AirSculpt Technologies NASDAQ: AIRS reported first-quarter fiscal 2026 results that management characterized as a “key turning point,” citing stabilized revenue, the first positive same-center sales result in more than two years, and continued debt reduction.
Q1 results: flat revenue, positive same-center sales, and margin expansion
Chief Executive Officer Yogi Jashnani said the company “stabilized revenue year-over-year and delivered positive same-center sales for the first time in over two years,” while also expanding gross margin. Chief Financial Officer Michael Arthur reported revenue of $39.4 million for the quarter, “flat versus the prior year quarter and up 1% on a same-store basis, excluding the impact of London.” Arthur added that same-store revenue growth was driven by higher case volume and represented “a 19% sequential improvement.”
Cost of services was $15.6 million, which Arthur said resulted in “gross margin expansion of roughly 1% to 60% of revenue.” Adjusted EBITDA was $3.3 million, or “roughly 8.4% of revenue,” down from 9.5% in the prior-year period.
Marketing and sales execution highlighted as primary drivers
Management emphasized that marketing and sales execution improvements are translating into more consistent demand. Jashnani pointed to initiatives launched at the end of 2025, including an expanded media mix and improvements to the company’s digital funnel. He said the company continues to see benefits from “Connected TV, increased influencer engagement, and more targeted campaigns across skin tightening and skin removal,” and added that “improvements to our digital funnel and website are driving higher quality leads and better conversion.”
On the Q&A portion of the call, BTIG analyst Sam Eiber asked what has been working in the quarter and how much improvement was attributable to marketing, new services, or a better demand environment. Jashnani said the company could tie the improvement “directly to the enhancements to sales and marketing and all of the foundational work we did in 2025,” adding that the consumer environment “is still I would say challenging, especially for considered purchases.”
Arthur said selling, general and administrative expenses were approximately $22.6 million, up about $800,000 from the prior year, reflecting “a deliberate choice to increase investment in marketing and brand development.” He also disclosed that customer acquisition cost was “roughly $3,400 per case,” compared with $3,130 in the prior-year quarter.
GLP-1 opportunity and new procedures: early traction, not yet a major contributor
Jashnani spent part of his prepared remarks outlining how GLP-1 medications are influencing the aesthetics market and how AirSculpt is positioning its offering. He said GLP-1 medications “continue to fundamentally reshape the aesthetics landscape,” and cited expectations that the GLP-1 user base could grow from approximately 5 million in 2023 to 25 million by 2030. Jashnani also referenced an estimate that 63% of those patients indicate interest in treatment, which he said could translate to “nearly 19 million potential patients pursuing body contouring or related procedures.”
He said the company’s minimally invasive procedures and limited downtime align with these patients’ needs, and highlighted newer services such as standalone skin tightening and skin removal. Jashnani noted that these offerings are intended to address side effects from GLP-1 use and help patients achieve their desired look.
While he said traction is growing, management emphasized that these newer procedures are not yet a meaningful driver of results. Jashnani disclosed the company completed “over 150 skin excision procedures in Q1 alone,” and said that combined with fat removal and fat transfer, these procedures “have the potential to unlock more than $100 million in long-term revenue across our existing centers.” In response to Eiber’s question, Jashnani added that skin removals “are still in pilot phase and being rolled out across centers, so they've not been a meaningful incremental contributor yet.”
Balance sheet: debt paydown, refinancing plans, and cash flow improvement
Management also highlighted balance sheet progress. Jashnani said the company ended the quarter with “over $16 million in cash and leverage below 2.5x,” representing a reduction of more than one turn compared to the same time last year. Arthur provided additional details, stating that as of March 31, 2026, cash totaled $16.7 million and the company “paid down $11 million of debt in the quarter,” ending with gross debt of approximately $46 million.
Arthur said AirSculpt is in compliance with all credit agreement covenants and is “making progress to refinance our term loan,” with an update expected when the company reports second-quarter results. He also reported cash flow from operations of approximately $5 million, compared with about $1 million in 2025.
Outlook reaffirmed; no de novos planned in 2026
Arthur reaffirmed full-year fiscal 2026 guidance, calling for revenue of $151 million to $157 million and adjusted EBITDA of $15 million to $17 million. He said the midpoint of the revenue range implies “approximately 3% comparable growth excluding London from 2025,” and reminded listeners that the London center contributed 1% to comps in 2025. He also stated that guidance “does not contemplate any de novos in the period.”
For the second quarter, which management described as seasonally stronger, Arthur said the company expects “sequential improvement in both revenue and EBITDA in absolute $ versus Q1.” Jashnani similarly said the company is targeting “sequential improvement in same-store sales” in the second quarter.
During Q&A, Eiber asked whether a strengthened balance sheet could lead to reopening de novo center development later in the year. Arthur said the plan “doesn't contemplate any de novos in 2026,” and added the company remains focused on improving same-center sales growth as its “number one priority.”
Looking ahead, Arthur said the company continues to monitor the macro environment, including consumer sentiment, and will remain “agile in managing the business as conditions evolve.” Jashnani closed by saying the company is “pleased with our start to 2026” and remains focused on building momentum to generate “long-term sustainable, profitable growth and value creation for our shareholders.”
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.
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