Earnings call transcript: Evolus Q3 2025 posts revenue growth amid market challenges

Evolus Inc. reported its third-quarter 2025 earnings, revealing a mixed financial performance. The company posted a global net revenue of $69 million, surpassing revenue forecasts but missing earnings per share (EPS) expectations. Evolus’ stock reacted positively, closing up 6.4% despite a decrease in aftermarket trading.

Key Takeaways

• Evolus’ Q3 revenue grew by 13% year-over-year, reaching $69 million.
• EPS was reported at -$0.24, missing the forecast of -$0.15.
• Stock closed up 6.4% on the day of the earnings release.
• Jeuveau maintained a 14% market share in the U.S. despite a down market.
• Evolisse launch contributed $15.5 million in revenue since its debut.

Company Performance

Evolus demonstrated resilience in Q3 2025, achieving a 13% year-over-year revenue increase despite a challenging aesthetic market environment. The company maintained its position as the third-largest toxin brand in the U.S., leveraging product differentiation and strategic initiatives to capture market share.

Financial Highlights

• Revenue: $69 million, up 13% year-over-year.
• Jeuveau revenue: $63.2 million.
• Evolisse revenue: $5.7 million.
• Gross margin: 66.5% reported, 67.6% adjusted.
• Non-GAAP operating loss: $3.1 million, improved from $6.7 million in 2024.

Earnings vs. Forecast

Evolus reported an EPS of -$0.24, falling short of the forecasted -$0.15. Despite this, the revenue of $69 million exceeded expectations by 1.94%. The earnings miss represents a 60% surprise, indicating challenges in cost management or lower-than-expected operational efficiency.

Market Reaction

Evolus’ stock closed the day 6.4% higher at $6.41, reflecting investor optimism. However, in aftermarket trading, the stock saw a slight decline of 0.16%. The broader market trends and Evolus’ strategic positioning likely contributed to the positive sentiment.

Outlook & Guidance

Evolus projects total net revenue of $295-$305 million for 2025, representing an 11-15% growth. The company anticipates achieving profitability by the end of 2025 and sustainable annual profitability in 2026. Key upcoming initiatives include the FDA approval of the Sculpt injectable product expected in 2026.

Executive Commentary

"We’re a company operating with focus and efficiency," said CEO David Motizetti, emphasizing Evolus’ strategic discipline. CFO Tatiana Mitchell added, "The fundamentals of our business are strong," highlighting the company’s robust market position despite external challenges.

Risks and Challenges

• Market Saturation: The aesthetic market’s decline poses a risk to sales growth.
• Regulatory Approvals: Delays in FDA approval for new products could impact future revenue.
• Economic Conditions: Broader economic pressures may affect consumer spending on aesthetic products.
• Competitive Pressures: Increased competition could erode market share and pricing power.

Q&A

During the earnings call, analysts inquired about Evolus’ tariff mitigation strategies and the adoption of Evolisse. The company detailed its training initiatives and discussed differences between its Smooth and Form gel products, indicating a focused approach to product differentiation and customer engagement.

Full transcript - Evolus Inc (EOLS) Q3 2025:

Conference Operator: Good afternoon, everyone, and thank you for standing by. Welcome to Evolus’ Third 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’ third quarter financial results. Our third quarter press release is now on our website at evolus.com. With me today are David Motizetti, President and Chief Executive Officer Tatiana Mitchell, Chief Financial 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.com. With that, I’ll turn the call over to our CEO, David Motizetti.

David Motizetti, President and Chief Executive Officer, Evolus: Thank you, Narg, and good afternoon, everyone. Before we begin, I’d like to take a moment to welcome Tatiana Mitchell as our new Chief Financial Officer. Tatiana brings deep financial and operational expertise to Evolus, and she has made an immediate impact as we strengthen our focus on efficiency and long term growth. The third quarter marks an important transition for Evolus. And before I discuss the results, I want to take a moment to recognize the outstanding efforts of our team.

Over the past year, we successfully created or expanded a number of capabilities, solidifying the foundation for long term growth. Most notably, our medical education platform has evolved into a comprehensive training ecosystem, working with world renowned experts in the field of aesthetics to engage more than 17,000 injectors year to date through cadaver lab, in office hands on sessions, mobile app training with our Evolus bots across 100 events and digital webcasts. Our Evolus consumer loyalty program has now grown to more than 1,300,000 members, up 34% year on year with nearly 70% returning customers, underscoring the strength of our consumer engagement. Our first in class Evolux co branded media program has reached over 1,400 accounts year to date and generated over 300,000,000 media impressions through digital, billboard and streaming campaigns, further amplifying awareness of the Evolus brand. Our Evolus launch is off to an incredible start.

To date, more than 4,000 customers have completed hands on training, and the majority have purchased Evolus. One of the key insights we’ve learned is that first training builds familiarity and comfort with the product, while the second training is what drives meaningful adoption. In fact, 75% of Adelie’s revenue, customer accounts that have participated in hands on training, and we’ve seen 100% increase in purchasing volume when an account is trained a second time. This clearly underscores the value of continued education in building product confidence and driving consistent use. Internationally, we entered two new markets this year, and our mature markets are continuing to grow at a very high rate.

In The UK, our most mature direct market, we estimate that our market share closely mirrors the share uptake we experienced in The U. S. Following launch. Lastly, despite the headwinds in The U. S.

Aesthetic market, Jeuveau continued to outperform the category with unit volume growing year to date and on track to continue that trajectory in a market that remains down single digits this year. Our above market performance and disciplined expense management have positioned us to enter the next phase of our growth trajectory, achieving profitability in the 2025 and positioning us for sustainable annual profitability beginning in 2026. We’ve rebased our expenses with the benefits reflected in our third quarter results and remain well positioned to deliver sustainable profitability. While the aesthetic market continues to face near term challenges related to consumer spending, we’re encouraged by early signs of stabilization and expect demand for injectables to continue to improve sequentially. Against this backdrop, Evolus continues to deliver results that demonstrate the strength of our strategy and the resilience of our brand.

In the third quarter, our revenue increased 13% due to strong global demand and meaningful early contribution from Evolisse in The U. S. Following a challenging second quarter, global Jeuveau performance in the third quarter reflected healthy demand as the business experienced sequential revenue growth in what is typically a seasonally lower quarter. Jeuveau sales benefited from positive unit growth both in The U. S.

And internationally supported by record consumer demand through our Evolus Rewards program. As the market strengthens and the overall toxin category returns to growth, Jeuveau is poised to regain healthy momentum. We strengthened our 14% share of The U. S. Market year to date, reinforcing the synergy within our portfolio and our differentiated positioning as a leader in performance beauty.

With Evolisse, we continue to lay the foundation for adoption and scale, delivering $5,700,000 revenue in the third quarter and $15,500,000 since launch, marking the strongest filler debut in over a decade. Demand for Evolisse increased sequentially over the run rate of approximately $5,000,000 after factoring for initial stocking by accounts in our last quarter. We’re particularly excited about the performance of Evolisse as feedback from customers has been exceptional, highlighting the product handling, results and seamless integration in their practice. This further validates our beauty first strategy to build a full facial aesthetics portfolio under a single trusted brand. Through this launch, we targeted our highest volume Jeuveau account and gained valuable insights that will aid us as we now expand our focus to a broader customer base in the fourth quarter.

Our launch to date strategy was focused on establishing Evolise as a differentiated product independent from Jubeau, and we intentionally avoided bundling during this initial phase. As we approach six months of experience with Evolus on the market and its practices are now planning for the New Year, the fourth quarter is the right time to bring the value of our two portfolio products together. This quarter, we’ve introduced our first Evolus portfolio bundle designed to reward practices that grow across both Jeuveau and Evolise. This initiative enables us to compete more directly against competitive bundles and drive market share gains across the portfolio. In the third quarter, we expanded our customer base by adding nearly 500 new purchasing accounts, bringing our total to more than 17,000, 2,000 of which are now also purchasing Evolese.

Our Evolus Rewards consumer loyalty program remains a central growth driver, fueling both repeat use and brand engagement. Total redemptions grew 34% compared to the prior year quarter. New redemptions for the quarter were record $244,000 of which approximately 68% came from existing consumers. Duvaux and Evolisse are building lasting consumer loyalty, which fuels the sustainable growth and profitability of our portfolio. In parallel with our commercial execution, we achieved a key regulatory milestone with the submission of our PMA to the U.

S. FDA for Evolve’s Sculpt, our advanced injectable HHL for mid face volume restoration. We expect FDA review to follow the standard PMA pathway with potential approval anticipated in the 2026. We also remain on track for a broader launch of Esteem in Europe in the 2026. Before I close, I’d like to address the recent developments related to tariffs.

We’ve taken proactive measures to mitigate potential tariff impact on pharmaceuticals, including Jeuveau. We will provide additional clarity once the trade agreement with South Korea and pharmaceutical tariffs are finalized. But the current timeline gives us a valuable window to strategically plan and prepare for any changes. We remain confident in our ability to navigate these dynamics effectively without disruption to our customers or our financial performance. In summary, our third quarter results reflect above market growth, financial discipline and the early benefits of our expanding portfolio.

With Jeuveau performing steadily, Evolite building scale, a theme on track for launch in 2026 and a resetting of our expense base, Evolus remains well positioned to achieve sustainable profitability and long term growth. With that, I’ll turn it over to Rui for an update on Evolus and our recent S. P. Submission.

Rui Avilar, Chief Medical Officer and Head of R&D, Evolus: Thank you, David. Since the launch of Form and Smooth here in The U. S, the feedback continues to be consistent. This line of gels are described as being efficient in that a given amount of product goes a long way. They have a low inflammatory profile and are very versatile.

On the development side, Evilysculpt is our injectable that targets the premium mid face volume market and is currently making its way through the FDA process. In August, the first disclosure of the data was presented. The study compared Sculpt to Restylane Lift in a prospective double blind randomized trial and enrolled three zero four patients in the three:one ratio. Using a validated five point scale, patients with moderate, severe or extreme mid face volume deficit were eligible for treatment then followed for twenty four months. The primary endpoint was non inferiority design, measured at six months and looked at the difference in mean change in mid face volume deficit scores after treatment.

Patients were treated in the cheek area and the mean volume of product used was 1.8 per cheek or 3.7 per patient. The primary endpoint of non inferiority was met with the difference in favor of Evali’s sculpt. The confidence intervals demonstrated both non inferiority and statistical superiority. The corresponding p value also demonstrated statistical superiority at less than 0.001. The secondary endpoint looked at responder rates of each treated cheek, defined as at least a one point improvement on the scale.

At six months, eighty three percent of cheeks treated with Restylane Lift over responders compared to ninety one percent in the Evolese Sculk group with the P value that reached the level of statistical significance at 0.015. Following the patients over the course of two years, there was a pattern of increasing separation across the efficacy metrics over time between the two groups, favoring heavily scoped over the control. A one point change on the validated volume deficit scale represents a clinically meaningful improvement. Looking at patients with at least a one point change as assessed by the blinded evaluator at twenty four months or the study’s end, eight percent of lift patients were responders compared to twenty nine percent of skull patients, over a threefold difference at the end of two years. The pattern was similar when looking at the global aesthetic improvement scale as assessed by the patient themselves.

At twenty four months, thirteen percent of lift patients responders compared to twenty nine percent of skull patients. Treatment related adverse events between the two groups were similar, eighteen point seven percent for LIFT and nineteen point seven percent for Sculpt. And there were no treatment related serious adverse events in either of the groups during the trial. As mentioned, the PMA for Sculp was submitted in the third quarter of this year, and we anticipate FDA approval in the 2026. Lastly, the LIP injectable trial is fully enrolled, ongoing, and we anticipate its approval and launch in 2027.

With that, I’ll turn it over to Tatiana to walk you through the financial details.

Tatiana Mitchell, Chief Financial Officer, Evolus: Thank you, Rui, and thank you, David, for the warm welcome. Over the past sixty days, I have had the opportunity to get to know the Evolus team and spend time with some of our customers. It’s been energizing to see firsthand what makes this company unique, and I wanted to share a few observations before we move into the results. First, Evolus has a highly differentiated business model. As a cash pay focused company in a multibillion dollar aesthetics market, we have built meaningful relationships with both customers and consumers.

Our ability to connect with both groups, driving customer growth and retention while deepening consumer loyalty gives us a multitude of levers to drive performance. Based on my experience and scale consumer businesses, Evolus is still in the early stages of realizing our full potential. Second, the fundamentals of our business are strong. We have built productive long term partnerships with Daewoong and Simatase. And our expense base has been successfully rebased following the second quarter, all while continuing to deliver on our revenue targets.

This positions us well to drive operating leverage and profitability going forward. Third, we operate in a high growth category with long term secular tailwinds. Our strategy of building a facial aesthetics portfolio under one trusted brand provides a strong foundation for continued expansion and innovation. We are confident in delivering profitability with our current portfolio while actively pursuing strategic business development opportunities to expand our pipeline. And finally, I’ve been impressed by the strength of the Evolus culture.

The grit and focus on impact that I’ve seen across the organization are what makes me confident in our ability to deliver on our long term goals. I’m joining Evolus at a pivotal moment, one where the foundation is strong, the opportunity is clear and the team is focused on execution. I look forward to partnering with David and the leadership team to drive profitable growth and long term value for our shareholders. With that, I’m pleased to share our third quarter financial results. Global net revenue for the third quarter was 69,000,000 a 13% increase over the 2024.

Sales growth in the third quarter was driven by a combination of the introduction of Evolisse and growth in global Jeuveau. And on a sequential basis, sales growth in the third quarter was driven by accelerating demand for Jeuveau, increasing underlying demand for Evolisse and continued strength in the international business. Net revenue for the 2025 included $63,200,000 of global Jeuveau revenue and $5,700,000 of Evolisse revenue. Our reported gross margin for the third quarter was 66.5%, and adjusted gross margin was 67.6%, which excludes the amortization of intangibles. Earlier, we touched on the topic of tariffs.

There have been recent announcements related to potential tariffs on pharmaceutical products. At this time, the impact on Jeuveau is still being evaluated, pending additional guidance by the administration. Current inventory levels will sustain us through the 2026, and therefore, Jeuveau will not be subject to any near term tariff impact. Separately, under the recently announced trade agreement with the European Union, Evolus is subject to a 15% tariff that began August 7. This tariff has been fully incorporated into our outlook and has a minimal impact on our financials.

We continue to actively monitor global trade agreements and remain focused on mitigating any potential future exposure while ensuring stable supply for our customers. Moving now to operating expenses. GAAP operating expenses for the third quarter were $57,300,000 up from $55,500,000 in the second quarter. As a note on the sequential comparison, Q2 twenty twenty five GAAP operating expenses benefited from a $3,900,000 reduction related to the revaluation of the contingent royalty obligations. Non GAAP operating expenses for the third quarter were $49,700,000 compared to $54,000,000 in the second quarter.

As a reminder, non GAAP operating expenses exclude stock based compensation, revaluation of the contingent royalty obligation and depreciation and amortization. This quarter, non GAAP operating expenses also exclude $1,400,000 in restructuring charges, primarily consisting of one time severance benefits for impacted employees. These restructuring expenses are related to the strategic cost structure optimization announced in August. Within operating expenses, selling, general and administrative expenses for the third quarter were $52,800,000 compared to $56,700,000 in the second quarter. This included $5,000,000 of non cash stock based compensation compared to 4,300,000 in the prior quarter.

Non GAAP operating loss in the third quarter was $3,100,000 compared to non GAAP operating loss of $6,700,000 in 2024. The better than expected third quarter result was due to operating expense reduction and in part to the timing of our largest customer event of the year, which moved from Q3 to Q4. As a result of this timing shift, the associated costs of the customer event will be recognized in the fourth quarter rather than the third, while the full year impact remains unchanged. Both non GAAP operating expenses and non GAAP operating income exclude stock based compensation expense, revaluation of the contingent royalty obligation, depreciation and amortization and restructuring charges. Non GAAP operating income also excludes amortization of intangible assets.

Turning to the balance sheet. We ended the third quarter with $43,500,000 in cash as compared with $61,700,000 at the end of the second quarter. The decrease in cash during the quarter was primarily driven by our decision to pull forward inventory purchases ahead of potential tariffs on pharmaceuticals. Looking ahead, underpinned by our strong third quarter performance, our outlook for 2025 remains unchanged and includes the following: Reiterating total net revenue between $295,000,000 and $3.00 $5,000,000 representing 11% to 15% growth over 2024 results. We continue to expect Evolus revenue contribution to be between 1012% of total revenue for the full year 2025.

Full year non GAAP operating expenses to remain between $2.00 $8,000,000 and $213,000,000 Non GAAP operating income between $5,000,000 and $7,000,000 in Q4 twenty twenty five, which includes the timing of costs related to our customer events that shifted from the third quarter to the fourth quarter. In addition to our continued expectation to achieve profitability in the 2025, we also remain on track to achieve sustainable annual profitability beginning in 2026. With that, I will now turn the call back to David for closing comments.

David Motizetti, President and Chief Executive Officer, Evolus: Thank you, Tatiana. Amid a challenging macro backdrop, our double digit growth reflects the strength of our business fundamentals and the consistency of our execution. We’re a company operating with focus and efficiency, maintaining financial discipline while advancing on one of the most differentiated injectable pipeline in aesthetics. As we move into the fourth quarter, we’re deepening customer engagement with the introduction of our Evolus portfolio bundle, which aligns incentives and drives growth across our injectable portfolio. With Jeuveau in the number three share position and gaining on the market leader, Evolus in the early stages of scaling and a theme set to launch in Europe in the 2026, we are well positioned to deliver sustainable growth, profitability and long term shareholder value.

Operator, you may now begin the Q and A.

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

Annabel Samy, Analyst, Stifel: Guys, thanks for taking my question and great recovery on the quarter. I just wanted to ask you some questions about, I guess, the filler dynamic on Evolese, how much of what you’re seeing for Evolif includes a headwind for stocking versus seasonality versus say market sentiment? I guess maybe some macro commentary could be useful here. Like for example, has sentiment shifted is sentiment still poor for fillers or are you seeing meaningful headwind from free product for injectors to trial? And could you potentially quantify any of this?

And I guess from here, can you sort of give us a better sense of what we can expect of the cadence? And then just that was a lot of questions, but one more on this. I guess you mentioned there were about 4,000 trained and 2,000 have adopted, I believe. Do you have any metrics for the time that it takes to go from like, say, first training to second training into adoption? How should we think about the conversion of those patients those physicians who have initially trained?

Thanks.

David Motizetti, President and Chief Executive Officer, Evolus: Great. All really good questions, Annabel, around Evolese. And I’ll try to maybe dimensionalize it for you for just a minute. We take a couple of steps back, the one thing I’d say is when we launched, we focused initially on our core Evolus customers. And I’m really proud that in our first six months, when we look at our Jeuveau revenue, half of our revenue for Jeuveau is purchased Evolise.

So I think our focus on that Evolise customer set has been very productive for us. To your point, the recipe that we’ve uncovered that’s been effective is to expose them to the product through our sales force, bring them in for training. One live hands on training is very useful for them to have enough confidence to start trialing the product in their patients. But it really is consistently that second training that changes from trialing the product or dabbling with it to turning into an adopter. And that is really the key insight that we’ve gained over the last couple of quarters with this product.

We see a significant inflection point in those clinics when they get through that second training. As you can imagine, the first quarter that we launched, we had very few that actually had the opportunity to get trained 2x. And so we started to see that more in the third quarter. And you can expect a number of those trainings second trainings are booked in the fourth quarter. That’s a very significant part of the uptake within our core group.

The second is in the fourth quarter, now that we’ve learned this product, and keep in mind, The U. S. Is the first market that’s launched Evolus. So we’re relying on our learnings here in The U. S.

To continue to adapt our launch. We’ve now opened the door for Evolus to go wider beyond our current Evolus customer base. And so you’ll see the results from us being able to replicate what we’ve done over the first six months with our core customer group to a broader audience of customers. That’s the second. And then lastly, as you pointed out, on the full year, the market, as we’ve read reports from our peers in the space, the market is down double digits.

It continues to be relatively challenged, partly due to the macro environment. At the same time, Q3 is the seasonally low period for injectables as well. So you sort of have a compounding effect, if you will, in the that’s unique to the third quarter. Whereas in contrast, the fourth quarter, we expect will be the strongest quarter of the year and will be now three quarters into our launch. So as you think about our guide for the full year, it reflects those market dynamics of the fourth quarter being sort of the culmination now of six months of experience, our key learnings on the product and the benefit of the seasonality working favorably for us.

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

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

Alyssa Larios, Analyst, Leerink Partners: Hi, everyone. This is Alyssa Larios on for Mark Goodman. Just a few questions from us. Could you comment on the usage trends between Evelisse Smooth and Form and how those two different product lines are being used across the consumer base? And then can you give us an update on the advertising campaign and remind us exactly what channels you’re using, whether it’s DTC or going directly to the clinics themselves?

And then finally, you mentioned that you intentionally avoided bundling the filler and toxin in the initial phase. I’m just curious what the rationale was for doing that. If you can walk us through your thought process? That’s it. Thank you.

David Motizetti, President and Chief Executive Officer, Evolus: Great. Why don’t I start with bundling the advertising, and then I’ll comment on the usage soon and format. I’d like Rudi to add any color because both Rudi and I have spent a lot of time with customers trying to understand how they do position it, and there are some interesting insights there. So just on the bundling piece, it became very clear to us as we’re preparing for the launch of Evolise that customers weren’t looking for us to bring a new product to market and sort of force it on them because they’re customers that use our primary products, HUGO. And instead, following a number of advisory board meetings and looking at prior product launches, we chose to take a different route, which is let the product stand on its own and allow these customers a period of multiple quarters to learn through the product before we start to think about bringing our portfolio together.

So it’s very deliberate. In the first quarter that we launched, the product was entirely independent. In the second quarter, we introduced consumer loyalty. We didn’t want to introduce that too early. We wanted accounts to get comfort with the usage of the product before we exposed consumers to the loyalty benefit.

And now in our third quarter following launch, it’s now the right time where customers are asking us about what the future of our portfolio is. As you can imagine, they are currently partnered with the larger companies, and they commit to these larger portfolio purchases as part of their ongoing commitment to gain better pricing. Today, by keeping them independent, there’s no advantage to bringing the full portfolio under Evolus. And so we provided this growth portfolio bundle offering in the fourth quarter as our first test of how we’ll bring the portfolios together. And this will carry through into next year.

And so this is our first attempt at doing that. And I can tell you that we tested it in one of our larger customer meetings that Tatiana mentioned, that was a result of the phasing of spend into Q4. And it was very, very successful in terms of the reception we got to it. On the DCC side, look, our strategy is more focused around co branded media. So all of the advertising we do is surrounding each clinic individually.

And we’ve been able to build a model with Evolus where we do personalization at scale. And part of that personalization is around our co branded media in the form of streaming TV spots, billboards within local markets, and the heaviest portion of it is digital media. That could be social, it could be search, and it does vary by market. And as I said, there are over 1,400 accounts that have participated in our co branded media benefits. So it’s not an insignificant portion of our customer base, but they have to meet certain purchasing criteria to gain those benefits.

And so and then lastly, on the usage of Smooth and Form, both products have the same indication, which is the nasolabial fold, but the properties of the gels are very different. And we’re learning more and more about their personality as injectors are generally purchasing both. We have very few that are entirely using one or the other, mainly because the properties are smoother, that’s a softer gel, whereas the form product provides more structure. And so our label may be limited in nasolabial fold, but of course, the usage expands beyond that. And so what we’re hearing consistently is where they’re looking for a product to fill in areas more to create more of a smoothing effect, that’s where they’re leaning towards smooth.

And when they’re looking for greater structure in a product, that’s where they’re reaching for the form. But I’ll transfer to Rudi.

Rui Avilar, Chief Medical Officer and Head of R&D, Evolus: Sure. I’m just going to paraphrase a little bit. The indication is actually broader. The indication is medium to deep wrinkles and folds. And the nasolabial fold is one example of that.

You can also go into the marionette lines. And if you look under that lower lip, sometimes there’s a deep fold in there, it’s called the submental fold. And there’s a lot of versatility with these products. And, when a clinician looks at a wrinkle or a fold, for example, nasolabial folds one example, they can look at it strategically and think, I’m taking all the attributes of this patient. Are they thin?

Are they heavy? Skin quality, all these different things. And if their strategy is to try to use something more superficially, then they’ll reach for smooth. It’s got a rheological profile that’s very soft and you can bring it up very superficial. If the strategy is different and you want to create a little bit more lift and you need some more lifting power, your strategy is going to be deeper.

So you go into form. And sometimes you combine the two, you layer them. You want something with more lift underneath and you want to smooth it out. So that’s one group. And then in Europe, Smooth is actually approved for perioral fine lines and off label here in The United States, but we’re living in a global environment and people understand that, that product can be used so superficially that it will be used in parallel lines.

And the other thing that’s come in that’s been very interesting is a recurrent comment that these gels are incredibly efficient. And what they typically say is I reach for a gel and I may go for something that needs more lift such as a form and I get I’m done and I still have product leftover. And this product is so forgiving that I can continue through different parts of the area or even go superficial in the area that typically couldn’t with the gel that has these properties. So that’s been the feedback so far. For us, that was kind of reassuring because it was very consistent with the feedback we got before we brought the product on, and that’s always nice to see that confirmation.

Conference Operator: Excellent. Thank you so much. Thank you. Our next question comes from the line of Yvonne Tighe with BNP Paribas. Please proceed.

Yvonne Tighe, Analyst, BNP Paribas: Hi, good evening. First, can you discuss in more detail the Q3 actions underlying the sequential growth for Jeuveau despite the seasonality, including that Evolus Day event and practices support and potential promotional activities and whether you expect similar actions in Q4, such as the eleventh day? And then second, we know that AbbVie commented on their Q3 call that their middle income customers for BOTOX are on the sidelines. So can you discuss the early signs of consumer stabilization that you are seeing? Thank you.

David Motizetti, President and Chief Executive Officer, Evolus: Sure. Thanks for the question, Navan. I think what we saw in the second quarter, as we commented before, was a unique point at the end of the quarter where we saw a pullback in customer purchasing that was really unique to the second quarter that we hadn’t observed before. We did not see that dynamic in the third. We maintained a consistent promotional effort.

We and we always do, both on the consumer side through our loyalty platform where we did engage consumers that we saw stretching their intervals between treatment with a way to bring them back down back into their normal routine. We also were able to do some things in the market around the clinics with partnerships. We did have a partnership with consumer magazine, Allure, where there was a gift with purchase that consumers were able to partner with us on that did drive a lot of interest in our product. And then of course, now as we enter the fourth quarter, as you pointed out, this is our annual eleventh day, which kicked off towards the October. And it’s we’re in the middle of it now and it’s a very important phase for us as our customers look at that annually.

Yvonne Tighe, Analyst, BNP Paribas: Thank you.

Conference Operator: Thank you. Our next question comes from the line of Yves Eer with Mizuho Securities. Please proceed.

Yves Eer, Analyst, Mizuho Securities: Hey guys. Yes, congrats on the positive quarter here. So maybe a question on well, could you maybe just tell us the split between U. S. And ex U.

S. Sales for Jeuveau? And maybe also kind of help us understand, I think you indicated that you strengthened your 14% market share. Maybe just help us understand what you mean by that, as well as what are you kind of seeing, I guess, in terms of your customer base, who are who could be different from what AbbVie the customer base that AbbVie or Galderma have? Thanks.

David Motizetti, President and Chief Executive Officer, Evolus: Yes. Let’s start with what we’re seeing in terms of just overall in the market. Obviously, the only two companies that report down the revenue and break out that level of details is both us and AbbVie. So through that, what we see is a market that in the third quarter likely declined by some small degree. And we continue to outpace when you look at our year to date Jeuveau in the declining market, we’ve grown in terms of units.

What’s probably most promising is you see our consumer rewards data where the overall redemption, that’s consumers going in, getting treated and earning their $40 off. It’s up over 30% year on year. So we continue to see very healthy demand for the product in these clinics, And we’re continuing to, we believe, improve our presence there. Now that all at the same time, we’re establishing our beliefs in these clinics. So overall, we feel very good about how Jeuveau has performed out of the third quarter, And we hope to see that momentum continue.

The second part was yes, around that was the 14%. Yes, as far as the we don’t do segment reporting on the toxin business, Louis. So unfortunately, we won’t be able to give you that color. But we did in the script make the comment that both The U. S.

And in the international business are growing positive in terms of units year

Narek Segarian, VP of Global Investor Relations and Corporate Communications, Evolus: to date. So I think

David Motizetti, President and Chief Executive Officer, Evolus: it gives you some color around there’s growth happening on both sides on top of that lease.

Yves Eer, Analyst, Mizuho Securities: Okay. Can I sneak in another question? You’re now going to bundle the product. Maybe just help us understand the potential synergies that you could get from this. Do you expect in some of the accounts, I think, you’re heavily penetrated in terms

Tatiana Mitchell, Chief Financial Officer, Evolus: of

Yves Eer, Analyst, Mizuho Securities: Jeuveau. Do you expect greater significantly greater penetration there? Or do you think the synergies will work sort of will be greater synergies in terms of Everly’s? Just help us understand the dynamic and the potential and the magnitude. Thanks.

David Motizetti, President and Chief Executive Officer, Evolus: Yes. I think my view is the portfolio bundle is a long play for us. This is a very early innings. We’ve been operating as a single product company and without a bundle for seven years. And you’ve seen us establish Jeuveau as the fastest growing brand for the majority of those years since we entered the market.

And we’re the first company to break through the double digit mark outside of the initial two players to enter the space. We do believe this is a meaningful opportunity for Jeuveau. There are countless conversations that we’ve had with clinics where their Jeuveau usage is limited by the downside risk they have by moving over more of their share to us on their total purchasing with some of the competitive products. The idea of a bundle unlocks and alleviates some of that pressure. And I think the reason I say it’s a longer term endeavor is because Sculp further unlocks it because it further expands our portfolio within the space, which is an important part of continuing to move more of their business over.

So I view the fourth quarter as the first of many quarters to come where we’ll start talking a little bit more about the advantage of the portfolio.

Yves Eer, Analyst, Mizuho Securities: Okay. Thank you.

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

Douglas Tsao, Analyst, H.C. Wainwright: Hi, good afternoon and congrats on the progress. David, I guess, I’m just curious, have you seen that effect yet in the marketplace, meaning sort of accounts that were perhaps not purchasing HUGO because they were very defensive around sort of the bundle with Allergan or AbbVie and now are beginning to be able to purchase Jeuveau as well as Evolisse? Or is that more of the sort of a conversation that you’re starting to have?

David Motizetti, President and Chief Executive Officer, Evolus: Yes. We have had a combination of both inbound interest from accounts that weren’t working with us on Jeuveau and they’re interested in Evolisse and that opens the door for us to begin partnering with them. Now keep in mind, Evolisse is still early, so some of those could be dabblers that will continue to expand their presence. And as a result of that, they’ve started to dabble with So that’s one group of customers. Another group are customers that have been somewhat moderate users of Jeuveau.

And now with Evolisse, they’re looking at us differently. And consistently in the conversation is the idea of having a mid face product, that bringing in a differentiated mid face product, which is a big gap in a lot of portfolios in our industry is going to be a significant point in time to do that. So we’ve used this, if you will, in three stages, right? The first six months was establishing Evolise. The next six months is starting to establish our portfolio value proposition and then opening the doors to follow as Sculp gets to approval, and then we can really use that entire bundle to start to take advantage of it.

So we’ve been deliberate about how we’ve tried to roll these out, especially to support our customers who’ve helped us get here.

Douglas Tsao, Analyst, H.C. Wainwright: And as a follow-up, David, I’m just curious on the co branded marketing side, is Jeuveau remaining the focal point? Or have you had accounts inquire or begin to actually do co branded marketing where Evolise is the focus?

David Motizetti, President and Chief Executive Officer, Evolus: Yes. So the third quarter we started to put out co branded media on Evolise. Some of those co branded media ads had mentioned the weight loss. As you know, we’re the only hyaluronic acid that has mentioned of weight loss in our label. There’s a lot of interest.

Some of those in our billboards now sitting around The U. S, some of them are digital media. And that was one that many Hello? Yes. We’re back, Doug.

Douglas Tsao, Analyst, H.C. Wainwright: I think David, we lost you midstream about the co branded marketing.

David Motizetti, President and Chief Executive Officer, Evolus: Yes. My only comment there was we are seeing co branded marketing on Evolus in the form of billboards as well as digital with a number of them having the mention of weight loss, which is unique to our product. And as we mentioned on the prior call, the more you purchase from Evolus, the more co branded media dollars you earn. And then our team works with those clinics to choose which products they want to highlight between the two Jeuveau and Evolise. And we started to introduce it in the third quarter in the market, and it’s going to continue to rise as we enter the fourth quarter.

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

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

Narek Segarian, VP of Global Investor Relations and Corporate Communications, Evolus0: Hi, good afternoon. David, first question is on ordering patterns. You mentioned earlier, volumes and size of orders kind of dropped off at the end of the second quarter. Just curious what impact that had on inventory levels in the overall ordering pattern throughout 3Q and maybe what you’ve seen in the early part of 4Q right now? Secondly, I think Katjana mentioned that the customer event was moved from 3Q to 4Q.

I imagine that’s the eleven day promotion. What impact did that have on OpEx? And could that be another tailwind for 4Q Juvo sales? Thanks.

Tatiana Mitchell, Chief Financial Officer, Evolus: Okay. Apologies. We are dealing with some technical difficulties, but we are back on. So the question was around the customer event that moved from Q3 to Q4. That was the summit that we have for our largest customers.

It was not the eleventh day promotion. So the eleventh day promotion, as David said, kicked off at the October and is currently underway. And so there’s no change in promotional cadence or any impact on revenue.

David Motizetti, President and Chief Executive Officer, Evolus: Okay. And to your second part of your question around purchasing patterns, Serge, a couple of things that we pointed out coming out of the Q2 earnings call. One is that accounts were drawing down their inventory and we expected that to continue through the third quarter. And so what we’re seeing were accounts that are carrying less inventory and purchasing more on an on demand basis versus placing sort of the larger volume orders that they had been placing before. But collectively, we saw them coming through strong just with over the course of more orders rather than the bigger volume ones.

Now the fourth quarter is the busiest season, so we do expect that the purchase volumes are generally higher. They will be higher than they have been over the past two quarters. But we do expect that inventory levels will continue to be managed carefully in the space as the overall volumes year on year, we expect the fourth quarter hopefully to be relatively flat coming off of a depressed base. So we expect it to be relatively stable.

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

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

Narek Segarian, VP of Global Investor Relations and Corporate Communications, Evolus1: Hi, good afternoon. Thanks for taking the questions. Maybe I can move to the tariff mitigation strategies that you called out in the prepared remarks. So love to hear any more details, I guess, you could provide on potential offsets if we do get tariffs? I know it’s a fluid situation, but would love your thoughts there.

And maybe as a follow-up, if we do get potentially material rates, what’s your ability to, I guess, build in The U. S, manufacturing in The U. S, how long something like that could take to build out? Any thoughts there would be great. Thanks for taking the questions.

David Motizetti, President and Chief Executive Officer, Evolus: Yes, Sam. It’s a great question on tariffs. Like you, we’ve also been watching this very closely and I want to be careful not to get into too much detail here because it’s harder to lay out plans when it’s not entirely clear yet. The Korean trade agreement is nearing a close. So we’re looking forward to seeing that agreement finalized, but the pharmaceutical tariffs and whether those continue to hold are still not yet clear.

I can tell you that we have an incredible partnership with our partner Daewong in Korea. They’re very well aware of the impact of tariffs through conversations we’ve had with them. And they’ve also been very supportive. As you see, on one hand, there’s been a higher impact on our cash burn as a result of pulling forward inventory into The U. S.

That allows us and affords us the luxury of time to be able to get more clarity on some of these unknown items. But as you can imagine, we’re working through it in scenario planning. So rather than going through each of those scenarios, I can tell you that we have a partner that’s committed. We have the luxury of time to work through this. And it’s still unclear, within that range of options, I would just say that we’re open to exploring.

Conference Operator: Thank you. There are no further questions at this time. I’d like to pass the call back over to Narek Segarian for details on an upcoming IR event. Narek?

Narek Segarian, VP of Global Investor Relations and Corporate Communications, Evolus: We hope to see many of you there. Thank you for joining us today.

Conference Operator: This concludes today’s teleconference. You may now disconnect your lines.

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