Evolus, Inc. (EOLS) Earnings

Management highlights

- Overall Business Performance & Portfolio Strategy • The company delivered 21% revenue growth, third consecutive positive adjusted EBITDA, and gained significant market share in the U.S. injectable aesthetics market across both neurotoxin and HA gel segments • The portfolio growth bundle program has driven higher adoption: 70% of bundle customers purchase Avelis, compared to 25% penetration across the overall customer base; accounts purchasing both Javeau (neurotoxin) and Avelis (HA) generate 2.5x higher annual volume than single-product accounts • The company remains on track for Avelis and the international business to each contribute more than 10% of total annual revenue in 2026 - Strategic Partnerships & Portfolio Expansion • Signed an exclusive licensing agreement with IPSA to develop and commercialize Profilo, a market-leading skin quality injectable, in the U.S. Profilo fills a new third injectable vertical (in addition to neurotoxins and HA volume fillers), has no direct U.S. competitor, and is projected to reach over $100 million in peak annual U.S. revenue; no upfront or milestone payments are required for this agreement, maintaining capital efficiency • Expanded the partnership with Cimetase to add exclusive commercialization rights for the company's HA portfolio in Canada, Australia, and New Zealand, expanding annual global addressable market by approximately $200 million • The company's track record of execution and established commercial platform make it a preferred partner for global aesthetic innovators to bring new products to market - International Operations • Successfully launched the Esteem HA gel collection in Europe during the quarter, with encouraging early customer response • UK (the company's most established European market) is approaching 10% neurotoxin market share, with growing momentum in other European markets - Research & Development Pipeline • Sculpt, the premium mid-face HA injectable, is expected to gain FDA approval in Q4 2026 with a 2027 commercial launch • Elise Lips is on track for FDA submission by the end of 2026, with an anticipated 2028 launch • Profilo will undergo a full U.S. PMA approval process (Class III device) with anticipated approval around 2030; three new products are expected to launch over the next four years

Guidance

- Full-year 2026 revenue guidance was revised: the lower bound was raised to $330 million, while the upper bound remains $337 million, increasing the guidance midpoint to $333.5 million (up from prior midpoint of $331.5 million, based on original range of $326 million to $337 million) - Full-year 2026 adjusted gross profit margin guidance was raised to 67.0% to 67.5%, reflecting strong first-half performance - Full-year 2026 non-GAAP operating expense guidance was narrowed to a range of $212 million to $216 million, reflecting disciplined expense management and including incremental investments for the Cimetase geographic expansion - The full-year 2026 low-to-mid single-digit adjusted EBITDA margin outlook is reaffirmed, with no change from prior guidance; the Profilo partnership does not impact profitability targets - Long-term 2028 financial targets are maintained: $450 million to $500 million in annual revenue and a 13% to 15% adjusted EBITDA margin

Segment performance

Global net revenue for Q2 2026 was $84.1 million, representing 21% year-over-year growth. The neurotoxin segment generated global revenue of $75.2 million, contributing approximately 89.4% of total quarterly revenue, with double-digit growth in both the U.S. and international markets. The injectable hyaluronic acid (HA) gel segment generated global revenue of $8.9 million, contributing approximately 10.6% of total quarterly revenue, with sequential revenue growth of over $2 million for the Avelis HA product line. Reported gross margin was 68%, while adjusted gross margin (excluding intangible amortization) was 69%, with a 120 basis point benefit from a recognized tariff refund. GAAP operating expenses were $61.7 million, and non-GAAP operating expenses were $53.3 million. Adjusted EBITDA was positive $4.7 million, an improvement of $12.6 million year-over-year, marking the third consecutive positive adjusted EBITDA quarter. Ending cash and cash equivalents were $45.2 million, with $100 million of additional available liquidity under the company's debt facility.

Risks & headwinds

- Uncertainty remains around future U.S. tariff policy for neurotoxin imports; as a prudent measure, the company is moving one year of Javeau safety stock from South Korea to the U.S., which will increase reported inventory and accounts payable but will not impact cash flow due to negotiated payment terms - HA gel market recovery is still in early stages, and general macroeconomic consumer dynamics could impact aesthetic procedure demand - All forward-looking statements are subject to inherent risks and uncertainties that could cause actual results to differ materially from expectations, as outlined in the company's SEC filings

Analyst Q&A

• Q: What are the clinical requirements for Profilo FDA approval, will the program impact profitability, and how does it fit in the product portfolio versus existing fillers? /

  A: Profilo is a distinct skin quality product that hydrates skin from within via a patented thermal production process, rather than adding volume like traditional HA fillers. It will require a full PMA approval process for Class III devices, with anticipated U.S. approval in 2030. The development cost is already incorporated into existing 2028 profitability guidance, so the program will not impact the company's profitability targets. It fills an entirely new category that complements existing neurotoxin and filler offerings.

• Q: How has the aesthetic market performed recently, what impact are GLP-1 weight loss drugs having on demand, and are you seeing sequential market improvement? /

  A: The U.S. neurotoxin market grew faster-than-expected mid-single digits in Q2, and the U.S. HA market returned to positive growth after two years of declines. Sequential market improvement continued into July, with strengthening spending from younger millennial and Gen Z consumers. The company has capitalized on growing GLP-1 patient demand for aesthetic treatments, as it already has weight loss-related labeling for Avelis, and this has driven stronger Q2 demand that will remain a focus in the second half of 2026.

• Q: What is your current U.S. and global market share for toxins and fillers, and what is driving your recent share gains? /

  A: The company entered 2026 with roughly mid-teens U.S. neurotoxin market share, which continues to strengthen as the business grows at a healthy double-digit clip. In Europe, the UK (the company's most established European market) is approaching 10% neurotoxin market share, with growing momentum in newer markets. Both the U.S. and European HA markets are seeing improving conditions after multi-year declines, and the company's focused portfolio strategy and disciplined commercial execution are driving consistent share gains.

• Q: Can you address concerns about executing multiple concurrent initiatives (Avelis ramp, international expansion, Profilo development) while hitting profitability targets? /

  A: Product launches are staggered over the next four years (three total new launches), and all products are facial injectables that can be commercialized by the same existing commercial team to the same clinician customer base. R&D resources are structured to manage the staggered development pipeline, with existing internal expertise in late-stage development. All new partnerships are structured to be capital-efficient, and the commercial infrastructure was already built out in 2025 to support a broader portfolio, so the company remains confident in hitting all existing profitability targets.