ReShape Lifesciences (RSLS) Q4 2024 earnings summary

Executive summary

• Achieved a 42% reduction in operating expenses for 2024, excluding M&A-related costs, compared to the previous year, driven by cost controls and workforce reductions.

• Closed a $6 million public offering in February 2025 to strengthen financial position.

• Entered a definitive merger agreement with Vyome Therapeutics and asset sale to Biorad Medisys; board unanimously recommends approval to maximize shareholder value.

• Signed exclusive U.S. distribution agreement with Motion Informatics for next-generation neuromuscular rehabilitation devices.

• Received key U.S. and international patents for Diabetes Neuromodulation technology, extending protection to 2039.

Financial highlights

• Revenue for 2024 was $8 million, down 8% year-over-year, primarily due to GLP-1 pharmaceuticals and reduced marketing spend.

• Gross profit for 2024 was $5.1 million (63.2% margin), a 9% decrease from 2023, mainly due to inventory write-offs.

• Sales and marketing expenses dropped 60% to $3 million; general and administrative expenses fell 33% to $6.9 million; R&D expenses decreased 22% to $1.8 million.

• Net loss improved to $7.1 million from $11.4 million in 2023; Adjusted EBITDA loss was $6.3 million versus $13.6 million prior year.

• Cash and cash equivalents at year-end 2024 were $700,000; $6 million raised in February 2025; $800,000 convertible note repaid.

Outlook and guidance

• Focus remains on disciplined cost management and investment in growth drivers, including Lap-Band 2.0 FLEX and new partnerships.

• Merger with Vyome and asset sale to Biorad expected to create a combined entity focused on immuno-inflammatory assets and U.S.-India innovation.

• Board anticipates significant value creation for shareholders from the transactions.