Allurion 2025 Q3 Earnings Sharp Net Loss Widens 236% Despite Revenue Decline

Allurion Technologies, Inc. (ALUR) reported a sharp deterioration in its fiscal 2025 Q3 performance, marked by a 50.5% revenue drop and a net loss of $11.88 million. The results fell well below expectations, with the stock price plummeting across short-term horizons. The company cited operational challenges and declining sales as key factors, while its future outlook remains clouded by continued net losses and reliance on third-party suppliers.

Revenue

Allurion’s total revenue for the third quarter of 2025 declined by 50.5% year-over-year to $2.66 million, a significant contraction from $5.37 million in 2024 Q3. Geographically, Spain contributed $1.8 million in revenue for the nine months ended September 30, 2025, while Italy added $1.2 million. The United Kingdom and other international markets also played a role, though the U.S. remains absent as a revenue source for the Allurion Smart Capsule. Notably, the company’s customer base is concentrated, with Customer A accounting for 17% of Q3 revenue and Customers B and C each contributing 10%.

Earnings/Net Income

The company swung to a net loss of $11.88 million in Q3 2025, a 236% deterioration from the $8.74 million net income in the prior-year period. Earnings per share (EPS) fell to a loss of $1.53, compared to $3.41 in 2024 Q3. This reflects a dramatic shift in profitability driven by declining sales and elevated operational costs. The EPS decline, coupled with a widening net loss, signals significant operational strain and challenges in maintaining profitability.

Price Action

Allurion’s stock price experienced severe downward pressure following the earnings report. The stock tumbled 9.68% during the latest trading day, with further declines of 19.54% for the week and 31.03% month-to-date. The sharp sell-off underscores investor concerns over the company’s financial health and future prospects.

Post-Earnings Price Action Review

The stock’s post-earnings performance reflects a market reaction to the company’s deteriorating financials and lack of immediate turnaround signals. A 9.68% drop in a single trading day indicates acute short-term pessimism, while the week’s 19.54% decline and 31.03% monthly slump suggest broader skepticism about Allurion’s ability to reverse its fortunes. These movements align with the earnings report’s negative surprises, including the revenue shortfall and expanded net loss, compounding investor unease.

CEO Commentary

Allurion’s leadership acknowledged the challenges in maintaining sales momentum and operational efficiency, as outlined in the 10-Q report. The CEO highlighted the company’s reliance on third-party suppliers and logistics providers, emphasizing that any disruptions in these partnerships could exacerbate delivery delays. Additionally, the management team underscored the need to address declining profitability while managing increased expenses, particularly in a competitive market landscape.

Guidance

The company anticipates continued net losses and negative operating cash flows in the near term, reflecting ongoing operational and market challenges. While Allurion remains committed to its product offerings, including the Allurion Smart Capsule and Virtual Care Suite, the guidance underscores the difficulty of achieving profitability without significant cost restructuring or revenue growth.

Additional News

Allurion’s 10-Q report highlights operational risks tied to third-party supplier dependencies, which could impact product delivery timelines. The company’s geographical revenue distribution remains concentrated in Spain, Italy, and the UK, with no U.S. revenue from its flagship product during the nine months ended September 30, 2025. Additionally, customer concentration poses risks, as Customer A alone accounts for 17% of Q3 revenue. The report also notes the free tier of the Virtual Care Suite bundled with the Smart Capsule, signaling a strategy to enhance customer retention through complementary services.