Marco Criscuolo

Marco Criscuolo from Nephron Research inquired about AirSculpt's strong cost controls, specifically detailing measures taken in SG&A and cost of service, and the expected sustainability of these savings into the fourth quarter and the next fiscal year. He also asked for more details on the progress and expansion of standalone skin tightening services and the new procedures being introduced to address the GLP-1 patient population.

Answer

Dennis Dean, Chief Financial Officer, clarified that cost controls were primarily focused on the SG&A realm and regional support positions, noting their positive impact on bridging revenue softness and the ongoing identification of additional opportunities. Yogi Jashnani, Chief Executive Officer, elaborated on skin tightening, confirming demand for loose skin solutions but a smaller qualified pool for standalone tightening. He highlighted a broader opportunity for a suite of procedures, including skin excisions/removals, which are being piloted and fit the clinic model, with GLP-1 users showing higher conversion rates.

Marco Criscuolo of Nephron Research inquired about changes in managed care behavior, including patient denials and downgrades, and trends in physician recruitment and turnover.

Answer

Executive Steve Filton explained that aggressive payer behavior has been a trend for the past year, with no dramatic change in the current quarter. He noted that physician recruitment is not particularly difficult, and previous expense pressures in areas like anesthesiology were more related to billing changes from the No Surprise Act than physician scarcity.