Establishment Labs (NASDAQ:ESTA – Get Free Report) posted its quarterly earnings results on Thursday. The company reported ($0.35) earnings per share for the quarter, missing the consensus estimate of ($0.26) by ($0.09), Zacks reports. Establishment Labs had a negative return on equity of 185.60% and a negative net margin of 14.56%. The business had revenue of $71.99 million during the quarter, compared to analysts’ expectations of $66.81 million. During the same period in the prior year, the business posted ($0.38) earnings per share. The business’s quarterly revenue was up 33.8% on a year-over-year basis.
Here are the key takeaways from Establishment Labs’ conference call:
- Q3 revenue rose 33.9% to $72 million, led by 119% growth in the U.S. and 9.7% growth internationally. Management raised full-year 2026 revenue guidance to more than $274 million and expects 25% growth in 2027.
- The company generated its first-ever positive free cash flow, with $5.1 million in Q3 free cash flow and $7.7 million in operating cash flow. Adjusted EBITDA increased to $6.4 million, or an 8.9% margin, from $1.2 million a year earlier.
- U.S. adoption continues to expand, with Motiva available in 2,100 accounts and approximately 30% estimated market share. Management is shifting its focus toward increasing utilization among existing surgeons, while minimally invasive revenue is now expected to exceed $40 million for 2026.
- The company said its breast reconstruction submission is progressing, with FDA information requests addressed and site inspections completed; approval is expected in late 2026 or early 2027. However, hospital value-analysis processes could delay meaningful revenue contribution until the second half of 2027.
- Adjusted gross margin was 70.8%, below prior guidance, because distributor sales comprised 60% of OUS revenue rather than the expected 50%. Management maintained full-year adjusted gross margin guidance at approximately 70.7%, reflecting the lower-margin channel mix.
Establishment Labs Stock Down 8.7%
ESTA stock opened at $62.46 on Friday. The firm’s 50 day moving average price is $67.06 and its 200-day moving average price is $72.34. Establishment Labs has a one year low of $47.00 and a one year high of $97.59. The company has a debt-to-equity ratio of 12.11, a quick ratio of 2.52 and a current ratio of 3.84. The firm has a market cap of $1.86 billion, a PE ratio of -48.80 and a beta of 1.06.
Wall Street Analysts Forecast Growth
ESTA has been the topic of a number of research reports. Stifel Nicolaus started coverage on shares of Establishment Labs in a research note on Wednesday, October 14th. They issued a “buy” rating and a $85.00 target price on the stock. Canaccord Genuity Group set a $105.00 price target on Establishment Labs in a report on Thursday, August 6th. Citigroup upgraded Establishment Labs from a “neutral” rating to a “buy” rating and set a $92.00 price objective on the stock in a research report on Thursday, August 13th. TD Cowen lowered their price objective on Establishment Labs from $117.00 to $95.00 and set a “buy” rating on the stock in a research note on Monday, October 26th. Finally, JPMorgan Chase & Co. upped their target price on Establishment Labs from $84.00 to $95.00 and gave the company an “overweight” rating in a report on Friday, August 7th. Nine equities research analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $95.00.
Read Our Latest Research Report on ESTA
Key Establishment Labs News
Here are the key news stories impacting Establishment Labs this week:
- Positive Sentiment: Third-quarter revenue increased 33.9% year over year to approximately $72.0 million, exceeding analysts’ expectations of $66.8 million. U.S. revenue more than doubled to $26.0 million, while international revenue rose 9.7%. Establishment Labs Q3 Revenue Rises 33.9% to $72.0 Million
- Positive Sentiment: Management raised its 2026 revenue outlook to more than $274 million and projected roughly 25% revenue growth for 2027, signaling continued confidence in demand and commercial execution. Establishment Labs Projects 25% Revenue Growth in 2027
- Positive Sentiment: The company reported its first quarter of positive operating and free cash flow, including approximately $7.7 million of operating cash flow and $5.1 million of free cash flow. U.S. commercial expansion also reached more than 2,100 accounts, with over 400 plastic surgeons trained on Preservé. Third-Quarter 2026 Financial Results
- Neutral Sentiment: Institutional ownership activity was mixed: 117 investors added shares during the latest quarter, while 81 reduced positions. This suggests continued investor interest but no clear consensus. Institutional Ownership Activity
- Negative Sentiment: Adjusted or GAAP loss was $0.35 per share, wider than the consensus loss estimate of $0.26-$0.27, although it improved from a $0.38 loss a year earlier. Higher operating expenses, which rose to $52.3 million from $41.7 million, remain a concern. Establishment Labs Reports Q3 Loss
- Negative Sentiment: Reported insider trading was notably one-sided, with nine sales and no purchases over the past six months, potentially adding to investor caution around the valuation and outlook. Establishment Labs Insider Trading Activity
About Establishment Labs
Establishment Labs Holdings Inc is a medical technology company focused on women’s health and the breast aesthetics market. The company develops, manufactures and commercializes breast implants and related technologies designed for breast augmentation, reconstruction and revision procedures.
Its product portfolio includes the Motiva line of breast implants, which incorporates the company’s proprietary implant materials, surface technologies and design features. Establishment Labs also offers Motiva Flora tissue expanders for use in breast reconstruction and has developed Mia Femtech, a minimally invasive breast enhancement procedure intended to provide a less invasive alternative to traditional augmentation techniques.
Founded in 2004, Establishment Labs is headquartered in Costa Rica and serves physicians, hospitals and patients in international markets.
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