AirSculpt 2025 Q3 Earnings Revenue Drops 17.8%, Net Loss Widens 57.5%

AirSculpt (AIRS) reported Q3 2025 earnings with a 17.8% revenue decline to $35 million and a 57.5% wider net loss of $9.51 million. The company trimmed its full-year revenue forecast to $153 million from $160–170 million and maintained EBITDA guidance at $16 million, citing weaker demand in the body-contouring market. CEO Yogesh Jashnani emphasized strategic moves including GLP-1-related procedures and cost-cutting to navigate the challenging market.

Revenue

The total revenue of AirSculpt decreased by 17.8% to $34.99 million in 2025 Q3, down from $42.55 million in 2024 Q3.

Earnings/Net Income

AirSculpt's losses deepened to $0.15 per share in 2025 Q3 from a loss of $0.10 per share in 2024 Q3 (50.0% wider loss). Meanwhile, the company's net loss widened to $-9.51 million in 2025 Q3, representing a 57.5% increase from the $-6.04 million loss recorded in 2024 Q3. The EPS of -$0.15 and net loss of $9.51 million indicate deteriorating profitability, with losses widening 50% and 57.5% year-over-year, respectively.

Post-Earnings Price Action Review

The strategy of buying AirSculpt (AIRS) shares on the date of its revenue raise and holding for 30 days yielded mixed results over the past three years. Here's a breakdown:1. Overall Performance: The strategy resulted in a 25.8% gain over the three years, outperforming the S&P 500's return of 14.3%. This indicates that the strategy captured significant gains, although it was somewhat volatile.2. Quarterly Performance: - Q3 2023: The stock surged by 102.1% in the year following the earnings release, driven by a strong market reaction to the revenue beat and positive guidance. - Q4 2023 and Q1 2024: The stock experienced some volatility, with a 10.5% decline in Q4 2023 and a 2.3% increase in Q1 2024, reflecting market adjustments to expectations. - Q2 2024: The stock rose by 7.6%, likely due to renewed confidence in the company's prospects after another earnings beat.3. Key Dates: - Q3 2023 Earnings: The stock rose by 102.1% on the day after earnings, driven by a significant revenue beat and an optimistic outlook. - Q4 2023 Earnings: The stock fell by 10.5% on the day after earnings, possibly due to market concerns about slower growth in the following quarter. - Q2 2024 Earnings: The stock rose by 7.6% on the day after earnings, reflecting positive sentiment about the company's performance and outlook.4. Volatility and Risk: The strategy involved significant volatility, with the stock price fluctuating widely around earnings release dates. This suggests that while the strategy could yield high returns, it also carried substantial risk. In conclusion, the strategy of buying AIRS shares on the date of its revenue raise and holding for 30 days showed strong potential for gains, especially in the immediate term following a revenue beat. However, the strategy was not without risk, as evidenced by the significant volatility observed in the stock price around earnings release dates over the past three years.

CEO Commentary

Yogesh Jashnani (CEO & Director) acknowledged Q3 revenue fell short of expectations due to timing, not trajectory, emphasizing AirSculpt’s focus on long-term growth through the GLP-1 transformation. He highlighted strategic priorities: introducing skin tightening and skin excision procedures to address GLP-1-related loose skin, enhancing sales/marketing with targeted campaigns, and maintaining financial discipline via $3M+ annualized cost savings and $18M debt repayment. Jashnani noted GLP-1 patients drive higher conversion rates and expanded market opportunities, while closing the unprofitable London center underscored disciplined capital allocation. Despite near-term revenue challenges, he expressed cautious optimism, citing improved Q4 same-store sales trends and confidence in the company’s ability to capitalize on the GLP-1-driven aesthetic market.

Guidance

AirSculpt revised 2025 revenue guidance to $153 million (from $160–170 million) and reaffirmed EBITDA of $16 million (the low end of $16–18 million). The CEO expects Q4 revenue declines to moderate with stronger same-store sales and margin expansion sequentially and year-over-year. Dennis Dean (CFO) outlined $3M+ in cost savings, $18M debt repayment year-to-date, and a focus on deleveraging. Forward-looking initiatives include scaling GLP-1-targeted procedures, refining marketing mix, and leveraging higher-converting patient segments. The company remains in compliance with debt covenants, with $5.4 million cash and $57.9 million gross debt as of Q3.

Additional News

AirSculpt announced Michael Arthur as CFO starting January 2026, replacing Dennis Dean. The company closed its unprofitable London center to focus on North American growth and reduced debt by $18 million, enhancing financial stability. These strategic moves aim to improve operational efficiency and capitalize on GLP-1-related market opportunities.