Venus Concept (VERO) AI Stock Analysis

• Market Cap: $3.60M
• Dividend Yield: N/A
• Average Volume (3M): 2.17M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.11
• Revenue Growth: -16.79%
• EPS Growth: -3.69%
• Country: US
• Employees: 292
• Sector: Healthcare
• Sector Strength: 55
• Industry: Medical - Devices
• EPS (TTM): -17.44
• Shares Outstanding: 1,424,403
• 10 Day Avg. Volume: 6,406,109
• 30 Day Avg. Volume: 2,171,856
• PEG Ratio: >-0.01
• Price to Book (P/B): 2.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.77
• Enterprise Value/Market Cap: 25.89
• Enterprise Value/Revenue: 0.35
• Enterprise Value/Gross Profit: 2.25
• Enterprise Value/Ebitda: -0.62
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 43 Neutral
• Price Target: $2.50 ▼(-0.40%Downside)

The overall score of 42.8 reflects significant financial distress driven by declining revenues, persistent losses, and high leverage. While technical indicators and valuation remain weak, recent corporate actions provide some hope for stabilization. Strategic shifts towards cash revenues and the planned product launch are positive, but immediate financial challenges and economic uncertainties dominate the outlook.

Positive Factors

Product Launch

VERO remains on track to launch its next-generation body contouring device, which could serve as a meaningful growth catalyst once macro-conditions stabilize.

Sales Strategy

International restructuring initiatives, which involved transitioning to a distributor-based sales model and exiting unprofitable markets, are beginning to yield promising results, with 4Q24 international distributor sales up roughly 100% year over year.

Negative Factors

Capital Structure

The company's cash position is a concern, with cash of $4.3M and debt of $39.7M, and a cash burn expected to average $3.8M per quarter through 2025.

Demand Challenges

The company is facing continued softness in US demand for capital equipment and heightened global trade uncertainty, which delayed purchasing decisions among international distributors.

Financial Performance

VERO reported disappointing 1Q25 results, reflecting weaker-than-expected performance across both US and international markets.

Venus Concept Business Overview & Revenue Model

Company Description

Venus Concept Inc., a medical technology company, develops, commercializes, and delivers minimally invasive and non-invasive medical aesthetic and hair restoration technologies, and related services in the United States and internationally. Its product portfolio includes aesthetic device platforms, including Venus Legacy, a noninvasive device used in dermatological and general surgical procedures for females; Venus Versa, a multi-application device used in aesthetic and cosmetic procedures; and Venus Viva, an advanced, portable, and fractional RF system for dermatological procedures requiring ablation and resurfacing of the skin. The company also offers Venus Fiore, a device that delivers non-thermal RF with massage and magnetic field pulses to treat various medical conditions; Venus Bliss, a device for non-invasive lipolysis of the abdomen and flanks in individuals with a body mass index of 30 or less; Venus Glow, a dermabrasion device used to improve skin appearance; and NeoGraft, an advanced hair restoration technology with an automated FUE and implantation system. In addition, it provides Venus Velocity and Venus Epileve for hair removal, permanent hair reduction, and treatment of pseudofolliculitis barbae; and ARTAS iX, a robotic system to assist physicians in identifying and extracting hair follicles units from the scalp during hair transplantation, creating recipient sites, and implanting the harvested hair follicles. The company is headquartered in Toronto, Canada.

How the Company Makes Money

Venus Concept generates revenue primarily through the sale and lease of its medical aesthetic devices to healthcare providers and beauty professionals. The company's revenue model includes direct sales of devices and consumables, as well as recurring revenue from leasing agreements and service contracts. Significant partnerships with key industry players and distributors also contribute to its earnings, enabling the company to expand its market reach and customer base. Venus Concept's innovative subscription-based business model, which bundles device usage with maintenance and marketing support, further supports its revenue streams by providing predictable, recurring income.

Venus Concept Financial Statement Overview

Summary

Venus Concept's financial statements depict a struggling financial position with declining revenues, persistent losses, high leverage, and cash flow challenges. The negative net income, declining revenue, and high debt-to-equity ratio highlight severe financial instability, demanding strategic improvements.

Income Statement

Venus Concept's income statement reveals weak financial performance with negative profitability metrics. The company reported a negative net income and EBIT margin for TTM, indicating operational challenges. Revenue has declined significantly from prior periods, highlighting a negative growth trajectory. Despite a reasonable gross profit margin, the persistent losses are a concern for future profitability.

Balance Sheet

The balance sheet shows a concerning financial position with high leverage. The debt-to-equity ratio is extremely high due to minimal equity, creating potential solvency risks. The company has negative stockholders' equity in recent periods, signaling potential financial distress. These factors suggest a weakened financial structure that could limit future growth.

Cash Flow

Cash flow analysis indicates a challenging environment with negative operating and free cash flows, worsening liquidity. The negative free cash flow growth rate from prior periods and a low operating cash flow to net income ratio highlight cash management difficulties. The reliance on financing activities to cover cash shortfalls raises sustainability concerns.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
61.00M	64.83M	76.35M	99.50M	105.62M	78.01M
	Gross Profit
41.41M	44.31M	52.17M	65.97M	74.09M	51.39M
	EBIT
-28.95M	-27.18M	-28.31M	-34.88M	-14.77M	-40.45M
	EBITDA
-39.22M	-36.04M	-26.11M	-35.28M	-13.04M	-68.49M
	Net Income Common Stockholders
-49.56M	-47.00M	-37.25M	-43.58M	-23.01M	-82.82M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.20M	4.27M	5.40M	11.57M	30.88M	34.30M
	Total Assets
17.86M	68.18M	93.65M	125.38M	157.37M	160.53M
	Total Debt
24.67M	43.03M	79.70M	83.77M	77.87M	79.60M
	Net Debt
21.47M	38.76M	74.30M	72.20M	46.99M	45.30M
	Total Liabilities
25.12M	65.35M	107.10M	116.64M	112.27M	116.76M
	Stockholders Equity
2.26M	2.37M	-14.02M	8.09M	40.94M	44.23M
Cash Flow		Free Cash Flow
-14.63M	-11.19M	-12.97M	-27.32M	-20.28M	-28.94M
	Operating Cash Flow
-14.50M	-11.07M	-12.86M	-26.98M	-19.77M	-28.65M
	Investing Cash Flow
-133.00K	-123.00K	-116.00K	-336.00K	-552.00K	-2.39M
	Financing Cash Flow
12.74M	10.06M	6.80M	8.01M	16.82M	49.67M

Venus Concept Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.51
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VERO, the sentiment is Neutral. The current price of 2.51 is above the 20-day moving average (MA) of 2.41, below the 50-day MA of 2.73, and below the 200-day MA of 3.95, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 50.60 is Neutral, neither overbought nor oversold. The STOCH value of 13.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VERO.

Venus Concept Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSCS	54 Neutral	$4.01M	―	-163.47%	―	-100.00%	78.91%
Sector *	54 Neutral	$5.38B	3.31	-45.11%	3.29%	16.82%	0.04%
NUWE	45 Neutral	$1.76M	―	-440.77%	―	-1.21%	93.72%
VERO	43 Neutral	$3.60M	―	-496.27%	―	-16.79%	-3.69%
SINT	42 Neutral	$7.73M	―	-155.20%	―	9.90%	94.56%
AMIX	40 Underperform	$3.99M	―	-145.09%	―	―	-10.29%
RSLS	37 Underperform	$5.46M	―	-120.16%	―	-7.74%	93.25%

Venus Concept Corporate Events

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.

Venus Concept Amends Loan Agreements for Liquidity Relief

On May 30, 2025, Venus Concept Inc. and its subsidiaries entered into a Consent Agreement with Madryn Health Partners, providing relief from certain liquidity requirements under their existing loan agreements. Additionally, they amended their Bridge Loan to extend its maturity date and secured waivers for liquidity requirements under their convertible notes, all effective through June 30, 2025.

Venus Concept Secures $2M Loan for Working Capital

Venus Concept Inc. announced the completion of its ninth delayed drawdown under a Loan and Security Agreement with Madryn Health Partners, amounting to $2,000,000, funded on May 23, 2025. The funds are intended for general working capital purposes, reflecting the company’s ongoing efforts to secure financial stability and support its operational needs.

Venus Concept Completes Debt-to-Equity Exchange with Madryn

On March 31, 2025, Venus Concept Inc. completed an $11 million debt-to-equity exchange with Madryn Health Partners, reducing its debt obligations significantly. This transaction, which involved the conversion of subordinated convertible notes into Series Y preferred stock, is part of the company’s strategy to optimize its capital structure and enhance financial flexibility, supporting its long-term growth and profitability goals.