Fri, May 2, 7:17 PM (10 days ago)
**AirSculpt Technologies, Inc. (AIRS) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $39.4 million, down 17% YoY due to weaker aesthetics industry performance. - **Profit Margins:** Negative operating margin of -4% and net margin of -7.2%. - **Cash Flow:** Negative operating cash flow of -$2.6 million, down from $707,000 in Q1 2024. - **Earnings:** Net loss of $2.8 million, compared to a profit of $6.0 million in Q1 2024. - **Debt:** $64.3 million in long-term debt, with $5.0 million drawn on the revolving credit facility. **Key Metrics and Trends:** - **Cases Performed:** 3,076, down 18% YoY. - **Revenue per Case:** $12,799, up 0.7% YoY. - **Same-Center Performance:** Down 24.3% in cases and 0.5% in revenue per case. - **Cost Reduction:** Initiated a program to eliminate $3.0 million in annual overhead costs. - **Financing:** Launched expanded consumer financing offerings and an at-the-market offering program for up to $50.0 million in common stock. **Uncertainties and Future Operations:** - **Market Conditions:** Uncertainty in the broader aesthetics industry and economic conditions. - **Strategic Initiatives:** Focus on marketing, sales, customer experience, and new product innovation. - **Debt Obligations:** Amended credit agreement with revised covenants and increased interest margins. - **Liquidity:** $5.6 million in cash and cash equivalents, with no availability under the revolving credit facility. **Impact on Future Operations:** - **Revenue Growth:** Initiatives to stabilize and grow revenue, including marketing optimization and new product innovation. - **Cost Management:** Cost reduction program and paused center openings to improve financial performance. - **Debt Management:** Utilizing operations and potential equity raises to manage debt obligations. **Conclusion:** AirSculpt Technologies, Inc. faced significant challenges in Q1 2025, with declining revenue and profitability. The company is implementing strategic initiatives to stabilize revenue growth, manage costs, and address debt obligations. However, market uncertainties and economic conditions pose risks to future operations.