Allurion Technologies Reports 71% Revenue Decline in Q2 2025 Amid Restructuring Efforts

Allurion Technologies, Inc. reported a significant decline in financial performance for the second quarter of 2025, with revenues of $3.4 million, a 71% decrease from $11.8 million in the same period of 2024. For the first half of 2025, revenues totaled $9.0 million, down 58% from $21.2 million year-over-year. The company attributed this decline to distributor transitions, reduced investment in sales and marketing, and a temporary suspension of sales in France. Despite the drop in revenue, the cost of revenue also decreased, leading to a gross profit of $2.5 million for the quarter, down from $9.0 million in 2024.

Operating expenses for Allurion decreased to $9.4 million in the second quarter, down from $18.3 million in the prior year, primarily due to reduced sales and marketing costs and a restructuring plan that resulted in a lower headcount. The company reported a loss from operations of $7.0 million for the quarter, an improvement from a loss of $9.3 million in the same period last year. However, the net loss for the quarter was $9.3 million, compared to a loss of $8.3 million in 2024, reflecting ongoing challenges in achieving profitability.

In terms of strategic developments, Allurion has undergone a significant restructuring plan, which includes a reduction of approximately 65% of its workforce, or about 70 employees. This plan aims to refocus the company on low-dose GLP-1 combination therapy and U.S. market entry. The company also announced the launch of its compounded GLP-1 program, which is expected to enhance its product offerings. Additionally, Allurion has been actively working on regulatory approvals, including the submission of the final module of its premarket approval application to the FDA for the Allurion Balloon.

Operationally, Allurion has expanded its geographic reach, marketing its products in over 50 countries. However, the company has faced challenges in customer engagement, with a notable decrease in sales volume. As of June 30, 2025, Allurion had an accumulated deficit of $233 million and reported cash and cash equivalents of $12.7 million. The company anticipates continued operating losses and has expressed substantial doubt about its ability to continue as a going concern without additional funding.

Looking ahead, Allurion plans to finance its operations through a combination of equity offerings and debt financing. The company is focused on improving its sales strategies and obtaining regulatory approvals for its products. However, it acknowledges the risks associated with market acceptance and competition in the weight loss industry, which could impact its future financial performance.