Evolus (EOLS) Q3 2025 Earnings Call Transcript

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Date

Wednesday, Nov. 5, 2025, at 4:30 p.m. ET

Call participants

• Chief Executive Officer — David Moatazedi
• Chief Financial Officer — Tatiana Mitchell
• Chief Medical Officer and Head of R&D — Rui Avelar
• Head of Investor Relations — Nareg Sagherian

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Takeaways

• Global Net Revenue -- $69,000,000 net revenue for Q3 2025, up 13% year over year compared to Q3 2024, driven by Jeuveau demand and initial U.S. contribution from Evolisse.
• Product Revenue Split -- $63,200,000 of Jeuveau net revenue for Q3 2025 and $5,700,000 of net revenue from Evolisse, demonstrating early filler traction.
• Gross Margin -- 66.5% gross margin for Q3 2025 and 67.6% adjusted gross margin, with the adjustment excluding intangible asset amortization (non-GAAP).
• Non-GAAP Operating Expenses -- $49,700,000 non-GAAP operating expenses, down from $54,000,000 in Q2 2025, reflecting cost structure optimization, excluding $1,400,000 in one-time restructuring charges, primarily severance (non-GAAP).
• Non-GAAP Operating Loss -- $3,100,000 non-GAAP operating loss, an improvement from $6,700,000 non-GAAP operating loss in 2024, due to expense reduction and event timing shift.
• Cash Position -- $43,500,000 at the end of Q3 2025, down from $61,700,000 at the end of Q2 2025, primarily reflecting pulled-forward inventory investment ahead of potential tariffs.
• Loyalty Program Engagement -- 1,300,000+ members year to date through Q3 2025, nearly 70% returning customers year to date, and a 34% increase in reward redemptions, with 244,000 new redemptions in Q3 2025.
• Portfolio Progress -- 500 new purchasing accounts added, bringing the cumulative base to over 17,000, with more than 2,000 now purchasing Evolisse.
• Product Training Impact -- Showing direct link between education and adoption.
• International Expansion -- Two new markets entered year-to-date and continued high growth in existing international geographies; U.K. market share estimated to closely mirror early U.S. trajectory.
• Regulatory Milestones -- PMA filed for Evolese Sculpt with the U.S. FDA in Q3 2025, with potential approval targeted for 2026; Esteem European launch also on track for 2026.
• Tariff Update -- A 15% EU tariff has been fully incorporated into Evolisse outlook with minimal financial impact; current inventory levels expected to insulate Jeuveau from tariff effects through 2026.
• 2025 Guidance -- Revenue outlook reiterated at $295 million-$305 million (11%-15% growth) for 2025; Evolisse projected to contribute 10%-12% of total revenue for the full year; non-GAAP operating expenses expected at $208 million-$213 million for the full year; Q4 non-GAAP operating income projected at $5 million-$7 million.
• Profitability Timeline -- Management reaffirmed expected profitability in 2025 and sustainable annual profitability beginning in 2026.
• Clinical Study -- Evolisse Sculpt met its primary endpoint for non-inferiority versus Restylane Lyft at six months, with a 91% responder rate compared to 83% for Lyft at six months, and demonstrated greater efficacy at 24 months (29% vs. 8% on one-point change scale); adverse event rates were balanced (19.7% vs. 18.7%) in the Sculpt trial.

Summary

Evolus (NASDAQ:EOLS) reported accelerated top-line growth from Jeuveau and the recent rollout of Evolisse filler in Q3 2025, amid persistent softness in the overall aesthetics market. Strategic initiatives such as targeted training, robust loyalty programs, and expansion of high-engagement co-branded media contributed to increased customer acquisition and higher product adoption rates. Regulatory submissions advanced the pipeline with clear timelines for approval and launch. Cost-reduction actions lowered non-GAAP operating expenses ahead of tariff uncertainties, supporting a reaffirmed profitability roadmap into 2025 and beyond.

• Nareg Sagherian stated, "We've seen a 100% increase in purchasing volume when an account is trained a second time."
• The company reported that "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."
• EU tariffs on Evolisse and potential U.S. tariffs on Jeuveau have been "fully incorporated" into guidance, with leadership asserting, "Current inventory levels will sustain us through 2026, and therefore, Jeuveau will not be subject to any near-term tariff impact."
• Company leadership confirmed the launch of the first bundled portfolio offering in Q4 designed to "reward practices that grow across both Jeuveau and Evolisse."
• Evolisse Sculpt's pivotal trial showed a statistically significant improvement over Restylane Lyft in responder rate at six months (91% vs. 83%, p=0.015), with performance advantages increasing over 24 months according to clinical data presented during the call.

Industry glossary

• Jeuveau: Evolus's proprietary 900 kilodalton botulinum toxin type A product indicated for temporary improvement in glabellar lines.
• Evolisse: Company’s hyaluronic acid dermal filler for facial aesthetics, recently launched in the U.S.
• PMA (Premarket Approval): A regulatory pathway for FDA approval of Class III medical devices or drugs requiring scientific evidence of safety and efficacy.
• Responder Rate: The percentage of patients achieving a pre-defined clinically meaningful improvement, as measured by the validated assessment scale in a clinical study.

Full Conference Call Transcript

Nareg Sagherian: Thank you, 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. 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 in the field of aesthetics to engage more than 17,000 injectors year to date through cadaver lab, in-office hands-on sessions, and mobile app training with our Evolus Bus across 100 events. Our Evolus consumer loyalty program has now grown to more than 1,300,000 members, 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 Evolise. 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 Avalice revenue customer accounts that have participated in hands-on training, and we've seen a 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 continues 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 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 Jeuveau demand and meaningful early contribution from Evolise 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.

David Moatazedi: As the market strengthens, the overall toxin category returns to growth, Jeuveau is poised to regain healthy momentum and our differentiated positioning as a leader in performance beauty. Adoption and scale mark the strongest filler debut in over a decade. Demand for Evolese 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 Evolese as feedback from customers has been exceptional, highlighting the product handling and results. This further validates our beauty-first strategy to build a full facial aesthetics portfolio under a single trusted brand.

We've 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 Evolese as a differentiated product independent from Jeuveau, 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 portfolios products together. This quarter, we've introduced our first Evolus portfolio bundle, designed to reward practices that grow across both Jeuveau and Evolisse.

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 17,002 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 redemption grew 34% compared to the prior year quarter. New redemptions for the quarter were a record 244,000, of which approximately 68% came from existing consumers. Jeuveau 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 Evolese Sculpt, our advanced injectable HH gel mid-face volume restoration. We expect FDA review to follow the standard PMA pathway with potential approval anticipated in 2026. We also remain on track for a broader launch of Esteem in Europe in 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, Evolif building scale, Esteem 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 Avelar for an update on Evolus and our recent self-submission. Thank you, David.

Rui Avelar: Since the launch of Form and Smooth here in the U.S., the feedback continues to be consistent. This line of gels is 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, Evolysculpt 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 304 patients in the 3:1 ratio.

Using a validated five-point scale, patients with moderate, severe, or extreme mid-face volume deficit were eligible for treatment, then followed for 24 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 mils per cheek, or 3.7 mils per patient. The primary endpoint of non-inferiority was met, with the difference in favor of 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, 83% of cheeks treated with Restylane Lyft were responders compared to 91% in the Evelisse Sculpt 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 is a pattern of increasing separation across the efficacy metrics over time between the two groups, favoring heavily sculpt 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 24 months, or the study's end, 8% of LIFT patients were responders compared to 29% of Sculpt 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 24 months, 13% of LIFT patients were responders compared to 29% of Sculpt patients. Treatment-related adverse events between the two groups were similar, 18.7% for LIFT and 19.7% for Sculpt, and there were no treatment-related serious adverse events in either of the groups during the trial.

As mentioned, the PMA for Sculpt was submitted in the third quarter of this year, and we anticipate FDA approval in 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: 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 in 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 Daewong and Simatay, 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 have 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 am pleased to share our third quarter financial results.

Global net revenue for the third quarter was $69,000,000, a 13% increase over 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 2025 included $63,200,000 of global Jeuveau revenue and $5,700,000 of Evolut's 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 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, Evolese 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 2025 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. 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 a non-GAAP operating loss of $6,700,000 in 2024. The better-than-expected third quarter results were 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 $305,000,000, representing 11% to 15% growth over 2024 results.

We continue to expect Evolus revenue contribution to be between 10-12% of total revenue for the full year 2025. Full-year non-GAAP operating expenses to remain between $208,000,000 and $213,000,000. Non-GAAP operating income between $5,000,000 and $7,000,000 in Q4 2025, which includes the timing of costs related to our customer event that shifted from the third quarter to the fourth quarter. In addition to our continued expectation to achieve profitability in 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 Moatazedi: 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 pipelines 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, Evolise in the early stages of scaling, we are well-positioned to deliver sustainable growth, profitability, and long-term shareholder value. Operator, you may now begin the Q&A.

Operator: Thank you. We will now be conducting a question and answer session. One moment, please, while we poll for questions. Our first question comes from the line of Annabel Eva Samimy with Stifel. Please proceed.

Annabel Eva Samimy: 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 Evolif, 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? 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 to second training into how should we think about the conversion of those patients or those physicians who've initially trained? Thanks.

David Moatazedi: 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 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. So we started to see that more in the third quarter.

You could expect a number of those second trainings are booked in the fourth quarter. That's a very significant part of the uptick 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 Evolese. 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 Evolese 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, 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 Eva Samimy: Okay, great. Thank you.

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

Alyssa Larios: Hi, everyone. This is Alyssa Larios on for Marc Goodman. Just a few questions from us. Could you comment on the usage trends between Evily 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 Moatazedi: Great. Why don't I start with bundling the advertising, and then I'll comment on the usage soon as the format. I'd like Rui to add his color because both Rui and I've 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 Evolese that customers weren't looking for us to bring a new product to market sort of force it on them, because they're customers that use our primary products, Jeuveau.

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. 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 expose 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, keeping them independent, there's no advantage to bringing the full portfolio under Evolus. And so provided this growth portfolio bundle offering in the fourth quarter as our first test of how we bring the portfolios together. And this will carry through into next year. And so this is our first attempt at doing that.

And can tell you that we tested it in one of our larger customer meetings that Tatiana mentioned. Was a result of the phasing of spend into Q4. It was very, very successful in terms of the reception we got to it. On the DTC side, 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 the 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 then lastly, on the usage of Smooth and Form, both products have the same indication, which is a nasolabial fold, but the properties of the gel 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 property is smoother, that's a softer gel.

Whereas the foreign 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 whether looking for a product to fill in areas more in the 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 ask transfer to Rui.

Rui Avelar: I'm just gonna 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. 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, misalignment 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. 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 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 left over. And this product is so forgiving that I can continue through different parts of the area or even go superficial an 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.

Operator: Excellent. Thank you so much. Thank you. Our next question comes from the line of Navann Ty Dietschi with BNP Paribas. Please proceed.

Navann Ty Dietschi: Hi, good evening. First, can you discuss in more detail the Q3 actions? Underlying the sequential growth for Jeuveau despite the seasonality including that Evolution 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 Moatazedi: Sure. Thanks for the question, 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, and we always do, both on the consumer side our loyalty platform where we did engage consumers that we saw stretching their intervals between treatments 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.

Navann Ty Dietschi: Thank you.

Tatiana Mitchell: Thank you.

Operator: Our next question comes from the line of Uy Sieng Ear with Mizuho Securities. Please proceed.

Uy Sieng Ear: 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 strengthen your 14% market share. Maybe just help us understand what you mean by that? As well as you know, 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 Moatazedi: Yes. Let's start with what we're seeing in terms of 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 a declining market. We've grown in terms of units. What's probably most promising in 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 is performed out of the third quarter. And we hope to see that momentum continue. The second part was that was the 14%. As far as the we don't do segment reporting on the talk in business. 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 to date. So I think it gives you some color around there's growth happening on both sides on top of Beverly.

Uy Sieng Ear: 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 of Jeuveau. Do you expect greater significantly greater penetration there or think the synergies will work sort of will be greater synergies in terms of Everlys? Just help us understand the dynamic and the potential and the magnitude. Thanks.

David Moatazedi: 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 so longer-term endeavor is because Sculp further unlocks it because it's 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 start talking a little bit more about the advantage of the portfolio.

Uy Sieng Ear: Okay. Thank you.

Tatiana Mitchell: Thank you.

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

Douglas Dylan Tsao: 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 Jeuveau 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 Evelisse or is that more of the sort of a conversation that you're starting to have?

David Moatazedi: Yeah. We have had a combination of both inbound interest from accounts that weren't working with us on Jeuveau and they're interested in Evolif and that opens the door for us to begin partnering with them. Now keep in mind, at least it's still early, so I think 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 Jeuveau. 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 it differently.

And consistently in the conversation is the idea of having a mid-face product that bringing in a differentiated mid-phase 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 helped us get here.

Douglas Dylan Tsao: 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 Moatazedi: Yes. So the third quarter, we started to put out co-branded media on Evolese. Some of those co-branded media ads had mentioned the weight loss. As you know, we're the only hyaluronic acid that has mention 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...

Operator: Apologies. We are experiencing technical difficulties. Please hold. Sorry about that. We're back.

Douglas Dylan Tsao: Hello?

David Moatazedi: Yep. We're back, Doug. I think David, lost you midstream about the co-branded marketing.

David Moatazedi: Yeah. Final comment there was we are seeing co-branded marketing on Evelisse. 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, 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 Evolisse. And we started to introduce it in the third quarter in the market. It's going to continue to rise as we enter the fourth quarter.

Douglas Dylan Tsao: Okay, great. Thank you so much.

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

Serge D. Belanger: 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 Tatiana 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 Jeuveau sales? Thanks.

Tatiana Mitchell: Serge, can you let me know where we cut off?

Serge D. Belanger: I don't think we heard your response at all.

Tatiana Mitchell: 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...

David Moatazedi: Okay. And to your second part of your question around purchasing patterns, Serge, a couple of things 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 it 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.

Serge D. Belanger: Got it. Thank you.

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

Sam Shimon Eiber: 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. 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 Moatazedi: 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, the conversations we've had with them. 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. 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 are open to exploring...

Operator: Apologies. Looks like we lost him again. Please hold.

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

Nareg Sagherian: We hope to see many of you there. Thank you for joining us today.

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

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