Venus Concept Inc. Q3 FY2025 earnings call

• Q3 saw 2% growth in EBD sales year-over-year driven by strong execution in a challenging environment, with stabilization in EBD revenue trends noted. - On November 10, Venus Nova received 510 clearance, a next-generation multi-application platform redefining noninvasive treatments, with U.S. commercial introduction expected to contribute to long-term growth, targeting sequential growth in Q4 with limited commercial launch of Venus Nova in December. - Balance sheet and capital structure transformation in Q3 included amendments to increase financing capacity under bridge loan facility and $11.5 million debt-to-equity exchange transactions. - Pending sale of Venus Hair to MHG Co. Ltd. faced challenges with counterparty, and assistance from Delaware court sought, but continued pursuit of closing the transaction. - Product portfolio evolving to focus on total practice performance from clinic entry to post-treatment management.

Total revenue for the third quarter was $13.8 million, down high single digits year over year. Revenue from energy-based devices (EBD) increased 2% year over year to $9.5 million. EBD sales exclude system sales from the Venus Hair Restoration business. The percent of total systems revenue derived from internal lease programs was approximately 27% in 2025 compared to 23% in the prior year period. Cash sales represented approximately 73% of total systems and subscription revenue in the third quarter, with cash sales in the U.S. being 82% of U.S. systems and subscription revenue compared to 76% last year.

• Targeting sequential growth in the fourth quarter, fueled in part by limited commercial launch of Venus Nova in December. - The company is not providing full-year 2025 financial guidance at this time due to active dialogue with lenders and investors and current market conditions.

• Challenges with counterparty in closing the sale of Venus Hair to MHG Co. Ltd., requiring Delaware court assistance. - Customer financing pressures, economic uncertainty, and tight credit markets impacting robotic system adoption in Venus Hair business. - Impact of U.S. tariffs on devices imported into the U.S. market affecting gross margin. - Higher device system cost of goods sold due to manufacturing overheads spread over lower volume base.

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