AirSculpt Technologies (NASDAQ:AIRS) lowered its full-year revenue and profit outlook after third-quarter sales fell 8.7%, as fewer potential patients reached its website and several centers experienced operational problems.
The body-contouring company reported revenue of $31.9 million for the quarter. Adjusted earnings before interest, taxes, depreciation and amortization fell to approximately $400,000 from $3 million a year earlier.
Search changes weigh on patient leads
Jashnani attributed much of the marketing difficulty to Google’s AI Overviews, which he said increasingly keep consumers on Google’s platform rather than directing them to AirSculpt’s website. Leads fell 16% from a year earlier, while cost per lead rose 26%, he said.
The CEO said search intent for aesthetic procedures remained relatively stable and that conversion rates held steady once prospective patients engaged with AirSculpt. Responding to an analyst’s question about the economy, Jashnani said the consumer environment remained “choppy” and that the company’s generally higher-income customers were not completely insulated.
AirSculpt is working to improve its visibility in AI-generated search results and is expanding local and community marketing. Jashnani said the company was seeing early signs of improvement, but that it would take time for those efforts to show up in revenue.
The company plans to host an open house across all 31 centers on November 12, combining in-person and virtual education with the goal of generating consultations and bookings. It also expects to spend an incremental $3 million on brand marketing compared with last year, down from the $5 million increase it previously anticipated.
Lower volume drives guidance cut
On a same-center basis, excluding the closed London location, third-quarter revenue declined approximately 7.5%. Case volume fell 9.6%, partly offset by a 2.3% increase in average selling price. The average price was approximately $12,900, Chief Financial Officer Michael Arthur said.
Gross margin expanded to roughly 60% from 57.5% a year earlier, reflecting operating efficiencies, cost discipline and the benefit of closing the London center. Selling, general and administrative expenses rose approximately $700,000 to $20.3 million, primarily because of higher marketing and professional expenses. Customer acquisition cost increased to roughly $3,800 per case from $3,100.
AirSculpt now expects full-year 2026 revenue of $144 million to $146 million, down from its previous forecast of $151 million to $157 million. It lowered its adjusted EBITDA outlook to $9 million to $10 million from $12 million to $14 million.
Arthur said fourth-quarter results will depend on how quickly the company adapts its marketing strategy and improves execution at the affected centers. Jashnani said the center-specific issues varied across marketing, sales and operations; some fixes were underway or complete, while others could take months.
GLP-1 procedures and refinancing
AirSculpt performed 250 procedures related to GLP-1 weight-loss medications during the quarter, representing nearly 10% of total cases. The offerings address concerns such as stubborn fat, loose skin and loss of volume. Jashnani said the services are available in almost all centers, although one or two are not offering them or are not doing so at scale.
The company believes procedures addressing GLP-1 side effects could represent a potential $100 million revenue opportunity across its existing centers over the longer term. Jashnani said patients seeking those procedures often require more education and a different marketing and sales approach; he did not provide a timeline for an acceleration in volume.
AirSculpt also completed a refinancing that extends its debt maturity to 2031. The new $44 million facility consists of a $39 million term loan and a $5 million revolving credit facility. Arthur said the interest rate is SOFR plus 775 basis points, about 300 basis points higher than under the previous facility, and will decline as leverage decreases.
The company ended the quarter with approximately $15 million in cash and $5 million available under its revolver, for total liquidity of roughly $20 million. Management said the refinancing provides more flexibility for investments and potential future center openings.
About AirSculpt Technologies (NASDAQ:AIRS)
AirSculpt Technologies, Inc operates a medical aesthetics business focused on body-contouring and cosmetic procedures. Through its AirSculpt brand, the company provides minimally invasive liposuction and fat-transfer treatments designed to remove unwanted fat and reshape areas of the body.
Its services also include procedures such as skin tightening and other elective aesthetic treatments, with offerings varying by location and patient needs. AirSculpt markets its procedures directly to consumers and provides consultations, treatment planning and follow-up care through its network of company-operated centers.
The company was founded in 2015 by plastic surgeon Dr.
