Evolus, Inc.

Good afternoon, everyone, and thank you for standing by. Welcome to Evalyst's second quarter earnings conference call. If you require operator assistance during the conference, please press star zero. As a reminder, today's conference is being recorded and webcast live. All participants are in a listen-only mode. After the speaker's remarks, there will be a question and answer session. I would now like to turn the conference over to Narek Segarian, Vice President, and Head of Global Investor Relations and Corporate Communications. Please go ahead.

Thank you, Operator, and welcome to everyone joining us on today's call to review Evelis' second quarter financial results. Our second quarter press release is now on our website at evelis.com. With me today are David Modazzetti, President and Chief Executive Officer, and Louis Avalar, Chief Medical Officer and Head of R&D. Today's call will include forward-looking statements. Actual results may differ materially due to risks and uncertainties outlined in our earnings press release and SEC filings. These forward-looking statements are based on current assumptions, and we undertake no obligation to update them. Additionally, we will discuss certain non-GAAP financial measures. These measures should be considered in addition to and not as a substitute for our GAAP results. A reconciliation of GAAP to non-GAAP measures is included in today's earnings release. As a reminder, our earnings release and SEC filings are available on the SEC's website and on our investor relations website. Following the conclusion of today's call, a replay will be available on our website at investors.evalus.com. With that, I'll turn the call over to our CEO, David Modizetti.

Thank you, Narek, and good afternoon, everyone. Our second quarter results came in below expectations, reflecting one of the most challenging market environments we've seen in recent years. DeVoe experienced its first-ever year-over-year decrease since launch more than six years ago, underscoring a sharp reduction in consumer sentiment, resulting in broad softness across the U.S. aesthetic toxin market. Procedural volumes across the U.S. toxin category decelerated further in the second quarter, following a slower than expected start to the year. Throughout the majority of the quarter, we were outperforming on the launch of Evelisse, and Givaud was tracking to our internal forecast. In the final two weeks of the quarter, we started to experience lower order volumes compared to prior quarter closes. This was the first time we felt the effects of the market slowing, which resulted in accounts holding back their order volumes. While procedural volumes across the U.S. toxin market decreased over the past three consecutive quarters, the second quarter marked the first time we felt the impact on Chabot demand. Despite these domestic headwinds, we continued to gain market share through the first half of the year, and are beginning to see early signs of positive momentum entering the third quarter. Given the unusually slow finish to the quarter, we conducted an Eveless-led survey of nearly 200 U.S. customers to better understand their market outlook in the coming six months. The results pointed to a meaningful rebound in patient volume in the second half of the year. A majority of practices expect growth of more than 10%, while very few anticipate any decline, a stark contrast to the first half of the year. These findings were further validated by an independent survey of 200 providers, reinforcing our view that demand is expected to improve incrementally in the back half of the year, even if consumer discretionary spending remains under pressure. Given these market challenges, we've taken decisive action to ensure we maintain our commitment to long-term value creation. This includes revising our 2025 outlook to reflect current U.S. market trends while realigning our operating model to preserve profitability and sustain investment and growth. We've reset our 2025 revenue expectations rebase our spend to align accordingly, and maintain our long-term outlook of reaching $700 million by 2028. We've reset our 2025 revenue guidance range to $295 to $305 million, representing 11% to 15% growth over 2024. This new guide reflects a meaningful increase over first half performance and benefits from two full quarters of Evelisse revenue, which is off to a great start, and incremental improvement in the U.S. toxin market from the front half of the year. We've rebased our non-GAAP operating expense guidance to $208 to $213 million. This results in more than $25 million in operating expense cost savings. with the majority of reductions concentrated in G&A while maintaining investment in our customer-facing activities. We are committed to achieving meaningful profitability in the fourth quarter and annual profitability starting in 2026. We have implemented strategic reductions that are designed to preserve growth and sharpen execution. These were not fraud-based cuts. They were intentional, long-term changes that allow us to rebalance resources toward customer-facing areas of the business. Approximately 70% of the reductions were non-customer-facing and non-commercial in nature, ensuring no disruptions to the team driving top-line growth. We also consolidated functions to reduce overhead. while continuing to invest in our commercial infrastructure and further lean into automation, including AI, to enhance productivity. These actions reflect our commitment to disciplined execution and position us for sustainable growth. Despite softness in the quarter, DeVoe remains resilient and has continued to outperform the U.S. market with unit growth in the front half of the year. We've maintained our 14% market share through the first half of the year, which reflects an increase over our full year 2024 share of 13%. In the quarter, we added 565 new purchasing accounts, consistent with our goal of at least 500, indicating strong interest in Evelis in a challenged market. Our unique cash pay model continues to differentiate us in the market, while our co-branded media and digital platform deepen customer engagement, even as consumer spending patterns remain cautious. Our consumer loyalty program also delivered strong results. Avalos Rewards Redemptions hit a record high of over 224,000, with 65% coming from repeat patients, highlighting the strength of our brand and consumer satisfaction. Importantly, Evelisse has now launched within Evelisse Rewards, further enhancing patient retention and adding another lever of growth to our consumer engagement platform. As the market stabilizes, the consistent demand we're seeing through our loyalty program combined with our advancing market share, puts Avalos in a strong position to continue to outperform the market in the near term and as the market recovers. Internationally, the business continues to deliver strong performance and is increasingly contributing to our growth trajectory as we expand our global footprint in key markets. In early July, we introduced Museva in France through our partnership with Cimetase. While we view this launch as a strategic step forward, we expect its near-term revenue contribution to be modest. We are now active in nine markets outside the U.S., representing over 70% of our international total addressable market. This progress not only reflects the increasing demand abroad, but reinforces the rising global relevance of our brand. we remain on track to achieve $100 million in international revenue by 2028. The highlight of the quarter was the U.S. launch of Avalice, which exceeded our internal expectations. In its first quarter, Avalice delivered $9.7 million in revenue, making it the strongest first quarter filler launch in over a decade. This performance was supported by a combination of initial stocking of Evelisse and strong demand following a successful launch. The initial response from customers continues to be overwhelmingly positive, with strong feedback on the product's performance. They continue to praise the line's unique natural gel properties, which offer precision and control, key attributes they prioritize in daily practice. Our focused launch strategy backed by Evelis Academy and the science of ColdX technology has been very successful. Since launch, we've trained over 4,000 healthcare providers and over 1,000 accounts have already ordered Evelis with several thousand trialing. We're in the early stages of penetrating the filler market and see a meaningful runway for continued growth and account expansion. Based on this early momentum, we are raising Evelisse full-year revenue contribution to 10% to 12%. The strong early adoption and enthusiasm confirm our confidence in Evelisse as a long-term growth pillar. We're applying the same discipline approach to a theme in Europe, prioritizing education, market preparation, and launch excellence to ensure long-term success. Our experience program is well underway with a broader launch expected in early 2026. Based on these key business drivers, the continued share gains in our toxin business, the record-setting launch of Evelisse, and strong performance internationally, we have confidence in our ability to deliver sustainable growth. The fundamentals of our business remain intact, and our recalibrated cost structure positions us to scale profitably as market conditions improve. With that, I'll turn it over to Rui to walk through the results of the first-ever head-to-head study of four U.S. FDA-approved neurotoxins that was recently published in JAMA Dermatology, along with a few additional updates.