Airsculpt Technologies, Inc. ((AIRS)) has held its Q3 earnings call. Read on for the main highlights of the call.
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AirSculpt Technologies, Inc. recently held its earnings call, revealing a mixed sentiment. While the company is optimistic about growth opportunities in the GLP-1 market and has made strides in financial discipline, it faces significant revenue declines and operational challenges, indicating a transitional phase.
Strategic Expansion into GLP-1 Market
AirSculpt is strategically focusing on the GLP-1 transformation opportunity, launching new services like skin tightening and skin excisions. These services target patients affected by GLP-1 medication side effects, presenting a substantial growth opportunity as GLP-1 prescriptions are expected to grow by 38% annually from 2022 to 2024.
Debt Reduction Achievements
The company has successfully repaid nearly $18 million of debt year-to-date, underscoring its commitment to improving its capital structure and enhancing financial flexibility.
Improvements in Cost Management
AirSculpt has generated over $3 million in annualized cost savings so far this year. These savings are anticipated to expand operating margins, contributing positively to the company’s financial health.
New CFO Appointment
Michael Arthur will join AirSculpt as CFO in January 2026. Arthur brings valuable public market experience and expertise in guiding financial organizations through growth and complexity.
Revenue and Case Decline
The company reported a revenue of $35 million for the quarter, marking a 17.8% decline compared to the previous year. The number of cases also decreased by 15.2%, with same-store revenue down approximately 22%.
Closure of Unprofitable London Center
AirSculpt decided to close its London center due to its unprofitability, resulting in a $2.3 million loss related to long-term asset impairment.
Adjusted EBITDA Decline
Adjusted EBITDA for the quarter was $3 million, down from $4.7 million in the prior year quarter, with a margin decline from 11% to 8.7% due to revenue reductions.
Non-Cash Impairment Charge
A non-cash impairment charge of $4.6 million was recorded for parts of the Salesforce technology project that are not expected to be utilized.
Revised Revenue Outlook
The annual revenue outlook was revised down to approximately $153 million from the previous guidance of $160 million to $170 million.
Forward-Looking Guidance
During the third quarter of fiscal year 2025, AirSculpt Technologies emphasized its strategic focus on capturing the GLP-1 market opportunity, enhancing sales and marketing strategies, and maintaining financial discipline. Despite a revenue decline to $35 million, the company remains confident in its long-term growth trajectory, driven by strategic initiatives and disciplined execution. The updated annual revenue outlook is approximately $153 million, with expected EBITDA at the lower end of $16 million to $18 million.
In summary, AirSculpt Technologies, Inc. is navigating a transitional phase marked by revenue declines and operational challenges. However, the company is optimistic about its strategic initiatives in the GLP-1 market and improvements in financial discipline, which are expected to drive long-term growth.