What Evolus (EOLS) Said on Its Q3 Earnings Call

Evolus (NASDAQ:EOLS) reported third-quarter revenue of $78 million, up 13% from a year earlier, as sales of its injectable products grew and the company posted its fourth consecutive quarter of positive adjusted EBITDA.

The aesthetics company reaffirmed its 2026 revenue forecast and lowered its outlook for non-GAAP operating expenses. It also maintained its longer-term financial targets while outlining plans for additional product launches and development programs.

“Through the first nine months, revenue grew 14% while we maintained nearly flat non-GAAP operating expenses,” President and CEO David Moatazedi said, pointing to operating leverage as the company expands its portfolio.

Revenue Growth and Expense Discipline

Third-quarter revenue included $70.1 million from the company’s global toxin business and $7.9 million from injectable hyaluronic acid products. Global toxin revenue grew approximately 11% in both the quarter and the first nine months, while the hyaluronic acid business grew nearly 40% in the quarter and more than 50% year to date, according to Moatazedi.

For the first nine months, revenue rose 14% to $235.2 million. Adjusted EBITDA was positive $6.4 million, compared with a loss of $16.5 million in the same period a year earlier. Third-quarter adjusted EBITDA was $1.2 million, an improvement of $4.2 million from the prior-year quarter.

Reported gross margin was 65% in the third quarter, while adjusted gross margin, which excludes amortization of intangible assets, was 66.1%. GAAP operating expenses were $59.1 million, down from $61.7 million in the second quarter. Non-GAAP operating expenses declined to $50.3 million from $53.3 million sequentially.

Chief Financial Officer Tatjana Mitchell said fourth-quarter expenses are expected to rise from the third quarter, reflecting costs tied to seasonally higher revenue, an October customer event and a $1.5 million option payment for a hair growth program.

Evolus ended the quarter with $41.7 million in cash and cash equivalents, compared with $45.2 million at the end of the second quarter. Mitchell said the company also has access to approximately $120 million in additional non-dilutive capacity.

Outlook and Portfolio Expansion

The company maintained its 2026 revenue forecast of $330 million to $337 million, representing growth of 11% to 13% over 2025. It also reiterated its adjusted gross margin outlook of 67% to 67.5% and its expectation for a low- to mid-single-digit adjusted EBITDA margin.

Evolus reduced its full-year non-GAAP operating expense guidance to $210 million to $213 million, from $212 million to $216 million. The company also reaffirmed its 2028 objectives of $450 million to $500 million in annual revenue and adjusted EBITDA margins of 13% to 15%.

Management expects the Evolysse and Estyme injectable gel lines to contribute 10% to 12% of full-year revenue. The outlook assumes no 2026 revenue from Evolysse Sculpt, which remains under Food and Drug Administration review.

Chief Medical Officer and Head of R&D Rui Avelar said Evolus anticipates FDA approval for Sculpt in the fourth quarter of 2026 and a launch in 2027. Mitchell said the company’s assumption is for a first-quarter 2027 launch. Evolus also expects to submit an application for Evolysse Lips before year-end, with a launch anticipated in early 2028.

Beyond those products, Evolus is developing the skin-quality injectable Profhilo for the U.S. through a partnership with IBSA. Avelar said approval is anticipated around 2030. The company also has an option to acquire an early-stage injectable hair growth asset; Avelar said Evolus will be able to assess human data before deciding whether to commit to an acquisition and full development program.

Customer Growth and FDA Letter

Evolus added more than 500 purchasing accounts during the quarter, bringing its cumulative customer base to over 19,000. Membership in its consumer rewards program rose 23% year over year to more than 1.6 million, with approximately 70% of existing patients returning for repeat treatment, Moatazedi said.

During the question-and-answer session, Moatazedi said the company’s fastest-growing accounts through midyear were those participating in a six-month portfolio growth rebate, and most of those accounts purchased both Jeuveau and Evolysse. He said Evolus introduced a fourth-quarter pilot designed to bundle the products more closely.

Asked about an FDA letter concerning an Instagram post, Moatazedi said it was an untitled letter rather than a warning letter and that the agency’s comments were confined to one Jeuveau post. Evolus removed the post and plans to address the FDA’s concern, he said, adding that the company can continue promoting Jeuveau as it has in the past.

About Evolus (NASDAQ:EOLS)

Evolus, Inc is a commercial-stage medical aesthetics company focused on developing and marketing products for physicians and other licensed aesthetic providers. The company’s business is centered on minimally invasive treatments intended to address facial lines, wrinkles and other visible signs of aging.

Evolus’ primary product is Jeuveau (prabotulinumtoxinA-xvfs), an injectable botulinum toxin approved by the U.S. Food and Drug Administration for the temporary improvement of moderate to severe glabellar lines, commonly known as “frown lines,” in adults.