Venus Concept (VERO) AI Stock Analysis

• Market Cap: $4.52M
• Dividend Yield: N/A
• Average Volume (3M): 35.23K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.24
• Revenue Growth: -13.90%
• EPS Growth: 44.89%
• Country: US
• Employees: 292
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): -8.03
• Shares Outstanding: 1,859,123
• 10 Day Avg. Volume: 17,847
• 30 Day Avg. Volume: 35,232
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 7.99
• Enterprise Value/Revenue: 0.60
• Enterprise Value/Gross Profit: 0.93
• Enterprise Value/Ebitda: -1.12
• 1Y Price Target: $3.40
• Price Target Upside: 39.92% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 41 Neutral
• Price Target: $2.50 ▲(2.88% Upside)

Venus Concept's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues, high operational costs, and substantial net losses. Technical analysis provides a neutral outlook, while valuation metrics highlight significant challenges due to negative profitability. Despite some strategic efforts to improve financial health, the company's financial instability remains a major concern.

Positive Factors

Strategic Business Sale

The sale of the Venous Hair business allows Venus Concept to focus on its core medical aesthetics segment, potentially improving revenue growth, lowering operating expenses, and enhancing cash flow, which can strengthen its market position and financial health over the long term.

Cash System Sales Growth

The increase in cash system sales indicates a strategic shift towards higher quality revenue streams. This focus can enhance profitability and cash flow stability, providing a more sustainable financial foundation and competitive edge in the U.S. market.

Debt Reduction

Reducing debt obligations improves financial flexibility and reduces interest expenses, which can enhance long-term financial stability and allow for more strategic investments in growth opportunities.

Negative Factors

Declining Revenue

The decline in revenue, particularly in international sales, indicates challenges in maintaining market share and competitiveness. This trend could impact long-term growth prospects and necessitates strategic adjustments to reverse the decline.

High Operating Expenses

Rising operating expenses without corresponding revenue growth can strain profitability and cash flow. This trend highlights inefficiencies that need addressing to improve operational performance and financial health over the long term.

Gross Margin Decline

A declining gross margin indicates increased cost pressures and reduced pricing power, which can weaken competitive positioning and profitability. Addressing these issues is critical for sustaining long-term financial performance.

Venus Concept Business Overview & Revenue Model

Company Description

Venus Concept (VERO) is a global leader in medical aesthetics, specializing in innovative technologies and services for the non-invasive treatment of skin and body concerns. The company operates primarily in the aesthetic device market, providing a range of products that utilize advanced technologies, including radiofrequency and laser systems, to enhance patient outcomes in areas such as body contouring, skin rejuvenation, and hair restoration. Venus Concept's commitment to innovation and customer support has positioned it as a trusted partner for medical professionals and clinics worldwide.

How the Company Makes Money

Venus Concept generates revenue through multiple streams, primarily by selling its proprietary medical devices and systems to aesthetic practitioners and clinics. These devices are often sold with accompanying service and maintenance agreements, which provide ongoing revenue. Additionally, the company offers consumables and accessories related to their devices, creating a recurring revenue model. Partnerships with aesthetic practices and medical professionals also enhance their market reach and revenue potential. Furthermore, Venus Concept may benefit from collaborations with research institutions and participation in clinical trials to validate and promote the effectiveness of its products, driving further sales and brand recognition.

Venus Concept Financial Statement Overview

Summary

Venus Concept faces significant financial challenges, with declining revenues, high operational costs, and substantial net losses. The balance sheet shows high leverage and low equity, posing risks to financial stability. Cash flow management remains a concern despite some improvement in free cash flow.

Income Statement

Venus Concept's income statement reveals significant challenges. The company has experienced declining revenue over the past few years, with a TTM revenue growth rate of -1.46%. Profitability metrics are concerning, with a TTM net profit margin of -81.26% and negative EBIT and EBITDA margins, indicating operational inefficiencies and high costs relative to revenue. Despite a relatively strong gross profit margin of 67.90% in the TTM period, the overall financial health is weakened by substantial net losses.

Balance Sheet

The balance sheet highlights financial instability, with a very high debt-to-equity ratio of 17.05 in the TTM period, suggesting significant leverage and potential risk in meeting debt obligations. The return on equity is negative, reflecting losses and poor returns for shareholders. The equity ratio is low, indicating a heavy reliance on debt financing. These factors point to financial vulnerability and potential liquidity issues.

Cash Flow

Cash flow analysis shows some improvement in free cash flow growth, with a TTM growth rate of 29.09%. However, the operating cash flow remains negative, and the operating cash flow to net income ratio is -0.41, indicating cash flow challenges. The free cash flow to net income ratio is slightly positive at 1.01, suggesting that free cash flow is marginally covering net losses. Overall, cash flow management remains a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	60.11M	64.83M	76.35M	99.50M	105.62M	78.01M
Gross Profit	39.00M	44.31M	52.17M	65.97M	74.09M	51.39M
EBITDA	-32.31M	-36.04M	-26.11M	-35.28M	-13.04M	-68.49M
Net Income	-41.34M	-47.00M	-37.25M	-43.58M	-23.01M	-82.82M
Balance Sheet
Total Assets	63.09M	68.18M	93.65M	125.38M	157.37M	160.53M
Cash, Cash Equivalents and Short-Term Investments	3.88M	4.27M	5.40M	11.57M	30.88M	34.30M
Total Debt	37.06M	43.03M	79.70M	83.77M	77.87M	79.60M
Total Liabilities	60.31M	65.35M	107.10M	116.64M	112.27M	116.76M
Stockholders Equity	2.33M	2.37M	-14.02M	8.09M	40.94M	44.23M
Cash Flow
Free Cash Flow	-18.89M	-11.19M	-12.97M	-27.32M	-20.28M	-28.94M
Operating Cash Flow	-18.61M	-11.07M	-12.86M	-26.98M	-19.77M	-28.65M
Investing Cash Flow	-273.00K	-123.00K	-116.00K	-336.00K	-552.00K	-2.39M
Financing Cash Flow	18.02M	10.06M	6.80M	8.01M	16.82M	49.67M

Venus Concept Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.43
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VERO, the sentiment is Positive. The current price of 2.43 is above the 20-day moving average (MA) of 2.32, above the 50-day MA of 2.38, and below the 200-day MA of 2.93, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.80 is Neutral, neither overbought nor oversold. The STOCH value of 55.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VERO.

Venus Concept Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSCS	45 Neutral	$9.45M	-0.43	-4272.16%	―	-66.40%	65.99%
NUWE	44 Neutral	$2.90M	-0.09	-162.70%	―	-7.72%	99.54%
SINT	42 Neutral	$11.23M	-0.39	-283.10%	―	-40.47%	96.14%
VERO	41 Neutral	$4.52M	―	-1371.21%	―	-13.90%	44.89%
AMIX	40 Underperform	$7.25M	-0.19	―	―	―	65.72%
HIND	37 Underperform	$3.70M	-0.01	―	―	-19.81%	93.32%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Venus Concept Corporate Events

Venus Concept Secures Financial Relief with New Agreements

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.

Venus Concept Secures $2M Loan for Operations

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.

Venus Concept Amends Loan Agreements for Financial Relief

On July 31, 2025, Venus Concept Inc. and its subsidiaries entered into several agreements with Madryn Health Partners to amend existing loan agreements, including waiving certain liquidity requirements and extending maturity dates. These amendments, including the Eighteenth Bridge Loan Amendment on August 6, 2025, aim to provide financial relief and operational flexibility, impacting the company’s financial strategy and stakeholder interests.

Venus Concept Secures Additional $2M Bridge Financing

Venus Concept Inc. announced on July 21, 2025, the completion of its tenth delayed drawdown under a Loan and Security Agreement with Madryn Health Partners, securing an additional $2,000,000 in bridge financing. This funding, part of a larger $23,237,906.85 financing agreement, will be used for general working capital, reinforcing the company’s financial stability and operational capacity in the competitive medical aesthetics market.

Venus Concept Executes Debt-to-Equity Exchange Agreement

On June 30, 2025, Venus Concept Inc. executed a debt-to-equity exchange agreement with Madryn Health Partners, converting $6.5 million of subordinated convertible notes into 325,651 shares of Series Y preferred stock. This transaction reduced the company’s total debt by 14% to approximately $34.3 million, enhancing its financial flexibility and supporting its strategic transformation plan, including the divestiture of the Venus Hair business.

Venus Concept Approves Key Proposals at Annual Meeting

On June 25, 2025, Venus Concept Inc. held its Annual and Special Meeting of Stockholders, where several key proposals were approved by the stockholders. These included the election of Class II Directors, the ratification of MNP LLP as the independent registered public accounting firm for 2025, and the approval of the issuance of common stock upon conversion of various series of preferred stock and convertible notes. The approvals reflect strategic decisions aimed at enhancing the company’s financial structure and governance.

Venus Concept Completes Direct Offering and Private Placement

On June 6, 2025, Venus Concept Inc. announced a securities purchase agreement with institutional investors for a registered direct offering of 434,720 shares of common stock at $2.65 per share, raising approximately $1.15 million before expenses. This offering, which closed on June 9, 2025, also included a concurrent private placement of warrants to purchase up to 869,440 shares. The proceeds are intended for working capital and general corporate purposes, potentially impacting the company’s financial flexibility and market operations.

Venus Concept Sells Hair Business to Meta Healthcare

On June 5, 2025, Venus Concept Inc. entered into an agreement to sell its Venus Hair Business to Meta Healthcare Group for $20 million in an all-cash transaction. This strategic move involves transferring hair restoration technologies and a manufacturing facility, with the transaction expected to close in the third quarter of 2025, pending regulatory approvals and other conditions.