Venus Concept Inc. Q2 2025: Navigating Contradictions in Tariffs, Sales Delays, and Strategic Shifts

Sequential and Year-over-Year Revenue Trends:
- Venus Concept Inc. reported 15% growth on a quarter-over-quarter basis in Q2, driven by strong execution amidst a challenging environment.
- Year-over-year revenue declined by 5%, with a 5% growth in sales to U.S. customers, offset by an 18% decline in international sales.
- The growth was driven by 20% growth in total systems and subscription revenue, while the year-over-year decline was attributed to macroeconomic headwinds, customer financing pressures, and uncertainty related to proposed tariffs.

Cash System Sales and Business Transition:
- Cash system sales in the U.S. represented 65% of total U.S. system sales in the second quarter, compared to 58% last year.
- The company's strategic priority is to transition to higher quality cash revenues, and this increase was driven by a focus on core products such as Bliss MAX, Versa Pro, and Viva MD.
- The shift is intended to enhance the company's long-term profitability profile.

Venous Hair Business Sale:
- Venus Concept announced a definitive agreement to sell the Venous Hair business to MHG Co. Ltd (Meta Health Group) for $20 million in an all-cash transaction.
- The sale is part of strategic alternatives evaluation to maximize shareholder value, allowing Venus Concept to focus on its global medical aesthetics business.
- The transaction is expected to improve revenue growth, lower operating expenses, and enhance the cash flow profile of the business.

Financial Performance and Balance Sheet Improvements:
- Total revenue was $15.7 million, down 5% year-over-year, with an 18% decrease in international revenue and a 24% decrease in services revenue.
- The company reduced its total debt obligations to approximately $34.3 million, down from $39.7 million at the end of 2024.
- These improvements were due to cost management, debt extinguishment progress, and successful capital markets transactions.