Evolus, Inc. Q2 FY2025 earnings call

• Second quarter results were below expectations due to challenging market environment; Jeuveau had first year-over-year decrease. • Outperformed on Evolysse launch initially, but last 2 weeks of quarter saw lower order volumes. • Conducted survey of U.S. customers showing patient volume rebound expected in second half. • Revised 2025 outlook: reset revenue to $295M - $305M (11%-15% growth over 2024), rebased non-GAAP operating expense to $208M - $213M. • Jeuveau maintained 14% market share in first half, added 565 new purchasing accounts. • Evolysse had strong first quarter, with full-year contribution raised to 10%-12%. • Internationally, business performing well, Nuceiva launched in France, aim to reach $100M international revenue by 2028. • Results of head-to-head study of neurotoxins validated Jeuveau's performance; Evolysse gel properties praised by clinicians.

Global net revenue for the second quarter was $69.4 million, a 4% increase over the second quarter of 2024. Sales growth was driven by the successful launch of Evolysse and international revenue growth. Net revenue for the second quarter of 2025 included $59.7 million of toxin revenue and $9.7 million of HA gels revenue. Jeuveau experienced its first-ever year-over-year decrease, while Evolysse had a strong first quarter with $9.7 million in revenue, contributing to the overall sales growth.

• Total net revenues for 2025 between $295M and $305M, 11%-15% growth over 2024. • Evolysse revenue contribution for 2025 expected to be 10%-12% of total revenue. • 2025 non-GAAP operating expense between $208M and $213M, expecting $25M+ in savings. • Aim for non-GAAP operating income in Q4 2025 and annual profitability in 2026. • Long-term goal: $700M net revenue and 20% non-GAAP operating income margin by 2028.

• Challenging market environment with soft consumer sentiment and lower procedural volumes. • Tariff impact on Evolysse (15% tariff effective August 7, minimal impact factored in). • Consumer discretionary spending pressure affecting toxin market demand. • Competitive dynamics, though Hugel's impact on toxin market in second quarter was small.

Q: To what extent are you seeing reduced demand related to consumer sentiment versus increased competitor presence? And specific about last 2 weeks of quarter.

A: Believed demand decline was high single-digit in first half, not share/competitive driven; last 2 weeks saw accounts hold back orders due to macro environment.

Q: Did Hugel have any impact?

A: Hugel's sample heavy launch had small impact on toxin market in second quarter.

Q: Can you clarify toxin demand trends and impact on low end?

A: Third-party transactional data shows high single-digit decline in front half, market leader had high teens decline.

Q: Expectations for Jeuveau revenue in H2 and Q4 promotional activity?

A: Adjusted promotional strategy for Jeuveau to help practices, collaborated with beauty magazine for gift with purchase in third quarter.

Q: What drives consumer rebound?

A: Incremental improvement in toxin market sequentially, back half benefits from front half depressed base.

Q: Thoughts on market resilience and consumer sentiment?

A: Current environment different from prior recessions, consumer in $150k or less bracket feeling effects; no significant price increases from tariffs yet.

Q: Reconcile guidance reduction with July recovery?

A: Last 2 weeks of quarter had unexpected slowdown, July sees incremental improvement but not rebound to prior levels.