AirSculpt Technologies — Third Quarter Fiscal 2026 Earnings Summary

Financial Performance

• Third quarter 2026 revenue was $31.9 million, an 8.7% decline from $35.0 million in the same period of fiscal 2025.
• First nine months 2026 revenue was $114.2 million, a 3.5% decline from $118.4 million in the first nine months of fiscal 2025.
• Third quarter 2026 net loss was $7.2 million, an improvement of $2.3 million from a net loss of $9.5 million in the prior year quarter.
• First nine months 2026 net loss was $10.7 million, an improvement of $2.3 million from a net loss of $13.0 million in the prior year period.
• Third quarter 2026 Adjusted EBITDA was $0.4 million, a $2.6 million decline from $3.0 million in the prior year quarter.
• First nine months 2026 Adjusted EBITDA was $8.6 million, a $4.0 million decline from $12.6 million in the prior year period.
• Third quarter 2026 Adjusted EBITDA margin was 1.2%, down from 8.7% in the prior year quarter.
• First nine months 2026 Adjusted EBITDA margin was 7.6%, down from 10.7% in the prior year period.
• Cash and cash equivalents were $15.2 million as of September 30, 2026, compared to $8.4 million as of December 31, 2025.
• Gross debt was approximately $37.2 million as of September 30, 2026.
• Operating cash flow for the first nine months 2026 was $558,000, compared to $5.6 million in the same period of fiscal 2025.
• Financing activities provided $6.7 million in cash during the first nine months of 2026, compared to an outflow of $6.1 million in the prior year period.

Guidance and Future Outlook

• The Company reduced full-year 2026 revenue guidance to a range of approximately $144 million to $146 million, down from the previous range of $151 million to $157 million.
• The Company reduced full-year 2026 Adjusted EBITDA guidance to a range of approximately $9 million to $10 million, down from the previous range of $12 million to $14 million.
• Management stated they are confident in their strategy and ability to deliver sustainable, profitable long-term growth despite reducing guidance to reflect Q3 performance continuing through year-end.

Business Segments and Product Lines

• Third quarter 2026 case volume was 2,483, a 9.6% decrease on a same-store sales basis versus the prior year.
• First nine months 2026 case volume was 8,941, a 2.1% decrease on a same-store sales basis versus the prior year.
• Approximately 250 GLP-1-related procedures were performed during the third quarter, representing approximately 10% of total cases.
• The number of facilities decreased to 31 as of September 30, 2026, from 32 in the prior year period.
• The number of total procedure rooms was 65 as of September 30, 2026, down from 67 in the prior year period.
• Revenue per case for the third quarter 2026 was $12,865, up from $12,587 in the prior year quarter.
• Revenue per case for the first nine months 2026 was $12,776, essentially flat compared to $12,800 in the prior year period.

Market and Competitive Landscape

• The press release notes increased competition in the weight loss and obesity solutions market, driven by recent regulatory approval, increased market acceptance, availability, and customer awareness of weight-loss drugs.
• The London facility was excluded from all periods presented due to its closure.

Risks and Challenges

• Third quarter results were below expectations, with management identifying key drivers and addressing them with urgency.
• Risks include the inability to sell equity or raise capital on commercially reasonable terms, failure to stabilize and grow same-store performance, and the risk of future financings diluting stockholders.
• The Company faces risks related to compliance with financial maintenance covenants and mandatory prepayment requirements of the new Blue Torch Financing Agreement.
• Other risks include rising inflation, shortages or quality control issues with third-party manufacturers, competition for surgeons, litigation, and changes in laws governing the corporate practice of medicine or fee-splitting.

Management Commentary and Tone

• CEO Yogi Jashnani acknowledged that third quarter results were below expectations but highlighted strong progress on priorities, specifically expanding GLP-1-related procedures.
• Management expressed confidence in their strategy and ability to deliver sustainable, profitable long-term growth despite the guidance reduction.

Other Key Points

• On November 5, 2026, the Company completed the refinancing of its term loan via the "Blue Torch Financing Agreement," extending debt maturity to November 5, 2031.
• The new financing agreement consists of a senior secured term loan facility with an aggregate principal amount of $39.0 million and a revolving loan facility with a commitment of up to $5.0 million.
• Proceeds from the Blue Torch Financing Agreement were used to repay in full all indebtedness under the existing credit agreement and to pay related fees and expenses.
• During the third quarter, the Company raised an additional $7.2 million from an at-the-market offering program and paid down $7.0 million of debt.
• The Company has $5.0 million of borrowing capacity under its revolving credit facility as of September 30, 2026.
• Deferred revenue and patient deposits increased to $3.3 million as of September 30, 2026, from $1.9 million as of December 31, 2025.