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 compared to a $9.5 million net loss in the prior year quarter.
• First nine months 2026 net loss was $10.7 million, an improvement of $2.3 million compared to a $13.0 million net loss 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; Adjusted EBITDA margin was 1.2% versus 8.7%.
• First nine months 2026 Adjusted EBITDA was $8.6 million, a $4.0 million decline from $12.6 million in the prior year period; Adjusted EBITDA margin was 7.6% versus 10.7%.
• As of September 30, 2026, the company held $15.2 million in cash and cash equivalents with $5.0 million of borrowing capacity under its revolving credit facility.
• Gross debt was approximately $37.2 million as of September 30, 2026.
• Deferred revenue and patient deposits were $3.3 million as of September 30, 2026, compared to $1.9 million at December 31, 2025.
• Net cash provided by operating activities for the first nine months of 2026 was $0.6 million, compared to $5.6 million in the same period of 2025.
• Net cash used in investing activities for the first nine months of 2026 was $0.5 million, compared to $2.3 million in the prior year period.
• Net cash provided by financing activities for the first nine months of 2026 was $6.7 million, compared to $6.1 million used in the prior year period.

Guidance and Future Outlook

• Full-year 2026 revenue guidance was reduced to a range of approximately $144 million to $146 million, down from the previous range of $151 million to $157 million.
• Full-year 2026 Adjusted EBITDA guidance was reduced to a range of approximately $9 million to $10 million, down from the previous range of $12 million to $14 million.
• Management indicated that guidance was reduced to reflect third quarter performance continuing through year-end.
• Management expressed confidence in the strategy and the ability to deliver sustainable, profitable long-term growth despite the reduced guidance.

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.
• The company performed approximately 250 GLP-1-related procedures during the third quarter, representing approximately 10% of total cases.
• The company operates 31 facilities with 65 total procedure rooms as of September 30, 2026, down from 32 facilities and 67 rooms in the prior year.
• Revenue per case for the third quarter was $12,865, up 2.3% on a same-center basis compared to the prior year.
• Revenue per case for the first nine months was $12,776, flat on a same-center basis compared to the prior year.

Market and Competitive Landscape

• The company noted increased competition in the weight loss and obesity solutions market, driven by the recent regulatory approval, increased market acceptance, availability, and customer awareness of weight-loss drugs.
• The company identified the expansion of GLP-1-related procedures as a key priority to address market trends.

Risks and Challenges

• Third quarter results were below expectations, with management identifying key drivers that are being addressed.
• Risks include the inability to sell equity or raise capital on commercially reasonable terms, failure to stabilize and grow same-store performance, and increased operating expenses due to rising inflation.
• The company faces risks related to compliance with financial maintenance covenants and mandatory prepayment requirements of the new Blue Torch Financing Agreement.
• Potential risks include shortages or quality control issues with third-party manufacturers, competition for surgeons, litigation or medical malpractice claims, and changes in laws governing the corporate practice of medicine or fee-splitting.
• The company faces risks regarding the inability to optimize marketing investment, go-to-market strategy, and sales processes.

Management Commentary and Tone

• CEO Yogi Jashnani stated that while results were below expectations, the company is addressing key drivers with a sense of urgency.
• Management highlighted strong progress on priorities, specifically the expansion of GLP-1-related procedures.
• Management expressed confidence in the strategy and the ability to deliver sustainable, profitable long-term growth.

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 includes 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 of 2026, the company raised an additional $7.2 million from an at-the-market offering program and paid down $7.0 million of debt.
• The London facility was excluded from all same-center growth periods due to its closure.
• The company does not provide guidance for net income or reconcile Adjusted EBITDA guidance to net income due to the unpredictability of equity-based compensation and other elements of net income.