Venus Concept Inc. reported third‑quarter 2025 revenue of $13.78 million, an 8% decline from the $15.00 million earned in the same period last year. The drop is largely attributable to weaker U.S. demand for aesthetic devices, compounded by higher U.S. tariff costs and lower production volumes that pushed unit costs up. While the company’s Energy‑Based Device (EBD) sales grew 2% to $9.50 million, the decline in legacy product lines and the delayed sale of its Venus Hair business weighed on overall top line performance.
Net loss widened to $22.57 million, or $12.14 per share, a miss of $8.46 per share against the consensus estimate of $3.68. The loss is driven by a $9.50 million operating loss, higher interest and legal expenses, and a one‑time $1.2 million charge related to the Venus Hair divestiture. The magnitude of the miss reflects both the company’s ongoing cost pressures and the lack of revenue growth in its core segments.
Gross profit fell to $8.80 million, giving a gross margin of 64.0% versus 66.1% a year earlier. The compression is mainly due to increased raw‑material costs and tariff‑related expenses that eroded the margin on high‑volume device sales. The company’s operating leverage was also weakened by the higher cost of capital and the need to fund the debt‑to‑equity exchange.
Cash and cash equivalents stood at $5.90 million, while total debt obligations were $30.10 million. The $11.48 million debt‑to‑equity exchange completed during the quarter reduced leverage and improved the debt‑to‑equity ratio, but the company still faces a working‑capital deficit. CEO Rajiv De Silva said the sale of the Venus Hair business would “strengthen Venus Concept by allowing us to focus on our global medical aesthetics business, which we expect will improve revenue growth, lower operating expenses, enhance the cash flow profile of the business and accelerate the path to long‑term, sustainable profitability.”
On November 10, Venus Concept received FDA 510(k) clearance for its new Venus NOVA body system, positioning the company for a December launch. The clearance is a key milestone in the company’s strategy to replace legacy product lines with higher‑margin, technology‑driven offerings. The company’s CFO, Domenic Della Penna, noted that the $11.48 million debt‑to‑equity transaction “continues to support our balance‑sheet transformation and provides additional financing flexibility as we roll out Venus NOVA.”
Management expressed cautious optimism for Q4, citing a stabilization of EBD sales and the anticipated revenue impact of Venus NOVA. However, the company did not provide full‑year guidance and reiterated “substantial doubt” about its ability to continue as a going concern. Analysts highlighted the significant EPS miss, revenue shortfall, and lack of forward guidance as primary drivers of a negative market reaction, underscoring the company’s near‑term financial fragility and the uncertainty surrounding its turnaround plan.
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