Venus Concept Announces Third Quarter 2025 Financial Results
Venus Concept (NASDAQ: VERO) reported Q3 2025 revenue of $13.8M, down 8% year-over-year, with EBD systems sales $9.6M (up 2% YoY). The company posted a GAAP net loss of $22.5M and an Adjusted EBITDA loss of $7.8M. Gross margin declined to 64.0% from 66.1% due mainly to U.S. tariffs and lower volume. Cash and restricted cash totaled about $5.9M and total debt obligations were approximately $30.1M as of Sept 30, 2025.
Key corporate actions include debt-to-equity exchanges ($6.5M on June 30 and $11.5M on Sept 30) reducing debt versus Dec 31, 2024, and FDA 510(k) clearance for Venus NOVA on Nov 10, 2025. The planned sale of the Venus Hair Business to MHG remains delayed and the company has sought assistance from the Delaware Court of Chancery.
Venus Concept (NASDAQ: VERO) ha riportato ricavi nel Q3 2025 di 13,8 milioni di dollari, in calo dell'8% rispetto all'anno precedente, con vendite di sistemi EBD di 9,6 milioni (in aumento del 2% YoY). L'azienda ha registrato una perdita netta GAAP di 22,5 milioni di dollari e una perdita EBITDA rettificato di 7,8 milioni. Il margine lordo è diminuito al 64,0% dal 66,1%, principalmente a causa dei dazi USA e di un maggiore calo del volume. Cassa e contanti ristretti ammontavano a circa 5,9 milioni di dollari e gli impegni relativi al debito totale erano di circa 30,1 milioni al 30 settembre 2025.
Tra le principali azioni aziendali spiccano gli scambi debito-equità (6,5 milioni il 30 giugno e 11,5 milioni il 30 settembre), che hanno ridotto il debito rispetto al 31 dicembre 2024, e l'autorizzazione FDA 510(k) per Venus NOVA il 10 novembre 2025. La prevista vendita del Venus Hair Business a MHG resta rallentata e l'azienda ha chiesto assistenza presso la Delaware Court of Chancery.
Venus Concept (NASDAQ: VERO) reportó ingresos del 3T 2025 de 13,8 millones de dólares, con una caída interanual del 8%, y ventas de sistemas EBD de 9,6 millones (un 2% más YoY). La empresa registró una pérdida neta GAAP de 22,5 millones de dólares y una pérdida de EBITDA ajustado de 7,8 millones. El margen bruto cayó al 64,0% desde el 66,1%, principalmente debido a aranceles en EE. UU. y a un menor volumen. La caja y efectivo restringido totalizaban aproximadamente 5,9 millones y las obligaciones totales de deuda eran de aproximadamente 30,1 millones al 30 de septiembre de 2025.
Entre las acciones corporativas clave se incluyen intercambios deuda-por-acciones (6,5 millones el 30 de junio y 11,5 millones el 30 de septiembre) que reducen la deuda respecto al 31 de diciembre de 2024, y la autorización FDA 510(k) para Venus NOVA el 10 de noviembre de 2025. La venta prevista del negocio Venus Hair a MHG sigue retrasada y la empresa ha buscado asistencia ante la Delaware Court of Chancery.
Venus Concept (NASDAQ: VERO)은 2025년 3분기 매출이 1,380만 달러로 전년 동기 대비 8% 감소했고 EBD 시스템 판매 960만 달러은 전년 대비 2% 증가했습니다. 회사는 GAAP 순손실 2,250만 달러와 조정 EBITDA 손실 780만 달러를 기록했습니다. 총이익률은 미국 관세와 물량 축소로 인해 66.1%에서 64.0%로 하락했습니다. 현금 및 제한현금은 약 590만 달러였고 2025년 9월 30일 기준 총부채 의무는 약 3010만 달러였습니다.
주요 기업 활동으로는 부채-주식 교환(6,500,000 달러 6월 30일, 1,1500만 달러 9월 30일)로 2024년 12월 31일 대비 부채를 감소시켰고, FDA 510(k) Venus NOVA 2025년 11월 10일 승인이 있습니다. Venus Hair 비즈니스의 MHG 매각은 여전히 지연되고 있으며 회사는 델라웨어 주 법원 Court of Chancery의 도움을 요청했습니다.
Venus Concept (NASDAQ: VERO) a enregistré un chiffre d'affaires du T3 2025 de 13,8 M$, en baisse de 8 % sur un an, avec des ventes de systèmes EBD de 9,6 M$ (en hausse de 2 % YoY). L'entreprise a publié une perte nette GAAP de 22,5 M$ et une perte d'EBITDA ajusté de 7,8 M$. La marge brute a reculé à 64,0% contre 66,1%, principalement en raison des droits de douane américains et d'un volume plus faible. La trésorerie et les liquidités restreintes s'élevaient à environ 5,9 M$ et les obligations totales de dette à environ 30,1 M$ au 30 sept. 2025.
Parmi les actions corporatives clés figurent des échanges dette-action (6,5 M$ le 30 juin et 11,5 M$ le 30 sept.) qui réduisent la dette par rapport au 31 déc. 2024, et l'approbation FDA 510(k) pour Venus NOVA le 10 nov. 2025. La vente prévue du Venus Hair Business à MHG reste retardée et l'entreprise a sollicité l'assistance du Delaware Court of Chancery.
Venus Concept (NASDAQ: VERO) meldete Umsatz im Q3 2025 von 13,8 Mio. USD, ein Rückgang von 8 % gegenüber dem Vorjahreszeitraum, mit Verkäufen von EBD-Systemen in Höhe von 9,6 Mio. USD (plus 2 % YoY). Das Unternehmen verzeichnete einen GAAP-Nettoverlust von 22,5 Mio. USD und einen angepassten EBITDA-Verlust von 7,8 Mio. USD. Die Bruttomarge ging auf 64,0% von 66,1% zurück, hauptsächlich aufgrund nordamerikanischer Zölle und eines geringeren Volumens. Barbestände und eingeschränkte Barbestände beliefen sich auf ca. 5,9 Mio. USD und die gesamten Schuldverpflichtungen betrugen zum 30. Sept. 2025 ca. 30,1 Mio. USD.
Zu den wichtigsten Unternehmensmaßnahmen gehören Schuld-zu-Aktien-Tauschgeschäfte (6,5 Mio. USD am 30. Juni und 11,5 Mio. USD am 30. Sept.), die die Verschuldung gegenüber dem 31. Dez. 2024 verringert haben, sowie die FDA 510(k)-Freigabe für Venus NOVA am 10. Nov. 2025. Der geplante Verkauf des Venus Hair Business an MHG bleibt verzögert, und das Unternehmen hat Unterstützung beim Delaware Court of Chancery gesucht.
فينوس Concept (ناسداك: VERO) أبلغت عن إيرادات الربع الثالث 2025 البالغة 13.8 مليون دولار، بانخفاض قدره 8٪ على أساس سنوي، مع مبيعات أنظمة EBD بقيمة 9.6 مليون دولار (ارتفاع بنسبة 2% على أساس سنوي). سجلت الشركة خسارة صافية وفق معيار GAAP قدرها 22.5 مليون دولار وخسارة EBITDA المعدلة قدرها 7.8 مليون دولار. انخفض هامش الإجمالي إلى 64.0% من 66.1% ويرجع ذلك أساساً إلى التعريفات الأمريكية وحجم المبيعات المنخفض. بلغت السيولة النقدية والهل تحجز النقدي نحو 5.9 ملايين دولار، وكانت إجمالي التزامات الدين تقارب 30.1 مليون دولار كما في 30 سبتمبر 2025.
تشمل الإجراءات الرئيسية للشركة تبادلات الدين بالأسهم (6.5 مليون دولار في 30 يونيو و 11.5 مليون دولار في 30 سبتمبر) مما خفّض الدين مقارنةً بـ 31 ديسمبر 2024، وإجازة FDA 510(k) لـ Venus NOVA في 10 نوفمبر 2025. ما زالت صفقة بيع أعمال Venus Hair إلى MHG مؤجلة، وطلبت الشركة مساعدة من محكمة شيانشري ديلاوِر.
- EBD systems sales of $9.6M, up 2% YoY
- FDA 510(k) clearance for Venus NOVA on Nov 10, 2025
- Debt-to-equity exchanges totaling $11.5M on Sept 30, 2025
- Total revenue down 8% YoY to $13.8M in Q3 2025
- GAAP net loss of $22.5M in Q3 2025
- Adjusted EBITDA loss widened to $7.8M from $5.9M
- Sale of Venus Hair Business delayed; court assistance sought
- Gross margin declined to 64.0%, impacted by U.S. tariffs
Insights
Mixed quarter: revenue down and larger GAAP loss, but debt reduced and product clearance offer a path to stabilization.
Venus Concept generated
The core operating mechanism shows persistent top‑line pressure driven by declines in the Venus Hair Business and products revenue, partially offset by stabilization in energy‑based device sales and increased lease revenue share (about
Key dependencies and risks are explicit: successful closing of the Venus Hair Business sale (not closed and subject to Delaware Court involvement), execution of the limited commercial launch of the Venus NOVA after
Concrete items to watch over the next 1–12 months include progress on the hair‑business sale closure and any court outcomes, commercial rollout metrics for the Venus NOVA beginning in
TORONTO, Nov. 13, 2025 (GLOBE NEWSWIRE) -- Venus Concept Inc. (“Venus Concept” or the “Company”) (NASDAQ: VERO), a global medical aesthetic technology leader, announced financial results for the three and nine months ended September 30, 2025.
Summary of Financial Results & Recent Progress:
- Energy Based Device (“EBD”) revenues showing signs of stabilization.
- Total EBD systems sales of
$9.6 million , up2% year over year
- Total EBD systems sales of
- Total revenue for the third quarter of
$13.8 million , down8% year-over-year and down12% quarter-over-quarter.- Primarily driven by a decline in the Hair Restoration business (the “Venus Hair Business”) impacted by a delay in the pending sale.
- Third quarter GAAP net loss of
$22.5 million , compared to$9.3 million last year. Excluding loss on debt extinguishment, loss on disposal of subsidiaries and restructuring expenses in both periods, GAAP net loss increased$1.6 million year-over-year in the third quarter. - Third quarter Adjusted EBITDA loss of
$7.8 million , compared to$5.9 million last year. - On July 1, 2025, the Company announced that, on June 30, 2025, the Company exchanged
$6.5 million of its subordinated convertible notes held by affiliates of Madryn Asset Management, LP for 325,651 shares of its Series Y preferred stock. - On October 1, 2025, the Company announced that, on September 30, 2025, the Company exchanged
$11.5 million of its subordinated convertible notes held by affiliates of Madryn Asset Management, LP for 545,335 shares of its Series Y preferred stock, which represents a total debt reduction of24% compared to December 31, 2024. - On November 10, 2025, the Company announced it received 510(k) clearance to market the Venus NOVA, the Company’s next-generation, most advanced multi-application platform designed to redefine non-invasive treatments for the body, face, and skin.
(1) Energy-based devices system sales relate to the total US GAAP revenue from device contracts sold excluding ARTAS and NeoGraft.
Management Commentary:
“Our third quarter results reflect our continued solid execution in a difficult environment for all companies,” said Rajiv De Silva, Chief Executive Officer of Venus Concept. “Our focus remains on positioning the Company for long-term success by managing our cash burn and making targeted investments to support our future growth. We are very encouraged by the signs of stabilization in our EBD business. We were especially pleased to announce FDA 510(k) clearance for our new Venus NOVA on November 10th the first product launch from our new, focused R&D strategy. We are targeting sequential growth in the fourth quarter fueled, in part, by a limited commercial launch of this innovative new body and skin system in December. Our balance sheet and capital structure transformation carried on this quarter through multiple transactions including amendments to increase available financing capacity under our existing bridge loan facility and a debt-to-equity exchange transaction totaling
Mr. De Silva continued: “Since we announced a definitive agreement to sell our Venus Hair Business to MHG Co. Ltd. on June 6, 2025, we have continuously worked to meet the closing conditions of the transaction. Unfortunately, we have experienced challenges with our counterparty in closing this transaction and have sought the assistance of the Delaware Court of Chancery to aid in this respect. We will continue our dedicated pursuit of closing this important strategic transaction and look forward to sharing updates with the investment community, as appropriate.”
Third Quarter 2025 Financial Results:
| Three Months Ended September 30, | ||||||||
| 2025 | 2024 | |||||||
| (dollars in thousands) | ||||||||
| Revenues by region: | ||||||||
| United States | $ | 7,489 | $ | 8,548 | ||||
| International | 6,287 | 6,459 | ||||||
| Total revenue | $ | 13,776 | $ | 15,007 | ||||
Three Months Ended September 30, | ||||||||||||||||||||
| 2025 | 2024 | Change | ||||||||||||||||||
| (in thousands, except percentages) | $ | % of Total | $ | % of Total | $ | % | ||||||||||||||
| Revenues by product: | ||||||||||||||||||||
| Venus Prime / Subscription—Systems | $ | 2,936 | 21.3 | $ | 2,684 | 17.9 | $ | 252 | 9.4 | |||||||||||
| Products—Systems | 7,861 | 57.1 | 8,898 | 59.3 | (1,037 | ) | (11.7 | ) | ||||||||||||
| Products—Other | 2,332 | 16.9 | 2,741 | 18.3 | (409 | ) | (14.9 | ) | ||||||||||||
| Services | 647 | 4.7 | 684 | 4.6 | (37 | ) | (5.4 | ) | ||||||||||||
| Total | $ | 13,776 | 100.0 | $ | 15,007 | 100.0 | $ | (1,231 | ) | (8.2 | ) | |||||||||
Total revenue for the third quarter of 2025 decreased
The decrease in total revenue, by product category, was driven by a
Gross profit for the third quarter of 2025 decreased
Operating expenses for the third quarter of 2025 increased
Operating loss for the third quarter of 2025 was
Net loss attributable to stockholders for the third quarter of 2025 was
As of September 30, 2025, the Company had cash and cash equivalents of
Fiscal Year 2025 Financial Outlook:
Given the Company’s active dialogue with existing lenders and investors, ongoing evaluation of strategic alternatives with various interested parties to maximize shareholder value, and assessment of potential trade disruptions, the Company is not providing financial guidance at this time.
Conference Call Details:
Management will host a conference call at 8:00 a.m. Eastern Time on November 13, 2025, to discuss the results of the quarter. Those who would like to participate may dial 877-407-2991 (+1 201-389-0925 for international callers) and provide access code 13756285. A live webcast of the call will also be provided on the investor relations section of the Company's website at ir.venusconcept.com.
For those unable to participate, a replay of the call will be available for two weeks at: 877-660-6853 (201-612-7415 for international callers); access code 13756285. The webcast will be archived at ir.venusconcept.com.
About Venus Concept
Venus Concept is an innovative global medical aesthetic technology leader with a broad product portfolio of minimally invasive and non-invasive medical aesthetic and hair restoration technologies and reaches over 60 countries and 9 direct markets. Venus Concept's product portfolio consists of aesthetic device platforms, including Venus NOVA, Venus Versa, Venus Versa PRO, Venus Bliss, Venus Bliss MAX, Venus Viva, Venus Viva MD, Venus Legacy, Venus Velocity, Venus Epileve and AI.ME. Venus Concept's hair restoration systems include NeoGraft® and the ARTAS iX® Robotic Hair Restoration system. Venus Concept has been backed by leading healthcare industry growth equity investors including EW Healthcare Partners (formerly Essex Woodlands), HealthQuest Capital, Longitude Capital Management, Aperture Venture Partners, Masters Special Situations, and Madryn Asset Management, L.P.
Cautionary Statement Regarding Forward-Looking Statements
This communication contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Any statements contained herein that are not of historical facts may be deemed to be forward-looking statements. In some cases, you can identify these statements by words such as such as “anticipates,” “believes,” “plans,” “expects,” “projects,” “future,” “intends,” “may,” “should,” “could,” “estimates,” “predicts,” “potential,” “continue,” “guidance,” and other similar expressions that are predictions of or indicate future events and future trends. These forward-looking statements include, but are not limited to, statements about our financial performance, metrics and growth; statements about Venus Nova and our R&D strategy; statements about macroeconomic conditions and geo-political events and the impacts on our Company, products and operations; the closing of the sale of the Venus Hair Business; the growth in demand for our new, existing and future systems and other products; the efficacy of the restructuring plan; the identification and efficacy of strategic alternatives to maximize shareholder value; the reduction in our cash burn; and the continued implementation of turnaround plans, including debt restructurings and financings. These forward-looking statements are based on current expectations, estimates, forecasts, and projections about our business and the industry in which the Company operates and management's beliefs and assumptions and are not guarantees of future performance or developments and involve known and unknown risks, uncertainties, and other factors that are in some cases beyond our control. As a result, any or all of our forward-looking statements in this communication may turn out to be inaccurate. Factors that could materially affect our business operations and financial performance and condition include, but are not limited to, those risks and uncertainties described under Part II Item 1A—“Risk Factors” in our Quarterly Reports on Form 10-Q and Part I Item 1A—“Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. You are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on the forward-looking statements. The forward-looking statements are based on information available to us as of the date of this communication. Unless required by law, the Company does not intend to publicly update or revise any forward-looking statements to reflect new information or future events or otherwise.
| Venus Concept Inc. Condensed Consolidated Balance Sheets (In thousands of U.S. dollars, except share and per share data) | ||||||||
| September 30, | December 31, | |||||||
| 2025 | 2024 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 4,312 | $ | 4,271 | ||||
| Restricted cash | 1,619 | — | ||||||
| Accounts receivable, net of allowance of | 16,503 | 18,721 | ||||||
| Inventories | 15,768 | 17,561 | ||||||
| Prepaid expenses | 793 | 828 | ||||||
| Advances to suppliers | 6,006 | 6,027 | ||||||
| Other current assets | 823 | 1,104 | ||||||
| Total current assets | 45,824 | 48,512 | ||||||
| LONG-TERM ASSETS: | ||||||||
| Long-term receivables, net of allowance of | 9,152 | 8,534 | ||||||
| Deferred tax assets | 419 | 1,459 | ||||||
| Severance pay funds | 523 | 488 | ||||||
| Property and equipment, net | 866 | 936 | ||||||
| Operating right-of-use assets, net | 2,465 | 3,282 | ||||||
| Intangible assets | 2,375 | 4,973 | ||||||
| Total long-term assets | 15,800 | 19,672 | ||||||
| TOTAL ASSETS | $ | 61,624 | $ | 68,184 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Trade payables | $ | 7,108 | $ | 6,484 | ||||
| Accrued expenses and other current liabilities | 14,211 | 11,433 | ||||||
| Note payable | 25,072 | 8,271 | ||||||
| Unearned interest income | 864 | 907 | ||||||
| Warranty accrual | 795 | 917 | ||||||
| Deferred revenues | 1,351 | 953 | ||||||
| Operating lease liabilities | 1,249 | 1,322 | ||||||
| Total current liabilities | 50,650 | 30,287 | ||||||
| LONG-TERM LIABILITIES: | ||||||||
| Long-term debt | 4,996 | 31,437 | ||||||
| Accrued severance pay | 554 | 528 | ||||||
| Unearned interest income | 383 | 364 | ||||||
| Warranty accrual | 170 | 222 | ||||||
| Operating lease liabilities | 1,349 | 1,997 | ||||||
| Other long-term liabilities | 388 | 511 | ||||||
| Total long-term liabilities | 7,840 | 35,059 | ||||||
| TOTAL LIABILITIES | 58,490 | 65,346 | ||||||
| Commitments and Contingencies (Note 9) | ||||||||
| STOCKHOLDERS’ EQUITY (Note 14): | ||||||||
| Common Stock, | 31 | 30 | ||||||
| Additional paid-in capital | 358,190 | 311,238 | ||||||
| Accumulated deficit | (355,548 | ) | (308,899 | ) | ||||
| TOTAL STOCKHOLDERS’ EQUITY | 2,673 | 2,369 | ||||||
| Non-controlling interests | 461 | 469 | ||||||
| 3,134 | 2,838 | |||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 61,624 | $ | 68,184 | ||||
| Venus Concept Inc. Condensed Consolidated Statements of Operations (In thousands of U.S. dollars, except per share data) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Revenue | ||||||||||||||||
| Leases | $ | 2,935 | $ | 2,684 | $ | 10,265 | $ | 10,732 | ||||||||
| Products and services | 10,841 | 12,323 | 32,846 | 38,336 | ||||||||||||
| 13,776 | 15,007 | 43,111 | 49,068 | |||||||||||||
| Cost of goods sold: | ||||||||||||||||
| Leases | 906 | 651 | 3,019 | 2,538 | ||||||||||||
| Products and services | 4,053 | 4,435 | 13,089 | 13,113 | ||||||||||||
| 4,959 | 5,086 | 16,108 | 15,651 | |||||||||||||
| Gross profit | 8,817 | 9,921 | 27,003 | 33,417 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling and marketing | 7,386 | 6,654 | 22,063 | 21,076 | ||||||||||||
| General and administrative | 9,647 | 8,732 | 28,815 | 27,640 | ||||||||||||
| Research and development | 1,280 | 1,692 | 4,190 | 5,214 | ||||||||||||
| Total operating expenses | 18,313 | 17,078 | 55,068 | 53,930 | ||||||||||||
| Loss from operations | (9,496 | ) | (7,157 | ) | (28,065 | ) | (20,513 | ) | ||||||||
| Other expenses: | ||||||||||||||||
| Foreign exchange (gain) loss | (35 | ) | 57 | (699 | ) | 1,155 | ||||||||||
| Finance expenses | 1,016 | 1,665 | 3,753 | 5,785 | ||||||||||||
| Loss on disposal of subsidiaries | 244 | — | 244 | — | ||||||||||||
| Loss on debt extinguishment | 11,297 | 454 | 14,211 | 11,355 | ||||||||||||
| Loss before income taxes | (22,018 | ) | (9,333 | ) | (45,574 | ) | (38,808 | ) | ||||||||
| Income tax (benefit) expense | 531 | (31 | ) | 1,083 | 147 | |||||||||||
| Net loss | $ | (22,549 | ) | $ | (9,302 | ) | $ | (46,657 | ) | $ | (38,955 | ) | ||||
| Net loss attributable to stockholders of the Company | $ | (22,565 | ) | $ | (9,286 | ) | $ | (46,649 | ) | $ | (39,031 | ) | ||||
| Net (loss) income attributable to non-controlling interest | $ | 16 | $ | (16 | ) | $ | (8 | ) | $ | 76 | ||||||
| Net loss per share: | ||||||||||||||||
| Basic | $ | (12.14 | ) | $ | (13.10 | ) | $ | (34.66 | ) | $ | (60.61 | ) | ||||
| Diluted | $ | (12.14 | ) | $ | (13.10 | ) | $ | (34.66 | ) | $ | (60.61 | ) | ||||
| Weighted-average number of shares used in per share calculation: | ||||||||||||||||
| Basic | 1,859 | 709 | 1,346 | 644 | ||||||||||||
| Diluted | 1,859 | 709 | 1,346 | 644 | ||||||||||||
| Venus Concept Inc. Condensed Consolidated Statements of Cash Flows (in thousands) | ||||||||
| Nine Months Ended September 30, | ||||||||
| 2025 | 2024 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net loss | $ | (46,657 | ) | $ | (38,955 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 2,881 | 2,924 | ||||||
| Stock-based compensation | 479 | 817 | ||||||
| Provision for expected credit losses | 2,622 | 869 | ||||||
| Provision for inventory obsolescence | 1,031 | 950 | ||||||
| Finance expenses and accretion | 4,028 | 4,150 | ||||||
| Deferred tax expense (recovery) | 1,041 | (275 | ) | |||||
| Loss on disposal of subsidiaries | 244 | - | ||||||
| Loss on debt extinguishment | 14,211 | 11,355 | ||||||
| Loss on disposal of property and equipment | 1 | 2 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable short-term and long-term | (1,014 | ) | 9,914 | |||||
| Inventories | 566 | 3,218 | ||||||
| Prepaid expenses | 35 | 296 | ||||||
| Advances to suppliers | 21 | 1,096 | ||||||
| Other current assets | 246 | 712 | ||||||
| Operating right-of-use assets, net | 817 | 926 | ||||||
| Other long-term assets | (8 | ) | (281 | ) | ||||
| Trade payables | 684 | (1,607 | ) | |||||
| Accrued expenses and other current liabilities | 3,054 | (1,583 | ) | |||||
| Current operating lease liabilities | (73 | ) | (183 | ) | ||||
| Severance pay funds | (35 | ) | 147 | |||||
| Unearned interest income | (24 | ) | (718 | ) | ||||
| Long-term operating lease liabilities | (648 | ) | (829 | ) | ||||
| Other long-term liabilities | (150 | ) | (204 | ) | ||||
| Net cash used in operating activities | (16,648 | ) | (7,259 | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Purchases of property and equipment | (214 | ) | (43 | ) | ||||
| Net cash used in investing activities | (214 | ) | (43 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Proceeds from issuance of common stock | 1 | 10 | ||||||
| 2024 Registered Direct Offering shares and warrants, net of costs of | — | 976 | ||||||
| 2024 Convertible Notes issued to EW, net of costs of | — | 1,607 | ||||||
| 2025 Registered Direct Offering shares and warrants, net of costs of | 3,283 | - | ||||||
| Proceeds from Short-term Bridge Financing by Madryn, net of costs of | 15,238 | 3,928 | ||||||
| Dividends from subsidiaries paid to non-controlling interest | - | (126 | ) | |||||
| Net cash provided by financing activities | 18,522 | 6,395 | ||||||
| NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 1,660 | (907 | ) | |||||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH — Beginning of period | 4,271 | 5,396 | ||||||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH — End of period | $ | 5,931 | $ | 4,489 | ||||
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||||||||
| Cash paid for income taxes, net of refunds received | $ | (23 | ) | $ | 98 | |||
| Cash paid for interest | $ | — | $ | 1,633 | ||||
Use of Non-GAAP Financial Measures
Adjusted EBITDA is a non-GAAP measure defined as net income (loss) before foreign exchange (gain) loss, financial expenses, income tax expense (benefit), depreciation and amortization, stock-based compensation and non-recurring items for a given period. Adjusted EBITDA is not a measure of our financial performance under U.S. GAAP and should not be considered an alternative to net income or any other performance measures derived in accordance with U.S. GAAP. Accordingly, you should consider Adjusted EBITDA along with other financial performance measures, including net income, and our financial results presented in accordance with U.S. GAAP. Other companies, including companies in our industry, may calculate Adjusted EBITDA differently or not at all, which reduces its usefulness as a comparative measure. We understand that although Adjusted EBITDA is frequently used by securities analysts, lenders and others in their evaluation of companies, Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of our results as reported under U.S. GAAP. Some of these limitations are: Adjusted EBITDA does not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments; Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs; and although depreciation and amortization are non-cash charges, the assets being depreciated will often have to be replaced in the future, and Adjusted EBITDA does not reflect any cash requirements for such replacements.
We believe that Adjusted EBITDA is a useful measure for analyzing the performance of our core business because it facilitates operating performance comparisons from period to period and company to company by backing out potential differences caused by changes in foreign exchange rates that impact financial assets and liabilities denominated in currencies other than the U.S. dollar, tax positions (such as the impact on periods or companies of changes in effective tax rates), the age and book depreciation of fixed assets (affecting relative depreciation expense), amortization of intangible assets, stock-based compensation expense (because it is a non-cash expense) and non-recurring items as explained below.
The following is a reconciliation of net loss to Adjusted EBITDA for the periods presented:
| Venus Concept Inc. Reconciliation of Net loss to Non-GAAP Adjusted EBITDA | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Reconciliation of net loss to adjusted EBITDA | (in thousands) | (in thousands) | ||||||||||||||
| Net loss | $ | (22,549 | ) | $ | (9,302 | ) | $ | (46,657 | ) | $ | (38,955 | ) | ||||
| Foreign exchange (gain) loss | (35 | ) | 57 | (699 | ) | 1,155 | ||||||||||
| Loss on disposal of subsidiaries | 244 | — | 244 | — | ||||||||||||
| Loss on debt extinguishment | 11,297 | 454 | 14,211 | 11,355 | ||||||||||||
| Finance expenses | 1,016 | 1,665 | 3,753 | 5,785 | ||||||||||||
| Income tax (benefit) expense | 531 | (31 | ) | 1,083 | 147 | |||||||||||
| Depreciation and amortization | 977 | 971 | 2,881 | 2,924 | ||||||||||||
| Stock-based compensation expense | 135 | 239 | 479 | 817 | ||||||||||||
| ERC Claim recovery (4) | 63 | — | (1,442 | ) | — | |||||||||||
| Top up to 401(k) under the Voluntary Correction Plan (3) | — | — | 516 | — | ||||||||||||
| CEWS (1) | — | — | — | 418 | ||||||||||||
| Other adjustments (2) | 498 | 73 | 618 | 1,220 | ||||||||||||
| Adjusted EBITDA | $ | (7,823 | ) | $ | (5,874 | ) | $ | (25,013 | ) | $ | (15,134 | ) | ||||
(1) In April 2022, the Canada Revenue Agency (“CRA”) initiated an audit of the Canada Emergency Wage Subsidy Claim (“CEWS”) that the Company filed between 2020-2021. The CRA has currently assessed a denial of CEWS claims made by the Company in 2020 and is requesting repayment of
(2) For the three and nine months ended September 30, 2025, the other adjustments are represented by legal and other professional fees incurred to support the sale of the Venus Hair Business. For the three and nine months ended September 30, 2024, the other adjustments are represented by restructuring activities designed to improve the Company's operations and cost structure.
(3) A provision has been made under the Voluntary Correction Plan to account for a discrepancy noted by the IRS upon review of the Company’s 401(K) plan.
(4) Represents funds received or accrued under the IRS Employee Retention Tax Credit (ERC) program providing relief to eligible businesses impacted by the COVID-19 pandemic.

Investor Relations Contact: ICR Healthcare on behalf of Venus Concept: Mike Piccinino, CFA, IRC VenusConceptIR@ICRHealthcare.com