AirSculpt Technologies (NASDAQ:AIRS) reported fourth-quarter and full-year 2025 results while outlining initiatives management said have stabilized the business and returned same-store sales to growth entering fiscal 2026. On the company’s earnings call, Chief Executive Officer Yogi Jashnani said same-store sales trends improved sequentially over the course of 2025, “inflected to positive same-store sales growth” beginning in February 2026, and remained favorable in March.
Jashnani characterized 2025 as “a year of rebuilding and transformation,” citing changes to talent, processes, go-to-market strategy, and service offerings. He added that the company exited its only clinic outside North America to streamline operations and took steps to strengthen the balance sheet through equity issuance and use of its at-the-market (ATM) program to reduce net debt.
Sales trends improved exiting 2025
Despite the revenue decline, Arthur said profitability improved versus the year-ago quarter. Adjusted EBITDA totaled $2.5 million, or 7.4% of revenue, up $0.6 million year over year and representing 2.8% margin expansion. Arthur attributed the improvement to gross margin expansion and “operational leverage in SG&A.” Gross margin was approximately 59%, up roughly 2% year over year as cost of services declined 18% to $13.7 million.
Arthur also noted that selling, general and administrative expenses fell to approximately $18.2 million, down about $5 million from the prior-year period, driven by cost initiatives executed during 2025. Customer acquisition cost was “roughly $3,300 per case,” flat with the prior-year quarter.
2025 results show lower revenue and EBITDA
For the full year, Arthur reported revenue of $151.8 million, a decrease of approximately 15.8% versus fiscal 2024. Adjusted EBITDA was about $15 million, for an adjusted EBITDA margin of approximately 10%, compared with about $21 million and a 12% margin in fiscal 2024. Cash flow from operations was $3.1 million, down from $11.4 million the prior year.
Management emphasized that underlying demand indicators improved as the year progressed. Jashnani said the company saw improvements in lead and consult volumes that “continued into 2026 and is now converting into improved revenue trends.” He added that the company expects first-quarter same-store sales to be flat, which he said would be the midpoint of a previously provided revenue range.
Focus on GLP-1-related demand and new procedures
Jashnani said the company is pursuing three strategic priorities: introducing new services to capture a GLP-1 market opportunity, enhancing sales and marketing, and maintaining financial discipline. He said GLP-1 medications are reshaping consumer approaches to weight loss and creating demand for aesthetic procedures such as skin tightening and contour restoration after weight loss.
As part of that effort, AirSculpt rolled out standalone skin tightening to all centers in the second half of 2025 and introduced a skin excision (skin removal) pilot in the fourth quarter. Jashnani said that, in Q4 2025, the company completed “more than 100 skin removal surgeries,” and it expects those procedures to ramp in 2026 as the capability expands across locations.
On the Q&A portion of the call, Jashnani told BTIG analyst Sam Eiber that early feedback on excisional procedures has been encouraging, with patients “getting good results” and surgeons generally comfortable performing the procedures. He said management intends to ramp the rollout as it reviews outcomes over time, noting that final results typically take months to become visible.
Jashnani also referenced third-party market data, citing the American Society of Plastic Surgeons to say the skin tightening and skin removal market is “as large as fat removal” based on 2024 procedure counts, and he described a “$100 million+ sales opportunity long term.”
Marketing changes and financing options
Jashnani said the company implemented an enhanced marketing strategy beginning in Q4 2025 that is “beginning to show measurable results.” He listed several initiatives, including expansion into connected TV, increased influencer engagement, focused campaigns for skin tightening and skin removal, improvements to website functionality and conversion flows, and optimization of spend toward “higher value audiences.” He said these efforts contributed to improved volume trends and are expected to support continued momentum.
Management also highlighted changes to patient financing. Arthur said approximately 50% of patients used financing to pay for procedures in Q4, while emphasizing that the company receives full payment up front and has “no recourse” related to patients who finance through third-party vendors. Jashnani added that financing options were improved to drive conversion while maintaining a full upfront payment policy.
Balance sheet actions, 10-K delay, and 2026 outlook
AirSculpt continued to reduce debt, with Arthur reporting $8.4 million of cash as of December 31, 2025. The company paid down $19 million of debt during 2025—$14 million on its term loan and $5 million on its revolving credit facility—ending the year with $56 million of gross debt outstanding. Arthur said leverage was below 3x under the credit agreement and the company was in compliance with all covenants.
Arthur added that AirSculpt raised an additional $14.8 million through its ATM facility in the first quarter and paid down an additional $11 million of debt principal. Management said it expects to refinance the term loan “before it becomes current,” targeting net debt leverage below 2.5x. On the call, Arthur told Eiber that balance sheet health remains the “number one priority,” with continued investment back into sales and marketing and, longer term, potential de novo center growth.
Arthur also addressed the delayed filing of the company’s 10-K. He said that during year-end close, AirSculpt identified a reconciliation matter related to intercompany transactions and conducted a broader review of certain accounting treatments, including lease accounting under ASC 842. He said the company recorded “immaterial changes” to prior-year balances with “no impact to revenue, cash or our day-to-day operations,” and stated the company remained compliant with bank covenants. The corrections included grossing up the right-of-use asset and lease liability by approximately $3.8 million and $3.5 million, respectively, for the year ended December 31, 2024, and corrections to prior-year rent expense that decreased expense by $239,000 in 2023 and $233,000 in 2024.
Looking ahead, management issued fiscal 2026 guidance calling for revenue of $151 million to $157 million and adjusted EBITDA of $15 million to $17 million. Arthur said the midpoint implies about 3% comparable growth excluding the company’s London center, which he said contributed 1% to comps in 2025. The company’s guidance does not include any new center openings in 2026 as it focuses on growth within its existing base.
Arthur also pointed to a potential supply constraint affecting skin tightening procedures, noting that helium plasma is needed for those services and that a meaningful portion of global supply is offline “due to the Iran conflict.” He said the company maintains a diversified supplier network and is monitoring the situation.
In response to a question from Nephron Research analyst Josh Raskin about the pacing of growth implied by guidance, Jashnani said management is “being measured” and emphasized a focus on consistent execution. On broader category trends, Jashnani said AirSculpt continues to see its core body contouring and fat removal business “holding relatively steady,” adding that the aesthetics industry is “starting to find a baseline” following a post-COVID boom, while GLP-1-related demand represents what he called “the next wave of that change.”
About AirSculpt Technologies (NASDAQ:AIRS)
AirSculpt Technologies, Inc (NASDAQ: AIRS) is a medical technology company specializing in minimally invasive body contouring. The company’s flagship AirSculpt® platform combines pneumatic power with precision microcannulas to deliver fat removal, transfer and sculpting procedures. AirSculpt Technologies partners with both company-owned and franchised cosmetic surgery practices to offer a streamlined, office-based alternative to traditional liposuction.
Through its proprietary system, AirSculpt Technologies provides both consumers and medical professionals with an integrated solution that emphasizes reduced downtime, smaller incision sites, and more predictable outcomes.
