Evolus, Inc. Reports Strong Q1 Growth Amid Challenges

Evolus, Inc. ((EOLS)) has held its Q1 earnings call. Read on for the main highlights of the call.

Evolus, Inc. recently held its earnings call, revealing a generally positive sentiment despite some challenges. The company showcased strong revenue growth and a successful product launch, with significant customer engagement and strategic financial repositioning. However, they also acknowledged hurdles such as reduced market growth expectations, tariff impacts, and increased operating expenses. Overall, Evolus’s strategic execution and market share gains suggest a promising outlook.

Double-Digit Revenue Growth

Evolus reported a robust 15.5% revenue growth in the first quarter of 2025, achieving $68.5 million in revenue. This growth was driven by a strong commercial engine and notable market share gains, highlighting the company’s effective strategies in expanding its financial footprint.

Successful Launch of Evolysse

The launch of Evolus’s new product, Evolysse, in April 2025, has been a resounding success. The product has shown strong early momentum, exceeding expectations in terms of clinician interest and early ordering activity, marking a significant milestone for the company.

Increased Customer Engagement

Evolus has significantly increased its customer engagement, adding 675 new purchasing accounts and reaching a total of more than 16,000 accounts. Their loyalty program also achieved a record with over 220,000 redemptions, indicating strong customer loyalty and satisfaction.

Positive Financial Repositioning

The company successfully refinanced its debt facility, reducing borrowing costs by 350 basis points and adding $100 million in incremental available capacity. This financial repositioning strengthens Evolus’s balance sheet and supports its growth initiatives.

International Growth

Evolus’s international revenue contributions have increased and are expected to continue outpacing US growth. This trend validates the company’s strong growth trajectory outside the US, showcasing its global expansion strategy.

Reduced Market Growth Expectations

Despite the successes, Evolus has reduced its 2025 toxin market growth expectation to low single digits due to a slower market growth and a cautious market environment. This adjustment reflects the broader market challenges faced by the industry.

Impact of Tariffs

Evolysse is subject to a 10% tariff, which is expected to increase to 20%, impacting the cost of goods sold. The estimated tariff impact is projected to be less than $2 million for 2025, posing a manageable challenge for the company.

Increased Operating Expenses

GAAP operating expenses for the first quarter increased to $61.8 million, up from $54.9 million in the previous quarter. This rise reflects investments in growth and commercial expansion, indicating Evolus’s commitment to scaling its operations.

Forward-Looking Guidance

Evolus reaffirmed its 2025 revenue guidance of $345 million to $355 million, predicting over 30% annual growth. The company is transitioning to a multi-product company with the launch of Evolysse Form and Evolysse Smooth in the U.S. They are also driving engagement with their “Drop the F Word” campaign. Evolus is on track to achieve profitability by the end of 2025, supported by a strong customer base and strategic initiatives.

In summary, Evolus, Inc.’s earnings call highlights a positive sentiment with strong revenue growth and successful product launches. Despite challenges such as tariffs and increased expenses, the company’s strategic execution and market share gains indicate a promising future. Evolus’s forward-looking guidance reaffirms its growth trajectory and commitment to achieving profitability by the end of 2025.