AirSculpt Technologies (NASDAQ:AIRS) is seeing stabilization in its core body-contouring business after several quarters of declines, while expanding services aimed at patients using GLP-1 weight-loss drugs, Chief Executive Officer Yogi Jashnani said at a Canaccord consumer conference.
The company operates 31 North American centers offering minimally invasive plastic-surgery procedures focused on fat removal, fat transfer and skin tightening. Patients remain awake during procedures and generally return home within hours, Jashnani said. The average procedure carries a cash-pay price of roughly $12,000 to $13,000, with the company’s typical customer being a woman between 35 and 55 years old from a household earning more than $100,000.
Core Business Stabilization
“That’s what’s carried us through, and the results are showing with the second consecutive quarter of stability after many quarters of decline,” Jashnani said.
Although the company continues to see a “choppy” consumer environment, Jashnani said demand remains for aesthetic procedures. The company is focused on engaging its target customer base and highlighting the differentiation of its services.
For the second half, AirSculpt expects third-quarter same-store sales to decline by a single-digit percentage before returning to growth in the fourth quarter. For the full year, Jashnani said the company expects same-store sales to be roughly flat to slightly higher year over year.
GLP-1 Opportunity Drives New Services
Management identified GLP-1 users as a potentially significant source of future growth. Jashnani said patients who lose weight over periods of six to 18 months can experience loose skin, stubborn fat deposits and volume loss, creating demand for skin removal, skin tightening and volume-restoration procedures.
AirSculpt has expanded its skin-excision capabilities and recently announced a partnership with Tiger Aesthetics for alloClae, a donor-derived fat product intended for volume restoration. The product could serve patients who do not have sufficient fat for a traditional fat-transfer procedure or choose not to undergo one.
The company performed approximately 200 skin-removal procedures in the most recently reported quarter, representing the mid- to high-single digits as a percentage of total procedures, according to Jashnani. He said the proportion of GLP-1 users coming to AirSculpt is higher than that figure, as not all GLP-1 patients necessarily receive skin-removal procedures.
Jashnani said the company views the GLP-1-related opportunity as potentially exceeding $100 million over the long term, compared with AirSculpt’s current business of about $150 million in revenue. Standalone skin-removal procedures may have lower pricing than the company’s core procedure, but customers frequently combine treatments, resulting in higher overall ticket values, he said.
Skin-removal procedures carry gross margins similar to the core business, at roughly 60%, management said. alloClae is expected to be accretive to gross-margin dollars but potentially dilutive to gross-margin percentage because of the product’s consumable costs.
Clinic Economics and Expansion Plans
Chief Financial Officer Michael Arthur said a mature AirSculpt clinic generates about $5 million in annualized sales. Portfolio gross margins are around 60%, and all company clinics are currently profitable, he said.
New clinic build-outs generally require $1 million to $2 million, according to Arthur. He said new locations typically become profitable in four to six months and pay back their initial investment within one to two years.
AirSculpt has paused de novo expansion since 2025. Arthur said the company wants to see further stabilization in same-center sales and continue strengthening its balance sheet before resuming new-center growth. Management sees a long-term opportunity to expand beyond its current 31 locations, citing markets including Long Island, Indianapolis, Portland and West Palm Beach where it does not currently operate.
Margins, Marketing and Debt Priorities
Arthur said AirSculpt’s current EBITDA margin is about 10%, compared with historical levels above 20%. He said revenue growth could create operating leverage because gross margins are approximately 60% and a portion of corporate costs is fixed. Advertising represents about 18% to 20% of revenue, while management expects leverage in other operating costs as volumes increase.
The company is also increasing marketing investment, with a focus on brand awareness and outreach to GLP-1 users. Jashnani said AirSculpt’s brand awareness remains low and that marketing tests should help the company improve its messaging and efficiency over time.
On capital allocation, Arthur said paying down and refinancing debt remains the company’s top priority. AirSculpt has repaid more than $30 million of debt during the past year, he said, and management is focused on refinancing debt that matures next year while continuing to invest in sales, marketing and new services.
Jashnani said investors should recognize that the company’s transformation may not develop in a straight line from quarter to quarter. Still, he said management remains focused on stabilizing the business, capturing GLP-1-related demand, refinancing debt and eventually returning to new-center expansion.
About AirSculpt Technologies (NASDAQ:AIRS)
AirSculpt Technologies, Inc (NASDAQ: AIRS) is a medical technology company specializing in minimally invasive body contouring. The company’s flagship AirSculpt® platform combines pneumatic power with precision microcannulas to deliver fat removal, transfer and sculpting procedures. AirSculpt Technologies partners with both company-owned and franchised cosmetic surgery practices to offer a streamlined, office-based alternative to traditional liposuction.
Through its proprietary system, AirSculpt Technologies provides both consumers and medical professionals with an integrated solution that emphasizes reduced downtime, smaller incision sites, and more predictable outcomes.
