Executive Summary

Q2 revenue declined 13.7% year over year to $44.0M and cases fell 14.1% to 3,392; Adjusted EBITDA margin was 13.3%, up sequentially, as cost actions took hold .
Versus S&P Global consensus, revenue missed by ~$1.6M (−3.5%), while EPS beat by $0.005; EBITDA versus S&P standardized estimate is mixed due to methodology differences; company reiterated FY25 revenue ($160–$170M) and Adjusted EBITDA ($16–$18M) guidance .
Management highlighted record lead generation, higher consultations, financing penetration rising to 50% (from 44% in Q1), and launched a skin-tightening pilot; CFO announced planned retirement while balance sheet improved via $16M debt reduction .
Near-term stock reaction catalysts: guidance maintenance despite macro choppiness; cost/marketing efficiency (CAC down y/y); CFO transition; and pilot initiatives tied to GLP-1-related skin laxity .

What Went Well and What Went Wrong

What Went Well

Record leads and increased consultations supported by reallocated marketing spend to SEM, social, and video; CAC fell to $2,905 from $3,325 y/y, reflecting improved efficiency .
Balance sheet strengthened: $16M debt reduction in Q2, revolver fully repaid, leverage ratio improved to 2.87x from 3.76x; compliant with covenants .
New growth initiatives: skin-tightening pilot at three centers and expanded financing options across all centers to support conversion; “best years lie ahead” tone .

Management quotes:

“We narrowed our year‑over‑year revenue decline by four percentage points versus the first quarter; grew leads by a record level; and delivered a meaningful increase in consultations.” — CEO Yogi Jashnani .
“Our customer acquisition cost... $2,905 per case vs. $3,325... marking the first quarter‑over‑quarter decline... since we went public.” — CFO Dennis Dean .
“We launched a pilot of our skin tightening procedure in the second quarter… strong interest… expand the pilot in Q3.” — CEO Yogi Jashnani .

What Went Wrong

Revenue and cases declined double digits y/y; same‑store revenue down ~22% y/y, reflecting consumer hesitation and macro headwinds .
Cost of service as % of revenue increased to 39.1% (vs. 36.9% prior year) due to fixed cost components not scaling with lower revenue; Adjusted EBITDA down y/y .
London center remains cash‑flow negative despite outperforming chain on comp sales in Q2; de novo openings paused for 2025 .

Financial Results

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$39.2	$39.4	$44.0
GAAP Diluted EPS ($USD)	$(0.09)	$(0.05)	$(0.01)
Adjusted Diluted EPS ($USD)	$(0.08)	$(0.02)	$0.02
Adjusted EBITDA ($USD Millions)	$1.9	$3.8	$5.8
Adjusted EBITDA Margin %	4.7%	9.5%	13.3%

Operational KPIs

KPI	Q4 2024	Q1 2025	Q2 2025
Cases (#)	3,064	3,076	3,392
Revenue per Case ($USD)	$12,787	$12,799	$12,975
Same‑center Case Growth (%)	(21.8)%	(24.3)%	(22.0)%
Number of Facilities (#)	32	32	32

Cost/Mix and Cash Flow

Metric	Q4 2024	Q1 2025	Q2 2025
Cost of Service ($USD Millions)	$16.7	$16.0	$17.2
SG&A ($USD Millions)	$23.4	$21.8	$22.7
Cost of Service as % Revenue	—	—	39.1%
Operating Cash Flow ($USD Millions)	$2.7	$0.9	$5.0

Versus Wall Street Consensus (S&P Global)

Metric	Consensus (Q2 2025)	Actual (Q2 2025)	Beat/Miss
Revenue ($USD Millions)	$45.6*	$44.0	Miss
Primary EPS ($USD)	$0.015*	$0.02	Beat
EBITDA ($USD Millions)	$5.65*	$4.14*	Miss / methodology note

Values retrieved from S&P Global. The company reports Adjusted EBITDA of $5.8M; S&P standardized EBITDA may differ from company‑reported Adjusted EBITDA .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($USD)	FY 2025	$160–$170M	$160–$170M	Maintained
Adjusted EBITDA ($USD)	FY 2025	$16–$18M	$16–$18M	Maintained
De novo openings	FY 2025	Paused (none planned)	None planned (reiterated)	Maintained
Covenant compliance	FY 2025	Relief received; compliant at YE24	Compliant; expect compliance through FY25	Maintained

Earnings Call Themes & Trends

Topic	Q4 2024 (Prior Two Quarters)	Q1 2025	Q2 2025 (Current)	Trend
Marketing & CAC	Reset marketing, cost reduction program ~$3M annualized; pause de novos	Early benefits from new go‑to‑market; lead volumes up	Record leads; CAC $2,905 vs $3,325 y/y; improved monetization	Improving efficiency
Financing options	—	Planned expansion to aid conversion	Rolled out across all centers; financing use 50% vs 44% in Q1	Positive for conversion
Skin tightening pilot	—	Pilot planned	Pilot live in 3 centers; strong interest; no contribution in guidance	Early stage; expanding
Same‑store sales	Double‑digit declines; stabilize priority	Double‑digit declines; sequential mitigation	~22% y/y decline; expect moderation in Q3, better in Q4	Gradual improvement expected
De novos & footprint	Pause openings to focus on same‑store	32 centers operating	No 2025 de novos; evaluate after stabilization	Focus on core
Macro/tariffs/inflation	Macro pressure; covenant relief	Uncertain environment	Not directly impacted by tariffs; consumer sentiment choppy	Headwinds persist
International (London)	—	—	London comps > chain, still cash‑flow negative	Mixed progress

Management Commentary

Strategic priorities: “We are laser focused on using data to optimize our marketing investment… expanded financing options… upgraded IT routing… expanded Salesforce use” — CEO Yogi Jashnani .
Transformation/Outlook: “Our intense focus on our business priorities and cost management… positions us well to return our business to growth” — CEO Yogi Jashnani .
Capital structure: “We repaid $16M of debt… improved capital structure and enhanced financial flexibility” — CFO Dennis Dean .
Tone: Confident yet conservative, acknowledging consumer uncertainty; guidance reiterated with conservatism for spending uncertainty .

Q&A Highlights

H2 setup: Management expects “flattish” revenue in H2 with EBITDA improvement from cost actions and lower marketing spend; stabilization more apparent in Q4 on easier comps .
Skin‑tightening: Strong interest, pilot expanding; still excluded from guidance; interaction with GLP‑1 patients being studied .
Same‑store trajectory: Declines to continue in Q3 but moderate; “significant improvement” exiting Q4 as new centers enter same‑store pool and comps ease .
Seasonality/cash flow: Typical Q3 softness, pickup in Q4; back‑half reflects full impact of cost initiatives .
London update: Outperformed on comps but cash‑flow negative; focus on improvement continues .

Estimates Context

Q2 2025: Revenue missed S&P Global consensus ($45.6M*) with actual $44.0M; EPS beat ($0.015* vs $0.02). S&P standardized EBITDA compares unfavorably ($5.65M* vs $4.14M*), while company‑reported Adjusted EBITDA was $5.8M; methodology differences matter here .
FY 2025: Company reiterated revenue $160–$170M and Adjusted EBITDA $16–$18M; S&P Global FY revenue consensus at ~$153.3M* may require upward revisions if H2 trends stabilize as guided .

Values retrieved from S&P Global.

Key Takeaways for Investors

Sequential improvement: Adjusted EBITDA margin rose to 13.3% on higher revenue and cost controls; watch for continued margin lift in H2 .
Demand funnel strong but conversion lagging: Record leads and higher consultations vs cautious consumer; expanded financing should aid conversion (50% financing usage vs 44% in Q1) .
Cost/marketing discipline: CAC down and SG&A lower y/y; further cost benefits expected in H2, supporting guidance .
Balance sheet de‑risking: $16M debt reduction, revolver cleared, leverage down to 2.87x; covenant compliance maintained .
Growth optionality: Skin‑tightening pilot targeting GLP‑1‑related skin laxity offers adjacent revenue potential; not in guidance yet .
Operational focus: No 2025 de novos; management prioritizes same‑store stabilization and profitability .
Monitor CFO transition: Planned retirement announced; stability through transition and continuity of financial strategy will be a watch point .

Airsculpt Technologies, Inc. (AIRS)·Q2 2025 Earnings Summary