AirSculpt outlines $153M 2025 revenue outlook as company targets GLP-1-driven growth and margin improvement

Earnings Call Insights: AirSculpt Technologies, Inc. (AIRS) Q3 2025

MANAGEMENT VIEW

* CEO Yogesh Jashnani indicated that the quarter focused on new growth opportunities, margin improvement, and debt reduction. He stated, "While third quarter revenue was lower than anticipated, this is reflective of timing instead of trajectory of our business." He emphasized the long-term opportunity in body contouring solutions for GLP-1 users and referenced the launch and expansion of skin tightening pilot programs as part of this effort. Jashnani noted, "We have expanded and refined our strategy to focus on 3 key areas: introducing new services to capture the GLP-1 opportunity, enhancing our sales and marketing strategy and financial discipline in the areas of margin improvement and capital allocation."
* Jashnani reported the closure of the London center, the only unprofitable location, to prioritize North American growth. He also announced Michael Arthur would join as CFO starting January 2026, replacing Dennis Dean.
* CFO Dennis Dean stated, "Revenue for the quarter was $35 million, a 17.8% decline versus the prior year quarter, with same-store revenue down approximately 22%."

OUTLOOK

* The company updated its 2025 revenue outlook to approximately $153 million, down from the previous range of $160 million to $170 million. Jashnani explained, "We expect 2025 EBITDA of approximately $16 million, the bottom end of our guidance of $16 million to $18 million."
* For the fourth quarter, management expects "improving same-store sales performance compared to a year-to-date trend" and highlighted that implied Q4 EBITDA guidance suggests stronger margins both sequentially and year-over-year.

FINANCIAL RESULTS

* Revenue for Q3 2025 was $35 million. Dean stated, "Cases declined 15.2% to 2,780 with same-store cases down approximately 20% and average revenue per case for the quarter was $12,587, a decline of approximately 3% from the prior year quarter but above the midpoint of our historical range of $12,000 to $13,000."
* Adjusted EBITDA was $3 million compared to $4.7 million for the fiscal 2024 second quarter, with an adjusted EBITDA margin of 8.7%. Net loss for the quarter was ($9.5 million), and adjusted net loss was $2.4 million or ($0.04) per diluted share.
* The company recorded a $4.6 million noncash impairment charge related to the Salesforce technology project and a $2.3 million loss linked to the closure of the London facility.
* Cash as of September 30, 2025, was $5.4 million and gross debt was $57.9 million.

Q&A

* Marco Criscuolo, Nephron Research LLC: "Cost controls actually looked pretty strong relative to our estimates for the quarter. So I was just wondering if you could go a little deeper on the cost-cutting measures you have taken by line, whether it be G&A or cost of service. And then looking forward, how should we think about the sustainability of the savings you're generating? Should we expect those to continue into the fourth quarter and into next year as well?" Dennis Dean: "A lot of our cost controls...has focused primarily in the SG&A realm...We're continuing to heavily focus on that...We keep uncovering things as we kind of push on various vendors and those sorts of things and are identifying additional opportunities. So we expect to continue on this approach being diligent but most of that was in the SG&A line."
* Criscuolo: "Could you just go into a little more detail on what you're seeing [with skin tightening] in terms of uptake and how you envision the pace at which that's expanded across the rest of the centers? And then also, if you could just go a little deeper on what new services you're looking to add to address that GLP-1 population." Jashnani: "We are seeing there's demand for solutions that address loose skin...the pool of qualified candidates for stand-alone skin tightening was smaller than we anticipated...So we have started to pilot some of that already. Skin tightening has been expanded to multiple centers. Skin excisions is in pilot right now...it will take us a few months to get the before and afters and then turn those around into marketing and expand it from there."
* Sam Eiber, BTIG: "Yogi, you talked about a timing issue this quarter. Would love, I guess, your thoughts on exactly maybe what happened here. I know last quarter, leads and consultations were stepping up a bit." Jashnani: "We continue to operate in a challenging consumer environment, especially for considered purchases...consumers are hesitant to go from, I'm interested...to purchasing. However, we are seeing Q4 same-store sales trends are better than year-to-date."
* Eiber: "I would love to, I guess, better understand surgeon interest in the skin excision opportunity within AirSculpt centers...how you're thinking about any shifts in marketing or brand awareness for AirSculpt to go after this opportunity?" Jashnani: "Surgeon base is definitely interested in doing skin excisions and that is evident in our pilot as well...there will be changes in marketing and sales. It is much more about making sure that we get the messaging right to people who are GLP-1 users or who have loose skin."

SENTIMENT ANALYSIS

* Analysts expressed cautious optimism while pressing for specifics on cost control sustainability and uptake on new service lines, reflecting a slightly negative tone regarding near-term revenue and procedural volumes.
* Management maintained a confident, yet measured tone in prepared remarks, emphasizing long-term opportunities despite acknowledging short-term headwinds. During Q&A, responses were pragmatic and focused on execution. Jashnani stated, "We are excited about the broader GLP opportunity in front of us."
* Compared to the previous quarter, management's tone was more focused on addressing revenue softness and strategic pivots, while analysts displayed more urgency about turnaround timelines.

QUARTER-OVER-QUARTER COMPARISON

* Guidance was revised lower from a prior range of $160 million to $170 million in revenue to $153 million. EBITDA outlook narrowed to the bottom of the prior range.
* Strategic focus shifted further toward GLP-1-driven procedures and away from underperforming locations, as seen with the London center closure. In contrast to last quarter’s optimism around pilot programs, there is now a heavier emphasis on expanding the suite of services for GLP-1 users.
* Analysts shifted focus from overall demand and new center performance to cost discipline and traction with new offerings. Management’s confidence in long-term growth remains, but the near-term tone is more cautious.

RISKS AND CONCERNS

* Management identified ongoing revenue softness as a key challenge, attributing it to timing and consumer hesitancy in higher-consideration purchases.
* The closure of the London center was cited as a move to eliminate ongoing losses and concentrate resources on profitable North American locations.
* Analysts highlighted concerns about the sustainability of cost reductions and the pace of adoption for new GLP-1-related procedures.
* Management is addressing these risks through ongoing cost controls, piloting new services, and refining marketing strategies to target the GLP-1 demographic.

FINAL TAKEAWAY

AirSculpt Technologies is pivoting its strategy to capitalize on the growing demand for aesthetic procedures among GLP-1 users, expanding its service offerings and refining marketing approaches to reach this segment. While the company faces near-term revenue softness and has lowered its 2025 outlook, ongoing cost management, focus on margin improvement, and targeted growth initiatives in North America position it to pursue longer-term opportunities. Leadership transitions and operational consolidation underscore a commitment to disciplined execution as the company navigates a period of transition.

Read the full Earnings Call Transcript [https://seekingalpha.com/symbol/airs/earnings/transcripts]

MORE ON AIRSCULPT TECHNOLOGIES

* AirSculpt Technologies, Inc. (AIRS) Q3 2025 Earnings Call Transcript [https://seekingalpha.com/article/4840643-airsculpt-technologies-inc-airs-q3-2025-earnings-call-transcript]
* AirSculpt Technologies: Upgrading To Buy On Improving Fundamentals [https://seekingalpha.com/article/4834591-airsculpt-technologies-upgrading-to-buy-on-improving-fundamentals]
* Seeking Alpha’s Quant Rating on AirSculpt Technologies [https://seekingalpha.com/symbol/AIRS/ratings/quant-ratings]
* Historical earnings data for AirSculpt Technologies [https://seekingalpha.com/symbol/AIRS/earnings]
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