AirSculpt Technologies Reports First Quarter Fiscal 2025 Results and Full Year Guidance
- Cost reduction initiatives showing early positive results with improved profitability vs Q4
- Marketing strategy changes leading to increased lead volumes
- Maintained stable average revenue per case
- Introduction of new skin tightening standalone service offering
- Compliant with bank covenants
- Revenue declined 17.3% year-over-year to $39.4 million
- Case volume dropped 17.9% to 3,076 cases
- Net loss of $2.8 million vs $6.0 million profit year-over-year
- Adjusted EBITDA decreased to $3.8 million from $7.3 million
- Operating cash flow declined to $0.9 million from $3.4 million
- No availability on revolving credit facility
Insights
AirSculpt's Q1 shows significant revenue and profit declines with uncertain recovery timeline despite management's optimistic transformation narrative.
AirSculpt's Q1 2025 results reveal substantial performance deterioration, with
Adjusted EBITDA declined
The company's liquidity position warrants attention. With only
The transformation strategy focuses on four main areas: enhanced marketing to increase lead generation, improved consultation-to-case conversion, expanded financing options, and introduction of standalone skin tightening services. These initiatives target both customer acquisition and accessibility without compromising their premium positioning.
AirSculpt faces declining procedure volumes despite consistent per-case revenue, pivoting with financing options and standalone services to revitalize growth.
AirSculpt's significant
Their transformation strategy includes several healthcare service-specific elements. First, they're refocusing marketing activities, which they credit with improving lead volumes toward the end of Q1. Second, they're introducing expanded financing options, acknowledging that affordability may be a barrier for potential clients despite the perceived value of their services.
Most notably, they've begun piloting standalone skin tightening services, unbundled from their comprehensive body contouring procedures. This strategic expansion allows them to capture clients seeking less invasive or lower entry-point procedures. Management indicates they're seeing "increasing interest" in this offering and believe they're "uniquely positioned" given their experience delivering this as part of their core procedures.
The CEO's characterization of AirSculpt as having a "competitive moat" while simultaneously being "ripe for disruption" suggests they see opportunity to disrupt their own business model before competitors do. Their initiatives around marketing, financing, and service expansion represent tactical adjustments rather than a complete strategic pivot, indicating confidence in their core offering despite current volume challenges.
MIAMI BEACH, Fla., May 02, 2025 (GLOBE NEWSWIRE) -- AirSculpt Technologies, Inc. (NASDAQ:AIRS)(“AirSculpt” or the “Company”), a national provider of premium body contouring procedures, today announced results for the first quarter ended March 31, 2025.
“We began the year reporting results in line with our expectations, and while we are early in our transformation, I am encouraged by the progress the team has made on the business imperatives we set in place at the start of the year and I remain confident that we have identified and are implementing the right actions to return to growth,” stated Yogi Jashnani, Chief Executive Officer. “To this end, the first quarter saw profitability strengthen compared to the fourth quarter on similar revenue, reflecting our cost reduction initiatives and expense discipline. We also experienced early benefits from our new go-to-market strategy with the re-focus of our marketing activities lifting lead volumes and improving our revenue decline as we exited the quarter. We continue to believe we have a significant long-term growth opportunity ahead given our proven track record of having completed more than 70,000 successful procedures. Consumers recognize AirSculpt for our effectiveness and attentive customer experience, which has led to consistency in our average revenue per case, demonstrating the value proposition we possess in the market.”
“As we begin the second quarter, we acknowledge we are operating in an uncertain environment, yet expect the disciplined execution of our business imperatives to help drive sequential improvement in revenue as we move through the year,” continued Mr. Jashnani. “We continue to focus on increasing lead generation, consultations and case conversion with our enhanced marketing and sales generation efforts, and expect the introduction of an expanded range of financing options to further assist us to achieve this goal. In addition, we have also begun to pilot skin tightening as a standalone offering, which has seen increasing interest, and believe we are uniquely positioned to capitalize on this opportunity given the effectiveness of this service as part of our body contouring procedure.”
“Overall, I continue to believe that AirSculpt is an attractive business with a competitive moat that is ripe for disruption and that the best years lie ahead for AirSculpt and its shareholders. We are intently focused on executing our business imperatives, helping position us to deliver sustained long-term growth in revenue and profitability, generate free cash flow, and to increase value for our shareholders,” concluded Mr. Jashnani.
First Quarter 2025 Results
- Case volume was 3,076 for the first quarter of 2025, representing a
17.9% decline from the fiscal year 2024 first quarter case volume of 3,746; - Revenue declined
17.3% to$39.4 million from$47.6 million in the fiscal year 2024 first quarter; - Net loss for the quarter was
$2.8 million compared to net income of$6.0 million in the fiscal year 2024 first quarter; and - Adjusted EBITDA was
$3.8 million compared to$7.3 million for the fiscal year 2024 first quarter.
2025 Outlook
The Company projects full year 2025 revenue and adjusted EBITDA guidance as follows:
- Revenues of approximately
$160 t o$170 million - Adjusted EBITDA of approximately
$16 t o$18 million
For additional information on forward-looking statements, see the section titled "Forward-Looking Statements" below.
Liquidity
As of March 31, 2025, the Company had
Conference Call Information
AirSculpt will hold a conference call today, May 2, 2025 at 8:00 am (Eastern Time). The conference call can be accessed by dialing 1-877-407-9716 (toll-free domestic) or 1-201-493-6779 (international) using the conference ID 13753206 or by visiting the link below to request a return call for instant telephone access to the event.
https://callme.viavid.com/viavid/?callme=true&passcode=13725116&h=true&info=company&r=true&B=6
The live webcast may be accessed via the investor relations section of the AirSculpt Technologies website at https://investors.airsculpt.com. A replay of the webcast will be available for approximately 90 days following the call.
To learn more about AirSculpt, please visit the Company's website at https://investors.airsculpt.com. AirSculpt uses its website as a channel of distribution for material Company information. Financial and other material information regarding AirSculpt is routinely posted on the Company's website and is readily accessible.
About AirSculpt
AirSculpt is a next-generation body contouring treatment designed to optimize both comfort and precision, available exclusively at AirSculpt offices. The minimally invasive procedure removes fat and tightens skin, while sculpting targeted areas of the body, allowing for quick healing with minimal bruising, tighter skin, and precise results.
Forward-Looking Statements
This press release contains forward-looking statements. In some cases, you can identify these statements by forward-looking words such as “may,” “might,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential” or “continue,” the negative of these terms and other comparable terminology, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements, which are subject to risks, uncertainties, and assumptions about us, may include projections of our future financial performance, our anticipated growth strategies, and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. You are cautioned that there are important risks and uncertainties, many of which are beyond our control, that could cause our actual results, level of activity, performance, or achievements to differ materially from the projected results, level of activity, performance or achievements that are expressed or implied by such forward-looking statements. We qualify all of our forward-looking statements by these cautionary statements, including those factors discussed in the section titled “Risk Factors” in our Annual Report on Form 10-K.
Our future results could be affected by a variety of other factors, including, but not limited to, inability to sell equity or other securities in the future at a time when we might otherwise wish to effect sales; inability to raise capital on commercially reasonable terms, if at all; the risk that any future financings may dilute our stockholders or restrict our business; failure to stabilize same-store performance; not being able to optimize our marketing investment, go-to market strategy and sales process; not having the ability to expand our financing options for consumers; being unsuccessful in further product innovations; failure to operate centers in a cost-effective manner; increased operating expenses due to rising inflation; increased competition in the weight loss and obesity solutions market, including as a result of the recent regulatory approval, increased market acceptance, availability and customer awareness of weight-loss drugs; shortages or quality control issues with third-party manufacturers or suppliers; competition for surgeons; litigation or medical malpractice claims; inability to protect the confidentiality of our proprietary information; changes in the laws governing the corporate practice of medicine or fee-splitting; changes in the regulatory, macroeconomic conditions, including inflation and the threat of recession, economic and other conditions of the states and jurisdictions where our facilities are located; and business disruption or other losses from natural disasters, war, pandemic, terrorist acts or political unrest.
The risk factors discussed in “Item 1A. Risk Factors” in our Annual Report on Form 10-K and in other filings we make from time to time with the SEC could cause our results to differ materially from those expressed in the forward-looking statements made in this press release.
There also may be other risks and uncertainties that are currently unknown to us or that we are unable to predict at this time.
Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, or achievements. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. Forward-looking statements represent our estimates and assumptions only as of the date they were made, which are inherently subject to change, and we are under no duty and we assume no obligation to update any of these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated after the date of this press release to conform our prior statements to actual results or revised expectations, except as required by law. Given these uncertainties, investors should not place undue reliance on these forward-looking statements.
Use of Non-GAAP Financial Measures
The Company reports financial results in accordance with generally accepted accounting principles in the United States (“GAAP”), however, the Company believes the evaluation of ongoing operating results may be enhanced by a presentation of Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Net Income per Share, which are non-GAAP financial measures. Although the Company provides guidance for Adjusted EBITDA, it is not able to provide guidance for net income, the most directly comparable GAAP measure. Certain elements of the composition of net income, including equity-based compensation, are not predictable, making it impractical for us to provide guidance on net income or to reconcile our Adjusted EBITDA guidance to net income without unreasonable efforts. For the same reasons, the Company is unable to address the probable significance of the unavailable information regarding net income, which could be material to future results.
These non-GAAP financial measures are not intended to replace financial performance measures determined in accordance with GAAP. Rather, they are presented as supplemental measures of the Company's performance that management believes may enhance the evaluation of the Company's ongoing operating results. These non-GAAP financial measures are not presented in accordance with GAAP, and the Company’s computation of these non-GAAP financial measures may vary from similar measures used by other companies. These measures have limitations as an analytical tool and should not be considered in isolation or as a substitute or alternative to revenue, net income, operating income, cash flows from operating activities, total indebtedness or any other measures of operating performance, liquidity or indebtedness derived in accordance with GAAP.
| AirSculpt Technologies, Inc. and Subsidiaries | ||||||
| Selected Consolidated Financial Data | ||||||
| (Dollars in thousands, except shares and per share amounts) | ||||||
| Three Months Ended March 31, | ||||||
| 2025 | 2024 | |||||
| Revenue | $ | 39,371 | $ | 47,620 | ||
| Operating expenses: | ||||||
| Cost of service | 15,950 | 18,042 | ||||
| Selling, general and administrative(1) | 21,768 | 15,756 | ||||
| Depreciation and amortization | 3,242 | 2,805 | ||||
| Loss on disposal of long-lived assets | — | 5 | ||||
| Total operating expenses | 40,960 | 36,608 | ||||
| (Loss)/income from operations | (1,589 | ) | 11,012 | |||
| Interest expense, net | 1,625 | 1,532 | ||||
| Pre-tax net (loss)/income | (3,214 | ) | 9,480 | |||
| Income tax (benefit)/expense | (367 | ) | 3,451 | |||
| Net (loss)/income | $ | (2,847 | ) | $ | 6,029 | |
| (Loss)/income per share of common stock | ||||||
| Basic | $ | (0.05 | ) | $ | 0.10 | |
| Diluted | $ | (0.05 | ) | $ | 0.10 | |
| Weighted average shares outstanding | ||||||
| Basic | 58,536,950 | 57,422,058 | ||||
| Diluted | 58,536,950 | 58,415,163 | ||||
| (1) During the first quarter of fiscal year 2024, the Company recorded a cumulative reversal of stock compensation expense of | ||||||
| AirSculpt Technologies, Inc. and Subsidiaries | |||||
| Selected Financial and Operating Data | |||||
| (Dollars in thousands, except per case amounts) | |||||
| March 31, 2025 | December 31, 2023 | ||||
| Balance Sheet Data (at period end): | |||||
| Cash and cash equivalents | $ | 5,553 | $ | 8,235 | |
| Total current assets | 15,298 | 17,117 | |||
| Total assets | $ | 203,260 | $ | 209,996 | |
| Current portion of long-term debt | $ | 4,250 | $ | 4,250 | |
| Deferred revenue and patient deposits | 2,028 | 1,169 | |||
| Total current liabilities | 26,788 | 28,609 | |||
| Long-term debt, net | 64,263 | 65,456 | |||
| Revolving credit funds payable | 5,000 | 5,000 | |||
| Total liabilities | $ | 125,927 | $ | 130,706 | |
| Total stockholders’ equity | $ | 77,333 | $ | 79,290 | |
| Three Months Ended March 31, | |||||||
| 2025 | 2024 | ||||||
| Cash Flow Data: | |||||||
| Net cash provided by (used in): | |||||||
| Operating activities | $ | 868 | $ | 3,365 | |||
| Investing activities | (1,901 | ) | (1,562 | ) | |||
| Financing activities | (1,649 | ) | (1,096 | ) | |||
| Three Months Ended March 31, | |||||||
| 2025 | 2024 | ||||||
| Other Data: | |||||||
| Number of facilities | 32 | 27 | |||||
| Number of total procedure rooms | 67 | 57 | |||||
| Cases | 3,076 | 3,746 | |||||
| Revenue per case | $ | 12,799 | $ | 12,712 | |||
| Adjusted EBITDA (1) | $ | 3,755 | $ | 7,337 | |||
| Adjusted EBITDA margin (2) | 9.5 | % | 15.4 | % | |||
| (1) A reconciliation of this non-GAAP financial measure appears below. | |||||||
| (2) Defined as Adjusted EBITDA as a percentage of revenue. | |||||||
| AirSculpt Technologies, Inc. and Subsidiaries | ||||||
| Selected Financial and Operating Data | ||||||
| (Dollars in thousands, except per case amounts) | ||||||
| Three Months Ended March 31, | ||||||
| 2025 | 2024 | |||||
| Same-center Information (1): | ||||||
| Cases | 2,837 | 3,746 | ||||
| Case growth | (24.3) | % | N/A | |||
| Revenue per case | $ | 12,777 | $ | 12,712 | ||
| Revenue per case growth | 0.5 | % | N/A | |||
| Number of facilities | 27 | 27 | ||||
| Number of total procedure rooms | 57 | 57 | ||||
| (1) For the three months ended March 31, 2025 and 2024, we define same-center case and revenue growth as the growth in each of our cases and revenue at facilities that were owned and operated during the three months ended March 31, 2025 and 2024, respectively. At facilities that were not owned or operated for the entirety of the prior year period, the current year period has been pro-rated to reflect only growth experienced during the portion of the three months ended March 31, 2025 in which such facilities were owned and operated during the three months ended March 31, 2024. We define same-center facilities and procedure rooms based on if a facility was owned or operated as of March 31, 2024. | ||||||
We report our financial results in accordance with GAAP, however, management believes the evaluation of our ongoing operating results may be enhanced by a presentation of Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Net Income per Share, which are non-GAAP financial measures.
We define Adjusted EBITDA as net (loss)/income excluding depreciation and amortization, net interest expense, income tax (benefit)/expense, restructuring and related severance costs, loss on disposal of long-lived assets, and equity-based compensation.
We define Adjusted Net Income as net (loss)/income excluding restructuring and related severance costs, loss on disposal of long-lived assets, equity-based compensation and the tax effect of these adjustments.
We include Adjusted EBITDA and Adjusted Net Income because they are important measures on which our management assesses and believes investors should assess our operating performance. We consider Adjusted EBITDA and Adjusted Net Income each to be an important measure because they help illustrate underlying trends in our business and our historical operating performance on a more consistent basis. Adjusted EBITDA has limitations as an analytical tool including: (i) Adjusted EBITDA does not include results from equity-based compensation and (ii) Adjusted EBITDA does not reflect interest expense on our debt or the cash requirements necessary to service interest or principal payments. Adjusted Net Income has limitations as an analytical tool because it does not include results from equity-based compensation.
We define Adjusted EBITDA Margin as Adjusted EBITDA as a percentage of revenue. We define Adjusted Net Income per Share as Adjusted Net Income divided by weighted average basic and diluted shares. We included Adjusted EBITDA Margin and Adjusted Net Income per Share because they are important measures on which our management assesses and believes investors should assess our operating performance. We consider Adjusted EBITDA Margin and Adjusted Net Income per Share to be important measures because they help illustrate underlying trends in our business and our historical operating performance on a more consistent basis.
The following table reconciles Adjusted EBITDA and Adjusted EBITDA Margin to net (loss)/income, the most directly comparable GAAP financial measure:
| AirSculpt Technologies, Inc. and Subsidiaries | |||||||
| Reconciliation of Non-GAAP Financial Measures | |||||||
| (Dollars in thousands) | |||||||
| Three Months Ended March 31, | |||||||
| 2025 | 2024 | ||||||
| Net (loss)/income | $ | (2,847 | ) | $ | 6,029 | ||
| Plus | |||||||
| Equity-based compensation(1) | 1,239 | (6,781 | ) | ||||
| Restructuring and related severance costs | 863 | 296 | |||||
| Depreciation and amortization | 3,242 | 2,805 | |||||
| Loss on disposal of long-lived assets | — | 5 | |||||
| Interest expense, net | 1,625 | 1,532 | |||||
| Income tax (benefit)/expense | (367 | ) | 3,451 | ||||
| Adjusted EBITDA | $ | 3,755 | $ | 7,337 | |||
| Adjusted EBITDA Margin | 9.5 | % | 15.4 | % | |||
| (1) During the first quarter of fiscal year 2024, the Company recorded a cumulative reversal of stock compensation expense of | |||||||
The following table reconciles Adjusted Net Income and Adjusted Net Income per Share to net income/(loss), the most directly comparable GAAP financial measure:
| AirSculpt Technologies, Inc. and Subsidiaries | |||||||
| Reconciliation of Non-GAAP Financial Measures | |||||||
| (Dollars in thousands) | |||||||
| Three Months Ended March 31, | |||||||
| 2025 | 2024 | ||||||
| Net (loss)/income | $ | (2,847 | ) | $ | 6,029 | ||
| Plus | |||||||
| Equity-based compensation(1) | 1,239 | (6,781 | ) | ||||
| Restructuring and related severance costs | 863 | 296 | |||||
| Loss on disposal of long-lived assets | — | 5 | |||||
| Litigation settlements | — | — | |||||
| Tax effect of adjustments | (363 | ) | 2,331 | ||||
| Adjusted net (loss)/income | $ | (1,108 | ) | $ | 1,880 | ||
| Adjusted net (loss)/income per share of common stock (2) | |||||||
| Basic | $ | (0.02 | ) | $ | 0.03 | ||
| Diluted | $ | (0.02 | ) | $ | 0.03 | ||
| Weighted average shares outstanding | |||||||
| Basic | 58,536,950 | 57,422,058 | |||||
| Diluted | 58,536,950 | 58,415,163 | |||||
| (1) During the first quarter of fiscal year 2024, the Company recorded a cumulative reversal of stock compensation expense of | |||||||
| (2) Diluted Adjusted Net Income Per Share is computed by dividing adjusted net income by the weighted-average number of shares of common stock outstanding adjusted for the dilutive effect of all potential shares of common stock. | |||||||
Investor Contact
Allison Malkin
ICR, Inc.
airsculpt@icrinc.com
FAQ
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