Venus Concept Inc. (VERO): Business Model Canvas [Dec-2025 Updated]

You're digging into the mechanics of Venus Concept Inc. as they execute a major strategic pivot, balancing the launch of next-gen devices like Venus NOVA against a significant financial restructuring with Madryn Asset Management, LP. Honestly, looking at their Q3 2025 figures, you see a business where cash sales still dominate, making up about 73% of system revenue, even as they manage $30.1 million in total debt obligations. This Business Model Canvas lays out exactly how they plan to fund R&D and service that debt through their global distributor network and the Prime leasing model. It's a tightrope walk between innovation and balance sheet repair. Find out below how the key activities and revenue streams map to their value proposition for clinics worldwide.

Venus Concept Inc. (VERO) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that keep Venus Concept Inc. (VERO) moving, especially as they navigate a strategic pivot away from the hair segment. These aren't just names on a contract; they represent critical financial lifelines and market access points.

Take Madryn Asset Management, LP. They've been central to managing the balance sheet. For instance, as of September 30, 2025, Venus Concept Inc. exchanged $11.5 million of subordinated convertible notes held by Madryn affiliates for Series Y preferred stock, which represented a 24% reduction in total debt compared to the December 31, 2024 level of approximately $39.7 million. This move helped bring the total debt obligations down to approximately $30.1 million by that same date in Q3 2025. Honestly, these debt-for-equity maneuvers are key to improving financial flexibility when cash burn is a concern.

Then there's the deal with MHG Co. Ltd (Meta Healthcare Group). This partnership centers on the divestiture of the Venus Hair business. Venus Concept Inc. signed an agreement for an all-cash transaction valued at $20 million, which was expected to close in Q3 2025. To give you context on what was sold, that Hair business generated approximately $12.5 million in revenue in fiscal year 2024 and used about $6.7 million in cash for operations in that same year. The goal here, as management stated, was to concentrate on the core global medical aesthetics business, expecting improved revenue growth and an accelerated path to profitability.

Here's a quick look at the financial relationship details:

The reach of Venus Concept Inc. relies heavily on its global distributors. This network is how they get their aesthetic technology platforms into the hands of practitioners worldwide. As of the latest reports, Venus Concept Inc. reaches over 60 countries. The structure involves direct operations in a smaller number of markets, specifically 9 direct markets as reported in Q3 2025 filings. If onboarding takes 14+ days, churn risk rises, so the distributor efficiency is defintely key.

Finally, the relationship with Clinical Key Opinion Leaders is crucial for market acceptance. While I don't have a specific dollar amount tied to them for 2025, their role is to provide the necessary validation for new aesthetic technologies. This validation helps drive adoption for platforms like the recently FDA-cleared Venus NOVA, which received clearance on November 10, 2025.

• Global Distributor Reach: Over 60 countries served.
• Direct Market Presence: 9 direct markets.
• KOL Function: Validation and promotion of new platforms like Venus NOVA.

Finance: draft 13-week cash view by Friday.

Venus Concept Inc. (VERO) - Canvas Business Model: Key Activities

You're looking at the core engine room of Venus Concept Inc. (VERO) operations as of late 2025, focusing on what they actually do to keep the lights on and execute their strategy. It's a mix of product development, making things, selling them, and, quite significantly lately, cleaning up the balance sheet.

Research and development

The focus here is clearly on advancing the core aesthetic device portfolio. The big news is the regulatory success for the next-gen platform.

• Venus NOVA, the next-generation, most advanced multi-application platform, received 510(k) clearance to market in the third quarter of 2025.
• The company planned a limited commercial launch for the Venus NOVA in December 2025.
• Research and development expenses showed cost containment efforts in the first half of 2025.

Here's a quick look at the R&D spending trend for the first half of the year:

What this estimate hides is that while expenses were cut, the critical Venus NOVA clearance was achieved. Finance: track Q4 R&D spend against the initial December 2025 launch budget by next week.

Manufacturing and supply chain

This activity covers the production of their energy-based aesthetic devices. The supply chain and external factors are clearly impacting the cost structure, which you see reflected in the gross margin.

• Gross margin for the three months ended September 30, 2025, was 64.0% of revenue.
• This compares to a gross margin of 66.1% of revenue for the three months ended September 30, 2024.
• The decrease in gross margin was attributed partly to higher device system cost of goods sold.
• The impact of U.S. tariffs on devices imported into the U.S. market was also cited as a factor affecting margin.

Venus Concept Inc. reaches customers in over 60 countries, meaning the supply chain activity is inherently global in scope.

Sales and marketing

Driving system adoption involves pushing both outright sales and financing options, which is a key part of their revenue mix. You see the sales and marketing expense line fluctuating as they manage this.

• The percentage of total systems revenue derived from internal lease programs (Venus Prime and legacy subscription) was 27% in the third quarter of 2025.
• This compares to 23% in the prior year period for Q3.
• Cash sales represented approximately 73% of total systems and subscription revenue in the third quarter of 2025.
• In the U.S., cash sales were 82% of U.S. systems and subscription revenue in Q3 2025.
• Lease systems revenue showed growth, increasing 9% year-over-year in Q3 2025.

Selling and marketing expenses showed mixed results quarter-over-quarter:

The company is targeting sequential growth in the fourth quarter, fueled by the Venus NOVA launch.

Balance sheet restructuring

This has been a major, definintely high-priority activity, involving multiple transactions with Madryn Asset Management, LP to reduce debt and improve financial flexibility.

• As of September 30, 2025, total debt obligations were approximately $30.1 million.
• This is down from $39.7 million as of December 31, 2024.
• The company announced a definitive agreement to sell its Venus Hair division to MHG Co. for $20 million in cash, expected to close in the third quarter of 2025.
• Net interest and other expenses for Q3 2025 were $12.5 million, which included an $11.3 million noncash loss on debt extinguishment.

Here is a summary of the key debt-to-equity exchanges executed with Madryn affiliates in 2025:

The company's debt-to-equity ratio was 17.05 following the July transaction. Strategy: keep monitoring the remaining debt load against the $5.9 million cash on hand as of September 30, 2025.

Venus Concept Inc. (VERO) - Canvas Business Model: Key Resources

You're building a business model for Venus Concept Inc. (VERO), and the key resources are what truly underpin their ability to generate revenue in the medical aesthetics space. It's a mix of tangible assets, intellectual property, and financial engineering.

The core tangible resource is the proprietary device portfolio. This collection of energy-based devices (EBDs) is what they sell and lease to clinics globally. Key platforms that form the backbone of this offering include:

• Venus Legacy platform, which combines radio frequency and electromagnetic pulses for cellulite reduction.
• Venus Versa platform.
• The newly launched, next-generation Venus NOVA platform.
• Other systems like Venus Viva, Venus Bliss, and NeoGraft® for hair restoration.

The value of this portfolio is heavily tied to its regulatory standing. Intellectual Property, specifically FDA 510(k) clearances, is a critical resource for U.S. market access. Venus Concept Inc. announced on November 10, 2025, that it received 510(k) clearance from the U.S. Food and Drug Administration for its Venus NOVA platform. This clearance enables U.S. commercial availability starting in December 2025, with global rollouts planned throughout 2026. This regulatory win is a key catalyst for their turnaround strategy.

Here's a snapshot of some of the core technology platforms and their status:

Financing capability is another vital, non-physical resource, especially when third-party lending is tight. The Internal financing program, known as Venus Prime, replaced the legacy subscription model for new customers in North America. This program offers competitive financing rates and a technology upgrade path in years 2 and 3 of ownership to select, high-quality customers who might not qualify with traditional lenders. This internal financing mechanism is clearly driving a portion of their sales; the percent of total systems revenue derived from Venus Prime and the legacy subscription model reached approximately 27% in the third quarter of 2025, an increase from 23% in the prior year period. To be fair, cash sales still represented approximately 73% of total systems and subscription revenue in that same quarter.

Finally, the balance sheet provides the necessary liquidity to operate and execute on these strategies. Cash and equivalents as of September 30, 2025, stood at approximately $5.9 million. This is an improvement from the $4.3 million reported as of December 31, 2024. This cash position supports ongoing operations while the company manages its liabilities, which totaled approximately $30.1 million as of September 30, 2025, down from about $39.7 million at the end of 2024, partly due to a debt exchange transaction totaling $11.5 million converted to preferred stock.

Here's the quick math on the balance sheet strength as of the reporting date:

Finance: draft 13-week cash view by Friday.

Venus Concept Inc. (VERO) - Canvas Business Model: Value Propositions

Non-invasive aesthetic treatments: Solutions for body contouring and skin tightening.

The value proposition centers on providing aesthetic solutions that avoid surgery. The new Venus NOVA platform, which received U.S. Food and Drug Administration 510(k) clearance on November 10, 2025, is positioned as a next-generation, multi-application system for non-invasive treatments across the body, face, and skin. This platform integrates several technologies:

• FlexMAX EMS: Adaptive electrical stimulation to activate up to 8 muscle groups.
• (MP)²: Proprietary combination of Multi-Polar Radio Frequency (RF) and Pulsed Electromagnetic Fields (PEMF).
• Advanced VariPulse™: Technology for wrinkle and cellulite reduction support.

Flexible system adoption: Venus Prime leasing model lowers initial capital outlay.

Venus Concept Inc. offers financing flexibility to reduce the barrier to entry for clinics. The internal lease programs, including Venus Prime, are a growing component of system revenue. This model helps practices acquire equipment without a large upfront cash commitment, which is especially relevant given tighter third-party lending practices noted in Q3 2025.

Here's the quick math on system revenue mix for the third quarter of 2025:

Lease systems revenue specifically saw a 9% increase year-over-year in the third quarter of 2025. For systems sold outright, cash sales in the U.S. represented 82% of U.S. systems and subscription revenue in Q3 2025, up from 76% the prior year.

Advanced technology: New Venus NOVA platform with IoT connectivity (Venus Connect).

The new Venus NOVA platform is designed with intelligence built-in. It features IoT connectivity via Venus Connect, a secure cloud-based application. This connectivity is intended to give clinics access to real-time analytics and automatic system optimization. The U.S. commercial introduction for this platform is targeted for December 2025.

Practice performance focus: Tools to help clinics manage patient flow and post-treatment.

The technology is bundled with support designed to accelerate business success from day one. This focus on practice enablement is formalized through the Venus Jumpstart Program. This program is a 30-day roadmap that includes specific components aimed at clinic success.

• Advanced clinical education.
• Marketing enablement.
• Strategic implementation support.

The IoT analytics from Venus Connect are also intended to enhance clinic efficiency and profitability through treatment insights.

Venus Concept Inc. (VERO) - Canvas Business Model: Customer Relationships

You're looking at how Venus Concept Inc. (VERO) keeps its clinics engaged over time, which is key since capital equipment sales can be lumpy. The relationship structure leans heavily on the initial sale, but the recurring revenue component is definitely growing, which is what management wants to see for stickiness.

The subscription and leasing side of the business is a deliberate strategy to lock in clinics for longer periods. This model creates a more predictable revenue stream compared to pure upfront cash sales. Here's the quick math on how the mix looked through the third quarter of 2025:

Dedicated account management is the backbone for these relationships, especially in their core operational areas. While I can't confirm the exact number of nine core markets from the latest filings, the company has definitely been streamlining its direct sales approach. For instance, in the first quarter of 2025, there was an acknowledged decrease in revenue driven by an 'accelerated exit from unprofitable direct markets,' suggesting a refinement of where that direct sales and support effort is focused.

The subscription/leasing model, which includes Venus Prime, is clearly gaining traction as a percentage of total systems revenue, moving from 23% in Q3 2024 to 27% in Q3 2025. Still, cash sales remain the dominant transaction type, making up 73% of total systems and subscription revenue in Q3 2025. If onboarding takes 14+ days, churn risk rises, so efficient direct support is defintely critical here.

For post-sale service, which covers maintenance and consumables for the installed base, the trend was slightly negative in the third quarter. Services revenue saw a 5% decrease year-over-year for the three months ended September 30, 2025. This is something to watch, as consumables and service contracts are vital for long-term customer retention and predictable cash flow.

Regarding digital engagement through Venus AI, the public reports focus on product clearances like the Venus NOVA in November 2025, which is part of a new R&D strategy aimed at total practice performance. Specific, quantifiable data on the adoption rate or direct financial impact of a 'Venus AI strategic initiative' on customer relationships for 2025 wasn't detailed in the recent earnings reports.

Finance: draft 13-week cash view by Friday.

Venus Concept Inc. (VERO) - Canvas Business Model: Channels

Direct sales force: Primary channel in the United States and other direct markets.

Revenue for the United States region in the third quarter of 2025 saw a decrease of $1.1 million, or 12% year-over-year, based on the latest reported figures for the three months ended September 30, 2025.

International distributors: Sales and service network in over 60 countries.

Venus Concept reaches over 60 countries. The company operates in 9 direct markets as of July 2025. International revenue for the third quarter of 2025 was down by $0.2 million, representing a 3% decrease year-over-year.

Internal financing channel: The Venus Prime program facilitates system delivery.

The percentage of total systems revenue derived from the internal lease programs, which includes the Venus Prime program, was approximately 27% in the third quarter of 2025. This compares to 23% in the prior year period for Q3. Cash sales represented approximately 73% of total systems and subscription revenue in the third quarter of 2025.

Digital platforms: Investor relations and product information via the corporate website.

The corporate website section for investor relations is located at ir.venusconcept.com.

The company announced the sale of its Venus Hair business for $20 million in cash, with closing expected in the third quarter of 2025.

• Energy Based Device (EBD) revenues showed stabilization with sales of $9.6 million, up 2% year-over-year in Q3 2025.
• US cash sales represented 82% of US systems and subscription revenue in Q3 2025.
• Total debt obligations as of September 30, 2025, were approximately $30.1 million.
• Cash and cash equivalents as of September 30, 2025, were $5.9 million.
• Gross margin was 64.0% of revenue for the three months ended September 30, 2025.

Venus Concept Inc. (VERO) - Canvas Business Model: Customer Segments

You're looking at the core groups Venus Concept Inc. (VERO) serves across its global medical aesthetics footprint. This is the group that buys or leases the energy-based devices (EBDs) and pays for ongoing services.

Global medical aesthetic practices: Dermatologists, plastic surgeons, and med-spas.

This is the primary market, heavily weighted toward the United States, which is where the majority of Venus Concept Inc.'s revenue is generated. In the third quarter of 2025, total revenue for Venus Concept Inc. hit $13.8 million. The core EBD systems sales, which exclude the hair restoration business, totaled $9.6 million in Q3 2025, showing a slight year-over-year increase of 2%. The shift toward direct payment is notable; cash sales made up about 73% of total systems and subscription revenue in Q3 2025. Specifically within the U.S. segment for systems and subscriptions, cash sales reached 82%, up from 76% the prior year.

The geographic split for Q3 2025 showed continued softness internationally, with International revenue decreasing by $0.2 million, or 3% year-over-year. The U.S. revenue saw a larger year-over-year decrease of $1.1 million, or 12%, in the same period.

Here's a look at the revenue breakdown from the latest reported quarter:

High-quality customers: Targeted by the Venus Prime leasing program.

Venus Concept Inc. targets customers willing to commit to longer-term financing arrangements through its internal lease programs, which include Venus Prime and the legacy subscription model. These arrangements are key for securing future cash flows, though they are sensitive to credit market conditions. For the third quarter of 2025, the percentage of total systems revenue derived from these internal lease programs was approximately 27%. This is an increase from the 23% seen in the third quarter of 2024. To give you context on the recent trend, this figure was 37% in Q2 2025 and 25% in Q1 2025. For the full year 2024, these internal financing programs accounted for approximately 26% of system revenues.

International clinics: Served through third-party distribution channels.

International clinics are served via third-party distributors, a channel that experienced a pullback in Q3 2025. International revenue in Q3 2025 was down by $0.2 million, representing a 3% year-over-year decrease. This follows a more significant drop in Q2 2025, where International revenue fell by $1.3 million, or 18% year-over-year.

Hair restoration clinics: Segment pending divestiture to MHG Co. Ltd.

This segment, which includes the ARTAS and NeoGraft technologies, is in the process of being sold to Meta Healthcare Group (MHG Co. Ltd) for a total of $20 million in cash. The transaction was expected to close in Q3 2025, but as of the Q3 2025 earnings call in November 2025, the process has faced challenges, leading Venus Concept Inc. to seek assistance from the Delaware Court. The uncertainty surrounding this sale has negatively impacted revenue and customer confidence in capital equipment sales. For fiscal year 2024, the Venus Hair business segment generated $12.5 million in revenue and consumed $6.7 million in cash from operations.

• Divestiture Price: $20 million cash consideration to Venus Concept Inc..
• FY 2024 Revenue for Divested Segment: $12.5 million.
• FY 2024 Cash Usage for Divested Segment: $6.7 million.

Venus Concept Inc. (VERO) - Canvas Business Model: Cost Structure

You're looking at the expenses that drive the Venus Concept Inc. (VERO) business model as of late 2025. It's a structure heavily influenced by device manufacturing, operating overhead, and significant non-operating financial costs tied to its capital structure and strategic maneuvers.

Here's a quick look at the key cost components from the third quarter of 2025:

The Cost of Goods Sold (COGS) directly impacts profitability, though the gross margin remains relatively strong for a device company. For the three months ended September 30, 2025, the gross margin was reported at 64.0% of revenue, down from 66.1% in the third quarter of 2024. This contraction in margin is attributed to the impact of U.S. tariffs on imported devices and, to a lesser extent, higher device system COGS due to manufacturing overhead spread over a lower volume base.

Total operating expenses for the third quarter of 2025 reached $18.3 million, representing a 7% increase year-over-year. This increase reflects a few moving parts:

• Legal and other professional fees incurred to support the pending sale of the Venus Hair business accounted for approximately one-third of the year-over-year increase.
• Excluding these specific fees, third-quarter operating expenses increased 4%, showing continued progress in cost containment and streamlining operations.
• The operating loss widened to $9.5 million in Q3 2025, compared to $7.2 million in Q3 2024.

Debt servicing costs are a major drain, even if they aren't strictly operating expenses. Net interest and other expenses were $12.5 million in Q3 2025, a significant jump from $2.2 million in Q3 2024. The primary driver here was an $11.3 million noncash loss on debt extinguishment, which is tied to balance sheet restructuring activities. As of September 30, 2025, total debt obligations stood at approximately $30.1 million.

Investment in future products, like the recently cleared Venus NOVA, is a necessary cost. While the company is focused on cost discipline, R&D spending saw a notable change in the preceding quarter. For instance, research and development expenses decreased by $0.4 million, or 22% year-over-year in the second quarter of 2025. The Venus NOVA, which received 510(k) clearance on November 10, 2025, is the first product from the new focused R&D strategy, with a limited commercial launch planned for December 2025.

Regulatory and legal fees are a direct consequence of the strategic shift away from the Hair business. The challenges in closing the definitive agreement to sell the Venus Hair business to MHG Co. Ltd have resulted in these increased costs. Management noted seeking the assistance of the Delaware Court to aid in concluding the transaction, which directly feeds into the higher professional fees embedded within the operating expenses.

Finance: draft 13-week cash view by Friday.

Venus Concept Inc. (VERO) - Canvas Business Model: Revenue Streams

You're looking at how Venus Concept Inc. (VERO) brings in the cash, and as of late 2025, the hardware sales are still a major piece, though the mix is shifting. The core of the device revenue comes from the Energy-Based Device (EBD) systems, which, for the third quarter of 2025, clocked in at $9.6 million. This figure specifically excludes system sales from the Venus hair restoration business.

The way these systems are sold shows a clear preference for immediate payment over financing arrangements, which is a key insight into their current sales strategy and customer financing environment. Here's the quick math on how that systems revenue broke down for Q3 2025:

Cash sales represented approximately 73% of total systems and subscription revenue in the third quarter of 2025. That means the majority of their device revenue is coming in upfront, which is definitely better for near-term working capital than long-term receivables. Conversely, lease systems revenue, which includes the Venus Prime and legacy subscription models, made up about 27% of total systems revenue in Q3 2025, up from 23% in the prior year period.

Beyond the initial system sale, Venus Concept Inc. (VERO) relies on recurring revenue streams from device usage and ongoing support. This includes consumables-the necessary supplies that go with using the devices-and service revenue, which covers maintenance and support contracts. To be fair, this recurring segment saw some pressure recently; services revenue decreased by 5% year-over-year in the third quarter of 2025. This recurring component is vital for stabilizing revenue, but the recent dip suggests you should watch customer utilization rates closely.

The revenue streams can be summarized by their nature:

• Energy-Based Device (EBD) System Sales: $9.6 million in Q3 2025.
• Cash Sales Component: Approximately 73% of total systems and subscription revenue in Q3 2025.
• Lease/Subscription Component: Approximately 27% of total systems revenue in Q3 2025.
• Consumables and Service Revenue: Recurring income from device use and maintenance contracts.

Finance: draft 13-week cash view by Friday.