Airsculpt Technologies, Inc. Q4 FY2025 earnings call

2025 was a year of rebuilding and transformation. Added talent, improved business processes, implemented new go-to-market strategy, exited only clinic outside North America, strengthened balance sheet. Fourth quarter delivered sequential improvement in same-store sales vs first nine months of the year and higher adjusted EBITDA vs Q4 2024. Lead and consult volumes improved. Strategic priorities include introducing new services to capture GLP-1 market opportunity, enhancing sales and marketing strategy, maintaining strong financial discipline. Introduced standalone skin tightening to all centers in second half of 2025 and skin excision pilot in Q4 2025. Implemented enhanced marketing strategy including expanding into new mediums, increasing influencer engagement, etc. Paid down $19 million of debt in 2025, added highly experienced executives in first quarter of 2026.

Fourth quarter revenue was $33.4 million, down approximately 15% versus the prior year quarter. Same-store revenue, excluding centers open for less than a year, declined 16%. For the full year 2025, revenue was $151.8 million, a decrease of approximately 15.8% compared to fiscal 2024. Adjusted EBITDA for 2025 was approximately $15 million, resulting in an adjusted EBITDA margin of approximately 10%. In 2026, revenue is expected to be in the range of $151 to $157 million, and adjusted EBITDA is expected to be around $15 to $17 million. The core business has stabilized with same-store sales improving from down 22% at the start of 2025 to positive in Feb 2026 and Q1 same-store sales expected to be flat, the midpoint of the revenue range previously provided.

2026 revenue expected in range of $151 - $157 million. Business expected to build momentum as year progresses. Midpoint of revenue range reflects approximately 3% comparable growth excluding London from 2025. Guidance does not contemplate any new center openings in 2026. Monitoring healing plasma supply situation due to Iran conflict affecting skin tightening procedures.

A meaningful portion of the global supply of healing plasma needed for skin tightening procedures is currently offline due to the Iran conflict, and the company will manage the business accordingly.

Q: Josh Raskin from Nefron Research asked about the change in seasonality causing revenues to be more back-end loaded and isolating core business trends prior to new products.

A: Yogi responded that trends have improved meaningfully with comps going from down to positive, and core business around body contouring and fracture removal holding relatively steady with GLP-1s being the next wave.

Q: Sam Iber from BTIG asked about excisional procedures pilot and capital allocation.

A: Sam Iber was told patients are getting good results from excisional procedures with early signs encouraging, and Michael Arthur said number one priority is to get balance sheet healthy, targeting debt leverage below two and a half times, and capital allocation includes investing back into the business on sales, marketing, and potentially new Genovas.