Executive Summary / Key Takeaways

• Evolus is successfully transitioning from a single-product neurotoxin company to a multi-product performance beauty leader, leveraging its established cash-pay model and digital platform.
• The recent FDA approval and U.S. launch of the first two Evolysse injectable HA gels, featuring differentiated Coldex technology and a unique weight-loss related label claim, significantly expand the company's addressable market and enhance its value proposition to aesthetic practices.
• Strong operational execution with the flagship Jeuveau product continues, marked by consistent market share gains (approaching 14% US share), high customer reorder rates (~70%), and robust new account additions, driving growth significantly above the market rate.
• Evolus achieved profitability (positive non-GAAP operating income) for the full year 2024, ahead of schedule, demonstrating operating leverage, and expects full-year profitability again in 2025, albeit weighted towards the second half due to launch investments.
• A recent debt refinancing has strengthened the balance sheet, reducing borrowing costs and increasing financial flexibility to support strategic growth initiatives and the long-term target of at least $700 million in revenue and 20%+ non-GAAP operating margin by 2028.

A New Chapter: Evolus Evolves Beyond a Single Product

Evolus, Inc. (NASDAQ: EOLS) is carving out a distinct identity in the competitive cash-pay aesthetic market. Founded in 2012 and going public in 2018, the company built its foundation on Jeuveau, a proprietary neurotoxin (prabotulinumtoxinA-xvfs) approved for the temporary improvement of moderate to severe frown lines. For years, Evolus focused on establishing Jeuveau in a market dominated by larger, more established players like AbbVie (ABBV)'s Botox and Galderma (GALD)'s Dysport. This strategy centered on a unique cash-pay model, bypassing the complexities of reimbursement to offer a differentiated value proposition to aesthetic practitioners, emphasizing consumer loyalty programs and digital engagement.

The aesthetic injectables market is intensely competitive. Giants like AbbVie and Galderma possess vast financial resources, extensive sales forces, deep brand recognition, and broad product portfolios that allow for bundling and aggressive pricing strategies. Newer entrants like Revance Therapeutics (RVNC) with Daxxify, offering potentially longer duration, and Hugel with Letybo, are further intensifying the neurotoxin segment. In the dermal filler market, Evolus faces similar large, experienced competitors. Despite this formidable landscape, Evolus has demonstrated consistent market share gains with Jeuveau, approaching 14% of the U.S. toxin market by the end of 2024 and continuing to gain share in the first quarter of 2025, performing at multiples above the overall market growth rate. This success is underpinned by operational strengths, including a high customer reorder rate of approximately 70% and the addition of thousands of new purchasing accounts annually, reaching over 16,000 accounts by Q1 2025.

Central to Evolus's strategy is its technological differentiation and innovation. While Jeuveau's 900 kDa purified formulation offers a profile familiar to practitioners accustomed to market leaders, the company's recent expansion into hyaluronic acid (HA) gels introduces a novel technological approach. The Evolysse collection is manufactured using proprietary Coldex technology, which utilizes near-freezing temperatures during the cross-linking process, unlike other HA gels that use heat. This method is designed to better preserve the natural HA chains, resulting in a gel that, in bench tests, demonstrates superior resistance to compression and shear forces compared to alternatives.

The clinical data for Evolysse Form and Evolysse Smooth further supports this differentiation. Pivotal studies using a split-face design against Restylane Lidocaine showed statistical superiority for Evolysse Form at all measured time points and for Evolysse Smooth at six and nine months, often achieving more correction despite using the same or even less volume than the control. This quantifiable clinical advantage suggests potential benefits in terms of duration and efficacy in real-world use. Furthermore, the FDA-approved patient labeling for Evolysse Form and Smooth includes a unique mention that facial wrinkles may develop after weight loss, positioning Evolus to capitalize on the growing number of patients using GLP-1 drugs who may seek aesthetic treatments for associated volume loss. This technological foundation and clinical evidence provide Evolus with a compelling narrative and a potential competitive edge in the crowded filler market.

Performance Reflecting Strategic Execution

Evolus's financial performance over the past year reflects the successful execution of its growth strategy and increasing operational efficiency. The company has delivered revenue growth exceeding 30% year-over-year for five consecutive years through 2024, a significant achievement in a competitive market. Net revenues in Q1 2025 reached $68.5 million, representing 15.5% growth over the prior year, following a strong Q4 2024 performance of $79.0 million (30% growth) and a full-year 2024 total of $266.3 million (32% growth). This growth has been primarily volume-driven, supported by market share gains and a stable pricing environment for Jeuveau. International markets, though starting from a smaller base, are contributing increasingly to revenue and are expected to outpace U.S. growth, aligning with the company's target of $100 million in international revenue by 2028.

The company has also made significant strides towards profitability. By leveraging its scalable cash-pay business model and maintaining disciplined expense management, Evolus achieved positive non-GAAP operating income in Q2 and Q4 2024, culminating in full-year profitability for 2024, one year ahead of its stated goal. This demonstrates meaningful operating leverage, with revenue CAGR significantly outpacing non-GAAP operating expense CAGR over the past five years. While operating expenses increased in Q1 2025, this was primarily driven by planned investments in commercial activities to support the upcoming Evolysse launch, a strategic move expected to fuel future growth. Gross margins have remained relatively stable, hovering around 68-70%.

Liquidity remains a key focus. As of March 31, 2025, Evolus held $67.9 million in cash and cash equivalents. While the company has historically incurred losses and used cash in operations, recent performance trends show progress towards positive cash generation. Management believes existing liquidity, bolstered by the refinancing, is sufficient to fund operations to positive cash generation.

A significant development occurred on May 5, 2025, when Evolus entered into an Amended and Restated Loan Agreement with Pharmakon. This refinancing increased the borrowing capacity to $250 million, reduced the interest rate, and extended the maturity to 2030 with no required periodic principal payments until then. This transaction strengthens the balance sheet, provides enhanced financial flexibility, and offers non-dilutive access to capital to fund strategic initiatives, including the Evolysse launch and potential future portfolio expansion.

Material cash requirements include debt service, royalty payments (to Evolus Founders and Medytox), minimum purchase obligations under license agreements, and milestone payments for Evolysse approvals.

The Evolysse Catalyst and Future Outlook

The commercial launch of Evolysse Form and Evolysse Smooth in the United States in April 2025 marks a pivotal moment, transforming Evolus into a multi-product company. This expansion into the dermal filler market, estimated to be a multi-billion dollar category, significantly increases Evolus's total addressable market. The launch strategy is focused and disciplined, initially prioritizing sampling and education for existing high-volume Jeuveau customers in Q2 2025, leveraging the company's established digital platform and commercial infrastructure. Early interest and ordering activity have reportedly exceeded expectations, with the launch metrics outperforming those of Jeuveau's initial introduction.

Evolysse is strategically positioned as a powerful complement to Jeuveau. The company plans to integrate Evolysse into its existing loyalty programs and co-branded media benefits, enhancing the overall value proposition for practices and encouraging deeper engagement across the portfolio. This synergistic approach is expected to drive continued share gains for both products. Future U.S. launches of additional Evolysse products (Sculpt in 2026, Lips in 2027) will further expand the company's footprint in the filler market. The European launch of the Estyme (Evolysse) line in the second half of 2025 will extend this portfolio expansion internationally.

Looking ahead, Evolus has provided clear guidance for 2025, projecting total net revenues between $345 million and $355 million, representing 30% to 33% growth over 2024. Evolysse is anticipated to contribute 8% to 10% of this revenue, with the majority expected in the second half of the year following the initial launch phase. Non-GAAP operating expenses are guided between $230 million and $240 million, reflecting continued investments in expanding the commercial footprint and supporting the Evolysse launch. The company expects to achieve positive non-GAAP operating income for the full year 2025, although profitability is anticipated to be concentrated in Q4 2025 due to the timing of launch-related investments.

Beyond 2025, Evolus maintains a confident long-term outlook, targeting total net revenue of at least $700 million and a non-GAAP operating income margin of at least 20% by 2028. This ambitious target implies a compounded annual growth rate of 27% from 2024 and is expected to be driven by sustained market share gains in the neurotoxin business (both U.S. and international) and an increasing contribution from the expanding Evolysse portfolio. The company plans to achieve operating margin expansion by leveraging the operating leverage inherent in its scalable, synergistic infrastructure.

Conclusion

Evolus stands at a significant inflection point, successfully executing a strategic evolution from a single-product neurotoxin company to a multi-product performance beauty leader. The continued strong performance of Jeuveau, marked by consistent market share gains and operational efficiency, provides a solid foundation. The recent FDA approval and U.S. launch of the differentiated Evolysse HA gels, featuring novel technology and a unique label claim, represent a critical catalyst for future growth, expanding the company's market opportunity and enhancing its value proposition.

While the aesthetic market remains highly competitive, with larger players and new entrants vying for share, Evolus's focus on the cash-pay segment, coupled with its differentiated digital platform and growing portfolio, positions it to continue capturing demand. The recent debt refinancing has bolstered the company's financial position, providing the necessary flexibility to fund its strategic initiatives. With clear guidance for 2025 and ambitious long-term targets for 2028, Evolus is poised for continued robust growth and sustainable profitability. Investors should monitor the uptake and market reception of the Evolysse launch, the company's ability to maintain its market share momentum with Jeuveau, and its progress towards achieving full-year profitability and its long-term financial targets.