Executive Summary

Q3 revenue and case volume declined double-digits year over year (Revenue $35.0M, -17.8% YoY; Cases 2,780, -15.2% YoY), with management attributing softness to timing and a still-hesitant consumer for considered purchases .
Results missed S&P Global consensus: Revenue $39.8M estimate vs $35.0M actual; Primary EPS -$0.02 estimate vs -$0.04 actual; management lowered full‑year revenue outlook to ~~$153M while maintaining adjusted EBITDA at the low end (~~$16M)* .
Strategy pivot centers on GLP‑1 “transformation”: expanding skin tightening pilots and adding skin excision procedures; early signals show higher conversion among GLP‑1 patients; Q4 same‑store trends are improving with expected YoY EBITDA margin expansion .
Balance sheet progress continued (YTD debt repaid nearly $18M; Q3 liquidity $5.4M cash, $5.0M revolver availability) and London center closure announced with associated non‑cash charges (Salesforce impairment $4.6M; London assets $2.3M) .

What Went Well and What Went Wrong

What Went Well

“We have repaid nearly $18 million of our debt year to date,” reinforcing capital allocation discipline; mgmt also flagged >$3M annualized cost savings, supporting margin focus .
GLP‑1 strategy gaining traction: pilots expanded; “we are already starting to see that GLP‑1 users are converting better than non‑GLP‑1 users,” and skin excision pilots underway to broaden addressable need after significant weight loss .
Q4 setup improving: “we are experiencing an improvement in our same store sales trends and expect our expense discipline to result in EBITDA margin expansion year over year” .

What Went Wrong

Top‑line underperformed: Revenue $35.0M (-17.8% YoY) and cases 2,780 (-15.2% YoY); same‑store revenue down ~22% YoY; mgmt cited consumers hesitating to convert interest into procedures .
Non‑cash charges pressured GAAP results: Salesforce impairment ($4.6M) and London facility impairment/closure ($2.3M) plus ~$1.0M accelerated amortization to SG&A; GAAP net loss widened to $9.5M .
Customer acquisition cost increased to ~$3,100 per case (from ~$2,900), reflecting a tougher demand backdrop and mix; Adjusted EBITDA margin fell to 8.7% (from 11.0% in 3Q24) on lower revenue .

Financial Results

Core P&L and Profitability (chronological: oldest → newest)

Metric	Q3 2024	Q1 2025	Q2 2025	Q3 2025
Revenue ($USD Millions)	$42.55	$39.37	$44.01	$34.99
Net (Loss)/Income ($USD Millions)	$(6.04)	$(2.85)	$(0.59)	$(9.51)
Diluted EPS ($)	$(0.10)	$(0.05)	$(0.01)	$(0.15)
Adjusted EBITDA ($USD Millions)	$4.67	$3.76	$5.84	$3.04
Adjusted EBITDA Margin (%)	11.0%	9.5%	13.3%	8.7%

Operating KPIs

KPI	Q3 2024	Q1 2025	Q2 2025	Q3 2025
Cases (#)	3,277	3,076	3,392	2,780
Revenue per Case ($)	$12,984	$12,799	$12,975	$12,587
Same‑Center Case Growth YoY (%)	N/A	(24.3)%	(22.0)%	(20.5)%
Same‑Center Revenue/Case Growth YoY (%)	N/A	0.5%	~0.0%	(2.6)%
Facilities (period end)	31	32	32	32
Procedure Rooms (period end)	65	67	67	67

Consensus vs Actuals (S&P Global)

Metric	Period	Consensus*	Actual
Revenue ($USD)	Q3 2025	$39,797,330*	$34,993,000
Primary EPS ($)	Q3 2025	$(0.015)*	$(0.04)*

Values with asterisk (*) retrieved from S&P Global.

Notes: Company also reported Adjusted Net Loss per share of $(0.04) for Q3 2025 . S&P “Primary EPS” is a normalized measure and aligns with adjusted EPS in this period.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenues	FY 2025	$160M–$170M	~$153M	Lowered
Adjusted EBITDA	FY 2025	$16M–$18M	~$16M	Maintained at low end

Earnings Call Themes & Trends

Topic	Q1 2025 (Prev‑2)	Q2 2025 (Prev‑1)	Q3 2025 (Current)	Trend
GLP‑1/Procedures	Began piloting skin tightening as standalone; positioning to capitalize on skin laxity .	Piloted skin tightening; flagged GLP‑1 opportunity; financing options expanded .	“GLP‑1 transformation”: expanded tightening pilots; added skin excision pilots; higher conversion among GLP‑1 users .	Expanding scope, improving conversion among GLP‑1 cohort
Sales & Marketing	Re‑focused marketing; lifted leads; aim to improve conversion .	Record lead growth; meaningful increase in consultations .	Diversified media (influencers/TV); training to improve conversion; CAC rose to ~$3,100 .	Pushing conversion quality; cost to acquire elevated
Consumer/Macro	Uncertain environment; focus on sequential improvement .	Dynamic environment; narrowing YoY revenue decline vs Q1 .	Hesitant consumer to convert; mgmt calls Q3 softness timing‑related .	Demand consideration lag persists
Cost/Margins/Debt	Cost reductions improved profitability vs Q4; target FCF .	Debt reduced $16M in Q2; on track for guidance .	>$3M annualized cost savings YTD; nearly $18M debt repaid YTD; Q4 YoY EBITDA margin expansion expected .	Ongoing cost discipline; deleveraging continues
Footprint/Operations	32 centers, 67 rooms (end Q1) .	32 centers; continued optimization .	London closure (only unprofitable center); focus on North America .	Pruning underperformers
Tech/Systems	—	—	Salesforce scope narrowed; $4.6M impairment; finish sales functionality by Q1’26 .	Re‑scoping tech to ROI

Management Commentary

“Importantly, AirSculpt is scaled and trusted — strongly positioned at the intersection of aesthetics and the GLP‑1” .
“We are experiencing an improvement in our same store sales trends and expect our expense discipline to result in EBITDA margin expansion year over year” .
“We have repaid nearly $18 million of our debt year to date… Debt repayment continues to be the primary focus of our capital allocation strategy in the near term” .
On GLP‑1 patients: “We are already starting to see that GLP‑1 users are converting better than non‑GLP‑1 users” .
CFO transition: Michael Arthur appointed CFO effective Jan 5, 2026; CEO highlighted his public markets and growth experience .

Q&A Highlights

Cost controls: Majority of savings within SG&A (regional support/vendor spend); mgmt continues to identify opportunities to bridge revenue softness .
GLP‑1 procedures: Standalone tightening demand exists but candidacy pool narrower than anticipated; hence pilots of skin excision (often under local) to address loose skin beyond tightening; early demand noted even without marketing .
Demand/timing: Leads and consults remained strong, but consumers hesitant to convert; Q4 same‑store trends better than YTD .
Unit economics/marketing: CAC ~$3,100 vs ~$2,900 prior‑year quarter; 52% of patients used financing; ARPC $12,587 within historic $12–13K range .
Non‑cash charges/closures: $4.6M impairment on Salesforce components not used; $2.3M related to London closure; ~+$1.0M accelerated ROU amortization in SG&A (no cash impact) .

Estimates Context

Q3 2025: Missed S&P Global consensus on revenue and Primary EPS (Revenue $39.8M est vs $35.0M actual; Primary EPS -$0.02 est vs -$0.04 actual)* .
Forward: S&P Global Q4 2025 consensus implies Revenue ~$34.93M and Primary EPS ~-0.03*, while management expects improving same‑store trends and stronger margins sequentially and YoY in Q4 .