatology along with a few additional updates.

Rui Avilar, Chief Medical Officer and Head of R&D, Evolus: Thank you, David. In 2019, during the initial stages of our approval process for Jeuveau, we ran the largest Phase III trial against BOTOX, which was published in the Aesthetics Surgery Journal. In that study, the primary endpoint responder rates were eighty two point eight percent for BOTOX and eighty seven point two percent for Jeuveau. 30 additional endpoints were also measured. Although not reaching the level of statistical significance, it was interesting to note that Jeuveau outperformed BOTOX numerically 26 out of 30 times.

In the twenty twenty five August edition of JAMA Dermatology, a new independent study was published that looked at the four neurotoxins approved at the time Jeuveau, Botox, Dysport and Xeomin. The study was conducted at the University of Pennsylvania and the senior author was Doctor. Ivana Percic, a world renowned plastic surgeon and researcher. The trial was double blind, randomized and enrolled 143 patients evenly across the four neurotoxins. To measure effectiveness, instead of using the standard four point scale traditionally used in clinical trials, the investigators used a sensitive imaging system from Canfield, capable of precisely measuring the amount of strain when frowning, eliminating the bias that can be introduced by human evaluations.

The results demonstrated that Jeuveau and Dysport had the fastest onset. At day 30, which is generally described as the timing of peak effect, Jeuveau demonstrated the greatest effect. And at day 180, Jeuveau demonstrated the longest duration, maintaining a statistical difference as compared to its baseline and as compared to BOTOX. In summary, this independent study conducted by independent investigators demonstrated that Jeuveau numerically had a fast onset, the highest peak effect and the longest duration further validating its performance. On the Evolese injectable side, we continue to receive feedback that’s consistent with what we observed in the clinical trials and heard from clinicians during diligence.

The gel is different and it feels different. It’s described as very efficient in providing corrections when injected and results in a natural look. We also continue to hear from injectors that it’s very forgiving. The low inflammatory profile of these gels allow them to be placed more superficially than you’d expect without having an inflammatory reaction. And that form is being described as a very versatile injectable, as we had expected.

On the pipeline front, Sculpt, which will be targeting the premium mid phase volume market, remains on track. We’re targeting the PMA filing this quarter and estimating an approval in the 2026. The LIPS product also remains on track. The trial was fully enrolled in February, and we continue to estimate approval in 2027. Now let me turn it back to David to take you through the financial details of our second quarter.

Thank you, Rui.

David Motazedi, President and CEO, Evolus: Global net revenue for the second quarter was $69,400,000 a 4% increase over the 2024. Sales growth in the second quarter was driven by the successful launch of Evolisse and international revenue growth. Net revenue for the 2025 included $59,700,000 of toxin revenue and $9,700,000 of HHL’s revenue. Our reported gross margin for the second quarter was 65.3% and adjusted gross margin was 66.5%, which excludes the amortization of intangibles. Gross margin this quarter were impacted by a higher mix of international sales and an introductory pricing offer for Evolise.

The impact to margins was unique to the quarter. And going forward, we expect margins to improve in the back half of the year. On the topic of tariffs, our exposure is limited to the transfer price of our products, which is accounted for in cost of goods sold and included in both our reported and adjusted gross margin. Evolisse is sourced from France and will be subject to a 15% tariff, which is scheduled to go into effect on August 7. The impact of this tariff is minimal and has been fully incorporated into our guidance.

Jeuveau remains unaffected by tariffs as pharmaceuticals are currently exempt. We continue to closely monitor developments and take prudent and proactive measures to manage toxin and HHL inventory levels to mitigate any potential exposure moving forward. GAAP operating expenses for the second quarter were $55,500,000 down from $61,800,000 in the first quarter. Non GAAP operating expenses for the second quarter were $54,000,000 compared to $52,900,000 in the first quarter. As a reminder, non GAAP operating expenses exclude stock based compensation expense, revaluation of the contingent royalty obligation and depreciation and amortization.

Within operating expenses, selling, general and administrative expenses for the second quarter were $56,700,000 consistent to the first quarter, reflecting investments in growth and commercial expansion in support of Evolese. This included $4,300,000 of non cash stock based compensation compared to $5,700,000 in the prior quarter. Non GAAP operating loss in the second quarter was $7,900,000 compared to non GAAP operating income of $1,100,000 in the 2024. Both non GAAP operating expenses and non GAAP operating income exclude stock based compensation expense, revaluation of the contingent royalty obligation and depreciation and amortization. Non GAAP operating income also excludes amortization of intangible assets.

Turning to the balance sheet. We ended the second quarter with $61,700,000 in cash as compared with $67,900,000 at the end of the first quarter. The decrease in cash during the quarter was primarily driven by our decision to pull forward inventory purchases ahead of increased tariffs on the European Union and threatened tariffs on pharmaceuticals. After factoring for the reset in this year’s guidance, we continue to see a clear pathway to achieving our long term outlook of $700,000,000 by 2028. As we outlined in prior calls, we saw many ways to outperform the $700,000,000 target, and our internal projections were meaningfully above our long term guidance.

We also reaffirm our goal of delivering a non GAAP operating income margin of 20% by 2028. Our revenue growth will be driven by continued performance in our neurotoxin business, both in The U. S. And internationally, along with an increasing contribution from our novel line of injectable hyaluronic acid gels. With that context in mind, our outlook for 2025 and beyond includes the following: total net revenues for the full year 2025 to be between $295,000,000 and $3.00 $5,000,000 representing 11% to 15% growth over 2024 results.

We’ve increased our revenue expectations for Evolese and now expect revenue contribution to be 10% to 12% of total revenue for the full year 2025. Full year non GAAP operating expense for 2025 to be between $2.00 8,000,000 and $213,000,000 reflecting strategic cost structure optimization that is expected to yield at least $25,000,000 in non GAAP annualized operating expense savings for 2025. To achieve positive non GAAP operating income beginning in Q4 twenty twenty five and annual profitability beginning in 2026 and lastly, total net revenue of $700,000,000 and non GAAP operating income margins of 20% by 2028. With that, I’ll now turn the call back to the operator to begin Q and A.

Conference Operator: Thank you. We will now be conducting a question and answer session. Our first question comes from the line of Annabel Samy with Stifel. Please proceed.

Annabel Samy, Analyst, Stifel: Hi. Thanks for taking my question. So obviously, I’m going be asking about the dynamics that you’re seeing. I guess to what extent are you seeing reduced demand related to consumer sentiment versus increased competitor presence? And what is specific about the last two weeks of the quarter that things just seem to have or demand seems to have fallen out of bed here?

And just a second question regarding quantify the amount of inventory buy in there was for the $9,700,000 that you recorded? Thanks.

David Motazedi, President and CEO, Evolus: Annabel. Thanks for the questions. I’ll take those three. So just starting with the question around the reduced demand, consumer versus competitive. The way we look at it is from a first half standpoint, we believe that procedural demand declined high single digits.

When we look at our business in units, as we talked about, we gained a few percent. So relative performance, we don’t believe that it was a share or competitive driven dynamic. But of course, the demand overall in the market was down in the first half of the year. It has been down starting the fourth quarter of last year, and this was the first quarter that we felt it. And what was interesting was that in May, as we were entering the last month of the quarter, we had many strong signals.

Evolus had exceeded our full quarter expectations in its first month on the market. We had Jeuveau, our lead metrics as we looked at our Evolus Rewards redemptions as well as our own forecast internally, they appear to be right on track. So there was some unique dynamics there at the end of the quarter where we generally see accounts purchasing to meet their tier threshold level to maintain their pricing status for the following quarter. And essentially, what we saw were a number of accounts in that top tier, especially where they froze. They saw the broader impact of the macro environment.

That’s a combination of slowing demand in their practice as well as some of the things that were happening broader in the economy and their interest level and purchasing at the same level they had historically just weren’t there. And we saw that significant pullback acute to the final several weeks. And then lastly, on the Evolese, what we’d say is that we do believe that the initial portion of revenue had a stocking element as well as a pull through. Of course, it’s hard to quantify early on, but I think if you’re thinking of it as sort of like a relatively even mix of those two, that’s probably a relatively safe way to think about the business. That’s not a precise math, but it’s just based on what we’re seeing in reorder patterns, etcetera.

And then the last thing that I would point out, Annabel, which was interesting to us, here we sit in August is that we saw a pretty significant shift in the business as we entered the third quarter. And that July, we saw a meaningful improvement in our business that correlated with some of the research that we saw both our internal research and third party that we referenced earlier in our script.

Annabel Samy, Analyst, Stifel: Okay. Thank you.

Conference Operator: Thank you. Our next question comes from the line of Mark Goodman with Leerink Partners. Please proceed.

Mark Goodman, Analyst, Leerink Partners: Just to be clear here on what you were saying about the last question there. So July had a meaningful improvement, but June you had no follow through in the last two weeks. So what can you how do you explain that? Like because the I mean, your customers as focused on quarter to quarter as a publicly traded company would be?

David Motazedi, President and CEO, Evolus: Yes. Good question, Mark. Yes, I wouldn’t group the ideas of sort of our fiscal quarter with customer purchasing patterns. What I would say is the way that we structure our pricing program is to achieve a certain status, you have to purchase at a certain level. And that level is based on a full quarter purchasing.

And we tend to see towards the end of the quarter, accounts will place larger orders in order to maintain their status. They’ll work down their inventory and place a large order there towards the end. That’s where we did not see those accounts placing orders as they had in historical the historical levels. They were still purchasing, but on average, they were purchasing at lower volumes, which is far below what we had expected at the end of the quarter. That’s a separate and independent piece from the year on year start that we’re seeing to the third quarter.

I think I certainly don’t want to mislead the third quarter. We continue to believe that there’s going to be challenges with pocketbook that the macro environment will continue to be something that makes it tougher for these consumers to afford some of these treatments and that’s slowing where we’ve seen it in our business. That being said, we do wrap around in the back half of the year off of what is a relatively depressed base. And we do think that creates a favorable backdrop. And we also believe some of what we’re seeing in terms of front half slowing then as a result should start to benefit us in the back half from a sequential standpoint, second half to front half, but not in a meaningful way where we see the market entirely recover.

Mark Goodman, Analyst, Leerink Partners: Yes. Did Hugel have any impact at all and anything as far as just giving away free product?

David Motazedi, President and CEO, Evolus: Yes. It’s a good question. And Annabel was asking about competition. We look at a number of third party data for competitive dynamics to understand if there’s any significant share shifts. There really wasn’t.

Of course, there’s you just now a couple of quarters into their launch in the market. They do sample heavily and we have a good sense for what that impact is. But it’s a very small part of the overall picture for the toxin market as you think about the second quarter, not a key driver. Thanks.

Conference Operator: Thank you. Our next question comes from Navin Cai with BNP Paribas. Please proceed.

Navin Cai, Analyst, BNP Paribas: Hi. Thanks for taking my question. Can you clarify the toxin demand trends, which was not highlighted by competitors, Gelderman, AbbVie? So was the impact more pronounced on the low end of the market? And second, how do you expect reaching about €140,000,000 Jeuveau revenue in H2 in market stimulation or promotional activity in Q4?

Thank you.

David Motazedi, President and CEO, Evolus: Yes. All very good questions. I think there’s a lot of noise in the market in terms of what’s really occurring. I can tell you that we look at third party data, including transactional data that supports the overall transactional volume across different specialties of dermatology, plastic surgery and med spa combined pointed to a front half that had high single digit decline. I think that was supported when you look at, as an example, the market leader in this space, their overall toxin business declined in the high teens in the front half of the year.

And so you see that reflected there. Some other competitors did not comment on some of these trends. And of course, there may be reasons for that, which I’m not going to be able to get into in this call. But I think you’re getting mixed signals on that. But the third party data that we get on transaction confirms that it’s consistent with what we’re seeing in the market that overall procedural volume did slow in the front half of the year.

Navin Cai, Analyst, BNP Paribas: And then maybe on the second half, if you had any market stimulation or promotional activity in upcoming in Q4?

David Motazedi, President and CEO, Evolus: Yes. As we observed that slowdown in the back half of the second quarter, the back couple of weeks, we did adjust our promotional strategy, specifically around Jubeau, to help practices with the pull through. As we’ve spoken with a number of clinics and I’ve spent time in the field, what I’ve heard consistently is that consumers are stretching their intervals between treatment or they’re reducing the number of units that they’re getting when they’re coming in, whether that’s syringes of hyaluronic acid or units of neurotoxin. And we’ve done a number of things through our Evolus Rewards program to help subsidize a portion of that cost for the consumer. Of course, you see some of that reflected lightly in our gross margins in the second quarter, but we do believe that helps with the pull through.

We’ve also collaborated with a beauty magazine to coordinate a gift with purchase that we’re doing in the third quarter. Those types of activities help differentiate our clinics in their local markets and provide more value to that consumer to come back in and get treated. And we do believe these types of pull through activities help our accounts that remain committed to us that we believe continue to drive our growth in the future. It helps them pull through that product and build their business over time. And we’re seeing some good response to those activities that we just initiated in the third quarter.

Navin Cai, Analyst, BNP Paribas: Thank you.

Conference Operator: Thank you. Our next question comes from the line of Yu Eir with Mizuho. Please proceed.

Yu Eir, Analyst, Mizuho: Hey, guys. Yes, thanks for taking our questions. So maybe just help us understand a little bit about the consumers. You indicated there is a couple of surveys that kind of support a rebound. Like what is it like what would drive the rebound exactly?

Like what changed in the pocket book? So that’s the first question. And the second question is, your guidance kind of implies either sequential growth from the second quarter to the third quarter or like there’s a huge bump up in the fourth quarter. So maybe just help us understand how to think about the sequence of the second half of the year? Thanks.

David Motazedi, President and CEO, Evolus: Good. Well, first, Oya, I think I was really choiceful with my words, especially in the press release. I do believe as you think about front half versus back half, we see an incremental improvement sequentially in the toxin market. We do believe there remains a number of consumer headwinds. And of course, as these tariffs now factor through into price in across different categories.

We do think the consumers that are a sweet spot, they earn 150,000 or less per year, they’ll feel that pinch. And so that incremental improvement is based on the survey that I referenced in addition to the fact that we wrap around the back half of the year on a more depressed base. And when you put those two together, we feel that it makes for an incremental improvement in the back half of the year. As it relates to our forecast, when you look at the front half of the year, the business grew about 9%. And our implied forecast is, of course, that we’ll grow at a faster rate in the back half depending on where you are in the range.

It’s anywhere from roughly, call it, 14%, 18%. And really, the logic behind that is when you think about the back half of benefits from the first half having a number of one timers, right? In the first half of the year, we had just one quarter of Evolisse. In the back half, you get two quarters. We do believe that the onetime sort of drawdown that occurred in the last two weeks is unique to the second quarter, and that does provide a benefit in the back half of the year in addition to the base comparator period.

And when you put that together, we do believe it sets up for a stronger back half relative to the front half and puts us within the guidance range that we provided.

Yu Eir, Analyst, Mizuho: Okay. Thanks.

Conference Operator: Thank you. Our next question comes from the line of Serge Belanger with Needham and Company. Please proceed.

Serge Belanger, Analyst, Needham and Company: Hi, good afternoon. I guess another question on overall trends. David, we’ve seen this market be pretty resilient over the years. I think the only time we’ve seen negative growth has been pretty severe recessionary environments. And I don’t think we are in that kind of environment.

So just curious, what do you think is driving kind of this different consumer sentiment at this time? And then secondly, you talked about the competitive environment. Just curious if you’ve seen any changes to price levels at this point, either via tariffs or, again, to deal with depressed consumer sentiment, a decrease in price to encourage an increase in procedures and purchases? Thanks.

David Motazedi, President and CEO, Evolus: Serge, you said it well. I think this time is different from prior recessions for sure. As you look at the overall economy, you’d say that it’s relatively stable. And then you look at a category like neurotoxins and you’d assume in that environment, you would see the same here. And that hasn’t been the case.

As you follow, take it the market leader, which is roughly half the category, they’ve been in negative growth now for three consecutive quarters. And the front half has been a consistent decline. And I do believe, I think what’s unique here in this environment is the consumer that is in that sweet spot of, call it, 150,000 or less is really feeling the effects of their increased prices and the uncertainty that the tariffs may bring. You’re seeing it reflected in a lot of the data that you’re seeing from earnings reports of companies that fall in that sweet spot. And it appears that the more the consumer that has a higher earning income bracket has weathered better through it.

So that’s why when you parse through it, we see sort of some haves and have nots. And this is a headwind in this particular segment that we’re seeing very consistently, which is also why we believe that some of the activity that we’ve deployed in the back half of the year puts us in strong position as we continue to gain share now multiple years in a row to be able to continue to deliver on that. I mean, in mind that this brand is now in its sixth year and it delivered over 30% growth for five consecutive years. This is the first time that we’ve seen a significant dislocation like this. We do believe that some of the trends we’re seeing are positive for the back half of the year, but by no means do they subside on the full year.

And the last thing on the competitive side, look, there’s always competitive dynamics. I’d say we haven’t seen any sort of price increases related to the tariffs yet. But of course, when we’re talking about neurotoxin, drugs aren’t impacted yet by tariffs. There’s always going to be sampling with new products and different sorts of promotional offers, but nothing too significant that would have you thinking about the market differently.

Conference Operator: Thank you. Our next question comes from the line of Douglas Zhao with H. C. Wainwright. Please proceed.

Douglas Zhao, Analyst, H.C. Wainwright: Hi, good afternoon. Thanks for taking the questions. And David, appreciate all the commentary. I guess, I listening to this, I think what I’m having trouble reconciling and I’ve gotten a couple of emails from accounts that are also sort of trying to reconcile is, the reduction to guidance, which is seems appropriate and fairly significant though to your commentary that you sort of the first few weeks of July sort of suggested there was some kind of recovery or bounce back. And so I guess maybe if you could help us understand or sort of reconcile the two, is it that we started to see a recovery in July, but just not back to the levels that we needed to get to the prior levels and meaning that things fell off and they sort of came back a little bit, but not really not to the same degree as what was the prior trajectory?

David Motazedi, President and CEO, Evolus: Yes, Doug. Maybe I’ll try to since I’ve had a couple of questions on this, I’ll try to maybe answer a little differently. I think what we saw in the last two weeks of the quarter was entirely unexpected and a significant slowdown in the ordering of these accounts. I think in turn, what we’re seeing to start July is not reflective of the similar trend. We’re seeing an incremental improvement.

I would not go so far as to say that we expect a third quarter rebound because that would imply that the markets are back. And you could see that our guide as well as our rebasing of our expenses assumes that we don’t see a rebound back to the levels where we had originally guided. We see an incremental improvement in the third quarter relative to what we saw in the end of the second quarter.

Douglas Zhao, Analyst, H.C. Wainwright: Okay. That’s really helpful. And I think you indicated relative to Annabel’s question that in terms of Evolisse, roughly half the sales in this quarter should were likely or attributed to stocking. And so just given the fact there is a fair amount of inventory in the channel, would you anticipate the third quarter being relatively flat or perhaps even down before we start to see a jump up into the fourth quarter. We’re just trying to if you could help us understand the sequencing just given the fact that feedback on the product and the product performance has been very positive.

Just sort of how we should think about that trajectory because it really was such a strong launch. I don’t think we want to get expectations sort of ahead of ourselves.

David Motazedi, President and CEO, Evolus: Yes. It’s a great question on Evolese. And really, idea of the fifty-fifty mix of the revenue was really based on, one, just to appreciate sort of how we ended up there. We sampled very heavily our top customers in the second quarter right after we launched. A number of those customers then placed an initial order and then a number of those reordered as well.

So we worked through sort of the flow of the product by customer type and came up with a thoughtful view on what the pull through was. I think the answer on the third quarter rather than just focusing on that, what I would say is really focusing on the back half of the year based on the guide we gave you. I think you can back into a view that the third quarter is generally going to be softer in terms of demand than the fourth quarter. And so naturally, we’d always expect the fourth quarter to be stronger. And so from there, you’d want to back into what your assumption is for the third quarter without giving you specific guidance.

Douglas Zhao, Analyst, H.C. Wainwright: Okay, great. Thank you so much.

Conference Operator: Thank you. Our last question comes from the line of Sam Eber with BTIG. Please proceed.

Narek Segarian, VP of Global Investor Relations and Corporate Communications, Evolus0: Hey, good afternoon. Thanks for taking the questions here. Maybe I can start on the filler side and how the go to market strategy is being received by customers thus far. And I guess as a follow-up, if the current environment within the toxin market is making you rethink potential bottling opportunities with Truvaux?

David Motazedi, President and CEO, Evolus: Sure. Well, first, the Evolisse launch, as I mentioned earlier, it exceeded all expectations that we had. The Drop the Effort campaign immediately set us apart in the category, especially at a time when the overall category for fillers has been in a constant decline. And I think that approach opened many accounts up to be receptive to our messaging, which is very differentiated from the competitive sets of the Cold X technology, creating a more natural gel and our differentiated label, which talks about weight loss combined with our head to head data versus one of the market leading hyaluronic acid. When we coupled that with our Evolus Academy, our initial training webcast, we had over 3,000 doctors that joined that initial call to hear from key opinion leaders in the space.

And since then, we’ve trained a number of key opinion leaders to be trainers as part of our Everest Academy, and they’re out training throughout the country on this new technology. From a consumer standpoint, we’ve had really strong media coverage. When we compare back to historical product launches, this really stands out. We’ve had the major media outlets independently cover us in exclusives. We did receive a number of best in class awards from journals like Shape Magazine and Allure.

And I think those types of things lend further credibility in the consumer’s eyes around how the product performed. And so overall, we feel that the metrics around this launch are incredibly strong despite a backdrop that as we talked about is has been challenged. And so we feel good about the trajectory we’re on there. As it relates to Jeuveau, look, I think Jeuveau’s performance in its sixth year end market continues to be strong. As we entered this year, there’s a question around whether we could coming out of the first quarter maintain sort of this 14 share.

And through the front half of the year, we have despite the fact that we recognize the backdrop of overall procedural volume declining does create mask that overperformance in the market. We do think Jeuveau is very well positioned in this market. We referenced the data that Rui talked about, which is the first independent head to head study. And I can tell you, we’ve shared that with many clinicians and does resonate with them. And coupling that with our ability to do consumer marketing differently as a beauty company, we’re leaning further into that here in the third quarter in helping pull through the business.

And I do believe once you step back from the macro environment, what you would say is the fundamentals of our business are intact. The launch is off to an incredibly strong start. Jeuveau is performing within the market of neurotoxin and our international expansion is right on track. So we feel there’s a number of bright spots despite the overall top line coming down. And then, of course, the expense base that we now operate under creates a meaningful opportunity as you think about the back half of the year and into next year to overperform on our goals of profitability.

Narek Segarian, VP of Global Investor Relations and Corporate Communications, Evolus0: Okay. Okay. That’s helpful. And then coming to the reiterated 2028 targets, can you just maybe help me think about the levers to get there with the deceleration now in the toxin market? Is it assuming a faster rebound and reacceleration in 2026?

Is it market share gains beyond the 14% you have now? Is it Evolese going beyond initial expectations? Just walk me through the levers to get to the 2028 targets. Yes.

David Motazedi, President and CEO, Evolus: Rather than getting the levers, I think I’ll keep it pretty simple for you. If we had an internal forecast that was well above the $700,000,000 and revising down our guidance here, we effectively slowed that revision down into our forecast out to 2028, and we continue to remain at or above that $700,000,000 mark. I think as we close out the year, we’ll give you an update in terms of a combination of our views on the rebound as well as what this means as you go out to 2028. But for now, I think it’s clear that we continue to remain on track to get there based on the original models that we had designed. And what we’ve done here in the reduction in guidance doesn’t change that outlook.

Narek Segarian, VP of Global Investor Relations and Corporate Communications, Evolus0: Thank you.

Conference Operator: Thank you. There are no further questions at this time. I’d like to pass the call back over to David for any closing remarks.

David Motazedi, President and CEO, Evolus: Thank you. As we close out the 2025, we remain strongly positioned in our category with multiple growth engines driving our momentum. We gained toxin share in the front half of the year, outperforming a category that continues to face headwinds from softer consumer sentiment and lower procedural volumes. At the same time, we executed the most successful U. S.

Filler launch in over a decade with Evolisse, which is establishing itself as a contributor to our growth and a cornerstone of our long term strategy. Internationally, we continue to scale our footprint across key markets, further validating the strength and global relevance of the Evolus brand. We are well capitalized and operating with a leaner, more efficient cost structure that supports our path to profitability in the fourth quarter and sets the foundation for sustained growth in 2026 and beyond, while maintaining our focus on long term value creation.

Rui Avilar, Chief Medical Officer and Head of R&D, Evolus: Thank you.

Conference Operator: We’ve reached the end of our call. You may now disconnect your lines. Thank you for your participation.

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