Venus Concept 2025 Q1 Earnings Misses Targets as Net Income Declines 26.3%

Venus Concept (VERO) reported its fiscal 2025 Q1 earnings on May 15th, 2025. The company missed expectations with a 21.9% decrease in revenue, totaling $13.64 million. This decline reflects ongoing financial headwinds, impacting the company's performance. The net loss widened to $-12.37 million, marking a 26.3% increase from the previous year. Venus Concept is not providing full-year guidance due to strategic evaluations and market uncertainties. The focus remains on managing cash burn and seeking revenue growth in the upcoming quarter.

Revenue

Venus Concept experienced a significant revenue decline during the first quarter of 2025, totaling $13.64 million, a 21.9% decrease from the previous year. The Venus Prime/Subscription-Systems segment contributed $2.65 million, while Products-Systems generated $7.90 million. Products-Other accounted for $2.42 million, and the Services segment added $671,000 to the total revenue.

Earnings/Net Income

Venus Concept's losses deepened to $17.44 per share in 2025 Q1 from a loss of $16.92 per share in 2024 Q1, representing a 3.1% wider loss. Meanwhile, the company's net loss increased to $-12.37 million in 2025 Q1, an unfavorable trend for investors.

Post Earnings Price Action Review

The "Buy and Hold" strategy for Venus Concept (VERO) over the past 30 days proved unprofitable, as backtest results revealed a loss of $17.44 per share alongside declining revenue of $13.64 million, representing a 22% year-over-year decrease. This outcome indicates that holding VERO during this period was not a viable option, with the company's financial performance adversely affected by ongoing market challenges. The stock's reaction post-earnings underscores the difficulties faced by Venus Concept, highlighting the need for strategic adjustments to navigate the prevailing economic landscape effectively.

CEO Commentary

“Our team delivered solid execution despite the continued challenging environment,” said Rajiv De Silva, Chief Executive Officer of Venus Concept. First quarter revenue results were modestly softer than expectations due to the timing of new system adoption. The company aims for sequential revenue growth in the second quarter while focusing on managing cash burn through disciplined cost management. Investments will be targeted to support long-term growth. Recent financial actions, including a bridge loan amendment and equity capital transactions, validate the potential value creation opportunity Venus offers from both existing and new investors.

Guidance

The company is targeting sequential revenue growth in the second quarter of 2025. Management is focused on disciplined cost management to control cash burn while making targeted investments to support long-term growth. The recent equity transactions and bridge loan amendments provide additional validation of the company’s potential value creation opportunities.

Additional News

Venus Concept has announced a significant debt-to-equity exchange transaction with Madryn Asset Management. On April 1, 2025, the company converted $11.0 million of subordinated convertible notes into 379,311 shares of Series Y preferred stock. This strategic move reduces total debt obligations and enhances financial positioning. Additionally, the company executed two registered direct offerings, raising approximately $2.7 million in gross proceeds. This includes the sale of 386,700 shares at $4.06 per share and 328,573 shares at $3.50 per share. These transactions aim to support general corporate purposes and bolster liquidity amidst challenging market conditions.