Evolus, Inc. Common Stock 2026 Q2 Earnings Call

Please go ahead. Thank you, operator, and welcome to everyone joining us on today's call to review Evolus' second quarter financial results.

Our second quarter press release is now available on the investor relations section of our website at evolus.com. Joining me on today's call are David Moatazedi, President and Chief Executive Officer, Rui Avelar, Chief Medical Officer and Head of R&D, and Tatjana Mitchell, Chief Financial Officer. 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, and 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'll turn the call over to our CEO, David Moatazedi.

Thank you, Nareg, and good afternoon, everyone. The second quarter represents a meaningful inflection point for Evolus. We delivered 21% revenue growth, generated our third consecutive quarter of positive adjusted EBITDA, expanded our international footprint with the launch of Estyme in Europe, and announced two strategic licensing agreements that further strengthen our long-term portfolio. Importantly, Evolus gained significant share across the U.S. injectable aesthetics market during the quarter, underscoring the growing momentum of our portfolio strategy across both neurotoxins and hyaluronic acid gels. Reflecting the strength of our first half performance, we also raised our full year 2026 financial outlook. As we enter the second half of the year, we are well-positioned to build on this momentum. Consumer demand continued to strengthen during the quarter. Treatment intervals remained stable, and practitioners reported healthy patient traffic and engagement.

We estimate the U.S. neurotoxin market grew at a faster than expected mid-single-digit growth rate during the quarter. While the hyaluronic acid gel market returned a positive growth following two consecutive years of decline. Consumers continued to prioritize aesthetic treatments, and practices remained focused on products that deliver predictable clinical outcomes and high patient satisfaction. Against this improving backdrop, we continued to meaningfully outpace the market through disciplined commercial execution, which led to market share gains across our portfolio. That execution is evident through our business performance. Global toxin revenue exceeded $75 million during the quarter, driven by double-digit toxin growth across both the United States and our international markets. As our portfolio continues to expand, we're seeing customers increasingly adopt our products within their practices. Our portfolio focus is delivering particularly strong results among accounts participating in our Evolus Portfolio Growth Bundle.

In the first six months since we debuted the program, approximately 70% of these customers purchased Evolus, compared with approximately 25% penetration of Evolus across our overall customer base. Jeuveau continues to strengthen its competitive position through growing customer loyalty and market share gains, while Evolus is following the same disciplined commercialization strategy that made Jeuveau successful. During the quarter, Evolus revenue increased by more than $2 million sequentially, reflecting increased customer penetration, reorder rates, and utilization within existing accounts. Together, these trends reinforce our confidence that our portfolio focus is gaining traction, enabling us to increase share across both neurotoxins and injectable hyaluronic acid gels while deepening customer relationships and expanding our share of wallet. As a result of the continued strength across our portfolio, we remain on track for both Evolus and our international business to each contribute more than 10% of total company revenue this year.

A key milestone in our evolution is our recent partnership with Ipsen to exclusively develop and commercialize Profhilo in the United States. Profhilo is an asset we've been actively pursuing because it represents the gold standard in the rapidly emerging skin quality category. With the addition of Profhilo, Evolus is expanding into a new, third injectable aesthetics vertical of skin quality, further diversifying our differentiated portfolio and reinforcing our strategy of building a comprehensive injectable platform. Profhilo defines the skin quality category globally and is widely recognized as a market-leading brand for skin quality in Europe, with no directly comparable product currently available in the United States. Similar to Jeuveau, we will own the U.S. regulatory filings and lead the clinical development and commercialization strategy for Profhilo, creating long-term value around the asset, which has the potential to generate more than $100 million in peak annual revenue.

More broadly, our partnerships with companies such as Ipsa, Symatese, and Daewoong demonstrate that leading global innovators increasingly view Evolus as a partner of choice to develop and commercialize quality aesthetic products. Our proven execution, deep customer relationships, and expanding global platform position us to continue attracting high-quality assets from world-class partners as we build the next generation of injectable aesthetics. Our international business is also becoming an increasingly important contributor to our long-term strategy. During the quarter, we successfully launched the Estyme collection of injectable hyaluronic acid gels in Europe, where early customer response has been very encouraging. We also announced the expansion of our relationship with Symatese to include Canada, Australia, and New Zealand.

Strategically, this is an important milestone as we now hold exclusive rights to commercialize our injectable hyaluronic acid gel portfolio in every market where we maintain rights for Nuceiva while expanding our global addressable market by approximately $200 million annually. The combination of a broader portfolio and expanded geographical footprint make our international business an increasingly meaningful contributor to our long-term growth and revenue outlook. While we continue to invest in our long-term growth strategy, we remain disciplined in our financial execution. Our third consecutive quarter of positive adjusted EBITDA demonstrates that we can deliver profitable growth while funding the strategic initiatives that will drive the next phase of our evolution. Through the first six months of the year, we delivered 14% revenue growth ahead of the pace implied in our original guidance, giving us the confidence to raise our full year 2026 financial outlook.

Our results this quarter reflect the strength of our expanding portfolio, the effectiveness of our commercial strategy, and the operating discipline of our team in executing against our long-term objectives. With that, I'd like to now turn the call over to Rui.

Thank you, David. Evolus is committed to building a best-in-class aesthetic portfolio. We started with Jeuveau, a neurotoxin manufactured under the high pure manufacturing process, supported by phase III data against the industry standard that was subsequently validated by an independent study demonstrating that Jeuveau had a fast onset, the highest peak effect, and the longest duration among the toxins tested. We brought in Evolysse, a hyaluronic acid injectable manufactured with a novel Cold-X cross-linking technology. The pivotal registration studies demonstrated both non-inferiority and statistical superiority against an established comparator. The first two HA products, Evolysse Form and Smooth, have launched. Evolysse Sculpt, our premium midface HA injectable, has an anticipated approval in the fourth quarter and is expected to commercially launch in 2027. Evolysse Lips is on track to be submitted to the FDA by the end of this year with an anticipated launch in 2028.

Recently, we further expanded our portfolio and are very excited about the partnership with IBSA, the developer of Profhilo. IBSA is a private Swiss multinational pharmaceutical company founded in 1945 and operates across 10 therapeutic areas in over 90 countries worldwide. Profhilo is made of a unique blend of high and low molecular weight hyaluronic acid, and instead of the traditional cross-linking, it undergoes a patented thermal production process to create a hybrid matrix designed to address skin quality. With age, the components of skin break down and becomes less dynamic. Profhilo helps rebuild the quality of the skin. It stimulates extracellular remodeling, improves the elasticity of the skin and its supporting function by stimulating fibroblasts and keratinocytes. Evolus will lead the U.S. clinical and regulatory approval process and then own the PMA. At this time, we anticipate approval around 2030 and will provide updates as the program progresses.

With the addition of Profhilo, we continue to expand our portfolio and expect to introduce three new products over the next four years. Lastly, as David mentioned, we have further expanded our geographical reach with Estyme and now also have Canada, Australia, and New Zealand. Incorporating the registration timelines, we expect to launch in these regions in 2028. With that, I'll turn the call over to Tatiana.