This article first appeared on GuruFocus .
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Revenue:Total revenue reached $171.4 million, up 3.6% year over year.
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International Revenue (ex-North America):Grew 16.7% to $127 million, led by Mainland China, Thailand, Japan, and Hong Kong.
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Europe Revenue:Increased 12% to $26.7 million.
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APAC Revenue:Grew 19.1%, with the region's share of global revenue rising to 45%.
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EBD (Energy-Based Devices) Revenue:$134 million, down 2.5% year over year due to North America headwinds; excluding North America, international EBD revenue increased 7.2%.
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Injectables Revenue:Reached $22.2 million, up 54.2% year over year, with its share of global revenue rising from 8.7% to 12.9%.
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Gross Profit:$97.2 million, with gross margin of 56.7%, down from 60% a year earlier.
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Adjusted Net Profit:$5.04 million, compared with $12 million in the prior-year period; adjusted net profit margin was 2.9%, down 4.3 percentage points year over year.
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Operating Expenses:Grew 8.5% year over year, mainly due to strategic investment in the China Injectables business.
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R&D Investment:$8.5 million invested during the period.
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Cash and Cash Equivalents:$77.3 million as of June 30, 2026.
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DAXXIFY Cumulative Shipments:Surpassed 30,000 vials as of June 30, with coverage reaching more than 500 premium medical aesthetic clinics across 28 provinces in China.
Release Date: August 20, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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International markets outside North America grew 16.7% to $127 million, led by strong demand in Asia-Pacific, Europe, and the Middle East.
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Injectables revenue surged 54.2% year-over-year to $22.2 million, driven by DAXXIFY's commercial rollout in Mainland China and Profhilo's strong performance in Thailand.
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DAXXIFY cumulative shipments surpassed 30,000 vials, covering over 500 premium medical aesthetic clinics across 28 provinces in China, with healthy repurchase rates.
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The Beijing Miyun facility commenced production, producing the first locally made Alma Rejuve, enhancing localization and supply chain resilience in China.
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The company launched new products like Soprano Titanium in Thailand and Harmony XL in Mainland China, strengthening its premium EBD portfolio and driving demand.
Negative Points
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Adjusted net profit declined significantly to $5.04 million from $12 million in the prior-year period, with adjusted net profit margin down 4.3 percentage points to 2.9%.
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North America revenue declined due to continued softness in the US market, impacting overall EBD revenue which fell 2.5% year-over-year.
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Gross margin decreased to 56.7% from 60% a year earlier, reflecting lower revenue in North America and strategic investments in the China Injectables business.
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Operating expenses grew 8.5% year-over-year, driven by strategic upfront investments in the China Injectables business, pressuring profitability.
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The company faces ongoing geopolitical risks in the Middle East, which, while minimal in impact, could affect logistics and operations in the future.
Q & A Highlights
Q: What is the confirmed sales revenue and volume for DAXXIFY in the first half of 2026, and will the annual objective be adjusted? What is the repurchase rate and future plan for expanding into different institutions? A: Jiahong Li (Co-CEO and CFO) stated that while specific DAXXIFY revenue figures were not disclosed, commercialization is well aligned with expectations, and the annual operational goal of RMB100 million is on pace. As of June 30, cumulative shipments surpassed 30,000 vials, covering over 500 premium medical aesthetic clinics across 28 provinces. The strategy is shifting from coverage to deeper penetration, focusing on building benchmark sites, optimizing local injection protocols, and increasing repurchase levels, which are currently healthy with quarter-by-quarter growth.
Q: What is the update on the ongoing negotiation with Revance regarding profit sharing, and what is the pricing strategy for DAXXIFY at the end market compared to competitors? A: Eyal Ben David (CEO) explained that negotiations with Revance are ongoing to secure the best transfer price and broaden the scope of collaboration, potentially expanding beyond Mainland China, Hong Kong, and Macau to other strategic markets. Jiahong Li added that DAXXIFY is positioned as a premium long-acting BTA at RMB6,800, with a direct-to-clinic model that leaves sufficient margins for clinics. While the single-treatment price is higher, the 6-month (up to 9-month) duration makes the annualized cost comparable to competitors requiring more frequent injections, offering a differentiated treatment experience.
Q: What is the outlook for the botulinum toxin (BTA) market landscape and trends, and what is the progress on localization in China? A: Jiahong Li noted that the BTA market is becoming increasingly competitive with 8 approved products and 4-6 more expected, leading to price pressure in the medium-to-low end. However, the premium segment, where DAXXIFY competes, will be driven by differentiation, clinical evidence, and commercialization capability. Regarding localization, the Beijing Miyun facility officially commenced production in June 2026, with the first locally assembled Alma Rejuve rolling off the line. This will reduce production costs and lead times, diversify geopolitical risk, and lay a foundation for expanding the local production pipeline across APAC.
Q: What is the sales outlook for key EBD SKUs like Harmony XL in the second half, and what is the expected product mix and business synergy over the next 3-5 years? A: Jiahong Li confirmed that EBD orders have maintained steady growth, with Harmony XL (launched in July in China) receiving a strong market response. The company is confident in H2 growth driven by the local production base ramp-up and EBD-injectable synergy. Lior Moshe Dayan (Chairman) outlined that EBD will remain the foundation, with injectables as the second growth engine, complemented by diagnostics (Alma IQ) and personalized skin care (Universkin). The strategy is to build an integrated clinical ecosystem, validated by clinical research combining EBD with injectables, creating differentiation through combination therapies rather than individual products.
Q: What are the R&D directions and new product launch plans for EBD, and what is the progress on Profhilo's approval in China? A: Eyal Ben David highlighted that R&D is focused on customer-driven innovation with a new EVP of R&D leading the engine. In H2 2026, the company will launch the next-generation hair growth system in North America, PrimeX (RF ultrasound) in Thailand, and the next generation of Rejuve for the beauty segment in China. Jiahong Li stated that Profhilo's facial indication application will be filed in H2 2026, with approval expected in H2 2027. The product is positioned as a high-end hyaluronic acid that stimulates collagen and elastin, with expected sales in the hundreds of millions of RMB, depending on regulatory timing and market acceptance.
Q: What is the guidance and outlook for the second half of 2026 and the coming years? A: Jiahong Li defined 2026 as a year of growth and integration, expressing confidence in significant Q-on-Q and year-on-year revenue improvement in H2, driven by a healthy order backlog and core product momentum. Growth drivers include the ramp-up of injectables (DAXXIFY in China, Profhilo registration), intensive new EBD product launches (Soprano Titanium in Thailand, Harmony XL and Titanium Prime in China), North America recovery (evidenced by 20% growth in Canada), and the Beijing localization base. The company is also seeking external BD opportunities to support high-quality growth and profitability.
Q: Has the adjustment of the global and China management mix been completed, and what is the strategic development goal for overseas business, particularly in North America and China? A: Lior Moshe Dayan confirmed that management adjustments are still rolling out in major markets to strengthen execution and accountability, citing Jiahong Li's expanded role as President of Sisram China and CEO of Alma China to accelerate EBD and Injectables integration. Eyal Ben David reiterated that the strategy remains a full-cycle integrated ecosystem with EBD at the core. In China, the focus is on DAXXIFY's launch, next-generation EBD devices, and supply chain readiness. In North America, the priority is realigning the commercial framework, maximizing the value of the install base, stabilizing performance, and recovering profitability through cost realignment and margin improvement.
Q: What is the overall trend and competitive landscape of the BTA market, and how does DAXXIFY fit into it? A: Jiahong Li described the BTA market as expanding with increased consumer awareness and new indications, but facing cutthroat competition with new entrants impacting average selling prices. The market is becoming highly segmented, with premium products like DAXXIFY maintaining a competitive edge through efficacy, branding, and duration. Competition is shifting from price wars to differentiators like practitioner education, clinical evidence, and commercialization capability. The company will wait and see on innovative products like recombinant botulinum toxin, but believes DAXXIFY's premium positioning and long-acting profile provide better growth opportunities.
Q: What is the progress on the commercialization of DAXXIFY in China, and what are the key drivers for its growth? A: Jiahong Li confirmed that DAXXIFY's commercialization is on track, with cumulative shipments exceeding 30,000 vials and coverage of nearly 500 premium clinics in 28 provinces. The growth is driven by end-market penetration and standardized
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
