Venus Concept Reports 21.9% Revenue Decline and Widened Net Loss in Q1 2025

Venus Concept Inc. reported a significant decline in financial performance for the first quarter of 2025, with total revenue falling to $13.6 million, a decrease of 21.9% from $17.5 million in the same period last year. The company's net loss widened to $12.4 million, compared to a loss of $9.8 million in the prior year. This downturn is attributed to tighter credit markets affecting customer financing options and a strategic shift away from internal lease programs towards traditional cash sales, which accounted for approximately 75% of total system revenues in the latest quarter.

The company's operational metrics reflected a decrease in the number of systems delivered, with 196 systems sold in Q1 2025 compared to 314 in Q1 2024. Revenue from internal financing programs, including the newly launched Venus Prime program, constituted 19.4% of total system revenues, down from 20.2% in the previous year. The decline in revenue was also influenced by the company's decision to exit unprofitable direct markets, which has been part of a broader strategy to enhance cash generation and reduce exposure to defaults.

Venus Concept's balance sheet showed a decrease in total assets to $63.5 million as of March 31, 2025, down from $68.2 million at the end of 2024. The company reported cash and cash equivalents of $3.2 million, a decline from $4.3 million in the previous quarter. Current liabilities increased significantly to $35.6 million, primarily due to a rise in trade payables and a note payable that grew to $13.9 million. The accumulated deficit also widened to $321.3 million, reflecting ongoing operational losses.

In terms of strategic developments, the company is currently evaluating potential strategic alternatives to maximize shareholder value, which may include mergers, asset sales, or other financing options. This review was initiated in January 2024, and no specific timeline has been set for its completion. Additionally, Venus Concept has been actively managing its debt obligations, including modifications to its Main Street Priority Loan and other financing agreements, to improve liquidity and operational flexibility.

Looking ahead, Venus Concept anticipates continued challenges due to economic volatility, including inflation and rising interest rates, which may further impact customer financing and demand for its products. The company remains focused on adapting to these conditions while pursuing opportunities for growth, particularly in expanding its product offerings and enhancing its market presence in North America and internationally.