Venus Concept 2025 Q2 Earnings Losses Narrowed, But Revenue Slides

Venus Concept (VERO) reported fiscal 2025 Q2 earnings on August 14, 2025. The company delivered a 40.9% reduction in net loss year-over-year, although revenue declined slightly. Management highlighted strategic moves including the sale of the Venous Hair business and a pivot toward higher-quality cash revenue, while the absence of full-year guidance underscored ongoing financial uncertainty.

Venus Concept’s total revenue for Q2 2025 fell 5.4% year-over-year to $15.69 million, with the Products-Systems segment leading with $7.94 million in revenue, followed by Venus Prime / Subscription-Systems at $4.68 million. Additional contributions came from Products-Other at $2.44 million, while Services accounted for $628,000. Despite the overall revenue decline, the company noted sequential growth driven by U.S. and international market performance.

The company significantly narrowed its net loss to $-11.74 million for the quarter, or $8.03 per share, representing a 74% improvement from the $-19.86 million, or $30.93 per share, loss in Q2 2024. While this marked progress, the company has sustained losses for the past nine years during the same quarter, underscoring ongoing financial challenges. The reduction in losses reflects improved cost management and strategic shifts, but the earnings per share remains deeply negative, indicating continued operational struggles.

The stock price for Venus Concept edged up 1.24% during the latest trading day, 0.41% for the most recent full week, and down 2.39% month-to-date. Despite a 15% sequential growth in the quarter, the stock's post-earnings performance remained weak.

A strategy of buying Venus Concept shares following a revenue increase quarter-over-quarter on the report date and holding for 30 days has historically performed poorly. Over the past three years, this approach returned -98.62%, significantly underperforming the benchmark by 145.10%. The strategy also featured a maximum drawdown of 0% and a Sharpe ratio of -0.37, indicating a high level of risk and poor returns, further deterring investor confidence.

CEO Rajiv Kanishka Liyanaarchchie De Silva noted that Venus Concept achieved 15% sequential growth in Q2 2025, driven by mid-teens growth in both U.S. and international markets. The CEO emphasized a 20% increase in total systems and subscription revenue, with U.S. cash system sales up 23% and now representing 65% of total U.S. system sales, up from 58% in 2024. These figures highlight a strategic shift toward higher-quality cash revenues and improved product performance. The company also announced the sale of the Venous Hair business for $20 million, a move aimed at improving profitability and focusing on core growth areas. Despite macroeconomic headwinds—such as customer financing pressures and international tariffs—management remains cautiously optimistic, focusing on disciplined cost management and strategic investments for long-term growth.

The company has not provided full-year 2025 financial guidance, citing ongoing evaluations of strategic alternatives, active discussions with lenders and investors, and uncertainties linked to trade disruptions. The CEO expects continued sequential growth and noted plans for a new body device launch by early 2026. Meanwhile, the CFO highlighted progress in debt restructuring and balance sheet improvements, including a cash balance of $4.9 million as of June 30, 2025.

In related news from Nigeria, the Economic and Financial Crimes Commission (EFCC) arrested five individuals in Akwa Ibom State for illegal mining activities. The arrests highlight the government’s ongoing efforts to combat environmental and economic crimes. Separately, the EFCC denied targeting former President Olusegun Obasanjo and announced that suspects in a recent sting operation would be arraigned in court. In political news, Nigeria’s two major parties—the Peoples Democratic Party (PDP) and the All Progressives Congress (APC)—rejected a Canadian court ruling labeling them as terrorist organizations. The court’s decision, which the parties have condemned, underscores the complex legal and political environment in the country.