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Establishment Labs Holdings Inc (ESTA)
NASDAQ:ESTA
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Establishment Labs Holdings (ESTA) AI Stock Analysis

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ESTA

Establishment Labs Holdings

(NASDAQ:ESTA)

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Neutral 57 (OpenAI - 5.2)
Rating:57Neutral
Price Target:
$91.00
▲(35.66% Upside)
Action:Reiterated
Date:06/29/26
The score is held back primarily by ongoing losses and persistent cash burn despite improving revenue and gross margin trends. Offsetting this, technicals show strong upward momentum with price above key moving averages, and the latest earnings call was constructive with raised revenue guidance, expanding margins, and a stated path toward cash-flow positivity. Valuation remains a constraint due to negative earnings and no dividend support.
Positive Factors
Rapid revenue growth and U.S. expansion
Sustained double‑digit top‑line growth and explosive U.S. traction materially expand the company’s addressable market and diversify revenue mix. A growing U.S. share (>30% guided) supports higher-volume scale, improves pricing leverage and underpins durable revenue growth over the next several quarters.
Negative Factors
Persistent negative operating cash flow
Ongoing negative OCF and FCF mean the business still consumes material cash despite revenue gains. This creates reliance on external financing or rapid operational improvement to fund growth and working capital needs, leaving execution timelines (cash‑flow positive H2 2026) exposed to setbacks.
Read all positive and negative factors
Positive Factors
Negative Factors
Rapid revenue growth and U.S. expansion
Sustained double‑digit top‑line growth and explosive U.S. traction materially expand the company’s addressable market and diversify revenue mix. A growing U.S. share (>30% guided) supports higher-volume scale, improves pricing leverage and underpins durable revenue growth over the next several quarters.
Read all positive factors

Establishment Labs Holdings (ESTA) vs. SPDR S&P 500 ETF (SPY)

Establishment Labs Holdings Business Overview & Revenue Model

Company Description
Establishment Labs Holdings Inc. operates as a medical technology enterprise specializing in the creation and commercialization of devices for aesthetic and reconstructive plastic surgery. The company is primarily recognized for its silicone gel-f...
How the Company Makes Money
Establishment Labs primarily makes money by selling breast implants and associated aesthetic/reconstructive surgery products under the Motiva brand through a medical-device sales model. Revenue is generated when products are purchased by healthcar...

Establishment Labs Holdings Earnings Call Summary

Earnings Call Date:May 06, 2026
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call communicated strong operational and commercial momentum led by a rapid U.S. launch, 45% YoY revenue growth in Q1, improving gross margin (70.7%) and a return to positive adjusted EBITDA. Key product innovations (minimally invasive platform) are driving adoption, surgeon and patient demand, and management raised full-year revenue guidance. Offsetting factors include elevated operating expenses, near-term cash usage and increased debt with PIK mechanics, plus some supply and geopolitical uncertainties. Overall, the positives around revenue acceleration, margin expansion, product differentiation and pathway to cash-flow positivity materially outweigh the risks discussed.
Positive Updates
Strong Top-Line Growth
Q1 2026 revenue of $59.9M, up 44.7% YoY (management rounded to 45%), with full-year guidance raised to $266.5M–$268.5M (≈26%–27% growth vs. 2025).
Negative Updates
Cash Decline and Near-Term Cash Usage
Cash decreased $7.5M in Q1 to $68.1M; management expects higher cash usage in Q2 driven by a final $4.7M Benelux acquisition payment, short-term incentive payouts and continued U.S. commercial investments.
Read all updates
Q1-2026 Updates
Negative
Strong Top-Line Growth
Q1 2026 revenue of $59.9M, up 44.7% YoY (management rounded to 45%), with full-year guidance raised to $266.5M–$268.5M (≈26%–27% growth vs. 2025).
Read all positive updates
Company Guidance
Management raised full‑year revenue guidance to $266.5–$268.5 million (up from $264–$266M), implying ~26–27% growth versus 2025, after a strong Q1: $59.9M revenue (+44.7% YoY), U.S. revenue $19.6M (32.7% of Q1, +216% YoY), minimally invasive (MIS) revenue $9.1M in Q1 and MIS now expected to exceed $35M in 2026 (prior MIS guide $30M), and adjusted EBITDA of $1.2M in Q1 (third consecutive quarter of positive adjusted EBITDA). Full‑year gross margin is guided to 71.2–72.2% (Q1 GM 70.7%, +350 bps YoY), operating expenses $195–$200M, and management expects adjusted EBITDA to be positive each quarter and to be cash‑flow positive in H2 2026; cash was $68.1M at quarter end (down $7.5M), Q2 cash usage will be higher (including a $4.7M Benelux payment) but Q2 EBITDA is expected to be roughly double Q1, U.S. revenue is expected to exceed 30% of total for the year (vs ~22% in 2025) while OUS growth is expected in the single digits. They also refinanced debt (availability up to $265M from $225M, 8.75% rate with PIK optionality) and highlighted PIK interest benefit of more than $5M per quarter supporting near‑term cash flow.

Establishment Labs Holdings Financial Statement Overview

Summary
Fundamentals are improving (TTM revenue up ~8.8% and gross margin ~70% vs. ~66% in 2024), and leverage appears much better (debt-to-equity ~0.16). However, profitability remains negative (TTM net margin ~-19%), equity cushion is thin relative to assets, and cash generation is weak with negative operating cash flow (TTM ~-$34.8M) and negative free cash flow (TTM ~-$42.1M).
Income Statement
43
Neutral
Balance Sheet
52
Neutral
Cash Flow
28
Negative
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue229.58M211.08M166.03M165.15M161.70M126.68M
Gross Profit160.84M146.31M109.53M106.98M106.59M85.40M
EBITDA-14.38M-22.29M-56.22M-58.31M-56.90M-26.54M
Net Income-43.74M-51.06M-84.60M-78.50M-75.21M-41.14M
Balance Sheet
Total Assets351.04M357.17M346.83M268.64M211.06M139.53M
Cash, Cash Equivalents and Short-Term Investments68.10M75.57M90.35M40.03M66.36M53.41M
Total Debt263.96M264.47M225.29M192.22M179.35M54.21M
Total Liabilities336.25M333.62M293.74M250.25M219.25M88.79M
Stockholders Equity14.78M23.55M53.09M18.39M-8.19M50.74M
Cash Flow
Free Cash Flow-42.23M-57.61M-74.08M-113.06M-86.43M-34.26M
Operating Cash Flow-34.81M-50.89M-58.52M-88.51M-52.17M-27.53M
Investing Cash Flow-7.70M-7.03M-15.61M-24.55M-34.79M-7.16M
Financing Cash Flow40.08M40.43M125.89M86.23M100.25M4.05M

Establishment Labs Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price67.08
Price Trends
50DMA
73.28
Positive
100DMA
70.27
Positive
200DMA
64.53
Positive
Market Momentum
MACD
4.62
Negative
RSI
69.40
Neutral
STOCH
83.43
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ESTA, the sentiment is Positive. The current price of 67.08 is below the 20-day moving average (MA) of 80.27, below the 50-day MA of 73.28, and above the 200-day MA of 64.53, indicating a bullish trend. The MACD of 4.62 indicates Negative momentum. The RSI at 69.40 is Neutral, neither overbought nor oversold. The STOCH value of 83.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ESTA.

Establishment Labs Holdings Risk Analysis

Establishment Labs Holdings disclosed 66 risk factors in its most recent earnings report. Establishment Labs Holdings reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Establishment Labs Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
$840.94M10.6013.28%-4.53%-41.70%
67
Neutral
$816.97M23.1016.27%1.52%
58
Neutral
$1.08B20.285.40%2.02%4.78%-53.80%
57
Neutral
$2.60B-59.78-225.86%34.86%52.13%
54
Neutral
$1.15B94.182.66%17.59%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
44
Neutral
$694.46M-23.00%119.23%40.14%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ESTA
Establishment Labs Holdings
88.38
45.67
106.93%
CNMD
Conmed
35.95
-15.93
-30.71%
AORT
Artivion
23.61
-7.49
-24.08%
INMD
InMode
14.63
0.19
1.32%
SSII
SS Innovations International
3.34
-2.55
-43.29%
BVS
Bioventus
9.78
3.16
47.73%

Establishment Labs Holdings Corporate Events

Business Operations and StrategyExecutive/Board Changes
Establishment Labs Appoints Veteran Executive Taylor Harris to Board
Positive
Jun 29, 2026
On June 24, 2026, Establishment Labs appointed veteran healthcare executive Taylor Harris to its board of directors, with his term running through the 2027 annual shareholder meeting. Harris, who joins the Audit Committee and the Nominating and Co...
Executive/Board ChangesShareholder Meetings
Establishment Labs Shareholders Reaffirm Board, Pay and Auditor
Positive
May 22, 2026
On May 22, 2026, Establishment Labs Holdings held its Annual Meeting of Shareholders, where investors elected six directors, including Filippo “Peter” Caldini, Ann Custin, Leslie Gillin, Nicholas Lewin, Edward Schutter, and Bryan Slotk...
Business Operations and StrategyPrivate Placements and Financing
Establishment Labs Amends Credit Agreement, Secures New Financing
Neutral
Apr 30, 2026
On April 30, 2026, Establishment Labs Holdings Inc. amended and restated its existing credit agreement, securing up to $300 million in term loans from lenders led by Oaktree Fund Administration. The new facility, split into a $265 million tranche ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 29, 2026