AirSculpt Technologies (NASDAQ:AIRS) executives said the body-contouring company is seeing early signs of a turnaround after a period of same-store sales declines, pointing to improved sales and marketing execution, a growing GLP-1-related opportunity and potential future clinic expansion.
Speaking at the 26th Annual Oppenheimer Consumer Growth & E-Commerce Conference, CEO Yogi Jashnani described AirSculpt as a “premier body contouring company” focused on fat removal, fat transfer and skin tightening. He said the company has performed more than 75,000 cases and operates 31 centers, including 30 in the U.S. and one in Toronto.
Same-store sales improve after leadership changes
Jashnani, who joined the company last year, said AirSculpt has been undergoing a transformation under a new leadership team that includes CFO Michael Arthur, who joined earlier this year, and a new head of operations. He said the company had been running same-store sales declines of 15% to 20% when he joined, but posted positive same-store sales in the first quarter.
“As we’ve added talent, we’ve improved our marketing and sales execution, which is really driving the core business,” Jashnani said.
He said the company has refined its approach to customer targeting, messaging and marketing channels. AirSculpt’s target customer is primarily female, between ages 35 and 55, with higher household income, he said. The average ticket is about $12,000 to $13,000, and the company does not work with insurance.
Jashnani acknowledged that the broader consumer environment remains “mixed” and “choppy,” including for higher-income consumers and the aesthetics category. However, he said AirSculpt is focused on growth initiatives that do not rely on an improvement in the consumer cycle.
GLP-1 users seen as a major growth opportunity
Executives highlighted GLP-1 weight-loss drugs as a significant opportunity for AirSculpt. Jashnani said the medications are effective for weight loss but can leave patients with loose skin, stubborn fat deposits and volume loss in areas where they may not want it.
“GLP-1s are here to stay,” Jashnani said, adding that AirSculpt has seen an increase in GLP-1 users interested in aesthetic procedures.
Jashnani said AirSculpt expanded its offerings to include standalone skin tightening in the middle of last year and began piloting skin removal procedures in the fourth quarter. He said the company has deployed marketing around GLP-1 side effects and views skin tightening and skin removal as a long-term revenue opportunity of more than $100 million.
For GLP-1-focused procedures, Jashnani said the gross margin profile is similar to the core business. Standalone skin excision procedures typically carry a $6,000 to $8,000 average ticket, he said, but customers often combine them with other procedures, which can result in a ticket above the company’s overall average.
Margins, marketing and clinic economics
Arthur said AirSculpt currently has EBITDA margins of roughly 10%, compared with historical levels above 20%. He said the company believes it can return to higher margins over time. Gross margins are approximately 60%, and Arthur said that level should remain relatively steady as the company scales because the cost structure is highly variable.
Arthur said a typical case generates about $12,000 to $13,000 in revenue, with roughly $8,000 in gross profit. The company’s blended customer acquisition cost is around $3,000, he said, though it can fluctuate by quarter.
“Our margins are healthy enough that we can lean into marketing to drive incremental revenue when we see the opportunity,” Arthur said.
Jashnani described AirSculpt’s front-end model as direct-to-consumer, supported by consultative sales and surgeon involvement to create customized surgery plans. He said recent marketing changes include greater influencer engagement, website and conversion improvements, and better allocation of spending toward higher-value audiences.
Balance sheet and expansion plans
Arthur said AirSculpt has made progress strengthening its balance sheet. As of the first quarter, net debt was below $30 million, cash was above $16 million and leverage was below 2.5 times. He said the company reduced debt by $30 million over the past year while continuing to invest in marketing and service expansion.
The company’s near-term capital structure priority is refinancing existing debt that matures in May 2027, Arthur said.
On expansion, Jashnani said AirSculpt’s locations are generally in major metropolitan areas and premium neighborhoods, citing Manhattan, Beverly Hills and Miami’s South Beach as examples. He said the model works across different city sizes and that the company has identified room for at least another 100 locations with minimal cannibalization risk.
Arthur said new clinics have historically cost about $1 million to $2 million to build, reached profitability within a few months and paid back within one to two years. However, he said AirSculpt has consciously paused new clinic additions while it stabilizes the business and works on refinancing its debt.
Jashnani said surgeon recruitment is not currently a gating factor for growth. He said AirSculpt works with more than 80 board-certified plastic or cosmetic surgeons under a revenue-share model, with surgeons receiving 20% of revenue.
“Lots of growth ahead of us, just in the core business with new services and with footprint expansion,” Jashnani said. “We feel pretty excited on where the business is and where we’re going.”
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.
