Skip to content
    AIRS
    Earnings call· Jun 2026(Q2 FY26)

    Airsculpt Technologies Q2 FY26 earnings call AIRS

    Aug 10, 2026 Source

    Executive summary

    AirSculpt Technologies Q2 FY26 — Business Stabilization and GLP-1 Opportunity Expansion

    AirSculpt Technologies delivered a second consecutive quarter of stable revenue and positive same-center case growth in Q2 FY26, driven by strategic investments in new GLP-1-focused procedures and enhanced marketing. While revenue saw a slight year-over-year decline and marketing costs impacted EBITDA, the company is expanding its addressable market and service portfolio, including a new partnership for Alloclay. Management remains focused on converting this stabilization into sustained profitable growth through improved same-center sales and marketing efficiency, despite a choppy consumer environment.

    Highlights

    5

    • Stable revenue delivered for two consecutive quarters, with Q2 FY26 revenue at $42.9 million.

    • Same-center case growth was positive 1% in Q2 FY26, marking the second consecutive quarter of year-over-year case growth.

    • Same-center sales improved by 21 percentage points versus Q2 FY25 and 23 percentage points year-to-date, achieving roughly flat growth in H1 FY26.

    • Expanded service portfolio with new procedures like skin excision (over 200 procedures completed), upper brephioplasty, mastopexy, and the Alloclay partnership, targeting a $100M+ long-term revenue opportunity.

    • Raised approximately $20 million year-to-date through the ATM program and paid down $13 million in debt, strengthening the balance sheet with $19 million cash and $5 million revolver availability.

    Concerns

    5

    • Q2 FY26 revenue decreased by 2.5% year-over-year to $42.9 million.

    • Same-center revenue declined approximately 1% in Q2 FY26, offset by a 2% decline in average selling price.

    • Adjusted EBITDA decreased by $900,000 year-over-year to $4.9 million (11.5% of revenue) in Q2 FY26, reflecting intentional marketing investments.

    • Customer acquisition cost (CAC) increased to $3,500 per case in Q2 FY26, up from $2,900 in Q2 FY25, due to increased marketing investment.

    • Softening sales trends observed in June continued into July, attributed to a dynamic consumer environment.

    Guidance & targets

    5
    CategoryTargetConfidence
    Full-year Adjusted EBITDA
    $12 million to $14 million
    high materiality
    Medium
    Q3 FY26 Revenue (comparable basis)
    down single digits
    medium materiality
    Medium
    Q4 FY26 Revenue (comparable basis)
    year-over-year growth
    medium materiality
    Medium
    Q4 FY26 Adjusted EBITDA (comparable basis)
    year-over-year growth
    medium materiality
    Medium
    Alloclay contribution to FY26 guidance
    not include any contributions
    low materiality
    High

    Operational metrics

    25
    Revenue
    $42.9 milliondecrease of 2.5% versus the prior year quarter
    Q2 FY26

    Second consecutive quarter of stable revenue.

    Same center revenue growth
    approximately -1%declined approximately 1%
    Q2 FY26

    Reflecting positive 1% case growth in the quarter, the second consecutive quarter of year-over-year case growth, indicating continued stabilization.

    Same center sales improvement
    21 percentage pointversus Q2 last year
    Q2 FY26

    Generated a 21 percentage point improvement in same center sales versus Q2 last year and a 23 percentage point improvement year to date.

    Same center sales improvement
    23 percentage pointyear to date
    YTD FY26

    Generated a 21 percentage point improvement in same center sales versus Q2 last year and a 23 percentage point improvement year to date.

    Same center sales growth
    roughly flat
    H1 FY26

    Roughly flat same center sales growth in the first half.

    Case growth (same center)
    positive 1%year-over-year
    Q2 FY26

    Second consecutive quarter of year-over-year case growth.

    Average selling price
    approximately $12,7002% decline
    Q2 FY26

    The decline was primarily driven by comparison against an unusually high average selling price in the prior year period. The current ASP remains well within historical range.

    Gross margin
    roughly 61%expansion
    Q2 FY26

    Resulting in gross margin expansion.

    SG&A expenses increase
    $750,000compared to prior year
    Q2 FY26

    Reflects a deliberate choice to increase investment in marketing and brand development by $1.5 million, offset by efficiencies in general administrative expense.

    Marketing and brand development investment increase
    $1.5 million
    Q2 FY26

    Deliberate choice to increase investment in marketing and brand development.

    Customer acquisition cost
    $3,500compared to approximately $2,900 in the prior year quarter
    Q2 FY26

    While elevated, intentional investments were made in brand marketing. Spend is not fully optimized today but expected to pay off in the future.

    Adjusted EBITDA
    $4.9 milliondecrease of $900,000 from the prior year
    Q2 FY26

    Reflects intentional marketing investments.

    Cash provided by operating activities after capital expenditures
    $3.8 millionup slightly year over year
    YTD FY26

    As of June 30th, 2026.

    ATM program funds raised
    $20 million
    YTD FY26

    Raised year-to-date through the ATM program.

    Debt paid down
    $13 million
    YTD FY26

    Paid down year-to-date.

    Cash balance
    $19 million
    Q2 FY26

    Cash balance at quarter end.

    Revolver availability
    $5 million
    Q2 FY26

    Available in the revolver at quarter end.

    Total liquidity
    $24 million
    Q2 FY26

    Total liquidity available to the company at quarter end.

    Gross debt
    $44 million
    Q2 FY26

    Gross debt at quarter end. Company remains in compliance with all covenants.

    Gross debt reduction
    over $30 million
    Since start of 2025

    Reduced since the start of 2025.

    Cash increase
    over $10 million
    Since start of 2025

    Increased since the start of 2025.

    GLP-1 potential patients for body contouring
    nearly 19 million
    Long-term

    Potential patients interested in body contouring or related aesthetic procedures over time.

    Skin excision procedures completed
    over 200
    Q2 FY26

    Completed during the quarter, with the offering expanded to additional centers.

    New procedures long-term revenue opportunity
    $100 million+
    Long-term

    Expected across existing base of centers, with increasing potential as de novos resume.

    Marketing spend as % of revenue
    around 20%around 18% last year
    YTD FY26

    Marketing spend as a percentage of revenue year-to-date, compared to last year.

    Industry KPIs

    1
    MetricValueDetails
    Adjusted EPS EBITDA leverage guidance$12 million to $14 millionUSD

    Product announcements

    3
    ProductTypeDetails
    Alloclaylaunch
    Skin Excision Proceduresexpansion
    Upper Brephioplasty and Mastopexyexpansion

    Deals & partnerships

    1
    Tiger AestheticsTo offer Alloclay, a structural adipose tissue allograft for non-surgical body contouring.

    Alloclay will start rolling into centers later this quarter.

    Risks & headwinds

    4
    Dynamic consumer environmentQ2 FY26 and Q3 FY26

    Moderating sales trends in June, which continued into July.

    Mitigation: Intentional investments in brand marketing and new service offerings; disciplined execution.

    Elevated customer acquisition costs (CAC)Q2 FY26

    $3,500 per case in Q2 FY26, up from $2,900 in Q2 FY25.

    Mitigation: Intentional investments in top-of-funnel brand building designed to lower CAC over time as case volume builds and investments mature; marketing spend expected to return to lower percentage of revenue.

    Headwinds from AI search landscape impacting click-through ratesOngoing

    Click-through rates are really low on Google right now.

    Mitigation: Investing in how we show up when these search engines or LLMs are being turned to (Google, OpenAI, Cloud); focusing on presence in non-AI channels like ratings, reviews, conversations.

    Decline in average selling price (ASP)Q2 FY26

    2% decline in Q2 FY26.

    Mitigation: Attributed to comparison against an unusually high ASP in prior year; current ASP of $12,700 remains within historical range.

    What to watch in Q3 FY26

    5

    Q3 FY26 Revenue Performance

    next quarter
    Currentsoften in June from earlier in the quarter and that continued into July
    Targetdown single digits

    Why it matters

    Verifies if the moderating sales trends observed in June/July align with management's Q3 guidance and if strategic investments are stabilizing performance.

    On a comparable basis, excluding London Center sales from 2025, we expect third quarter revenue to be down single digits.

    Q&A highlights

    8

    Inquired about July/August trends and the ability to sustain procedure volume growth in H2 FY26.

    Yogi acknowledged softening trends in June continuing into July, attributing it to a choppy consumer environment. He reiterated confidence in new services, marketing, and disciplined execution to achieve year-end growth at the lower end of revenue guidance.

    “we did see the trends soften in June from earlier in the quarter and that continued into July. We attribute that to the fact that we're just executing a transformation in a choppy consumer environment, frankly, so that's what led us to make sure that we provide additional insight where we don't guide quarter to quarter.”

    asked by Sam Ever · answered by Yogesh Jashnani

    2 min read6 chapters

    Detailed Narrative

    01

    Strategic Priorities and Business Transformation

    AirSculpt is undergoing a transformation focused on three strategic priorities: introducing new services for the GLP-1 market, enhancing sales and marketing, and maintaining financial discipline. The company has seen continued stabilization, with roughly flat same-center sales growth in the first half of FY26, a significant improvement from previous periods. The long-term strategy includes expanding geographic footprint and center base as financial strength improves.

    02

    GLP-1 Market Opportunity and New Procedures

    The GLP-1 patient segment represents a significant long-term growth driver, with nearly 19 million potential patients interested in body contouring. AirSculpt is expanding its procedure portfolio to serve these evolving aesthetic needs, having completed over 200 skin excision procedures and expanded offerings to include upper brephioplasty and mastopexy. These new services are expected to represent a $100 million+ long-term revenue opportunity across existing centers.

    03

    Alloclay Partnership

    The company announced a partnership with Tiger Aesthetics to offer Alloclay, a structural adipose tissue allograft for non-surgical body contouring. This procedure targets patients without enough fat for traditional transfer, leverages existing surgeon training, and addresses growing consumer interest in volume restoration post-GLP-1 use. Alloclay will roll out to centers later in Q3 FY26, further strengthening the company's ability to serve a broader range of aesthetic needs.

    04

    Marketing and Sales Optimization

    AirSculpt is refining its marketing through a "test and learn" approach to optimize reach for GLP-1 patients and new procedures, aiming for higher return on spend and greater marketing efficiency. Sales teams are also being trained with new optimization tools to adapt to the different selling approach required for the expanded portfolio, with investments expected to improve commercial execution.

    05

    Financial Discipline and Balance Sheet Strength

    Maintaining a strong balance sheet is a key priority. The company raised approximately $5 million through its ATM program in Q2 FY26, contributing to $20 million raised year-to-date and $13 million in debt paydown. This provides financial flexibility and liquidity, with $19 million in cash and $5 million available in the revolver at quarter-end. The term loan maturity was extended to November 2027, providing additional time for refinancing.

    06

    Q3/Q4 Outlook and Investment Impact

    While Q3 FY26 revenue is expected to be down single digits on a comparable basis due to moderating sales trends in June/July, Q4 FY26 is projected to deliver year-over-year growth in revenue and adjusted EBITDA. This is driven by the ramp-up of new service offerings and marketing efforts. The updated adjusted EBITDA guidance reflects an intentional additional $5 million investment in marketing for the full year, aimed at strengthening the business for future performance.

    AI-generated summary of the company’s earnings call. Not investment advice.