Shares of Evolus (EOLS 8.90%) climbed on Wednesday after the aesthetics specialist announced that it achieved profitability.
By the close of trading, Evolus' stock price was up over 35%.
Image source: Getty Images.
The path to profit
Evolus' products can soften wrinkles and temporarily improve the appearance of frown lines in adults.
Demand for the beauty company's offerings is rising, with revenue growing 14% year over year to $90.3 million in the fourth quarter.
Moreover, customers appear to be satisfied with the results, with reorder rates of roughly 71%.
NASDAQ: EOLS
Key Data Points
Better still, Evolus posted an operating profit of $4.2 million, compared to a loss of $2.3 million in the prior-year period.
"We achieved profitability in the fourth quarter, reflecting the benefits of decisive expense actions we implemented in the second quarter, proactively rebasing our expense structure to align with current market conditions while preserving our growth trajectory," CEO David Moatazedi said.
Sustainable cash generation
Looking ahead, Evolus expects revenue to increase by 10% to 13% to between $327 million and $337 million in 2026.
"As we advance toward sustainable profitability and meaningful free cash flow, we expect to have the financial flexibility to actively manage our capital structure while continuing to invest in growth, reinforcing the strength and durability of our long-term value creation strategy," Moatazedi said.
