Allurion Technologies Inc. reported Q3 2025 revenue of $2.7 million, a 50 % decline from the $5.4 million recorded in Q3 2024. The figure surpassed the consensus estimate of $2.05 million, giving the company a revenue beat of $0.65 million. Gross profit stood at $1.3 million, translating to a 49 % gross margin, down from 58 % in the prior year, reflecting the impact of lower sales volume and a shift in product mix.
Operating income was negative, driven by higher operating expenses related to the company’s restructuring and investment in the Smart Capsule development. The company’s management noted that the restructuring, which included the transition to new distribution partners and the launch of a low‑dose GLP‑1 combination therapy platform, contributed to the revenue decline but is expected to generate long‑term growth.
CEO Shantanu Gaur highlighted the company’s progress with the FDA, noting a successful Day‑100 meeting and the completion of inspections that are moving the Smart Capsule toward substantive review. He emphasized that the company’s strategic pivot to combination therapy and digital care solutions positions it to capture a growing obesity‑treatment market.
For the next quarter, Allurion guided for sequential revenue growth and expects to continue expanding its digital care offerings. While the company did not provide specific guidance figures, management expressed confidence in maintaining profitability through cost discipline and the anticipated launch of the Smart Capsule in the U.S. market.
Investor sentiment following the announcement was mixed. Positive drivers included the FDA milestones and a debt‑exchange transaction that strengthened the balance sheet, while concerns over the sharp revenue decline and the ongoing strategic shift tempered enthusiasm. Analysts noted that the company’s long‑term prospects hinge on the successful commercialization of the Smart Capsule and the adoption of its combination therapy platform.
Overall, Allurion’s Q3 2025 results underscore a company in transition. While the revenue decline signals short‑term challenges, the company’s focus on regulatory progress, strategic partnerships, and digital care solutions suggests a path toward sustainable growth once the Smart Capsule gains market traction.
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