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The call highlights a company in active turnaround: operational actions (cost savings, debt reduction, marketing enhancements) have produced Q4 margin expansion, improved same-store sales trends and early traction with new services (skin tightening and skin removal). However, material revenue declines in 2025, weaker full-year adjusted EBITDA versus 2024, a sharp drop in operating cash flow, modest year-end cash, supply risk for key equipment and a reporting control matter temper the progress. Management’s 2026 guidance is conservative and back‑end loaded, reflecting improving momentum but ongoing execution and liquidity risks.
AirSculpt guided 2026 revenue of $151 million to $157 million (midpoint implying ~3% comparable growth ex‑London, with London having contributed ~1% to 2025 comps), and adjusted EBITDA of $15 million to $17 million; they expect Q1 same‑store sales to be flat (the midpoint of their prior revenue range) with momentum building through the year after comps turned positive in Feb and continued into March. The outlook incorporates the annualization of their 25 cost actions (and some portion of the ~$4 million in 2025 annualized savings will be reinvested in growth), assumes no de‑novo openings this year, and reflects a balance‑sheet focus — targeting net debt leverage below 2.5x and a term‑loan refinance (year‑end 2025 cash was $8.4 million, gross debt $56 million after $19 million of 2025 paydowns, over $30 million repaid in the last five quarters, plus an additional $14.8 million raised via ATM and $11 million of further paydowns in Q1).
Same-store sales improved materially over the year, moving from down ~22% at the start of 2025 to positive in February 2026; March trends continued favorably and Q1 2026 same-store sales are expected to be flat (midpoint of prior revenue range).
Q4 adjusted EBITDA of $2.5M (7.4% of revenue), up $0.6M versus Q4 2024, driven by ~2 percentage points of gross margin expansion to ~59% and operational leverage in SG&A.
Implemented cost initiatives that generated over $4M in annualized savings in 2025; SG&A declined by approximately $5M in Q4 versus prior year; customer acquisition cost remained stable at roughly $3,300 per case.
Paid down $19M of debt in 2025 ( $14M term loan, $5M revolver ) and more than $30M over the last five quarters; gross debt $56M at year-end with leverage below 3x and a target net debt leverage below 2.5x; raised $14.8M via ATM in Q1 and paid down an additional $11M thereafter; cash of $8.4M as of Dec 31, 2025.
Rolled out stand-alone skin tightening across centers and piloted skin excision (skin removal); completed more than 100 skin removal surgeries in Q4 2025 with early encouraging results; company cites a long-term >$100M opportunity from skin tightening/removal aligned with GLP-1 driven demand.
Full-year 2026 revenue guidance of $151M–$157M (midpoint implying ~3% comparable growth excluding London) and adjusted EBITDA guidance of $15M–$17M, incorporating annualized benefits from 2025 cost actions and selective reinvestment in growth initiatives.
Greetings, and welcome to the AirSculpt Technologies, Inc. Fourth Quarter 2025 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Allison Malkin of ICR. Allison, please go ahead.
Good morning, everyone. Thank you for joining us to discuss AirSculpt Technologies results for the fourth quarter and 2025 fiscal year. Joining me on the call today are Yogi Jashnani, Chief Executive Officer; and Michael Arthur, Chief Financial Officer. Before we begin, I would like to remind you that this conference call may include forward-looking statements. These statements may include our future expectations regarding financial results and guidance, market opportunities and our growth. Risks and uncertainties that may impact these statements and could cause actual future results to differ materially from currently projected results are described in this morning's press release and the reports we file with the SEC, all of which can be found on our website at investors.airsculpt.com. We undertake no obligation to revise or update any forward-looking statements or information, except as required by law. During our call today, we will also reference non-GAAP financial measures.
We use non-GAAP measures in some of our financial discussions as we believe they more accurately represent the true operational performance and underlying results of our business. A reconciliation of these measures can be found in our earnings release as filed this morning and in our most recent 10-K, which will also be available on our webs...