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• Historic expansion of CPT codes for XTRAC 308-nanometer excimer laser effective Jan 1, 2027, expanding indications to over 30 conditions, tripling addressable market. Submitted economic data for potential reimbursement rate increases. - Elevate360 consulting model: 99 of 838 clinics in program, 7% growth for those businesses. Average gross billings per device for U.S. partner clinics up 8.5% vs 2024. - International expansion: regulatory approval in Mexico, but international business challenged by U.S. trade policy. - Litigation update: strong position against LaserOptik, potential damages, over 20 LaserOptik buyers back with STRATA.

• Anticipates seasonally stronger fourth quarter 2025. - Believes in tripling patient population with expanded indications for XTRAC laser and favorable reimbursement trends. - Hopes to move past international tariff issues and expects clarity on fourth quarter in early March call.

Total revenue for 2025 was $6.9 million, down 20% due to international challenges. Recurring revenue was solid: gross code sales increased 4.1%, net U.S. recurring XTRAC revenue rose 2.8%. Global recurring revenue was $5.5 million, up 3% year over year. Equipment revenue was $1.4 million, a 60% decrease compared to the prior year period. Gross profit was $4.2 million (60% of revenue) with gross margin remaining roughly flat. Average gross billings per device for U.S. partner clinics was $5,981 in 2025, up 8.5% vs 2024 and the highest since 2022.

• Lingering impact of tariffs on international business, with weakness seen in China in Q2 and Q3.

Q: Could you maybe talk to the average revenue per device in the third quarter? And any trends you're seeing going into the fourth quarter in terms of treatment volumes?

A: Yes. The average gross revenue per device was $5,981, the highest since 2022. It's in a growth trend due to removing non-productive devices and increasing utilization through Elevate360 and DTC operations. Anticipates installed base to start increasing again towards end of 2025.

Q: Sticking on the theme of your DTC campaigns, I'm wondering if there has been any increase in your show-up rates and if that's helping or improving the revenue per device as well. And then can you just remind me how many clinics are part of your or clinic groups are part of your Elevate360 program currently?

A: In 2025, lower cost per acquisition of DTC patients due to better cost per lead, conversion, show rates, and conversion rates. Redirecting patients to accounts that convert. As of end of Q3, 99 of approximately 838 clinics are in the Elevate360 program.

Q: On TheraClear, can you remind us what the installed base on that might look like by the end of 2025? And I think you previously mentioned 2026, but I'm also curious to understand how moving into Mexico and having commercial placements there may tie into the overall strategy of TheraClear.

A: TheraClear registered in Mexico with first commercial placement. U.S. installed base of TheraClear devices is about 161. Mexico approach leverages proximity for support. Anticipates getting closer to 200 devices deployed under usage agreement by end of 2025.

Q: Maybe you could help us understand a little bit the delta if I heard correctly. So you said that there was 7% year-over-year growth from those businesses that were part of the Elevate360 program, but then you said overall, average gross billings were up 8.5%. So maybe help us understand where that delta is coming from?

A: The 7% growth is for 99 accounts in the Elevate360 program (mostly tiers 2,3,4). The 8.5% growth is across the 838 devices, representing different populations. The 8.5% is a gross number, and there are differences in how growth is calculated between the two metrics.

Q: Did you say how many patients the DTC marketing campaign drove through this quarter into clinics?

A: No, we did not. We will probably follow up with a press release outlining that.

Q: You mentioned, I think, last quarter that you got the CPT codes to hopefully go into effect, the expanded codes in 2027. And you did say there's a possibility of getting temporary codes. Is that something that's still on the table for 2026? And when might that be, if that's a possibility?

A: The CMS physician fee schedule for 2026 final rule did not create temporary codes for 2026 cycle, as they thought it would create confusion with existing codes.