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DATE

Monday, May 4, 2026 at 4:30 p.m. ET

CALL PARTICIPANTS

  • President and Chief Executive Officer — David Moatazedi
  • Chief Financial Officer — Tatjana Mitchell
  • Chief Medical Officer — Rui Avelar

TAKEAWAYS

  • Global Net Revenue -- $73.1 million, representing a 7% increase, with $66.4 million from Jeuveau and $6.7 million from Evolisse.
  • Jeuveau U.S. Market Share -- Maintained at 14%, with unit growth and pricing stability across both U.S. and international markets.
  • U.S. Account Penetration -- Exceeded 60%, reflecting wider practice reach and adoption.
  • Reorder Rate -- Approximately 71%, indicating consistent repeat demand.
  • Evolus Rewards Program -- Approaching 1.5 million members, up 27%, with over 255,000 redemptions in the quarter.
  • Adjusted EBITDA -- Positive $0.6 million, an improvement from a $5.5 million loss in the comparable period.
  • Gross Margin -- 67% reported; 68% adjusted (excludes amortization of intangibles).
  • GAAP Operating Expenses -- $55.7 million, up from $55.1 million sequentially; $49.1 million non-GAAP, down from $53 million sequentially.
  • Cash and Liquidity -- $49.8 million in cash and equivalents, $120 million additional capital access ($100 million term loan with Pharmakon, $20 million revolving credit); at-the-market equity facility terminated and never utilized.
  • Guidance -- Total net revenue of $327 million to $337 million; 65.5%-67% adjusted gross margin; $210 million to $216 million non-GAAP operating expenses; low- to mid-single-digit adjusted EBITDA margin expected for the year.
  • Jeuveau Revenue Outlook -- "High single-digit" year-over-year growth expected, with Q2 U.S. net revenue growth projected to "more than offset" the Q1 decline.
  • Tariffs on Jeuveau -- A 15% South Korean pharmaceutical product tariff (including Jeuveau) will be effective September 29, 2026; management stated, "we believe there is a pathway to mitigate or eliminate the impact of this tariff," with an update expected by year end; current guidance and long-term outlook unchanged by this development.
  • Portfolio Expansion -- Anticipated launch of Esteem in Europe mid-Q2 and FDA approval of Sculp expected in Q4, supporting international growth momentum.

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RISKS

  • A 15% tariff on South Korean pharmaceutical products, including Jeuveau, commencing September 29, 2026, was disclosed, although management is pursuing mitigation strategies and current guidance remains unchanged.
  • Tatjana Mitchell noted "one-time revenue deferral dynamics that benefited 2025 and created a headwind in 2026" for Jeuveau U.S. results, with a rebound anticipated in Q2.

SUMMARY

The global aesthetics market showed healthy growth, with Evolus (EOLS +4.69%) reporting increased revenues and sustained adjusted EBITDA profitability in its seasonally lowest quarter. Strategic portfolio development included continued investment in digital capabilities and artificial intelligence integration to support scalable, efficient operations. The company maintained and expanded account penetration, supporting its positioning for long-term growth and enhanced operating leverage.

  • Jeuveau achieved high single-digit projected revenue growth for the year, with Q2 U.S. revenue expected to recover from Q1 headwinds.
  • Management confirmed that international business is "nearly doubling" in several markets, with the United Kingdom noted for rapid growth and European market share gains.
  • The launch of Esteem in Europe and the upcoming FDA milestone for Sculp are expected to further strengthen the portfolio internationally and domestically.
  • Evolisse showed increased adoption, with bundled growth rebates drawing strong customer interest and not dragging on net sales or gross margin, according to management.
  • Access to significant capital and cash reserves, combined with the termination of the at-the-market equity program, signals confidence in current liquidity and operational flexibility.

INDUSTRY GLOSSARY

  • Evolisse: Evolus proprietary hyaluronic acid dermal filler line, designed for facial aesthetic procedures.
  • Sculp: A flagship mid-face filler product in the Esteem portfolio, undergoing FDA review.
  • Jeuveau: Evolus purified botulinum toxin type A product for temporary improvement of glabellar lines.
  • Portfolio Bundling: A structured incentive and rebate program encouraging clinics to increase volume across multiple products within the company’s lineup.
  • Evolus Rewards: A digital consumer rewards platform driving customer retention and transactional insights.
  • GLP-1: Glucagon-like peptide-1 agonists, referenced as a tailwind for aesthetics due to their association with weight-loss patient demand for facial volume procedures.

Full Conference Call Transcript

David Moatazedi: Thank you, Nareg, and good afternoon, everyone. We started 2026 with strong momentum that carried over from the fourth quarter, resulting in our second consecutive quarter of positive adjusted EBITDA. Importantly, we achieved this in what is seasonally our lowest revenue quarter of the year, and against our strongest prior-year comparison. We view this as a clear validation of both the strength of the business and the benefits from the structural improvements we implemented in 2025. At a market level, we are encouraged by what we are seeing across the category, with industry data and commentary signaling a global aesthetics market that remains healthy, with continued growth and strong consumer engagement.

We estimate that in the first quarter, the U.S. toxin market grew in the low- to mid-single digits, while the filler market demonstrated continued improvement and was flat to slightly down. Against that backdrop, we maintained our Jeuveau U.S. market share at 14% and delivered share gains with Evolisse, reflecting continued strong performance driven by execution and a differentiated commercial model. This is an important inflection point for Evolus, Inc. Over the past year, we took deliberate actions to align our cost structure with the scale of the business and position the company for sustained profitability. The results we are delivering today reflect that work.

We are now demonstrating that we can drive profitable growth while continuing to invest in expanding our portfolio. To start the year, we are tracking ahead of our operating profit assumptions, giving us the optionality to invest in growth-driving initiatives in the back half of the year. As we look ahead, our strategy is consistent and focused on building a scaled, multi-product aesthetics company, supported by a differentiated and increasingly durable business model. Our long-term outlook through 2028 is grounded in executing our playbook each quarter: expanding account coverage, improving field productivity, deepening relationships with practices, and consistently converting demand into repeat purchasing across the portfolio.

A key element of our differentiation, which has enabled us to achieve mid-teens market share for Jeuveau, is a competitive moat we have established through our Performance Beauty platform. At the foundation is our cash-pay model and ability to deliver a fully integrated experience for both customers and consumers. Unlike traditional models, our leading digital ecosystem connects the entire platform, from practice engagement and product ordering to consumer acquisition, loyalty, and repeat utilization, creating a level of connectivity and efficiency that is difficult to replicate and that continues to drive repeat usage and momentum across the business.

This platform is now powered to drive portfolio bundle benefits, and with international growth on a steady rise, the upcoming launch of Esteem in Europe this quarter, and additional pipeline milestones ahead, we believe this differentiated commercial structure positions us to scale efficiently and execute with greater precision. At the same time, we are increasingly leveraging our digital ecosystem to drive efficiency and scale across the organization. Over the past year, we have embedded AI into core areas of the business, and we are now seeing those actions translate into tangible results. Our unified data platform allows us to connect insights across the commercial organization, enabling more targeted engagement, improved field productivity, and faster decision-making.

What makes this particularly powerful is how tightly integrated these capabilities are within our operating model. Our commercial platform, including Evolus, Inc. Rewards, practice engagement tools, and ordering systems, creates a continuous data loop that feeds directly into our AI capabilities. This allows our field organization to operate with greater precision and effectiveness, with real-time insights at their fingertips that support everything from customer targeting to conversion. Turning to the business, underlying demand remains healthy and consistent with the momentum with which we exited 2025. In addition to customer expansion and strong reorder rates, we are seeing increasing traction from our portfolio bundling strategy.

We are encouraged by the progress and momentum we are seeing across our accounts as customers adopt a more integrated approach to our portfolio. Given this is a structured six-month program, we look forward to providing a more comprehensive update following the second quarter. Importantly, this is a key driver of both growth and profitability. As a more streamlined organization, these capabilities allow us to scale the business more efficiently, which is a meaningful contributor to the operating leverage and profitability we are now delivering. This is not a trade-off between growth and efficiency; it is a reflection of a more intelligent and scalable model and a clear point of differentiation versus traditional approaches in the category.

Looking at our key performance indicators, they reinforce both the quality and demand scalability of our commercial model. We are continuing to broaden our reach across practices. Total purchasing accounts increased by nearly 500 in the first quarter, and since launch, more than 18,000 customers have purchased from Evolus, Inc., including approximately 3,500 for Evolisse. U.S. account penetration is now above 60%, and reorder rates remain approximately 71%. And Evolus, Inc. Rewards continues to expand, approaching 1.5 million members, up 27% year-over-year, with redemptions exceeding 255,000 in the quarter. These metrics reflect strong engagement and support our ability to translate demand into increasingly consistent financial performance. On Jeuveau, we continue to see a brand that is building.

In the first quarter, Jeuveau delivered $66.4 million in global revenue, with positive unit growth and pricing stability across both U.S. and international markets. While reported revenue reflects normal seasonality and prior-year timing dynamics, underlying demand remains intact. As we move through 2026, we expect to wrap around those dynamics from early 2025, resulting in high single-digit growth for Jeuveau over that period. Beyond Jeuveau, our next phase of growth is being driven by portfolio expansion and increasing share of wallet within our accounts. In the U.S., Evolisse is increasing our relevance with customers and contributing to an evolving revenue mix as we apply the same playbook that drove Jeuveau's success: education, training, and disciplined scale.

Just this past weekend, we hosted 50 customers per training program on our injectable products, and the feedback on Evolisse was incredibly positive. We are seeing accounts repurchasing at higher volumes as they gain confidence in the uniqueness of the product benefits. The excitement is also building around the upcoming FDA milestone for Sculp, which further completes our HA portfolio and puts us in a strengthened competitive position against the market-leading companies. As previously stated, we expect to gain FDA approval for Sculp in the fourth quarter of this year. Internationally, we are extending that strategy with the mid-May launch of Esteem in Europe, expanding our addressable market and building on the commercial foundation we have established with Nuceiva.

In Europe, we have the opportunity to introduce a full line of Esteem products, including the flagship Sculp mid-face product, along with the U.S.-approved Smooth and Form product, and the Esteem Lips product, which is currently in U.S. FDA trials. The market learnings from these products in Europe will further support our launch strategy in the U.S. We also continue to take a disciplined approach to expanding our innovation pipeline. We are continuing to actively evaluate and pursue targeted, capital-efficient opportunities that complement our portfolio and leverage our existing commercial infrastructure. This is a natural extension of our strategy and an important component of our long-term growth, and positions us well to continue building a differentiated multi-product platform.

Stepping back, our priorities are clear. We are focused on executing our plan, maintaining discipline across our cost structure, and investing in catalysts that will drive our next phase of growth. We are well-capitalized to support existing business growth and invest in pipeline opportunities. Based on our performance in the first quarter, we are reiterating our full-year outlook and remain confident in our ability to deliver double-digit revenue growth and achieve full-year adjusted EBITDA profitability in 2026. With that, I will turn the call over to Tatjana to walk through the first quarter financial results and our outlook.

Tatjana Mitchell: Thank you, David. Our first quarter results reflect meaningful progress toward full-year adjusted EBITDA profitability. We are executing against our revenue plan while maintaining the expense discipline we established in 2025, and we are seeing the benefits of that structure flow through and expand our operating leverage over the course of 2026. For Q1, global net revenue was $73.1 million, representing a 7% increase over the prior year. This included $66.4 million of global Jeuveau revenue and $6.7 million from Evolisse. On Jeuveau, units increased in both the U.S. and international markets, reflecting healthy underlying demand. In the U.S., there were one-time revenue deferral dynamics that benefited 2025 and created a headwind in 2026. We expect second quarter U.S.

Jeuveau net revenue growth to more than offset the first quarter decline. For 2026, our guidance implies high single-digit year-over-year growth for global Jeuveau revenue, supporting our expectation for total company revenue growth of 10% to 13% for the full year. Turning to gross margin, reported gross margin in the first quarter was 67%, and adjusted gross margin was 68%, which excludes the amortization of intangibles. Regarding tariffs, a recent executive proclamation set a 15% tariff on certain pharmaceutical products in South Korea, including Jeuveau, with an effective date of 09/29/2026. We believe there is a pathway to mitigate or eliminate the impact of this tariff, and we are actively evaluating multiple options.

In the near term, we have a plan to secure significant U.S. inventory, supported by the product's three-year shelf life, which provides flexibility as we bridge to longer-term solutions. We plan to provide an update by year end as we gain greater clarity. Importantly, the announced tariffs do not impact or change our confidence in our 2026 outlook or long-term guidance. Moving to operating expenses, GAAP operating expenses for the first quarter were $55.7 million compared to $55.1 million in the fourth quarter. As a reminder, 2025 included a $4.5 million benefit related to the revaluation of the contingent royalty obligation. In Q1 2026, the revaluation impact was immaterial.

Non-GAAP operating expenses for the first quarter were $49.1 million compared to $53.0 million in the fourth quarter, reflecting continued discipline and the impact of structural cost actions we implemented last year. As a reminder, non-GAAP operating expenses exclude stock-based compensation, revaluation of the contingent royalty obligation, and depreciation and amortization. Within operating expenses, selling, general and administrative expenses for the first quarter were $52.0 million compared to $54.7 million in the fourth quarter. This included $4.8 million of non-cash stock-based compensation, similar to the prior quarter. From a profitability standpoint, we generated positive adjusted EBITDA of $0.6 million in the first quarter, compared to a loss of $5.5 million in the prior-year period.

This improvement reflects both revenue growth and improved cost efficiency as we continue to scale the business while maintaining disciplined expense management. Turning to the balance sheet, we ended the first quarter with $49.8 million in cash and cash equivalents, compared to $53.8 million at the end of the fourth quarter. The primary uses of cash were interest and bonus payments, which were offset by the net proceeds from the line of credit. As a reminder, in addition to the approximately $50 million in cash, we have access to an additional $120 million in capital—$100 million on our long-term debt facility with Pharmakon, and $20 million on the revolving credit facility. Our existing term loan does not mature until mid-2030.

Over the past two quarters, cash usage was modest at approximately $3 million in aggregate. Our current cash trajectory supports ongoing operating expenses, while the incremental facilities provide optionality for potential pipeline development opportunities. Overall, we believe this provides sufficient liquidity and flexibility to execute our strategy, invest in growth, and progress toward meaningful free cash flow generation over time. Finally, we have recently terminated our at-the-market equity facility, which was never utilized, reinforcing our confidence in our current capital position. Turning now to guidance, our full-year 2026 outlook remains unchanged.

We continue to expect total net revenue of $327 million to $337 million, adjusted gross margin of 65.5% to 67%, non-GAAP operating expenses of $210 million to $216 million, and low- to mid-single-digit adjusted EBITDA margin for the full year. The first quarter results strengthen our confidence in delivering full-year profitability. Importantly, our long-term outlook through 2028 is unchanged, including our expectations for continued double-digit revenue growth, significant margin expansion, and increasing operating leverage as we scale the business. With that, I will turn it back to David for closing remarks.

David Moatazedi: Thank you, Tatjana. We are very pleased with our start to 2026. The first quarter reflects exactly where we want to be as a company: delivering revenue growth while generating profitability. Importantly, this performance validates the operating model we have been building. We are scaling the business through performance above market, making investments to further expand our portfolio, while driving improved profitability within a disciplined framework. We are also in a strong financial position. We have the liquidity to execute our strategy and invest in growth. As it relates to tariffs, we are taking a proactive approach.

Our goal is to eliminate any long-term impact, and our strategy is straightforward: create flexibility in the near term while we evaluate structural solutions. We will provide updates as we gain greater clarity. Finally, we are reiterating both our 2026 and long-term financial guidance. We look forward to updating you on our progress throughout the year. Operator, you may now begin the Q&A.

Operator: Thank you. We will now open the call for questions. Our first question comes from the line of Annabel Samimy with Stifel. Please proceed with your question.

Annabel Samimy: Thanks for the details here. I just had some questions on the Evolisse launch. How do you find the headwinds of the filler market impacting the launch? And is bundling helping with increasing volumes? Is any of the bundling taking away from net sales? Can you help us understand the dynamics there a little bit? You have talked about how sentiment seems to be turning, but the market does not seem to be turning positive. So I am just trying to sort of reconcile those two points. Thanks.

David Moatazedi: Annabel, this is David. I will take the questions around the category for fillers. I would say, especially coming off this weekend where we had 50 clinicians here, the sentiment is turning more positive. And when I am speaking with clinicians now, I am consistently hearing that the interest in HAs is rising again, that they are seeing their utilization rising. So although we may still be in a market that, on a year-over-year basis, could be down slightly, it is a marked improvement from the category that we were operating in one or two years ago, and that puts Evolisse in a really favorable position.

That being said, keep in mind the competitive set has been in the market well established for a number of years—not just in the U.S. Most of these products were launched in Europe over a decade prior to entering this market, so they are well-established brands with a lot of history in terms of how to use the products, and a full line of products that they are supporting clinics with. And so that has been the opportunity for Evolisse.

As we are getting in and exposing clinicians to the product, and they are gaining more experience, trialing it, and then getting additional trainings on the product, we are seeing that their confidence is rising and the reorder rates are increasing in terms of the amount that they are purchasing once they get that experience and education. So we feel very good about the trajectory that Evolisse is on. We also recognize that we are not operating in the mid-face segment of the market, which is a sizable part of the category.

Sculp will be an important product there, and we have mentioned many times before that we view the Sculp product to be the flagship product in this line that will play an important role. The other part that will play an important role, of course, is the bundling. We piloted in the fourth quarter of last year a growth rebate that performed very well in a small subset of clinics. We rolled that out in January, and it is a six-month program, very similar in timeline to the competitive set.

That is an important part of the conversation because clinics that move more of their business over to our portfolio are making trade-offs against the portfolio bundles of the competitive set. We will be in a position to give you more color from a quantitative standpoint coming out of our Q2 earnings call. But I can tell you that we are tracking those customers that have expressed an interest in participating in our portfolio growth rebate, and we are seeing very good uptake around that group of customers. And so we do feel that we are on the right track with the product, and Evolisse is a very important part of that conversation overall.

Annabel Samimy: Just a follow-up on the rebate. Is the function of your rebate different from your competitors? And is it more of a direct cash savings than a rebate that goes towards forward sales? Is it an easier rebate for them to wrap their economics around?

David Moatazedi: I think the rebate itself operates in a similar fashion in terms of earning that amount back on their account, just like they would with the competitive set. Probably the part that makes it easier to execute is it is purely a function of their growth with Evolus, Inc. We designed it as a partnership rebate for clinics that want to partner more closely with us. That growth rebate gives them an additional incentive to cover the cost of making that conversion—bringing their portfolio business over to us—and in those increments of $75,000 and $150,000 incremental purchasing over what they purchased during that same period the year prior.

As it relates to the accounting for it, I will let Tatjana add some color.

Tatjana Mitchell: To your question around whether the portfolio rebate is a drag on net sales, it is not. We have designed both the pricing tiers and the portfolio rebate to maintain a healthy margin rate. In terms of net sales, that really is driven by the dynamic of last year. We defer revenue for the consumer rewards program, and then we also recognize revenue upon delivery. In any given quarter, this pretty much washes out and does not impact year-over-year growth rates. It just so happened that last year in Q1 there was a pretty good pickup, and we did not see that this Q1. That is really what you see in the net sales impact this quarter.

Annabel Samimy: Got it. Thank you for the clarity. Appreciate it.

Operator: Thank you. Our next question comes from the line of Marc Goodman with Leerink. Please proceed with your question.

Marc Goodman: David, you gave us a sense that in the U.S. the market seems to be improving a little bit. Can you give us a sense of what is going on OUS, both toxins and fillers—what the dynamic is there, maybe just a country by country? And then secondly, Hugel came into the U.S. market last year as a competitor. Anything that they are doing differently today than they were doing six months ago? Just curious how well they are kind of breaking in. Thanks.

David Moatazedi: Great. Marc, I will start with the OUS business. As we talked about in our full-year earnings call from last year, our OUS business continues to perform incredibly well. If you double-click into any of those markets, the revenue is nearly doubling, and our most mature market, being the U.K., was also on a very fast growth clip. We feel that we have a lot of momentum across the markets in Europe. Especially considering the U.K. is the first market to be approaching double digits, those other markets are several years behind the U.K. in terms of the timing that we entered them directly, so we see a lot of growth potential going forward.

With that greater scale, we have an increasing presence now in Europe as well, and that infrastructure we are able to leverage to launch Esteem. In two weeks, I will be back in Europe for the launch of Esteem with over 100 of our top customers across Europe who will be coming in to learn about the entire line. We think that is a significant advantage because, one, we will be one of just a handful of companies that have both a neurotoxin and a hyaluronic acid in Europe; and two, they will benefit from having our flagship Sculp product as part of the line.

We have been engaged with about 30 or so clinicians throughout Europe in an experience program for the last year, and it is very clear that the Sculp product is highly differentiated from even the mature products that are available in Europe, and that is a far more competitive market. As we go across all the markets, we are seeing really great uptake. There is not a single market where we are not seeing healthy growth. The team in international is very focused, and we have in-market country heads that are seeing a lot of success.

We are excited to see what Esteem will do overall for that business over the next several years as we aspire to continue to build that business to approach roughly 15% of our overall revenue. As we look to the U.S., I would say that overall we continue to gain market share in the category. We talked about shares being steady in the first quarter, but even through last year with the entry of a new competitor, we saw a lot of heavy sampling initially and then purchasing that follows from that competitor. Despite that, we continue to gain momentum in the market. We believe that this year will be much of the same.

We expect another competitive entrant to enter in the back half of the year—once again, rinse and repeat, meaning heavy sampling and then the need to drive that pull-through into revenue from sample. I do not have a whole lot to add in terms of anything different that I am seeing in the field. I would just say that the shares appear to be relatively stable sequentially from the fourth quarter into the first quarter; we are not seeing any major share-shift dynamics.

Operator: Thank you. Our next question comes from the line of Uy Ear with Mizuho Securities. Please proceed with your question.

Uy Ear: Hey, guys. Thanks for taking our questions. Maybe just help us understand—you guided to high single digit for the first half of the year for Jeuveau. Is it fair then to think about a rebound or reacceleration sequentially going into Q2? And secondly, if my math is correct, does the high single-digit first-half growth for Jeuveau mean you are kind of blessing the consensus, which is roughly $71 million for the second quarter? Thanks.

Tatjana Mitchell: Thank you for the question. Yes, as you probably realize, what we are seeing this year in quarter-over-quarter revenue—Q1 versus Q4 and what you can expect for Q2 versus Q1—is really normal seasonality. What we saw last year was unusual. In Q1, we had the pickup from the revenue deferral; in Q2, we really took a hit for the market slowing down. We were also launching Evolisse. All of these things were happening last year that make for an interesting comparison. But when you take the first half of the year together, what you will see is what we guided to, which is that global Jeuveau will show high single-digit revenue growth year-over-year.

Operator: Our next question comes from the line of Navann Ty with BNB Paribas. Please proceed with your question.

Navann Ty: Hi, thanks for taking my question. Maybe a follow-up on fillers. Have you seen some further signs of recovery in Europe and in the U.S., and how are fillers doing versus biostimulators? And then on competition, what are your assumptions on competitive launches, maybe after the etranibotulinum FDA CRL? Thank you.

David Moatazedi: Thanks for the questions, Navann. The filler market in Europe has been a bit more resilient than what we have seen in the U.S., and that has more to do with the economic backdrop in Europe, which has been a bit stronger. That is reflected in the growth rates—not just for fillers, but the toxin market as well. In our year-end call, we noted that we estimated the market in Europe may have turned positive by year end. It is too early for us to give visibility to how the first quarter played out specifically in Europe, but we believe it is in line with where it ended in Q4, if not potentially improved.

Despite the war and potential energy concerns, we have not seen any meaningful change in demand in Europe associated with economic risks there. As it relates to our assumptions, we did open the year saying we expected two new competitive entrants. We all saw the news from AbbVie about the delay to the short-acting BoNT. In fairness, we had not estimated any impact to the existing market from a short-acting product entering the category, so it does not change our assumptions for full-year revenue. And we do continue to expect that Galderma will introduce their new liquid toxin in the back half of the year and, as you know, has a final FDA response date expected sometime in the summer.

Thank you.

Operator: Thank you. Our next question comes from the line of Douglas Tsao with H.C. Wainwright. Please proceed with your question.

Douglas Tsao: Hi, good afternoon. Thanks for taking the time and the questions. David, it sounds like you feel pretty good about the environment in the U.S. market, and obviously, both from your results as well as competitors, things seem strong. When you step back and think about the environment—gas prices are higher and seem unlikely to come down anytime soon—I am curious how we should think about stress testing the macro environment in terms of the broader aesthetics market.

David Moatazedi: I think the consumer was really tested last year with all the shifts that took place in the overall environment. What you are seeing now as we wrap around what was a really challenging base in the front half of last year is that, even though there are some puts and takes in the news and consumer sentiment, in the end you are left with a value-conscious consumer who is continuing to come in and seek treatment. I am spending a lot of time both in the market and talking to clinicians, and what I continue to hear is that business continues to be stable and strong on a year-over-year basis, despite what we are reading in the backdrop.

We also have visibility into the start of the second quarter, and we feel really good about the trends that we have started out with. They continue to be strong, and we are not seeing any signs that reflect slowing. Perhaps the last part that is important is we have visibility to transactional data through our Evolus, Inc. Rewards program, and that is to the day. We get a daily view of utilization of product at the clinic level. We continue to see strength in overall redemptions in the Evolus, Inc. Rewards program.

We feel confident that the market continues to be on a strong road to recovery, as we saw in the fourth quarter and again in the first quarter, and we are seeing it now as we start the second quarter, more than a month into it.

Douglas Tsao: That is really helpful, David. As a follow-up on the filler market, one of your lead competitors reported numbers in the first quarter that were down just a little bit. I am trying to understand—there have been a few things going on in fillers: some macro related because it is a higher price point product, and also some product-specific issues in terms of adverse events. Within that, do you have a sense of whether what we are seeing from some of the other players is related to their particular product portfolios versus filler fatigue? How does that inform your own strategy as the Evolisse launches gain momentum? Thank you.

David Moatazedi: We have a lot of data points—competitor reporting, third-party data, and conversations with clinics—and they all point to the same thing: the market is in some stage of recovery and rebound. It is not clear yet whether we have turned to positive market growth, but we are getting very close, which is consistent with our views coming into the year. Keep in mind, we are benefiting from a significant tailwind of GLP-1 patients who, once they achieve their desired weight, have an interest in entering aesthetics. There are a few areas in particular they are interested in, and one of those is replacing lost facial volume from weight loss—people call it Ozempic face—and that is a tailwind for the category.

We know we are seeing some of those patients starting to come in. It has not yet led to the tailwind that drives the category back to growth, but it is not a question of if, it is a question of when. That gives clinicians optimism—these are new consumers coming into the category, and they will help fuel the market back to positive growth. We feel very good about where this category is going over time.

Ultimately, it comes down to continuing to strengthen our position within that category, and that will happen through continued focus on differentiation of Evolisse with training, the launch of the Sculp product, and our focus on bringing these products together through a competitive bundle that is effective against the competitive set.

Operator: Thank you. Our next question comes from the line of Sam Eiber with BTIG. Please proceed with your question.

Sam Eiber: Hey, good afternoon. Thanks for taking the questions. Maybe I can start on Esteem with the launch coming up in May. Should we expect any initial stocking order similar to what we saw with Evolisse in the U.S. in Q2 of last year?

Tatjana Mitchell: Hi, Sam. Good question. We do expect some, but consider the size of that market and Esteem launching in the middle of the quarter. We will see some stocking, but it is not going to be a meaningful impact to our Q2 growth.

Sam Eiber: That is helpful. And as a follow-up, any feedback or conversations you are having with the FDA on Sculp? I know you have reiterated timelines for Q4 approval, but curious about your communications with them and what you have been hearing.

David Moatazedi: Rui is sitting right next to me, so I will turn it over to him.

Rui Avelar: It is a PMA going through the regular PMA process where we get questions along the way and it can also be interactive. We continue to say Q4—we are hoping to have approval by the end of the year. Sometimes it will go faster; hopefully it goes on timelines. As a reminder, for Form and Smooth we were conservative on timelines, but we got lucky there and received approval earlier.

Operator: Thank you. Our next question comes from the line of Serge Belanger with Needham and Company. Please proceed with your question.

Serge Belanger: Hi, good afternoon. Thanks for taking my questions. David, you talked a little bit about what sounds like an increasing appetite for BD and making additions to your product portfolio. Can you talk about what kind of products you are interested in and maybe how large of a transaction we could see here? Thanks.

David Moatazedi: We are very active on the pipeline side. Rui has likely more experience than anyone in the aesthetics space in getting drugs and devices through the FDA. Although we are still an earlier-stage company commercially, we have the luxury of a fully staffed organization in clinical development and regulatory. That capability is well recognized within the industry, which is why we often get a first look at assets, especially those that are more complex to develop. I will let Rui talk a bit about where we spend a lot of our time looking at assets today.

Rui Avelar: Biostimulators remain of high interest to us, and there are a number of assets out there. We look at the various ones and assess strengths and weaknesses, just like what we did with our current programs. Skin quality remains something of high interest. In Europe, it is quite popular with a number of offerings. Bringing it into the United States has a higher bar of entry and, as far as we know, there is only one that has been approved thus far. And then areas like hair continue to represent an unmet need. There are a lot of opportunities, and we have seen very successful stories out there right now.

Operator: Thank you. This concludes our question-and-answer session as well as today’s teleconference. We thank you for your participation. You may disconnect your lines at this time and have a great rest of your day.