EOLS earnings call transcript, November 4, 2026

We also recently announced an early-stage option agreement in procedure-based injectable hair growth. Which adds a longer-term opportunity in a complementary aesthetic category. Turning to the quarter, we are operating in a healthy global aesthetics market, with consumers continuing to prioritize beauty and their appearance, despite softer consumer confidence. We believe the category is strengthening in the U.S., supported in part by broader adoption of GLP-1 therapies, which is bringing new patients into aesthetic practices and creating additional treatment needs following weight loss. These strong tailwinds reinforce our confidence in the opportunity ahead. We delivered to the quarter. $78 million in revenue in the third quarter, up 13% year-on-year. Through the first nine months, adjusted EBITDA reached positive $6.4 million compared with a loss of $16.5 million a year ago, an improvement of approximately $23 million. These results demonstrate our progress in translating commercial growth into improved financial performance while continuing to make investments in the business. Jevo remains the foundation of our commercial platform. Its continued growth reflects our focus on customer experience, clinical education, and consumer experience. which supports shared gains and strengthens our relationships with aesthetic practices. As we expand the portfolio, our established relationships and infrastructure have provided an opportunity to introduce complementary brands and become a more meaningful partner for our clinics.

Yeah. We're seeing that opportunity develop with our Evelisse portfolio. More than 4,500 customers have now purchased Evelisse, providing a foundation for continued adoption and increased utilization within practices. Our focus remains on building confidence with the portfolio through education, service, and experience. As we did with Evelisse, we are converting initial adoption into sustained use, increasing the overall value of our partnership within aesthetic practices. Our growth continues to be supported by an expanding customer base and sustained consumer engagement. During the quarter, we added over 500 purchasing accounts, bringing our cumulative customer base to more than 19,000. Evelisse Rewards membership grew 23% year-over-year to more than 1.6 million consumers, with approximately 70% of existing patients returning for repeat treatment. Together, these trends demonstrate our ability to attract new patients, new practices, and build the loyalty that supports sustained growth as we continue to expand the portfolio. Internationally, we are extending the same portfolio approach. Following the successful launch of Esteem in Europe, we expanded our program.

Thank you very much.

This relationship was estimated in August to include Canada, Australia, and New Zealand. We now hold exclusive rights to the Evelisse portfolio in every market where we currently offer Juveau and Neceva. Strategically, this alignment gives us the opportunity to build a consistent multi-product offering across our global business with a broader set of brands supported by our existing commercial infrastructure. Our financial performance this year demonstrates the operating leverage that makes this portfolio strategy compelling. We are growing revenue and improving profitability through a platform designed to support multiple injectables. Additional products can address more treatment needs within the same practices, allowing us to build on existing customer relationships, digital capabilities, and commercial infrastructure. This platform provides a commercial foundation for the next stage of our U.S. portfolio. As we look ahead, we plan to introduce three additional products over the next four years. This expansion builds on Juvot and the first two formulations of Evelisse. Within Evelisse, we expect Sculpt to be our next launch, followed by LIPS. Beyond these launches, our partnership with IPSA supports the U.S. development and commercialization of Profilo, the market-leading skin quality injectable in Europe. We are also building opportunities beyond that launch horizon. Our early stage option agreement in procedure-based injectable hair growth adds a longer-term opportunity that is complementary to the aesthetic practices we serve.

This gives us a portfolio spanning established commercial products, products advancing toward anticipated launches, and earlier stage opportunities that can broaden our growth over time. With that, I'd like to turn the call over to Rui to talk you through the portfolio in more detail, beginning with our commercial products.

Our third quarter results reflect continued progress in translating revenue growth into improved operating margins. I'll walk through the quarterly and year-to-date results, discuss our capital position, and explain how our outlook balances expense discipline with continued investment in commercial priorities and portfolio development. During the quarter, we delivered 13% revenue growth in our fourth consecutive quarter of positive-adjusted EBITDA, with a $4 million improvement over the prior year. Through the first nine months, revenue grew 14%, while non-GAAP operating expenses were reduced by 2.5%, and adjusted EBITDA improved by $23 million compared with the same prior year period. These year-to-date results of the year-to-date results. demonstrate the cumulative benefit of sustained revenue growth and operating leverage in our model. Taken together, our top-line performance and disciplined approach to investment support our confidence in our full-year outlook and in our progress toward our longer-term financial objectives. Beginning with revenue, global net revenue for the third quarter was $78 million, representing a 13% increase compared with the prior year period. This included $70.1 million of global stocks in revenue and $7.9 million from injection. Through the first nine months, net revenue was $235.2 million, up 14% year-over-year. Turning to gross margin. Reported gross margin for the third quarter was 65%.

While adjusting. Gross margin, which excludes amortization of intangible assets with 66.1%. Year-to-date, gross margins remain flat with the prior year, and our full-year gross margin guidance remains unchanged. Moving to operating expenses. Third quarter GAAP operating expenses were $59.1 million, compared with $61.7 million in the second quarter, while non-GAAP operating expenses were $50.3 million, compared with $53.3 million in the second quarter. As a reminder, non-GAAP operating expenses exclude stock-based compensation expense, revaluation of the contingent's royalty obligation, depreciation and amortization, and restructuring costs. Within operating expenses, selling general and administrator expenses for the third quarter were fixed. $52.9 million compared to $57.1 million in the second quarter. This included $5.3 million of non-cash stock-based compensation, similar to the prior quarter. Looking ahead, we expect operating expenses to increase sequentially in the fourth quarter. This reflects variable expense associated with seasonally higher revenue, our annual event for top customers held in October, and a $1.5 million option payment for the paired growth program, which we expect to record as IPR&D expense. These planned expenditures are included in our updated full-year non-GAAP operating expense guidance. In the third quarter, our adjusted EBITDA improved by $4.2 million compared to the prior year period, resulting in a positive adjusted EBITDA of $1.2 million.

Turning now to the balance sheet, we ended a quarter with $41.7 million in cash and cash equivalents compared with $45.2 million at the end of the second quarter. We continued to have access to approximately $120 million of additional non-dilutive capacity. providing flexibility to support our pipeline development and strategic priorities. As a reminder on inventory, as noted last quarter, we brought approximately 12 months of Gevo safety stock into the U.S. on extended payment terms. while awaiting tariff guidance. Following official guidance in September, we do not expect a tariff impact on Gevo. and plan to gradually reduce inventory to normal levels. This increase in inventory and in accounts payable will have no impact on Gevo.

Thanks to the adjusted payment terms. Turning to guidance. Our year-to-date performance reinforces our confidence in the trajectory of the business. We are reaffirming our full-year revenue and margin outlook while updating our non-doubt. Operating expense guidance. We continue to expect full-year revenue between $330 million and $337 million, representing 11% to 13% growth over 2025. This annual outlook implies a sequential increase in the fourth quarter, reflecting normal seasonality in planned year-end commercial activity. Keep in mind, we are wrapping on mid-team growth in the second half versus high single-digit growth in the first half. This comparison is reflected in our outlook. Our full-year adjusted gross profit margin outlook remains unchanged at 67 to 67.5%. We are updating our full-year non-GAAP operating expense guidance range to between $210 million and $213 million. From a prior range of $212 million to $216 million. The midpoint is $2.5 million lower, and the revised range represents approximately flat to 2% growth over 2025, all while delivering double-digit top-line growth. We continue to invest in Jiveau, the expansion of Evelisse and ESTEEM, and pipeline programs that support our future growth. The revised range incorporates the fourth quarter sequential step-ups, which I described earlier, demonstrating our ability to improve operating leverage. while continuing to invest in the business. We are also reaffirming a low- to mid-single-digit adjusted EBITDA margin for the full year. The modest near-term R&D investment associated with the HAIR auction agreement is incorporated within our existing financial outlook.

As a reminder, our previously announced partnership with IPSA for Profilo reflects the same disciplined, capital-efficient approach to business development with no upfront or milestone payments. We continue to expect... EOLS and ESTEEM injectable HHLs to contribute 10% to 12% of full-year revenue, reflecting form and smooth in the United States and the ESTEEM collection in Europe. Our outlook assumes no revenue contribution from EOLS sculpt in 2026. Finally, we are reaffirming our 2028 financial objectives. We continue to target annual revenue of $450 million to $500 million and adjusted EBITDA margins of 13% to 15% in 2028. We believe the competition... ...of sustained revenue growth, increasing operating leverage, and disciplined capital allocation positions us to achieve these objectives. As the business grows, the level and timing of investment will reflect our commercial priorities, pipeline development... and regulatory progress. Our long-term objectives provide the framework for balancing that continued investment with improving financial performance. With that, I'll turn the call back to David for closing remarks.

As you heard today... Evelisse has evolved into a broader global performance beauty company while continuing to execute against our financial commitments. The Evelisse we are building has a durable commercial foundation and an increasingly broad set of growth opportunities. Jevaux continues to grow above market. Evelisse is... expanding our role within aesthetic practices and our international business gives us additional opportunities to bring these complementary brands to more customers. Each step builds on the relationships and commercial capabilities we've established increasing the value of the overall platform as the portfolio expands.

Thank you very much.

Four consecutive quarters of positive adjusted EBITDA provide further tangible evidence that we can expand the business while continually improving our overall financial performance. The next stage builds on that foundation. With anticipated launch of SCULT in 2027 and LIPS in 2028, we have opportunity to expand the treatment needs we address and drive overall growth over the next several years. Profilo creates a development opportunity in skin quality, while our early stage hair growth program gives us a disciplined way to evaluate a complementary new category. We now have commercial brands generating growth today, products advancing towards anticipated launches, and longer-term opportunities that can extend our growth horizon. We will continue to measure our progress through commercial performance, financial execution, and meaningful development milestones. Our focus is on closing out of strong 2026 and advancing on our 2028 revenue and adjusted EBITDA margin objectives. What gives us confidence is a combination of execution we've demonstrated and the opportunities we have created. We have strengthened the business, expanded its potential, and established a clear set of commercial and development milestones.

Our first question comes from Mark Goodman with Larenk. Your line is now live.