EOLS

Evolus has built a real cash-pay aesthetics franchise — Jeuveau plus the new Evolysse HA filler line drove FY2025 revenue to $297M with a healthy 66.3% gross margin. But the growth engine is stalling fast: revenue rose +49% (FY22), +35% (FY23), +32% (FY24), then just +11.6% in FY2025. Management ties the slowdown directly to tariffs and 'weakening consumer confidence' hitting discretionary aesthetic procedures — a structural risk for a 100% out-of-pocket business model. Decelerating growth in a cash-pay category during a consumer-spending squeeze is the opposite of what the bull case needs.

The balance sheet is the bigger problem. After five consecutive years of net losses (-$46.8M to -$74.4M range every year, -$51.6M in FY2025), stockholders' equity has gone negative at -$23.1M and the accumulated deficit sits at -$661M. Operating cash flow was -$42.3M while cash fell 38% to $53.8M and long-term variable-rate debt climbed 20% to $146M. That combination — under a year of cash at the current burn against variable-rate leverage — is why, days before the 10-K, the company signed a $30M asset-based revolver (with a mandatory $10M minimum draw at SOFR+4.25%). That is a liquidity backstop, not a growth financing; it signals the balance sheet needs propping up.