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Venus Concept (VERO)
NASDAQ:VERO
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Venus Concept (VERO) AI Stock Analysis

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VERO

Venus Concept

(NASDAQ:VERO)

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Underperform 40 (OpenAI - 4o)
Rating:40Underperform
Price Target:
$2.00
▲(9.89% Upside)
Venus Concept's stock score is primarily impacted by its weak financial performance, characterized by declining revenues, high operating losses, and significant debt burdens. Technical analysis indicates bearish momentum, with the stock trading below key moving averages. The valuation is unattractive due to a negative P/E ratio and lack of dividend yield. Despite some positive developments in the earnings call, such as the launch of Venus Nova, the overall financial outlook remains uncertain.
Positive Factors
Launch of Venus Nova
The launch of Venus Nova, with FDA clearance, marks a strategic shift in R&D, potentially driving long-term growth in noninvasive treatments.
Improved Balance Sheet
Debt-to-equity conversion strengthens financial stability, reducing leverage and enhancing the company's ability to invest in growth.
Growth in Energy-Based Devices
Stabilization and growth in energy-based devices suggest resilience and potential for future revenue expansion in a key product segment.
Negative Factors
Overall Revenue Decline
Declining revenue reflects challenges in market demand and competitive pressures, impacting long-term financial health and growth prospects.
Challenges in Venus Hair Business
Ongoing issues in the Venus Hair business highlight operational risks and may hinder overall company performance and strategic focus.
Increased Operating Loss
Rising operating losses indicate inefficiencies and cost management challenges, threatening long-term profitability and cash flow generation.

Venus Concept (VERO) vs. SPDR S&P 500 ETF (SPY)

Venus Concept Business Overview & Revenue Model

Company DescriptionVenus Concept (VERO) is a global medical technology company specializing in innovative aesthetic and wellness solutions. The company operates primarily in the aesthetic device sector, focusing on the development and commercialization of advanced technologies for non-invasive body contouring, skin rejuvenation, and hair restoration. Venus Concept's core products include a range of devices leveraging proprietary technology to enhance aesthetic outcomes for patients, catering to healthcare professionals and clinics worldwide.
How the Company Makes MoneyVenus Concept generates revenue through a diversified model that includes the sale of its medical devices, recurring service and maintenance contracts, and consumable products associated with its devices. The company sells its aesthetic devices to medical practices and clinics, which can then offer various treatments to their clients. Additionally, Venus Concept benefits from recurring revenue streams through service agreements and the sale of consumables such as treatment tips and other accessories necessary for the operation of their devices. Strategic partnerships with healthcare providers and distribution networks also contribute to its earnings, as they expand the reach of its products and enhance market penetration. Overall, the combination of direct device sales, ongoing service contracts, and consumable sales forms the foundation of Venus Concept's revenue model.

Venus Concept Earnings Call Summary

Earnings Call Date:Nov 13, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Apr 06, 2026
Earnings Call Sentiment Negative
While the launch of Venus Nova and improvements in the balance sheet are positive developments, the company faces significant challenges with declining overall revenue, increased losses, and ongoing difficulties with the Venus Hair business. The financial outlook remains uncertain.
Q3-2025 Updates
Positive Updates
Launch of Venus Nova
Venus Concept announced the 510 clearance for Venus Nova, the first product from their new focused R&D strategy. Venus Nova is designed to redefine noninvasive treatments and is expected to contribute to the company's long-term growth.
Improved Balance Sheet
The company made significant progress in improving its balance sheet by converting $11.5 million in debt to equity and raising $3.9 million in gross proceeds through equity capital market transactions.
Growth in Energy-Based Devices
Sales of energy-based devices increased 2% year over year, indicating stabilization in this segment despite challenging market conditions.
Negative Updates
Overall Revenue Decline
Total revenue decreased by 8% year over year to $13.8 million, with notable declines in U.S. revenue (12%) and international revenue (3%).
Challenges in Venus Hair Business
The Venus Hair business faced challenges due to customer financing pressures, economic uncertainty, and delays in finalizing the sale to MHG Co. Limited.
Increased Operating Loss
Operating loss increased to $9.5 million from $7.2 million in the previous year, with legal and professional fees contributing to higher operating expenses.
Net Loss Widened
Net loss attributable to stockholders widened to $22.6 million compared to $9.3 million in the previous year, impacted by a non-cash loss on debt extinguishment.
Company Guidance
During the third quarter of 2025, Venus Concept Inc. reported a total revenue of $13.8 million, reflecting an 8% year-over-year decline, with U.S. revenue decreasing by 12% and international revenue by 3%. Despite a 2% increase in sales of energy-based devices (EBD) to $9.5 million, the overall revenue was negatively impacted by a 12% decrease in product systems revenue, a 15% decrease in other product revenue, and a 5% decrease in services revenue. The company's gross profit decreased by 11% to $8.8 million, with the gross margin declining to 64% from 66.1% in the previous year, primarily due to U.S. tariffs and higher manufacturing costs. Operating expenses rose by 7% to $18.3 million, driven partly by legal fees related to the pending sale of the Venus Hair business. The net loss attributable to stockholders was $22.6 million, or $12.14 per share, compared to a net loss of $9.3 million, or $13.1 per share, in 2024. The adjusted EBITDA loss was $7.8 million, up from $5.9 million the previous year. As of September 30, 2025, the company held cash and cash equivalents of $5.9 million, with total debt obligations reduced to approximately $30.1 million from $39.7 million as of December 31, 2024. Despite these challenges, the company anticipates sequential growth in the fourth quarter, supported by the limited commercial launch of the Venus Nova system in December.

Venus Concept Financial Statement Overview

Summary
Venus Concept is facing significant financial challenges with declining revenues, high operating losses, and heavy debt burdens. Despite some positive signs in cash flow growth, the overall financial health remains weak, with high leverage and negative profitability metrics posing substantial risks.
Income Statement
30
Negative
Venus Concept's income statement reveals significant challenges. The company has experienced declining revenue over the past few years, with a negative revenue growth rate of -2.05% in the TTM. Gross profit margins are relatively high at 84.02% in the TTM, indicating efficient production, but the net profit margin is deeply negative at -121.06%, highlighting substantial losses. Both EBIT and EBITDA margins are negative, reflecting operational inefficiencies and high operating costs.
Balance Sheet
25
Negative
The balance sheet shows a precarious financial position. The debt-to-equity ratio is extremely high at 2.84 in the TTM, indicating heavy reliance on debt financing. Return on equity is negative, showing that the company is not generating profits from shareholders' equity. The equity ratio is low, suggesting limited financial stability and high leverage risk.
Cash Flow
35
Negative
Cash flow analysis indicates some improvement but remains concerning. Free cash flow growth is positive at 9.86% in the TTM, but both operating and free cash flows are negative, indicating cash burn. The free cash flow to net income ratio is slightly above 1, suggesting that cash flow is somewhat aligned with net income, albeit both are negative.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue58.88M64.83M76.35M99.50M105.62M78.01M
Gross Profit37.89M44.31M52.17M65.97M74.09M51.39M
EBITDA-45.42M-36.04M-26.11M-35.28M-13.04M-68.49M
Net Income-54.61M-47.00M-37.25M-43.70M-23.01M-81.71M
Balance Sheet
Total Assets61.62M68.18M93.65M125.38M157.37M160.53M
Cash, Cash Equivalents and Short-Term Investments5.93M4.27M5.40M11.57M30.88M34.30M
Total Debt32.67M43.03M79.70M83.77M77.87M79.60M
Total Liabilities58.49M65.35M107.10M116.64M115.78M116.76M
Stockholders Equity2.67M2.37M-14.02M8.09M40.94M44.23M
Cash Flow
Free Cash Flow-20.75M-11.19M-12.97M-27.32M-20.28M-28.94M
Operating Cash Flow-20.45M-11.07M-12.86M-26.98M-19.77M-28.65M
Investing Cash Flow-294.00K-123.00K-116.00K-336.00K-552.00K-2.39M
Financing Cash Flow22.19M10.06M6.80M8.01M16.82M49.67M

Venus Concept Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.82
Price Trends
50DMA
2.13
Negative
100DMA
2.27
Negative
200DMA
2.54
Negative
Market Momentum
MACD
-0.08
Negative
RSI
41.59
Neutral
STOCH
30.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VERO, the sentiment is Negative. The current price of 1.82 is below the 20-day moving average (MA) of 1.88, below the 50-day MA of 2.13, and below the 200-day MA of 2.54, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 41.59 is Neutral, neither overbought nor oversold. The STOCH value of 30.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VERO.

Venus Concept Risk Analysis

Venus Concept disclosed 46 risk factors in its most recent earnings report. Venus Concept reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Venus Concept Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
48
Neutral
$10.04M0.3220.03%-99.28%-46.16%
40
Underperform
$3.92M-0.04-854.61%-12.39%44.61%
38
Underperform
$3.44M-0.07-191.39%76.53%
38
Underperform
$3.49M-0.28
29
Underperform
$2.14M-0.04-126.20%97.70%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VERO
Venus Concept
1.81
-1.75
-49.16%
AEMD
Aethlon Medical
3.70
-26.89
-87.91%
PAVM
PAVmed
0.32
-0.78
-71.09%
BBLG
Bone Biologics
1.76
-5.44
-75.56%
BJDX
Bluejay Diagnostics
1.14
-2.75
-70.69%
DHAI
DIH Holdings US, Inc Class A
0.03
-35.97
-99.92%

Venus Concept Corporate Events

Venus Concept Reports Mixed Q3 2025 Results
Nov 14, 2025

Venus Concept Inc. is a global leader in medical aesthetic technology, offering a wide range of minimally invasive and non-invasive aesthetic and hair restoration solutions across over 60 countries.

Venus Concept Faces Mixed Fortunes in Earnings Call
Nov 14, 2025

Venus Concept’s latest earnings call presented a mixed sentiment, with positive developments such as the launch of Venus Nova and improvements in the balance sheet, overshadowed by significant challenges. The company is grappling with declining overall revenue, increased losses, and ongoing difficulties with the Venus Hair business, leaving the financial outlook uncertain.

Business Operations and StrategyFinancial DisclosuresM&A TransactionsPrivate Placements and FinancingProduct-Related Announcements
Venus Concept Gains FDA Clearance for Venus Nova
Neutral
Nov 13, 2025

On November 10, 2025, Venus Concept announced it received 510(k) clearance from the FDA to market Venus Nova, its new multi-application platform for non-invasive treatments. The announcement is part of the company’s strategic efforts to stabilize and grow its business amidst challenging market conditions. Despite a decline in total revenue for the third quarter of 2025, the company reported stabilization in its Energy Based Device revenues and executed significant debt-to-equity exchanges to strengthen its financial position. The company is also working to close the sale of its Venus Hair Business, facing challenges that have led to seeking court assistance.

The most recent analyst rating on (VERO) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Venus Concept stock, see the VERO Stock Forecast page.

Business Operations and StrategyPrivate Placements and Financing
Venus Concept Enters Consent Agreement with Madryn Health
Neutral
Oct 31, 2025

On October 31, 2025, Venus Concept Inc. and its subsidiaries entered into a Consent Agreement with Madryn Health Partners, providing relief under a prior loan agreement by waiving certain liquidity requirements and allowing interest payments to be applied to the principal balance. Additionally, they amended a bridge loan agreement to extend its maturity date and waive liquidity requirements until November 30, 2025. The company also completed a Thirteenth Delayed Drawdown on October 28, 2025, securing $2,000,000 for general working capital purposes.

The most recent analyst rating on (VERO) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Venus Concept stock, see the VERO Stock Forecast page.

Business Operations and StrategyPrivate Placements and Financing
Venus Concept Reduces Debt with Equity Exchange
Positive
Oct 2, 2025

On September 30, 2025, Venus Concept Inc. completed a debt-to-equity exchange agreement with Madryn Health Partners, converting $11.48 million of subordinated convertible notes into 545,335 shares of Series Y preferred stock. This transaction reduced Venus Concept’s total debt by 24%, enhancing its financial position and supporting its strategic initiatives for long-term growth and profitability. The exchange agreement also involved amendments to existing loan agreements, providing additional financial flexibility and extending loan maturity dates.

The most recent analyst rating on (VERO) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Venus Concept stock, see the VERO Stock Forecast page.

Business Operations and StrategyPrivate Placements and Financing
Venus Concept Secures $2M Loan for Working Capital
Neutral
Sep 22, 2025

On September 19, 2025, Venus Concept Inc. secured a twelfth delayed drawdown of $2,000,000 under its Loan and Security Agreement with Madryn Health Partners, intended for general working capital. Additionally, the board approved transaction completion bonuses for executives Rajiv De Silva and Domenic Della Penna, contingent upon the successful completion of a strategic transaction involving a change of control.

The most recent analyst rating on (VERO) stock is a Sell with a $2.00 price target. To see the full list of analyst forecasts on Venus Concept stock, see the VERO Stock Forecast page.

Business Operations and StrategyPrivate Placements and Financing
Venus Concept Secures Financial Relief with New Agreements
Positive
Sep 3, 2025

On August 31, 2025, Venus Concept Inc. and its subsidiaries entered into several agreements with Madryn Health Partners to address liquidity requirements and loan maturity dates. The Consent Agreement waived certain minimum liquidity requirements under the MSLP Loan Agreement through September 30, 2025, while the Nineteenth Bridge Loan Amendment extended the maturity date of the Bridge Loan to September 30, 2025. Additionally, the Notes Consent Agreement waived liquidity requirements under the 2025 Notes, also through September 30, 2025. These agreements are aimed at providing financial relief and operational flexibility to Venus Concept Inc.

The most recent analyst rating on (VERO) stock is a Sell with a $2.00 price target. To see the full list of analyst forecasts on Venus Concept stock, see the VERO Stock Forecast page.

Venus Concept’s Earnings Call: Mixed Results Amid Strategic Shifts
Sep 1, 2025

Venus Concept’s recent earnings call painted a mixed picture of their financial health. The company showcased strategic achievements, such as sequential growth and a significant business sale, yet also faced ongoing challenges with revenue and profitability. While positive steps towards financial improvement were evident, significant issues remain, including revenue declines and increased losses.

Business Operations and StrategyPrivate Placements and Financing
Venus Concept Secures $2M Loan for Operations
Neutral
Aug 26, 2025

Venus Concept Inc. announced the completion of its eleventh delayed drawdown under a Loan and Security Agreement with Madryn Health Partners, amounting to $2,000,000, on August 21, 2025. This funding is intended for general working capital purposes, reflecting the company’s ongoing efforts to secure financial stability and support its operations in the competitive medical aesthetics industry.

The most recent analyst rating on (VERO) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Venus Concept stock, see the VERO Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Nov 19, 2025