day, and welcome to The Beauty Health Company 2025 fourth quarter earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touch tone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Mr. Norberto Aja, Investor Relations. Please go ahead. Thank you, operator, and good afternoon, everyone. Thank you for joining The Beauty Health Company's fourth quarter 2025 conference call. We released our results earlier this afternoon via an earnings press release, which can be found on our corporate website at beautyhealth.com. Joining me on the call today is The Beauty Health Company's Chief Executive Officer, Pedro Malha, along with our Chief Financial Officer, Mike Monahan. Before we begin, I would like to remind everyone of the company's Safe Harbor language. Management may make forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including guidance and underlying assumptions. Forward-looking statements are based on current expectations and beliefs and involve risks and uncertainties that could cause actual results to differ materially. Listeners are cautioned not to place undue reliance on forward-looking statements. For further discussion of risks related to our business, please refer to the risk factors contained in the company's filings with the SEC. This call will present non-GAAP financial measures. A reconciliation of these non-GAAP financial measures to the most comparable GAAP measures is in the earnings press release furnished to the SEC and available on our website. Following management's prepared remarks, we will open the call for a question-and-answer session. With that, I would now like to turn the call over to our CEO, Pedro Malha. Please go ahead, Pedro. Good afternoon, everybody, and thank you for joining us today. Beauty Health has built one of the most recognized platforms in professional skin health. My first five months with the company have reinforced my conviction in the long-term opportunity ahead of us. Before we review the quarter, I'd like to share a few observations here. My background is in global med tech business built around differentiated technology and disciplined commercial execution to drive growth. What attracted me to Beauty Health was the opportunity to bring the same model to the company. The foundation is already in place. We have a global recognized brand. We have a large installed base of systems placed with providers around the world. We operate a consumables model that when executed well, generates meaningful operating leverage. Our task now is straightforward, to unlock the full economic potential of these assets. That means strengthen the commercial engine behind the platform with greater discipline and operating rigor consistent with established medtech companies. It all begins with activating the installed base, improving utilization, reinforcing the economies of our providers, and continue to invest in clinically meaningful innovation. Before discussing the progress we are making, I think it will be useful to step back a little and look at the broader market. First, the fundamentals of the aesthetic category remain strong. Research shows that consumers continue to invest in their skin even when they pull back in other areas. Skin health is increasingly becoming a lifestyle category, one that is built around prevention, routine care, and clinically proven outcomes. We have seen this evolution before in areas like oral health or wellness, where treatments that once happened occasionally became part of everyday consumers' behavior. We believe skin health is following the similar trajectory, which can make the long-term opportunity for this category significant. The market itself has expanded dramatically. According to industry data, the U.S. med spa market has grown from roughly 1,600 locations in 2010 to more than 13,000 today. At the same time, the consumer has evolved. We are seeing broader demographics entering the category. Men, Gen Z, and younger consumers are engaging with treatments earlier. Today's consumers are seeking outcomes that look healthy, natural, and authentic. Also, consumers are more informed than ever before. They understand ingredients, treatment mechanisms, and outcomes. They're not simply purchasing a brand, they're looking for results. Providers also have evolved as well. They are more focused on return on investment and are increasingly building treatment protocols that combine multiple modalities to deliver better clinical outcomes. Taken together, we believe that all of these trends are well aligned with our core product strengths. Hydrafacial treatments are non-invasive, clinically credible, and repeatable. They also serve as an accessible entry price point for consumers into the aesthetic category, which helps to bring new patients into the provider's practices and in creating opportunities for additional procedures. Hydrafacial is also uniquely versatile. The treatment works across genders, ages, and skin types, a combination that very few technologies in the medical aesthetic space can match. Because our treatment is repeatable and easy to integrate, it also fits naturally into preventive skin health routines and combination protocols, which is exactly where the market is moving. Beauty Health is uniquely positioned at the intersection of clinical skin health and consumer aesthetics. However, our commercial model was built for an earlier phase of the market, one where the category was newer, competition was lighter, and placing devices was the primary growth driver. That playbook worked well for a long time, but markets mature, and we need to evolve our model ahead of that curve and shift it from a model of device placement to a model of device utilization, which is where we believe the long-term growth of the business is. Over the past year, the company strengthened its balance sheet, it improved its cost structure, and restored financial discipline across the organization. Our fourth quarter results reflect that progress. At the same time, we hold the view that these results do not yet reflect the full potential of Beauty Health. What they do demonstrate is that the foundation of the business has stabilized. For the fourth quarter, total revenue was $82.4 million, representing a decrease of 1.3% compared to the prior year's quarter, a meaningful improvement from the double-digit decline we experienced in Q3. Consumables revenue increased to $57.7 million from $56.7 million in the prior year, representing a growth of 1.7% year-over-year and reinforcing the resilience of our recurring revenue model. Device revenue was $24.7 million, still down 7.9% year-over-year, but performance improved meaningfully here related to the third quarter. These numbers still reflect some pressure in the capital equipment segment, which is consistent with the broader macroeconomic environment. That said, the trend is moving in the right direction, and the improvement we saw from the prior quarter is an encouraging sign that the capital equipment business is stabilizing. Adjusted gross margin expanded to 67.4%, while GAAP gross margin expanded to 64.4%, driven primarily by a favorable mix shift towards consumable revenue. Additionally, profitability improved significantly. Adjusted EBITDA was $15 million in the fourth quarter compared to $9 million of last year's quarter, representing approximately 700 basis points of margin expansion. For the full year, adjusted EBITDA increased to $45.1 million compared to $12.3 million in the prior year. Again, a significant improvement. The results for this quarter highlight two important characteristics of our model. First, this business has meaningful operating leverage. Second, that leverage responds directly to disciplined execution. Operationally, we placed more than 1,000 devices in the quarter and then end up the year with over 36,000 systems in our global installed base. That installed base is the strategic core of this company, and it represents a recurring revenue infrastructure that is already in place. While this base has already been built, we think it remains underutilized. We believe that even modest improvements in utilization can drive significant consumables revenue and margin expansion. Our job now is to unlock the full productivity of that installed base. Now, looking ahead, the message here is that we remain optimistic about the category in which we operate. Demand for non or minimally invasive science-based treatments continues to grow globally. The market is shifting away from procedures driven primarily by short-term trends towards treatments outcome-driven protocols. The market is also shifting from individual treatments towards combination therapies and from soft marketing claims towards more clinically validated results. These trends favor companies with scale, clinical credibility, stronger provider education, and durable recurring economics, which is exactly where Beauty Health is positioned. At the center of our strategy is a powerful commercial model. Our brand credibility drives consumer demand, consumer demand drives patients traffic into the provider's practices, patient traffic drives higher treatment utilization per device, and utilization drives consumables revenue, which is our margin engine. For providers, this generates additional revenue and motivates them to expand, upgrade, and deepen their relationship with us. Utilization is at the center of gravity, and we believe that when utilization improves, it creates a positive momentum across the model. To accelerate this flywheel, we are focused on three priorities. First, salesforce excellence. Second, marketing discipline. And third, focused innovation. Starting with sales force excellence. Historically, much of our commercial success was relationship-driven. That worked well in the early stages of the company, but the next phase of growth requires a much more structured, disciplined commercial approach. We are now transitioning to a value-based selling model. One where our teams clearly demonstrate how Hydrafacial drives revenue, patient demand, and attractive returns for provider practices. That means also sharpening our clinical and economic differentiation, improving how we segment and prioritize accounts, and we are implementing more structured sales plans. These plans focus not only on acquiring new practices, but also on expanding utilization across our installed base and reactivating low utilization accounts. We are also deploying stronger commercial tools and analytics, so we can track activation, utilization, and retention across the installed base in real time. This gives us better visibility into performance and allows us to manage the business with greater precision. Second, marketing discipline. Our marketing strategy needs to be more focused on demand generation that directly supports provider growth. We are working to refine the position of Hydrafacial as a clinical-grade skin health platform, one that is supported by science, outcomes, and stronger provider education. At the same time, we are activating an under-leveraged asset in our portfolio, SkinStylus. It's a strong technology in the growing microneedling category that historically has never received the commercial focus it deserves, and we see a meaningful opportunity to expand its role with the provider's practices. We are also expanding consumer demand generation programs designed to bring new patients into the provider's office and strengthen the economic value proposition of these providers. Additionally, we recently brought a new brand and clinical strategy office with deep medtech experience to lead our brand and marketing strategy and strengthen the clinic position of our technology. Third, focus innovation. Innovation will remain disciplined and targeted at opportunities that only strengthen our platform. This includes the development of a next generation Hydrafacial system, which will be designed to drive upgrades across the installed base and expand our market share. We are also investing in a much more selective portfolio of clinically backed boosters designed to increase booster attachment rates, improve provider economics, and expand treatment protocols. If we look back, Hydrafacial has historically been viewed primarily as a single treatment, but we see it differently. We see Hydrafacial as the foundation of a broader skin health platform, one that integrates devices, boosters, protocols, and complementary technology into a comprehensive ecosystem for providers and customers. We are also exploring selective commercial and technology external partnerships aimed to broaden our product ecosystem and enlarge our relationship and offer to providers. All in all, we believe that taken together, these initiatives will strengthen the installed base, expand Hydrafacial's role in providers' practices, and accelerate the compounding economics of our model. This means that we will shift from a single product company to a skin health platform. For that reason, 2026 will be an execution year, focused on stabilization and investment into the next phase of growth. This means that with the operational changes that we are implementing, we expect to return to growth in 2027 and accelerate beyond that as innovation and product launches scale. Beauty Health has one of the largest installed bases in the aesthetics industry, one of the most recognized brands in skin health, and a proven device plus consumables model, a global commercial infrastructure across North America, Europe, and Asia Pacific. These are proven and durable advantages. Our task now is to match those advantages with the commercial discipline and the operating rigor of the best-in-class medtech company. Before I turn over to Mike, let me quickly frame our expectations for the year. The first half of 2026 is likely to come in modestly below the prior year. As our initiatives take hold, we expect momentum to build through the second half, position the company to exit 2026 on a stronger trajectory, setting up the stage for returning to growth in 2027. With that, I'll turn over the call to Mike to walk you through the financials and our 2026 guidance in more detail. Mike? Good afternoon, everyone. Key financial metrics for 2025 reflected meaningful improvement. Our global footprint surpassed 36,000 systems. We increased our adjusted gross margins from 62% to over 68%, and GAAP gross margins increased from 54.5% to 65.3%. We grew adjusted EBITDA from $12.3 million to $45.1 million or 268%. We generated over $37 million in operating cash flows, and we strengthened our balance sheet by proactively restructuring our debt. Because of this, we exited 2025 a stronger company than we were a year earlier. These improvements did not happen overnight and are the result of the hard work of our dedicated teams. As we continue to stabilize the company and prepare to return to growth, we believe we are positioned to drive improved profitability and increase margins in the future. For the full 2025 fiscal year, net sales were $300.8 million, compared to $334.3 million in 2024. Consumables revenue totaled $212.7 million, while device revenue was $88.1 million. We ended the year with an installed base of over 36,000 systems globally, which remains the foundation of our recurring consumables revenue model. We delivered adjusted EBITDA of $45.1 million, representing a significant improvement from $12.3 million in the year prior. The year-over-year change was driven by our continued focus on expense discipline and sustained margin improvement, demonstrating the operating leverage of our business model. On the balance sheet, we ended the year with approximately $232.7 million in cash, cash equivalents, and restricted cash, compared to approximately $370.1 million at the end of 2024, representing a 37% decrease. The year-over-year change was primarily driven by the repurchase of convertible senior notes during the first half of 2025, which, along with the refinancing of our notes, significantly strengthened our capital structure and extended our debt maturity profile. For the fourth quarter, net sales were $82.4 million, a slight decrease of approximately 1.3% compared to the previous year. The year-over-year decline primarily reflects lower delivery system sales. We placed 1,032 delivery systems during the quarter, compared to 1,087 units in the prior year period. GAAP gross margin was 64.4% in the fourth quarter, compared to 62.7% in Q4 of last year. The improvement in gross margin was primarily driven by lower inventory-related charges and a favorable mix shift towards consumables, partially offset by lower average selling prices on equipment. As planned, we successfully sold through the majority of our Elite FRC devices during the quarter, which are sold at a lower ASP than our new Syndeo devices. Adjusted gross margin was 67.4% in the fourth quarter versus 67.1% in the prior year. We continued to manage costs tightly throughout the quarter, with GAAP total operating expenses coming in at $52.9 million in Q4, down from $59.5 million in the prior year. Selling and marketing expenses declined to $23.5 million, reflecting lower headcount and disciplined spend management. Research and development expense was $1.7 million, up modestly year-over-year, reflecting professional services related to early-stage product investments. General and administrative expense declined to $27.7 million, driven primarily by cost controls, lower bad debt expense, and reduced expenses resulting from our shift from direct to distributor distribution in China. As a result, adjusted EBITDA for the quarter came in much stronger than the prior year at $15 million compared to $9 million in Q4 of last year. Net loss for the quarter improved to $8.1 million compared to a net loss of $10.3 million in the prior year. Moving to guidance. 2026 projections reflect the execution priorities Pedro outlined earlier. For the full year, we expect revenue in the range of $285 million-$305 million, with positive adjusted EBITDA of $35 million-$45 million. At the midpoint, this implies revenue broadly consistent with 2025 when normalizing for our go-to-market change and softness in China, with a more back-half weighted cadence as execution initiatives take hold. We believe this is the appropriate framing for 2026, given the work underway to strengthen the commercial foundation of the business, including sales execution, installed base activation, and targeted investments in marketing, education, and innovation. From a cadence perspective, we currently expect the first half of 2026 to be modestly below the prior year. This expectation reflects continued macro pressure in capital equipment, increased competitive activity that has lengthened the device sales cycle, the transition work underway within our sales organization, and ongoing adjustments in certain international markets, including China. It's also worth noting that fourth quarter results typically benefit from year-end ordering patterns, which do not repeat in the first quarter. These actions take hold, we expect improving momentum in the second half, with the business exiting 2026 on a stronger underlying trajectory than where we began. We believe these actions will strengthen the underlying productivity of our installed base and reinforce the durability of our recurring consumables model, positioning the company for a return to growth in 2027. For the first quarter of 2026, we expect revenue of $63 million-$68 million and positive adjusted EBITDA of $3.5 million-$5.5 million. As a reminder, the first quarter is historically our lowest revenue quarter due to seasonal dynamics, including increased sales and marketing activity early in the year and typical ordering patterns among providers. Overall, our outlook reflects a disciplined approach, prioritizing operational execution while investing in long-term growth. With that, I'll turn the call back to Pedro. Thanks, Mike. To close, our fourth quarter reflects meaningful structural progress in margins, profitability, balance sheet strength, and in the operating foundations of the business. Key characteristics that make Beauty Health a compelling long-term platform remain unchanged. The scale, the brand equity, a recurring revenue model with an operating leverage and a global distribution. What is changing is the discipline and operational focus we are bringing to those assets. We believe that as utilization improves and innovation strengthens the platform, the compounding economics of this business will become increasingly visible. We expect 2026 to be the year we demonstrate that operationally, and 2027 is when we expect that progress to translate into sustainable revenue growth. We look forward to updating you on our progress in the next quarter. I will now turn the call back to the operator for questions. Thank you. Thank you. We will now begin the question-and-answer session. To ask a question, you may press star then one on your touch- tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. At this time, we'll pause momentarily to assemble our roster. The first question will come from Allen Gong with JP Morgan. Please go ahead. Hi, thanks for taking the question. I guess like my first is going to be on the guide. You know, I think following, you know, you've been taking the last couple of years to really stabilize the underlying Syndeo business, and I understand that you're doing a pretty substantive overhaul of the underlying sales organization. When I look at your outlook for next year, despite the fact that you have another year of, you know, sales declines on tap, it looks like you're still expecting to generate pretty good adjusted EBITDA. Just help me to, you know, reset expectations for, you know, these investments into the sales force and this overhaul with being able to drive continued leverage. Thanks, Allen, for the question. I'll just circle back on what we're guiding here. On revenue, at the midpoint, we are expecting to be flat year-on-year. Once you normalize actually mostly for the China transition, and that's the intentional guide, because in the end, we view this 2026 as an execution year. On adjusted EBITDA, that number means that at the midpoint of the guidance, this will be slightly below 2025, largely because of the reinvestment that we're doing into the business with an increase in R&D for basically fueling future innovation. The expectation, and Mike alluded to this, is that with all in the first half of the year, we expect to be down mid-single digits, and in the second half, we expect to be flat. Without the APAC, which is majorly a China impact here, the first half is expected to be down low single digits and the second half to be positive low single digits in terms of growth. The main drivers are actually both consumers and devices here as we ramp up towards the second back half of the year. Mike, I don't know if you wanna add. Sure. Allen, I can add if you're also wanting to know where the middle of the P&L, how we were thinking about the guide, you know, on the gross margin side. You know, I would expect we modeled in gross margin for the full year to be relatively consistent with where we have been in 2025. You know, the team has made a lot of improvements on the cost side of the business to get leverage within overall gross margin. We expect that to continue for the full year of 2025. On the OpEx side of the business, as you mentioned, you know, we still are driving savings and cost efficiencies through the G&A line of the business, but we're reinvesting that back into the R&D line of the business, into innovation, for new products into the future. Got it. Thanks. Then I guess just on the underlying environment, I know you called out continued challenges on the capital side, but you clearly had a very, very strong systems placement performance to close out the year. When we think about the underlying assumptions for the market environment, especially given all the volatility, from a broader macro perspective, can you just help us with your underlying assumptions for trends throughout the year and in first quarter? Sure. So in terms of the overall, I'll say, end consumer signals that we are basing ourselves on our data shows that the consumer is still spending but is being more selective in choosing treatments that deliver clinically proven results at an accessible, we can call it accessible price point. Actually that is exactly the space that Hydrafacial occupies. The aesthetics category has been pressured for the last couple of years. This is mainly due to the tightness of credit and the capital spending decisions taking longer because of that. If these conditions improve, then we can see procedure volume pick up. After that, we typically see device placements pick up as well. Actually, if you look at it, our ability to return to growth is not relying on the change of these macro trends. Rather, it hinges on our ability to execute on our strategy. If you want to, you know, go down and dip a little bit to a lower level in terms of the provider trends that are shaping this market, in the Medical segment, which by the way, 70% in the U.S. of our business, which medical spas occupy the large percentage of that segment, continues to be the engine of this market. We believe that this engine will continue to grow because they are indeed using Hydrafacial as a way to bring patients in and upselling them into higher ticket treatments. Plastic surgeons seem to be losing some traction, and dermatologists are more stable. This is driven more by the specific patient skin treatments needed rather than just pure discretionary spending. At the high end, you know, the way we summarize it is the more invasive side of aesthetics seems to be softening, while the non-invasive skin quality treatments like ours are holding up. If you look at the Non-Medical segment, which is 30% of our business, which includes the day spas and the single-room institutions, we see that playing out more stable throughout the year. Thanks for the questions. The next question will come from Oliver Chen with TD Cowen. Please go ahead. Hi, this is Jonna on for Oliver. Thank you for taking our question. Would love to get additional color just around the churn trend that you saw in the quarter, and what's baked in in terms of the churn rate in your guide, and how do you anticipate tackling the churn rate throughout the year? Another question is, you mentioned men and Gen Z are the newer customer set. How are you repositioning your marketing messaging, if at all, to target those new customer sets? We'll appreciate any color there. Thank you so much. No problem. Mike will take the first part of that question. I'll take the second. Sure. Thanks for the question. Churn was a little bit higher than usual for the full year 2025, but it improved in Q4, both year-over-year and sequentially from what we saw in Q3. In the fourth quarter, it was about 1.1%. You know, when you look versus the year prior, as I said, it was a little bit higher than that. In Q3, it averaged around 1.8%. We're moving in the right direction. The driver of the churn is mostly our smaller accounts that don't have a business development manager assigned to them. We began, over the last few months, restructuring our inside sales and customer service teams to better meet the needs of these accounts. Our focus in 2026 is we expect to potentially improve on that area. The guide, however, assumes that we'll hold churn on a year-over-year basis flat. Our hope is that there's upside to the guide that we gave in that particular line item. In terms of the segments that are moving in our way, as I mentioned in my initial remarks, the strategy is based on three assets. We have a great brand, a very large installed base, and a razor-blade model. That basically means that for every device we place, it can become an annuity from high-margin consumables that potentially can last many years. Our job here as the different customers get into the fold and different segments of customers get into the fold is to basically unlock the full potential of these assets. To support this strategy, we have a market, again, that is moving in various ways our way. As I mentioned, the med spas continue to grow. There's this set of new demographics entering the category, which we are building and addressing their needs, their specific concerns in terms of skin health. We are seeing more and more consumers getting into treatments earlier in age, and they wanted to treat skin very, very much like a lifestyle routine, which is definitely well positioning well Hydrafacial and Beauty Health to take advantage of this shift. Because we are indeed moving towards much more of an outcome-driven protocol, combination therapy, and clinically validated results, which is exactly yes. All in all, as more consumers, more demographics seems to be expanding into the category, we are very well positioned to be at the forefront and to offer the exact solution that they're looking for. Thank you so much. The next question will come from Susan Anderson with Canaccord Genuity. Please go ahead. Hi, good afternoon. Alec Legg for Susan. Thanks for taking our question. You hinted that you have a potential new system in the works or a focus of your innovation, I guess. Is there a timeline that you're targeting for that launch, if you're able to talk about it? What type of additional services would that system potentially offer? Thank you. Sure. Let me bring you back into our innovation strategy and the initiatives that we have to support that same strategy. Let me start by saying that we are improving the discipline around new product launches, period. Basically, we're not gonna go and chase trends. Instead, what we are going is to invest in and launch products and technologies and solutions that materially add value to our providers. Not only that they are different versus our competitors, and they provide outcomes that consumers want, and in the end, they are accretive financially to our business, to our business in terms of margins. That's kind of the framework that we are taking and using for innovation. Now, when it comes to the next-gen Hydrafacial, the goal here is to build one that will give our existing more than 36,000 providers a compelling reason for upgrade. A new provider is a compelling reason to get into the Hydrafacial universe. I don't wanna go too much into the specific features of the next-gen Hydrafacial device at this moment, but what I can tell you and what I can commit is that we will launch a device that will materially advance the value proposition and the return on investment of Hydrafacial to our providers. In terms of timeline, we are right now at the early stages of development, but the plans are to launch the next gen of Hydrafacial in 2028, and for sure, we're gonna keep you updated as we get closer to those timelines. Thanks, Pedro. It's pretty exciting. Just thinking longer term about sales between consumables and new device placements. Right now, it's around 70% consumables, 30% new devices. Is that, I guess the rate that we should think about it? Is there a different target that you're thinking about longer term? Thank you. We're not in a position to give a target right now, obviously, but our hope is, or our expectation is that as we move through not just this year and into next year, that we return to device growth. We haven't been able to give kind of the specifics, outside of being able to, you know, focus on growing both of those categories kind of into the future. Later in the year into next year, we'll continue to provide updates on where we think that can be. Thanks, Mike. I'll turn it back. The next question will come from Jon Block with Stifel. Please go ahead. Hey, everyone. Joe Federico on for Jon Block. Maybe just to dig a little bit deeper into the consumables performance in the quarter. EMEA has been, you know, pretty strong, in terms of consumable sales over the past three or so quarters, and, you know, in the back half of the year off of more difficult comps as well. I mean, can you just give us some color on what's driving that? Is it just a healthier end market, or is there any, you know, sales execution drivers that can be replicated in some of the other regions? Any thoughts would be helpful. Sure, Joe. Overall, at the highest level in terms of the full quarter performance, on consumables, we grew low single digits compared to actually negative sequential growth in Q3. For the full year, we grew as well low single digits. The booster sales grew much more, and that's an important point, high single digits. If you wanna break out that by region, the U.S., and looking at the larger provider groups and dermatology practice, both of these guys are growing. While small independent providers, we see that they are still under pressure. Now, you touch a good point, which was EMEA. And within EMEA, specifically Germany is performing exceptionally well. The only pressure that we saw in the quarter, when it comes to consumer performance, was actually coming from China and as a direct result of the China transition. If you add this to what is the underlying trends driving this consumer demand, what I can tell you is the core demand is still there. Consumers seem to continue to prioritize our treatments as part of their skin health routine and also because of our price position versus other aesthetic treatments. Actually, the average spend per treatment in the U.S. in consumables is up 10% year-over-year. That is driven by our premium boosters and the strategy of the booster. Mike? If I could just add one thing a dditionally to that. You know, EMEA was a little bit different than the other regions last year 'cause they launched five new boosters throughout the year. Some of them got regulatory approval later, so these were boosters that were launched earlier in the Americas. The booster growth that we saw there. It really kind of demonstrates the power of innovation kind of in this business and when you can launch new innovative products that can actually drive demand. Within EMEA, we saw that not just in the direct markets, but also in the distributor channel where we saw, you know, really good consumable and specifically booster growth. Okay. That's really helpful color. Thank you. Maybe just a follow-up on guidance. The 1Q 2026 revenue guidance at the midpoint implies, you know, kind of a more outsized sequential decline than we've seen over the past handful of years. You know, the past couple of quarters, actual performance has come in pretty solidly ahead of, you know, guidance and expectations. Should we assume, you know, any more conservatism to the guidance philosophy going forward? Or is there like a specific reason to point to for, you know, a more pronounced decline in 1Q quarter-over-quarter? The Q1 midpoint does assume a decline in the mid-single digits. It's primarily due to softness in the APAC region and equipment softness in the Americas. That's reason number one. The second point is on the consumables revenue for Q1. We're projecting that to be, you know, lower year-over-year on a consolidated basis for a couple of reasons. First, distributor orders that came in in Q4, there's some timing a lot of times that happens with the distributor channel. They came in strong at the end of the quarter, so we're factoring in a bit of a decline in Q1 just due to timing. Also overall, as Pedro mentioned, we're seeing lower signature treatments due to kind of macro pressures, even though consumers who are coming in to get treatments. They're electing more boosters than they have in the past, which is driving up the overall treatment. We factored in that lower consumable revenue and treatments into the first quarter. I would suggest the way we guide is to, you know, towards kind of the midpoint. We don't really factor in deliberate conservatism. That's kind of where we're seeing in the business, but we're obviously always striving to do as best we can, and if we can outperform, we will certainly do so. Great. Thank you for taking the questions. The next question will come from Bruce Jackson with The Benchmark Company. Please go ahead. Hi. Thanks for taking my question. Looking at the strength in consumables this quarter, was there anything going on in terms of average selling price increases or additional upselling? Can you provide any color on that? Given the importance of the boosters, what is the anticipated launch cadence for 2026? Bruce, in terms of the boosters themselves, roughly they about 1/5 of the treatments. A fifth of the treatments use a booster, and what we are seeing is that ratio keeps improving. For Q4, the booster revenue was up 7% year-over-year. This happened, and it was driven by the clinically proven HydraFillic and Hydralock Boosters launch in the medical channel. Because they, the providers and the consumers actually saw the results, and that was a major engine of growth for the boosters. This speaks exactly to the strategy that we are putting forward, which is we are gonna be over-indexing in launching clinically differentiated boosters with a very disciplined cadence. Also we're gonna be equipping providers with impactful marketing, you know, good, strong marketing tools and keep investing in education. Also we're gonna amp the post-sales onboarding, making sure that every provider knows how to maximize their return on investment. Finally, we're gonna invest our marketing into driving consumer mindshare and investing in the brand. That's kind of the backdrop of the Q4 performance is mainly heavy on the way the boosters are taking share out of the main treatments. In terms of 2026, yes, we just spoke that Q1 will be pressure, a little bit modestly with a modestly decline versus prior year. As Mike just said, that is largely driven by the APAC region, with and majority with the change in China. As the year progresses in terms of consumables, we expect to see modest growth in the Americas to happen. Okay. Got it. Thank you very much. The next question will come from JP Wollam with ROTH Capital Partners. Please go ahead. Great. I appreciate you guys taking my questions. If we could maybe start on the consumables side. I think Q4 would have been kind of the first promo or busy season for consumables following the price increase. Just curious if you can talk about, you know, reception to the pricing increase and kind of what that means for whether price might be a lever going forward. Just as a follow-up there, like when you think about consumable utilization between your best partners and your worst, you know, what's separating them? What is that difference look like? I can speak to a couple of those questions. The first on the price increase. We did the price increase on consumables actually at the beginning of Q3, so the third quarter was the first quarter where you saw the impact. I think the follow-up to that question was we really didn't see we did a 5% increase, and we really didn't have a lot of complaints or pushback on that. So far, that's been very successful for us. Going forward, the sales and marketing team continue to evaluate the overall pricing strategy. We don't have any plans, you know, at this point to make any changes, but we'll keep you posted if anything changes there. I'll just chime in. In terms of, you know, what we see being the reasons why boosters get higher attachment rates in some certain specific segments of customers versus others. What we have seen, and what actually our data shows is that a provider who understands how to prescribe a booster uses roughly three times more as many as boosters as the one that doesn't. That is exactly why we are investing in marketing and investing in education to these providers. Understood. Maybe, Mike, for you as a follow-up. You know, as we think about kind of OpEx, and you've done such a great job kind of managing expenses there. You know, understanding the need to invest from here, but just curious, as you think about kind of some offsets to the investment, you know, where are you in terms of maybe kind of centralizing some international, you know, double costs, whether that's accounting, finance, anything of that nature. Like, are there still offsets that you see in terms of the OpEx line for the upcoming investments? Yes. In terms of shared service centers, we are creating them. That's been a process that's been ongoing over the last year and will continue. We're continuing to see, you know, really two things. We're making investments in the back-end system infrastructure that enables us to manage the global business effectively through shared service centers, which is helping us with costs. We expect that to all be finalized more so by the end of this year. We made a lot of progress in some of the global key entities in the past year, and we have a few more to do this year, and we'll continue to do that. You know, our guide this year assumes that, you know, G&A as a whole is stable to slightly up. There's the additional reinvestment back into, you know, R&D. I think over the long term, there is opportunity to continue to gain efficiencies in this business. Most importantly, I think when you look at the overall OpEx, there's a huge opportunity as we return to growth, to get leverage out of that fixed cost infrastructure going forward. That's really as we continue to get more focused on system innovation processes. We've done a lot of work there. We're really positioning the company in our view, to start to have a lot more of that gross profit drop down to adjusted EBITDA when we return to growth. Really helpful. Thanks, and best of luck going forward. This will conclude our question and answer session, as well as our conference call for today. Thank you for attending today's presentation. You may now disconnect.