Shares of Establishment Labs Holdings Inc. (ESTA) surged 11.39% in intraday trading on Wednesday following the release of its better-than-expected third-quarter 2025 financial results and raised full-year guidance. The medical technology company, specializing in breast aesthetics and reconstruction, demonstrated strong growth and improved profitability metrics, instilling confidence among investors.

Establishment Labs reported third-quarter revenue of $53.8 million, representing a 33.8% increase year-over-year and surpassing analyst expectations of $52.5 million. The company's U.S. Motiva sales contributed $11.9 million to the total revenue, showcasing robust growth in this key market. Notably, the company achieved a gross profit margin of 70.1%, marking a significant improvement from 63.9% in the same period last year.

In a major milestone, Establishment Labs reported its first-ever quarter of positive adjusted EBITDA, reaching $1.2 million compared to a loss of $7.0 million in the year-ago period. This achievement, coupled with narrowing losses, signals the company's progress towards profitability. The reported loss per share of $0.38 was considerably better than the analyst estimate of $0.52.

Peter Caldini, Chief Executive Officer of Establishment Labs, expressed optimism about the company's performance, stating, "Getting to positive adjusted EBITDA ahead of the fourth quarter was an important goal for our company. We now turn our focus towards reaching cash flow positive next year." Caldini also highlighted the impressive growth in the U.S. market, noting a 16% sequential increase in a typically slow seasonal quarter.

Looking ahead, Establishment Labs raised its 2025 revenue guidance, now expecting to exceed $210 million, up from the previous range of $208 million to $212 million. The company anticipates finishing 2025 with approximately 20% share of the U.S. breast augmentation market and expects to meaningfully surpass its previous guidance of $40 million in U.S. Motiva sales.

Investors were particularly encouraged by the company's strong performance in direct markets and the potential of its minimally invasive platform. Management expressed excitement about the platform's ability to drive category growth and improve economics for surgeons, signaling promising future prospects for Establishment Labs in the medical aesthetics market.