AirSculpt Technologies Inc (NASDAQ:AIRS) Stock Plummets 21% After Q3 Earnings Miss and Guidance Cut

AirSculpt Technologies Inc (NASDAQ:AIRS) reported financial results for the third quarter of fiscal year 2025, revealing significant declines in key performance metrics and a substantial market reaction.

Third Quarter Financial Performance

The company's third quarter results fell short of analyst expectations, with both revenue and earnings missing consensus estimates. The body contouring specialist reported a net loss that widened considerably compared to the same period last year.

Key financial results for Q3 2025 include:

• Revenue: $35.0 million, representing a 17.8% decrease from $42.5 million in Q3 2024
• Analyst Revenue Estimate: $40.3 million, indicating the company missed expectations by approximately 13%
• Adjusted EPS: -$0.04 per share
• Analyst EPS Estimate: -$0.02 per share, representing a 100% miss relative to expectations
• Net Loss: $9.5 million, compared to a net loss of $6.0 million in the prior year period
• Adjusted EBITDA: $3.0 million, down from $4.7 million in Q3 2024

The company attributed the revenue decline to a 15.2% reduction in case volume, which dropped to 2,780 procedures from 3,277 in the same quarter last year. Same-center case volume showed an even steeper decline of 20.5%.

Updated 2025 Outlook and Market Reaction

Management provided a revised outlook for the full 2025 fiscal year, substantially lowering previous guidance. The company now expects:

• Revenue: Approximately $153 million, down from the previous range of $160-$170 million
• Adjusted EBITDA: Approximately $16 million, at the lower bound of the previous range

This updated revenue guidance falls roughly 8% below analyst estimates of $166.2 million for the full year. The market reacted strongly to the earnings miss and reduced outlook, with the stock trading down approximately 21% in pre-market activity following the announcement.

Operational and Strategic Developments

CEO Yogi Jashnani acknowledged the disappointing quarterly results but emphasized the company's progress on strategic initiatives. "While third quarter revenue was lower than anticipated, this is reflective of timing, instead of the trajectory of our business," Jashnani stated in the earnings release.

The company highlighted several operational developments:

• Debt reduction of $18 million year-to-date
• Positive cash flow generation
• Planned closure of the London facility, resulting in a $2.3 million impairment charge
• Impairment of a portion of the Salesforce implementation project totaling $4.6 million
• Appointment of Michael Arthur as new Chief Financial Officer, effective January 5, 2026

Jashnani also pointed to emerging opportunities in the aesthetics market, specifically mentioning the structural shift due to GLP-1 use and the company's positioning "at the intersection of aesthetics and the GLP-1."

Balance Sheet and Liquidity Position

As of September 30, 2025, AirSculpt maintained:

• Cash and cash equivalents of $5.4 million
• $5.0 million of borrowing capacity under its revolving credit facility
• Total debt of $56.9 million, net of $5.0 million in revolving credit funds payable
• Compliance with all bank covenants

The company generated $5.6 million in operating cash flow for the first nine months of 2025, compared to $6.8 million during the same period in 2024.

For detailed earnings estimates and future projections, view the complete earnings analysis for AIRS.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. The content should not be interpreted as a recommendation to buy or sell any security. Readers should conduct their own research and consult with a qualified financial advisor before making investment decisions.