• Revenue: $39.4 million, a decline of 17.3% from Q1 2024.
• Adjusted EBITDA: $3.8 million with a margin of 9.5%, down from $7.3 million and a margin of 15.4% in Q1 2024.
• Same Store Revenue: Declined approximately 24% year-over-year.
• Case Volume: Declined 17.9% to 3,076 cases.
• Average Revenue per Case: $12,799, slightly higher than Q1 2024.
• Customer Acquisition Cost: $3,130 per case, compared to $2,990 in the prior year quarter.
• Adjusted Net Loss: $1.1 million or a loss of $0.02 per diluted share.
• Cash Flow from Operations: $0.9 million, compared to $3.4 million in Q1 2024.
• Cash: $5.6 million as of March 31, 2025.
• Gross Debt Outstanding: $74.7 million.
• Leverage Ratio: 3.76 times as of March 31, 2025.
• Fiscal 2025 Guidance: Revenue between $160 million and $170 million; Adjusted EBITDA between $16 million and $18 million.

• Warning! GuruFocus has detected 3 Warning Signs with AIRS.

Release Date: May 02, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• AirSculpt Technologies Inc (NASDAQ:AIRS) has seen early traction in their strategic initiatives, particularly in cost discipline, marketing efficiency, and operational rigor.
• The company reported an increase in average revenue per case, maintaining a strong consumer interest in their procedures.
• AirSculpt Technologies Inc (NASDAQ:AIRS) has generated significant lead volume growth by reallocating marketing dollars to effective strategies, without increasing spend.
• The company has strengthened its organization with key hires, including a new Chief Digital Officer and Chief Sales Officer, to drive transformation.
• AirSculpt Technologies Inc (NASDAQ:AIRS) is introducing new services, such as a skin tightening procedure, which could represent a meaningful new revenue stream.

Negative Points

• Revenue for the first quarter declined by 17.3% compared to the previous year, driven by lower case volume.
• Same store revenue decreased by approximately 24%, reflecting ongoing challenges in consumer spending.
• Adjusted EBITDA margin decreased to 9.5% from 15.4% in the prior year, indicating pressure on profitability.
• The company is operating in a challenging macroeconomic environment, which continues to impact consumer spending and case volumes.
• Selling, general, and administrative expenses increased due to equity-based compensation, affecting overall financial performance.

Q & A Highlights

Q: Can you speak to some of the specific cost savings that you saw in the quarter and maybe how sustainable you think those are? A: Dennis Dean, Chief Financial Officer: A significant portion of our cost savings came from workforce changes, targeting about $3 million of savings throughout the year. These reductions are expected to continue benefiting us through the remainder of the year.

Q: What is the potential margin you think you can achieve on $160 million to $170 million of revenues? A: Yogesh Jashnani, Chief Executive Officer: For our current guidance, we believe the EBITDA margin is appropriate. As we return to 2022-2023 levels of same-store revenue, we expect to approach long-term EBITDA margins of 30%.

Q: You mentioned seeing momentum in cases exiting March and continuing into April. Is this due to seasonal patterns or same-store year-over-year cases? A: Yogesh Jashnani, Chief Executive Officer: We observed both seasonal improvements and sequential same-store sales improvements. We are encouraged by these signs and still expect to achieve same-store sales growth by the end of the year.

Q: Can you elaborate on the assumptions within your guidance range, particularly regarding same-store case growth and pricing? A: Dennis Dean, Chief Financial Officer: We have seen stable pricing and some signs of improvement in case volumes as we move into the second quarter. However, we are not expecting significant improvement in same-store percentages in Q2, but we do anticipate returning to same-store case growth by year-end.

Q: Have you seen any improvement in the rate of conversion from leads to cases, and is it still trending around 60 days? A: Yogesh Jashnani, Chief Executive Officer: The conversion timeline remains elongated, largely due to the uncertain macroeconomic environment. However, we are encouraged by the growth in lead volumes, which we expect to be a robust source of future growth.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.