Venus Concept (VERO) AI Stock Analysis

• Market Cap: $3.50M
• Dividend Yield: N/A
• Average Volume (3M): 141.32K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.80
• Revenue Growth: -12.39%
• EPS Growth: 44.61%
• Country: US
• Employees: 292
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): -12.14
• Shares Outstanding: 1,859,123
• 10 Day Avg. Volume: 313,727
• 30 Day Avg. Volume: 141,323
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.24
• Price to Sales (P/S): 0.05
• P/FCF Ratio: -0.26
• Enterprise Value/Market Cap: 10.33
• Enterprise Value/Revenue: 0.61
• Enterprise Value/Gross Profit: 0.95
• Enterprise Value/Ebitda: -0.79
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: $2.00 ▲(12.36% Upside)

Venus Concept's overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues, high operating losses, and significant debt burdens. The technical analysis further reflects bearish momentum, and the valuation metrics are unattractive due to ongoing losses. While there are some positive developments, such as the launch of Venus Nova and debt reduction, these are not sufficient to offset the substantial financial challenges.

Positive Factors

Product Innovation

The launch of Venus Nova, a new multi-application platform, showcases Venus Concept's commitment to innovation, potentially driving long-term growth in non-invasive treatments.

Debt Reduction

Reducing debt by 24% through a debt-to-equity exchange improves financial flexibility, supporting strategic growth initiatives and enhancing long-term stability.

Recurring Revenue Model

A diversified revenue model with recurring income from service contracts and consumables provides a stable cash flow, supporting long-term business resilience.

Negative Factors

Declining Revenue

An 8% decline in revenue indicates challenges in market penetration and product demand, potentially impacting long-term growth and financial health.

High Operating Losses

Rising operating losses, driven by legal and professional fees, suggest inefficiencies and financial strain, threatening sustainable profitability.

Negative Cash Flow

Negative cash flows indicate ongoing cash burn, limiting the company's ability to invest in growth opportunities and potentially jeopardizing financial stability.

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 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 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	58.88M	64.83M	76.35M	99.50M	105.62M	78.01M
Gross Profit	37.89M	44.31M	52.17M	65.97M	74.09M	51.39M
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 Assets	61.62M	68.18M	93.65M	125.38M	157.37M	160.53M
Cash, Cash Equivalents and Short-Term Investments	5.93M	4.27M	5.40M	11.57M	30.88M	34.30M
Total Debt	32.67M	43.03M	79.70M	83.77M	77.87M	79.60M
Total Liabilities	58.49M	65.35M	107.10M	116.64M	115.78M	116.76M
Stockholders Equity	2.67M	2.37M	-14.02M	8.09M	40.94M	44.23M
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 Flow	22.19M	10.06M	6.80M	8.01M	16.82M	49.67M

Venus Concept Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.78
• 50DMA: Negative
• 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 Negative. The current price of 1.78 is below the 20-day moving average (MA) of 1.89, below the 50-day MA of 2.01, and below the 200-day MA of 2.44, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 48.61 is Neutral, neither overbought nor oversold. The STOCH value of 20.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VERO.

Venus Concept Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PAVM	48 Neutral	$8.62M	-0.52	20.03%	―	-99.28%	-46.16%
VERO	40 Underperform	$3.50M	-0.04	-854.61%	―	-12.39%	44.61%
AEMD	38 Underperform	$2.19M	-0.05	-191.39%	―	―	76.53%
DHAI	37 Underperform	$2.09K	>-0.01	―	―	―	―
BJDX	29 Underperform	$1.39M	-0.02	-126.20%	―	―	97.70%

Venus Concept Corporate Events

Venus Concept Amends Loan Agreement with Madryn Health

On November 30, 2025, Venus Concept Inc. and its subsidiaries entered into a Consent Agreement with Madryn Health Partners to waive certain liquidity requirements and allow cash interest payments to be applied to outstanding principal balances. Additionally, a Twenty Second Bridge Loan Amendment was agreed upon, extending the maturity date and waiving liquidity requirements until December 31, 2025. The company also secured a Fourteenth Delayed Drawdown of $1.5 million on November 25, 2025, intended for general working capital purposes.

Venus Concept Gains FDA Clearance for Venus Nova

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.

Venus Concept Enters Consent Agreement with Madryn Health

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.

Venus Concept Reduces Debt with Equity Exchange

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.

Venus Concept Secures $2M Loan for Working Capital

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.