ReShape Lifesciences (RSLS) Q2 2025 earnings summary

Executive summary

• Revenue for Q2 2025 was $1.2M, down 36.8% year-over-year, with a net loss of $2.6M, reflecting lower sales volume and increased transaction costs related to a pending merger and asset sale.

• Gross profit margin declined to 48.2% from 57.7% year-over-year due to lower sales volumes and fixed cost absorption.

• The company is pursuing a merger with Vyome Therapeutics and an asset sale to Biorad, with both transactions approved by shareholders and expected to close in Q3 2025.

• Raised $10.9M in 2025 through public offerings and equity sales to fund operations and transaction costs, but substantial doubt remains about the ability to continue as a going concern.

Financial highlights

• Q2 2025 revenue fell to $1.2M from $2.0M in Q2 2024; six-month revenue was $2.4M, down 39.8% year-over-year.

• Net loss for Q2 2025 was $2.6M, compared to $1.6M in Q2 2024; six-month net loss was $1.2M, improved from $3.8M year-over-year due to a $3.7M gain on warrant liability revaluation.

• Adjusted EBITDA for Q2 2025 was $(1.9)M, compared to $(1.7)M in Q2 2024.

• Gross profit for Q2 2025 was $0.6M (48.2% margin), down from $1.1M (57.7%) in Q2 2024.

• Operating expenses for Q2 2025 were $3.4M, up 5.4% year-over-year, mainly due to higher transaction costs.

Outlook and guidance

• Management expects continued operating losses and negative cash flows for 2025, with ongoing uncertainty due to market competition from GLP-1 pharmaceuticals and pending strategic transactions.

• Cash resources may not be sufficient to fund operations for more than 12 months; additional capital will be required.