EOLS — Evolus, Inc.

Summary of Evolus (EOLS) Q2 2026 Earnings Call

1. Key Financial Results and Metrics:

• Revenue: Global net revenue for Q2 2026 was $84.1 million, a 21% increase year-over-year.
• Global Toxin Revenue: $75.2 million, with double-digit growth in both U.S. and international markets.
• Hyaluronic Acid Gel Revenue: $8.9 million, showing recovery after two years of declines.
• Adjusted EBITDA: Positive adjusted EBITDA of $4.7 million, marking the third consecutive quarter of profitability.
• Gross Margin: Reported gross margin at 68%, with adjusted gross margin at 69%, benefiting from a tariff refund.
• Cash Position: Ended the quarter with $45.2 million in cash equivalents, down from $49.8 million in Q1.

2. Strategic Updates and Business Highlights:

• Evolus launched Estyme in Europe and announced two strategic licensing agreements, enhancing its product portfolio.
• Significant market share gains in the U.S. injectable aesthetics market, particularly with Jeuveau and Evolysse.
• The Evolus portfolio growth bundle has seen strong adoption, with 70% of participating customers purchasing Evolysse.
• New partnership with IPSY to develop and commercialize ProFuelo, expanding into the skin quality category.
• International expansion includes exclusive rights to commercialize injectable hyaluronic acid gels in Canada, Australia, and New Zealand.

3. Forward Guidance and Outlook:

• Full-year 2026 revenue guidance raised to $330 million - $337 million, with an adjusted gross profit margin guidance of 67.0% to 67.5%.
• Non-GAAP operating expense guidance narrowed to $212 million - $216 million.
• Long-term financial framework remains unchanged, targeting $450 million - $500 million in annual revenue and 13% - 15% adjusted EBITDA margin by 2028.

4. Bad News, Challenges, or Points of Concern:

• While the company is experiencing growth, there are concerns regarding the competitive landscape, particularly in the filler market, which has seen mixed performance.
• The U.S. market for toxins and fillers is still recovering, and the company must navigate potential headwinds from competitive pressures and market dynamics.
• The timeline for ProFuelo's U.S. approval is anticipated around 2030, which may delay its impact on revenue.

5. Notable Q&A Insights:

• ProFuelo is expected to complement existing products rather than compete directly with them, and its clinical development will follow a full PMA process.
• The company sees improving conditions in the toxin market, with sequential growth observed and a positive outlook for the second half of the year.
• Evolus is focused on leveraging the increasing number of GLP-1 patients entering clinics, which is expected to drive demand for their products.
• The company maintains a disciplined approach to expenses while investing in growth initiatives, indicating confidence in achieving profitability targets despite ongoing investments.

Overall, Evolus is positioned for continued growth with a diversified portfolio and strategic partnerships, although it must remain vigilant about competitive pressures and market dynamics.