Evolus 2025 Q2 Earnings Widened Losses Amid Revenue Growth

Evolus (EOLS) reported its fiscal 2025 Q2 earnings on August 5, 2025. The results showed revenue growth but a deeper net loss. The company adjusted its full-year revenue guidance lower and raised expectations for cost savings, signaling a focus on profitability ahead.

Revenue
Evolus reported total revenue of $69.39 million in Q2 2025, representing a 3.7% year-over-year increase. Product revenue, which drives the majority of the company’s income, amounted to $68.70 million, while service revenue contributed $688,000. These figures underscore a steady, though modest, top-line performance.

Earnings/Net Income
The company’s financial position deteriorated in the quarter, with a loss per share widening to $0.27 in 2025 Q2, up from $0.18 in the prior-year period. Net losses increased to $17.14 million, reflecting a 51.0% year-over-year increase. This indicates continued pressure on profitability despite revenue gains.

Price Action
Evolus shares have been under pressure, with the stock declining 2.41% in the latest trading day, 3.68% for the week, and 3.88% month-to-date. The underperformance highlights investor skepticism regarding the company’s near-term outlook.

Post-Earnings Price Action Review
A strategy of purchasing Evolus shares following a revenue growth quarter and holding for 30 days has historically underperformed. Over the past three years, such an approach has resulted in a -7.71% return, significantly lagging the 48.58% benchmark. The strategy has been marked by poor risk-adjusted returns, with a Sharpe ratio of -0.05 and high volatility of 54.32%. The negative CAGR of -2.73% and maximum drawdown of 0.00% further emphasize the substantial risks and minimal growth potential.

CEO Commentary
CEO David Moatazedi noted that U.S. toxin demand softened in the final two weeks of Q2 due to reduced patient demand and lower consumer sentiment. However, Jeuveau® maintained a 14% market share, and the Evolysse™ launch exceeded expectations, generating $9.7 million in revenue—the strongest filler launch in over a decade. Moatazedi also highlighted international growth and loyalty program expansion as key momentum drivers. The CEO emphasized ongoing cost-optimization efforts and expressed confidence in the path to Q4 2025 non-GAAP profitability and long-term 2028 revenue and margin targets.

Guidance
Evolus has revised its 2025 net revenue guidance downward to a range of $295–$305 million, down from previous expectations. The company also updated its non-GAAP operating expenses to a range of $208–$213 million. Despite the lower guidance, Evolus remains on track to achieve $700 million in total net revenue and a 20% non-GAAP operating income margin by 2028. The company anticipates achieving meaningful profitability in Q4 2025 and full-year profitability in 2026.

Additional News
In the three weeks following the August 5 earnings release, Evolus did not announce any major mergers or acquisitions, nor did it disclose changes at the C-level. There was also no indication of a new dividend or share repurchase program. The focus remained on operational restructuring and market expansion. Notably, the company emphasized continued investment in its U.S. and international markets, particularly in aesthetics and consumer engagement strategies, to drive long-term growth.