Evolus Inc (EOLS) 2025 Q4 法說會逐字稿

Good afternoon, everyone. Thank you for standing by. Welcome to Evolus, Inc., fourth-quarter and full -year 2025 earnings conference call.

(Operator Instructions) As a reminder, today's conference call is being recorded and webcast live. (Operator Instructions)

I would like to turn the conference call over to Nareg Sagherian, Vice President and Head of Global Investor Relations and Corporate Communications. Please go ahead.

Thank you, operator. Welcome to everyone joining us on today's call to review Evolus, Inc., fourth-quarter and full-year 2025 financial results.

Our fourth-quarter and full-year 2025 press release is now on our website at evolus.com.

With me today are David Moatazedi, President and Chief Executive Officer; and Tatjana Mitchell, Chief Financial Officer. Rui Avelar, Chief Medical Officer and Head of R&D, is also with us for the Q&A portion of the call.

Today's call will include forward-looking statements. Actual results may differ materially due to risks and uncertainties outlined in our earnings press release and SEC filings. These forward-looking statements are based on current assumptions. We undertake no obligation to update them.

Additionally, we will discuss certain non-GAAP financial measures. These measures should be considered in addition to, and not as a substitute for, our GAAP results. A reconciliation of GAAP to non-GAAP measures is included in today's earnings release.

As a reminder, our earnings release and SEC filings are available on the SEC's website and on our Investor Relations website.

Following the conclusion of today's call, a replay will be available on our website at investors.evolus.com.

With that, I will turn the call over to our CEO, David Moatazedi.

Thank you, Nareg. Good afternoon, everyone.

Before reviewing our 2025 performance and outlining our objectives for 2026, I would like to take a step back and provide a broader perspective around our performance beauty strategy.

As we enter our seventh year as a commercial-stage company, I am proud of the fact that we are redefining the category through a beauty-first lens. We are the first company with a neurotoxin dedicated exclusively to cash-pay aesthetics and free from reimbursement dynamics. This approach enables deeper alignment with our customers and allows us to build differentiated, long-term partnerships with aesthetic practices, partnerships that are increasingly translating into measurable share gains.

A key piece of that strategy is Evolux, the first program in the industry that rewards practices with co-branded media investment tied to purchase volumes.

As our customers grow with us, we reinvest to drive awareness for both our products and their practices, strengthening the partnership and reinforcing shared success.

We have also focused on increasing patient retention through Evolus Rewards, the first SMS-based loyalty program in aesthetics and the only consumer loyalty program co-branded with clinics. The program is designed to drive repeat visits and build lasting relationships between practices and patients.

Over the past six years, Evolus Rewards has grown to more than 1.4 million treated patients, reinforcing brand preference and contributing to sustained share expansion.

In the fourth quarter, we successfully piloted our new portfolio growth rebate, which officially launched at our National Sales Meeting in January. This growth rebate is designed to reward practices for growing with Evolus across our expanding portfolio of products, further increasing our strategic importance within each account and strengthening our competitive position.

Education remains another cornerstone of our model. We have built a world-class medical education platform with broad reach and comprehensive curriculum that includes [CME] programs, live broadcasts, cadaver labs, preceptorships, and small-group hands-on trainings.

In 2025 alone, we provided hands-on trainings to over 14,000 clinicians directly in their clinics. This year, we are elevating that platform further and will be hosting top-tier clinicians with new flagship training events at Evolus' headquarters. These immersive two-day trainings will be focused on anatomy, clinical training, and business support for high-volume practices.

Most importantly, we continue to build a world-class portfolio of differentiated products. Jeuveau, our flagship neurotoxin, remains a strong and growing product. We continue to advance the science supporting its unique precision profile and differentiation, including an independent study published last year in JAMA demonstrating fast onset, the highest peak effect, and the longest duration of the toxins studied. This represents the second head-to-head study validating Jeuveau’s advantages.

Clinicians who trial the product recognize the differentiation, which has supported our capture of over 14% US market share, to date. We continued to gain share in 2025, even in a declining procedural environment, demonstrating the resilience and competitiveness of the brand.

In 2025, we also introduced the first new HA technology in over a decade with Evolysse. Our first two formulations are now in the market. We expect FDA approval of Evolysse Sculpt, our flagship mid-face volume product, in the fourth quarter.

Our proprietary Cold-X technology creates a natural formulation, which successfully demonstrated a longer duration of effect against one of the market-leading brands.

Customers are reporting strong satisfaction, noting the gel’s efficiency and forgiving depth of placement, allowing injectors to achieve a more subtle, natural-looking result. To date, more than 3,000 customers have purchased Evolysse, expanding our presence within accounts and increasing our overall share of injectable spend.

As we enter the second phase of the launch in the second quarter 2026, we will be initiating a large sampling and experience program, which we expect to broaden the adoption of Evolysse.

Internationally, we also continue to make significant progress. Last year, we entered France with our partner, Symatese; transitioned Germany to a direct model in the fourth quarter; and delivered strong growth across existing markets.As a result, we now operate in nine countries outside the United States, with international revenue nearly doubling, year over year. In key markets such as the UK, we are approaching double-digit market share, reflecting the strength of our positioning outside the US.

Turning to operating performance, 2025 was a unique year for the aesthetics market and only the third time in 25 years that US injectable procedure volumes declined. Despite that backdrop, Evolus delivered 12% full-year revenue growth, marking our sixth consecutive year of double-digit growth.

We exited the year on an accelerating growth rate of 14% in the fourth quarter, supported by top-line growth across all product lines in the US with Jeuveau and Evolysse, as well as our international business.

Midyear, we made the right decision to rebase our expense structure and align the organization for durable, profitable growth. The benefits of these actions were evident in the second half of the year, where we achieved meaningful operating leverage. That structural reset in expense base positions us for 2026, where we expect to deliver on our revenue guidance, while growing non-GAAP operating expenses, at a modest zero to 3%; and expanding operating leverage to result in a low- to mid-single-digit adjusted EBITDA margin.

Our strategy remains consistent. We are building a global performance beauty company centered on differentiated brands for the cash-pay consumer. In 2026, we look forward to introducing Estyme in Europe in the second quarter; expect FDA approval of Evolysse Sculpt in the fourth quarter; and continue actively engaging in pipeline opportunities.

We are deeply committed to driving profitable growth, going forward, and continue to target revenue between $450 million and $500 million, with 13% to 15% adjusted EBITDA margins in 2028. This outlook is meaningfully supported by the strengthening US Jeuveau share to the mid-teens, scaling US Evolysse share into the high-single digits, and the international business growing to more than 15% of total revenue.

With that, I will turn it over to Tatjana to walk through the financial details.

Thank you, David.

Before walking through the fourth-quarter and full-year results, I want to recognize our commercial and operating teams for their execution throughout 2025. It was a year that required flexibility and discipline, as we navigated a challenging US aesthetic market.

The organization responded with clear prioritization, thoughtful cost management, and a focused allocation of resources toward the highest return initiatives. That discipline allowed us to deliver fourth-quarter profitability and positioned us well for sustainable annual profitability, beginning in 2026.

I will now review the financial results.

Global net revenue for the fourth quarter was $90.3 million, representing 14% growth over 2024. This included $83.1 million of global Jeuveau revenue and $7.2 million from Evolysse. For the full year, global net revenue was $297.2 million, up 12% compared to 2024, marking our sixth consecutive year of double-digit growth.

International revenue represented approximately 8% of 2025 global revenues, increasing from 5% in 2024. This included product revenue from Europe and Australia; and service revenue from our distributor relationship in Canada.

We are seeing continued momentum in our international markets, including approaching double-digit market share of toxin in the UK, our most mature market. International revenue is expected to become a more meaningful contributor, over time, as we prepare for the European launch of Estyme in in the first half of 2026 and continue to grow our toxin share in existing markets.

Turning to gross margin, reported gross margin for the fourth quarter was approximately 66%. Adjusted gross margin, which excludes the amortization of intangibles, was approximately 67%. For the full year, reported gross margin was approximately 66%. Adjusted gross margin was approximately 67%.

With respect to tariffs, based on announcements, to date, Jeuveau, a biologic, is not currently impacted by tariffs. Following the recent US Supreme Court decision and subsequent executive actions, Evolysse, which is classified as a medical device and imported from France, is currently subject to a 10% tariff. The administration has also communicated the possibility of an additional 5% tariff, though it has not been formally implemented.

Our fiscal 2025 results reflect the previous 15% tariff. Our 2026 guidance also reflects a 15% tariff assumption. We are evaluating the potential recovery of previously paid tariffs.

We also continue to monitor policy developments and will evaluate any potential impact, pending further guidance from the administration.

Moving now to operating expenses, GAAP operating expenses for the fourth quarter were $55.1 million, down from $57.3 million in the third quarter. As a note on this quarter-over-quarter decrease, we realized a $4.5 million benefit, driven by the revaluation of the contingent royalty obligation.

Non-GAAP operating expenses for the fourth quarter were $53.0 million compared to $49.7 million in the third quarter, which includes the timing of costs related to our customer event that shifted from the third quarter to the fourth quarter.

For the full year 2025, GAAP operating expenses were $229.8 million compared to $216.7 million in 2024. Non-GAAP operating expenses were $209.7 million in 2025 and within our guidance range of $208 million to $213 million. Importantly, non-GAAP operating expenses declined 4% in the second half of the year compared to the first half, reflecting the benefits of expense reductions we implemented in Q2.

As a reminder, non-GAAP operating expenses exclude stock-based compensation, revaluation of the contingent royalty obligation, depreciation and amortization, and restructuring costs.

Within operating expenses, selling, general and administrative expenses for the fourth quarter were $54.7 million compared to $52.8 million in the third quarter. This included $4.8 million of non-cash stock-based compensation compared to $5.0 million in the prior quarter. For the full-year 2025, SG&A expenses were $220.8 million compared to $198.0 million in 2024, reflecting investments in our evolution into a multiproduct company with the launch of Evolysse in the US, as well as investments in scaling existing international markets.

Non-GAAP operating income for the fourth quarter was $7.1 million compared to $6.7 million in 2024.

As a reminder, both non-GAAP operating expenses and non-GAAP operating income exclude stock-based compensation expense, revaluation of the contingent royalty obligation, depreciation and amortization, and restructuring charges.

Non-GAAP operating income also excludes amortization of intangible assets.

Turning now to the balance sheet, we ended the fourth quarter with $53.8 million in cash, compared to $43.5 million at the end of the third quarter. The increase was driven by strong sales growth, disciplined expense management, and effective working capital execution.

As we look ahead to 2026, while we are not providing specific cash guidance, we expect cash usage to be meaningfully lower than in 2025, as operating leverage improves.

Our use of cash in 2026 will primarily reflect interest payments and investments ahead of the anticipated launch of Evolysse Sculpt, including inventory build and a milestone payment.

Today, we entered into a revolving credit facility with Eclipse Business Capital, providing up to $30 million of availability, with an accordion feature up to $40 million. This facility is supported primarily by our receivables and will be used for working capital needs, including inventory build and preparation for the anticipated launch of Evolysse Sculpt.

As a reminder, under our long-term debt agreement with Pharmakon, we retain access to two additional $50 million tranches, with no incremental financial covenants or performance conditions.

Our existing term loan does not mature until mid-2030.

Taken together, our approximately $50 million of cash, access to up to $40 million under the revolving credit facility, and the availability of an additional $100 million under our existing long-term debt agreement provide substantial liquidity and flexibility.

Combined with our improving operating leverage and sustained profitability, beginning in 2026, we believe we have a clear path to generating meaningful free cash flow in the years ahead. This capital structure gives us the ability to scale the business, proactively manage our debt, and continue to invest in growth.

We are not planning to raise equity capital and remain highly sensitive to dilution.

Let me now summarize our 2026 guidance.

We expect total net revenues to be between $327 million and $337 million, which represents 10% to 13% growth over our 2025 results. Evolysse and Estyme injectable HA gels are expected to contribute 10% to 212% of total revenue in 2026.

Adjusted gross profit margin for the full-year 2026 is expected to be between 65.5% and 67%, reflecting an evolving revenue mix, while maintaining a disciplined approach to margin optimization.

Non-GAAP operating expenses for 2026 are expected to be between $210 million and $216 million, representing a minimal zero to 3% increase over 2025. Against our anticipated double-digit revenue growth, this reflects meaningful operating leverage, driven by structural efficiencies implemented over the past year.

In 2025, we aligned our commercial organization to support a multiproduct portfolio across US and international markets; and streamlined our support functions, allowing us to scale revenue in 2026 without proportionate increases in field infrastructure.

As previously guided, we expect to achieve full-year profitability in 2026, delivering a low- to mid-single-digit adjusted EBITDA margin on a consolidated basis.

Beginning in fiscal year 2026, we will transition our primary profitability metric from non-GAAP operating income or loss to adjusted EBITDA to improve comparability with industry peers. This change does not impact our reported results, as the reconciling items between the two metrics are consistent.

As a point of note, other modeling assumptions for 2026 include annual interest expense between $16 million and $17 million, which includes interest and amortization of financing costs on the long-term debt facility and on the revolving credit facility; full-year diluted weighted average shares outstanding of approximately 68 million.

In summary, our 2026 outlook reflects a structurally improved cost base, disciplined capital allocation, and increasing operating leverage, positioning the company for sustained profitability and future free cash flow generation.

With that, I will turn it back to David for closing remarks.

Thank you, Tatjana.

As we look ahead, Evolus enters 2026 from a position of strength. We have solidified our operating foundation, expanded our portfolio, and demonstrated the discipline required to scale profitably.

With double-digit growth, a largely flat expense base, and multiple value-creating milestones on the horizon, we are entering a period of accelerating operating leverage and sustained profitability.

Our focus remains clear. We are building a global performance beauty company centered on the customer experience, investing to drive practice growth, while maintaining the expense discipline necessary to drive operating profit.

We look forward to launching Estyme in Europe next quarter and gaining approval of Evolysse Sculpt in the fourth.

These milestones, coupled with the continued momentum across our portfolio, reinforce our confidence in achieving 13% to 15% adjusted EBITDA margins in 2028.

Thank you for your continued support. We look forward to updating you on our progress throughout the year.

Operator, you may now begin the Q&A.

Annabel Samimy, Stifel

Thanks for taking my question. Good end to the year.

Some questions about Evolysse. Just trying to understand, qualitatively, has the growth of Evolisse been primarily coming from the early-adopter population? Are you starting to -- or is the new account build starting to come from those injectors who want to start taking advantage of Evolysse in the portfolio? Are you starting to go deeper? Or is it starting to go broader?

Maybe you can give some qualitative description around those ordering patterns.

Sure, Annabel. Thanks for the question.

What we are seeing with Evolysse is a business that is continuing to diversify, in terms of its customer base. As I mentioned on the call, we now have over 3,000 purchasing accounts, which represents a large portion of the Jeuveau revenue that was generated last year that has now placed an order for Evolysse. We feel very good about our ability to establish Evolysse in some of those clinics.

We were also very pleasantly surprised by the portfolio rebate and how important that was in the fourth quarter within some of those accounts to commit a larger portion of their overall filler and toxin business to us, especially recognizing that we are operating with the first two formulations and we plan to introduce more. The portfolio rebate helps build on that momentum.

What we also see an opportunity now that we have learned a lot about this product to take it significantly wider. That is one of the sinitiative that we referenced on the call.

In the second quarter, we plan to engage in a heavy sampling and trial program through a universe outside of that group of 3,000 to give them the opportunity to trial the product to gain the training required to adopt it and broaden that universe, in advance of the approval of Sculpt and subsequent launch.

We feel that we are on a very good track with the product. You saw the momentum build coming out of the year in the fourth quarter. We see the momentum continuing to increase.

Feedback from customers who have done a number of surveys -- and this is probably the most important part; and we know that others have done channel checks -- is very positive on this product.

The more experience that clinicians get with Evolysse, they realize that the advanced technology gives them a number of unique differences from the formulations that are currently available in the market.

What is happening in the backdrop is consumers are looking for more natural fillers and a more natural look. Evolysse, because of the Cold-X technology, is designed in a way that gives you more effect with less product, creating a more natural look, rather than relying on swelling of HA to deliver that outcome.

We hear that consistently, on top of the fact that they have the latitude to inject this product at varying depths. I think that gives it, also, one other clinical advantage that we are hearing in the market, as well.

Overall, the buzz on this product is great. We are looking to take it wider, as we get into the year.

The follow-up question to that: Is this a product that you think could turn around the growth in the market that I think was probably impacted not just by macro but possibly changing trends?

Yeah. As you said, there are two parts.

I think the macro piece mirrors, if you will, the toxin market. We do believe that you are starting to see improvement in the filler market, when you look at the overall category, year on year. But the changing trends are certainly a part of it because the communication that clinicians now have with their consumers is evolving around the use of HAs. We know that they are using less volume in each treatment.

I am going to turn it to Rui because I know Rui spent a lot of time recently with a number of clinicians, talking about how their use of fillers is evolving, especially with Evolysse.

Yeah. think you have covered the major points, actually.

It is a trend towards going to more natural. That is certainly one thing.

It has certainly been helpful to punctuate the fact that this is a hyaluronic acid and distinguish the different opportunities that are within the filler. The thing that seems to be resonating very well is we saw in the clinical data that you do not need a lot of product to get effect.

In fact, examples of less product still getting more effect, that's resonating really well. Also, less product being required.

And then, ultimately, from an injector perspective, they really appreciate the fact that you correct to the outcome that you are looking for. You do not have to under-correct and anticipate swelling. You do not have to over-correct because you are going to lose some volume because of free HA. That control has been a big thing for the injector itself.

And then, finally, our data certainly suggest that the duration is there, when we look at the one-year data from Form and Smooth; and the two-year data from Sculpt.

Great. If I can just ask one last quick follow-up, in terms of the accounts that are ordering, are they predictably ordering after that second training now? Have you seen that consistent with what you have said in the past? Or is there still a pause after they first get trained?

It is a great question. I think, coming out of the third quarter, we talked about that second training being an inflection point in utilization of the product. We continue to see that being a really important indicator: getting them sampled first and then, trialing the product to get trained, followed by a second training. We continue to emphasize that, as well, with the field.

I talked about all the different training vehicles we have. I want to give my hats off to the education team across the company because we have a very comprehensive medical education platform. The launch of Evolysse was marked with a very large webcast, several thousand attendees.

We have now done several thousand hands-on trainings, as well. We have several thousand more clinics that could go through the second training so we have our roadmap mapped out for us with existing clinics to drive meaningful volume increase, as well as those new clinics to get that initial training.

We feel like we have a great handle on this product. We are optimistic that the market is showing signs of recovery, although we do forecast a bit of a decline in the filler market continuing this year.

It is an improvement. But we expect that to start to recover towards the latter part of the year. Overall, we feel like we are on the right track.

Our guidance reflects that, as well. We are really looking forward to putting this in the hands of more clinicians.

Great. Thank you.

Marc Goodman, Leerink Partners.

Hello. Good evening, everyone. This is Alyssa, on for Marc. Thank you for taking my question.

I was wondering if you could provide some more detail on the structure of the rebate program, specifically how rewards are tiered for participating clinics and what metrics determine their eligibility?

Secondly, looking ahead to 2026, how would you describe the overall marketing strategy? Are there active consumer-facing brand campaigns active, right now? How is the investment split across the fillers versus the toxin?

Thank you.

I will touch on the rebate and, briefly, on the marketing strategy; and then, I will have Tatjana touch on the investment, overall, as you think about, really, (inaudible) comercial; how we think about that investment.

Starting with the rebate, one of the things we have prided ourselves on from the beginning is we value transparency in how we price our products and how we operate. When we launched this portfolio rebate, it was designed as a growth rebate in the pilot.

And so accounts that purchased $50,000 more in the quarter or $100,000 more in the quarter were eligible to receive a growth rebate for committing more of their business to Evolus. That growth rebate came at the very end of the quarter as a result, directly, from their purchases.

That complemented our Evolux program, which I touched on earlier, which is a volume-based pricing program. That is exactly what we are mirroring in the front half of the year.

It was very simple to communicate to accounts. As a matter of fact, I had the opportunity to present this to a number of accounts in the fourth quarter during the pilot phase. I'll tell you: It was incredibly well received.

I think many investors know that one of the challenges when we were a single-product company is we were competing against portfolio bundles. This growth rebate in the pilot was designed to work through those bundles. It did so very effectively.

We trained our salesforce in January on that growth rebate. It is based on six months of purchasing volume for those clinics so from January 1 to the summer till the end ogf June. We are hearing very good feedback on it.

As a matter of fact, it is not just the portfolio rebate. We are hearing the same with our national accounts, where we are seeing a very high growth rate in those national account chains, as well, that see an opportunity to partner with Evolus in a more meaningful way. That has really been the focus of the team.

And then, lastly, on the marketing strategy, look, what I love about what we are doing is we are building on these unique capabilities. Our marketing strategy, in terms of investing back into clinics, is directly tied to Evolux.

And so we are doing unique things like digital advertising, billboards, TV spots. We are doing them on both Jeuveau and Evolysse. They are all customized around the clinic. They are all targeted within the radius of their practice.

Now that we increase our base of users, it is increasing our media spend, as well, in a very efficient way. (inaudible) we'll touch on that.

The last thing, we do co-promotions as, well, with other beauty brands .In the first quarter, we did one with Jeuveau and a brand called IPSY, which creates beauty products. Accounts were able to purchase Jeuveau and earn a number of these gift bags that they, in turn, were able to market to their patients as a gift with purchase.

We think this is one of the unique elements of being a cash-pay company focused on the beauty space that enables us to partner with our clinics and give them value-added benefits that help them attract new consumers to their office.

That partnership with Ipsy was exclusive to Jeuveau. We are the first beauty company they partnered with. It became a benefit for those patients.

I will let Tatjana talk a little bit about what that spend means.

Thanks, David.

It is important to comment on our commercial spend. The largest portion of that spend is really on our sales team and all of their activities.

The next largest is in training.

And then, the two others are marketing; what you would consider traditional media. That is when we talk about CBM, the co-branded marketing.

The fourth piece, what David mentioned, are these partnerships.

We disclose our advertising costs. We disclose this media spend. For the last three years, (inaudible) it has been in the range of $7.5 million to, call it, $9.0 million. For 2026, it is going to stay in that range.

What we are able to do with that CBM, which is earned through the Evolux program, is really support the practices to drive the highest ROI for us and for them.

It is not just traditional, just going outright and spending media into advertising the brand.

Great. Thank you, everyone.

Uy Ear, Mizuho Securities.

Hey, guys. Thanks for taking our question.

David, just based on your internal data, such as your consumer loyalty programs and whatnot, how are you seeing the toxin market trending? I think you perhaps commented, as well, on improvement in the facial filler market. Maybe just help us understand what you are seeing, based on what you are hearing externally, as well as what you are seeing internally.

The second question we have is on your portfolio programs. I think you mentioned it was helping adoptions of Evolysse. Just wondering whether it is also helping with Jeuveau’s adoption expansion, as well, in the accounts?

Thanks for the question, Uy.

I think we have a really great handle on both not just our internal data but some of the third-party external data, in terms of what that means for the market. To boil it down, in 2025, we believe that the neurotoxin market declined mid- to upper-single digits, in terms of overall volume. You saw that our business for Jeuveau, we gained in units, despite the fact we saw the entrance of a new competitor.

Here is a brand in its sixth year that is continuing to demonstrate resilience. I do believe it has a large part to do with a differentiated clinical data set, as well as a very sophisticated sales organization, with a number of unique tools because of our cash-pay advantage.

(inaudible) we see that supported in our Evolus Rewards program with consumers who are coming back and seeking retreatment with Jeuveau. We continue to see the retreatment rates rising, over time.

At the same time, I think we've seen, over the course of the year, that overall procedural volumes started to show incremental improvements. Especially if you compare the first half of the year to the back half, we saw meaningful improvement in the overall toxin market.

We do believe -- although not all companies have reported yet -- that in the fourth quarter, the market returned back to some level of stability, call it flat to low-single-digit growth on the neurotoxin market.

You can mirror that, to some degree, on fillers, just not back to the same level of recovery. It reflected that the market was returning to some level of improvement.

We expect that to continue into this year. That is what we have modeled: a toxin market with low-single-digit growth and a filler market that will start to see a road back to recovery for this year.

I think our internal data supports that. We are really pleased with what we are seeing in the market to start the year. I talked a little bit about our national account growth. It's incredibly healthy to start the year.

The discussions around the portfolio that our salesforce is having have been incredibly positive. We will continue to see momentum there.

We see this continuity in the right direction on the overall business. At the same time, it is important to recognize that this is all marginal improvement over the prior time period. We have not yet seen a bounce back. And so our guide does not reflect that. To the extent we do, we would expect to see a fairly sharp recovery, once that does occur.

You are absolutely right that there is an interplay between the benefits of adding a new account for Jeuveau and the willingness to trial Evolysse; and, also, on the inverse, the Evolysse accounts that have brought Jeuveau into the door.

Given we are just three quarters in, you are just starting to see the benefits of those two brands cross-pollinating, both around the clinic and in front of the consumer, because they earn rewards on both brands.

We see a lot of opportunity in 2026, especially with the focus on the portfolio bundle, to be able to capitalize on that unique advantage.

Of course, the approval of Sculpt only gives us an additional boost, as we build on that portfolio benefit.

Thanks.

Navann Ty , BNP Paribas.

Hi. Thanks for taking my question.

Can you discuss your assumption on the competitive launches into the guidance with the (inaudible) and (inaudible)?

Also, if you can discuss your strategy around bundling after -- when you will be able to leverage Sculpt?

Hi, Navann. Thanks for the questions.

As you pointed out, 2026, we are going to see two new toxin entrants from the two bigger players in this space. We expect AbbVie to launch their neurotoxin -- shorter-acting (inaudible) -- in the summer -- is what we understand. And then, in the back half of the year, we expect a liquid toxin to be introduced by Galderma.

We will see sampling that will come with those, just as we did last year, with the introduction of a player from Korea with (inaudible). We expect to see heavy sampling in the market. That is reflected in our guide.

Keep in mind, sampling does not always translate over to adoption.

In the near term, it creates some pressure. But, over the long term, you start to see accounts commit to the brands that they are willing to purchase.

Although we have not seen a short-acting toxin in the market, it will be interesting to see their go-to-market strategy. We do not have a lot of visibility to that.

On the liquid product, we have competed with that product in Europe now. It is approaching a year that it has been available there. We are very familiar with it and understand how both consumers and clinicians see it.

As we get closer to commercialization, maybe we will be in a position to talk a little bit more about that aspect.

I think that answered the second part to your question.

Thank you. Just on the bundling, how will the strategy will evolve with Sculpt?

For this year, we are focused on the portfolio growth rebate for a full year. This is a pretty significant shift in conversations, (inaudible).

Our reps are now going in and having a conversation about committing an account’s business to us over a six-month period in order to gain these benefits. These are strategic conversations for the clinic around who they want to commit their partnership to.

The portfolio rebate gives us the rationale. The portfolio itself gives us the support to earn that business.

And so we are seeing very good uptake early on. We expect to continue to do the portfolio rebate through the back half of the year, as well.

As we expect Sculpt approval in the fourth quarter, that will be a product we will talk about in 2027 more meaningfully. We may look to make adjustments to the portfolio growth rebate, as we see it play out over the course of this year.

We are just a couple of months in. We are really pleased with how the field is executing against it.

Thanks for the color on both. That's very helpful. Thanks.

Sam Eiber, BTIG.

Hey. Good afternoon. Thanks for taking the questions here.

Maybe just following up on the last question, how should we think about filler growth perhaps accelerating in 2027 with the Sculpt launch? Are accounts waiting for the product? Or does it necessarily just change the conversation you are able to have with providers here?

Yeah. Maybe, we'll start. I will turn it over to Rui to talk a little bit about, clinically, why this is meaningful to the accounts. And then, I can talk a little bit about how that plays into the broader bundle and partnership with the clinic.

When we think about products like Sculpt, we are now describing the premium sector within the HA. The flagship product there is (inaudible), for instance. That is the largest, most successful HA that has ever been launched.

We think Sculpt will represent a competitor to that product. When we think about what we are doing with that mid-face, we are asking these gels to come in and take volume and do something that is really quite structural.

Remember, it comes from a minimally invasive form.

We are very optimistic about this product. When we were doing diligence the product, the investigators were very happy with the performance.

Subsequent to that, we have actually gone against a product that is in the market, well known. We have shown non-inferiority and superiority at the primary endpoint.

More impressively, as you follow it out, over time, when you get to the two-year mark, we are showing 2 times to 3 times more responder rates at the two-year mark.

We are optimistic. We are optimistic from that data. As we are getting feedback from people using it in Europe, that feedback is correlating really well with what we saw in the clinical trials.

And then, as it relates to the overall portfolio bundle, we see our positioning in this market continuing to strengthen. You look at Jeuveau, six years mature, continuing to capture market share. Evolysse is off to an incredibly strong start in a market that has been challenged.

But when you back out the underlying market performance, the actual performance of Evolysse within the market has been very strong. We are doing that without a full portfolio in the space.

We do believe this is just going to continue to build on our in-market share gain momentum that we have continued to demonstrate as a company.

I think you couple that product being highly differentiated with our cash-based strategy, on top of this large injector base that is purchasing Jeuveau, we see a lot of opportunities to drive continued momentum over the next several years.

I am really excited to see what the international team can do with the Estyme product in the UK, where we are now in our fourth year approaching double-digit market share with NUCEIVA, which is our toxin there.

That Estyme product is going to be rolled out with all four formulations all approved at the same time. And so that is going to give the team in the UK a real boost, in terms of our ability to more effectively compete against a portfolio.

We see this as part of the natural evolution of the company. We are excited to see this unfold.

That is really helpful. Maybe I can just ask a quick follow-up on some of the inventory dynamics at the provider level.

Just [sanity-checking], is that back at what you would describe as normalized levels, at this (inaudible)? Is there more room to work through that?

I think what we saw in the middle of last year was a drawdown in inventories. We continue to believe that accounts are measured in how they take on inventory in this environment.

They are seeing an improvement, which means they are a little more open than maybe they were, coming out of the second quarter.

At the same time, we have not seen a rebound where they are back to the inventory levels that they were in before. That could potentially be something that could be a net positive, if we see the market return more strongly, as we get into the year.

Really helpful. Thanks for taking the questions.

Thank you.

Doug Tsao, HC Wainwright.

Hi. Good afternoon. Thanks for taking questions.

David, you touched on it a little bit but, obviously, last year, you had the competitive entrant from the Korean manufacturer with what I would characterize as an undifferentiated neuromodulator. When you think about both the Galderma, as well as Allergan -- expected launches of (inaudible) as well as (inaudible) -- they're coming at it with (inaudible). One is going with short duration and one is making longer duration claims.

I am curious if you have perspective on how those will shape up or influence the market?

We should never take any competitor lightly, let's start there; and never take a moment like a new entrant coming in to capitalize on an opportunity.

I am really proud of what the team did last year with the entrance of a new toxin player in the space. We maintained our focus. You saw us continue to gain share despite the market declining.

I attribute a lot of that to the intensity that we bring to the way that we think around any new competitor. It starts with a heavy review of the science and clinical data. As you said, there are claims that are made around onset and claims that are made on longevity.

In the end, the question is, does the data support some of those claims? I think that is our job: to make sure that we provide a counter to some of the claims that are made in the space but also to ensure that clinics are focused on the long game.

You want to deliver high-quality products that deliver high patient satisfaction in a profitable way to grow your practice. We believe that is where we are incredibly well positioned in the space.

We are the only company that is reinvesting back into these clinics to help drive that growth. We are reinvesting back in retaining those patients to continue to build on those practices. We are doing it with a broad portfolio.

And so it will be up to the new players to establish their value proposition in this space vis-à-vis the current products they have. We think this creates an opportunity for us. I know the team is very excited for it. It is something we will not be talking too much about until we get to the middle of the year. But we will certainly be prepared.

Okay. Great. Thank you very much, David.

Serge Belanger, Needham & Company.

Hi. Good afternoon. Thanks for taking my questions.

The first one, David, can you talk about maybe seasonality trends for what we have seen, so far, in 1Q? I know some other companies have talked about the winter storms affecting volumes for the early part of the year. Just curious if that has also been an issue in aesthetics.

Secondly, regarding the European market, just curious if they have experienced the same macro headwinds that we have seen in the US on the toxins; especially on the fillers, if they have seen those same headwinds that have affected the US market.

Thanks.

I will turn it over to Tatjana to talk a little bit about the seasonality. And then, I will take the comments around the European markets.

Hi, Serge.

What we are seeing in Q1, really, is similar to what we saw exiting Q4, which is that the toxin market is showing solid demand (inaudible). We do not believe this market is declining.

And then, the filler market is still pressured but not seeing those double-digit declines that we saw for most of 2025. That is consistent with our guidance.

Also consistent with our plan, we rolled out these plans at the National Sales Meeting, similarly at the International Sales Meeting.

We feel good about these. We are executing on them.

I cannot necessarily say we have seen issues related to the weather.

David, maybe you can comment on the European markets.

That is right.

In Europe, the overall economic environment has been stronger in Europe, relative to the US. When you think about the toxin space, as an example, we don't believe that the toxin market declined in Europe last year.

At the same time, we do believe that there are signs that the HA market did recover towards the end of the year. We do believe that it could have been flattish to exit the year in the HA market. It has been a pretty sharp reversal from what was a decline in Europe in procedure volume for HA products, as well.

That gives us some level of optimism that we are trailing about 6 to 12 months behind Europe, in terms of our recovery of the HA market. That is something we are going to watch closely.

But, as it relates to our guide for this year, just to reiterate, we assume that the filler market would decline low-single digits over the course of this year.

Thank you.

Thank you for all your questions.

At this time, I'd like to turn the call back to the Nareg Sagherian for details on upcoming IR events. Nareg?

Thank you.

We look forward to continuing the conversation at the Leerink Global Healthcare Conference in Miami on Wednesday, March 11. We hope to see many of you there.

Thank you for joining us today.

Thank you. We reached the end of our call. You may now disconnect your lines.