What Management Said
Read the full Q2 2026 transcript ↗Michael will share a detailed review of our second quarter and first six-month performance and guidance. These statements may include our future expectations regarding financial results and guidance, market opportunities, and our growth. A reconciliation of these measures can be found in our earnings release as filed this morning and in our most recent 10-K, which will also be available on our website. For the quarter, on a comparable basis, we delivered stable revenue and positive same-center case growth.
Those actions are showing in the continued stabilization of the business with roughly flat same-center sales growth in the first half. Longer term, we believe there is meaningful growth in new procedures and de novo expansion. As our balance sheet and cash flow generation strengthen, we intend to expand our geographic footprint and center base over time. GLP-1 continues to represent a significant long-term growth driver for AirSculpt, with nearly 19 million potential patients interested in body contouring or related aesthetic procedures over time.
These procedures further expand our addressable market and increase our center productivity while allowing us to better serve the needs of our patients. We continue to expect this to represent a $100+ million long-term revenue opportunity across our existing base of centers with an increasing long-term potential as we resume de novos. Looking forward, we have additional procedures in the pipeline that are core to body contouring and are a strong fit for our brand. We remain focused on thoughtfully expanding our capabilities to enhance the patient experience and increase center productivity.
What went well
- Delivered a second consecutive quarter of stable revenue at $42.9 million, with positive 1% same-center case growth (excluding London) marking a second straight quarter of year-over-year case growth.
- Same-center sales improved 21 percentage points versus Q2 last year and 23 percentage points year-to-date, moving from -23% in the first half of 2025 to roughly flat year-to-date.
- Gross margin expanded to roughly 61% of revenue, with cost of services of $16.6 million.
- Strengthened the balance sheet: reduced gross debt by over $30 million since the start of 2025 (paying down ~$13 million year-to-date) and increased cash by over $10 million since the start of 2025, ending the quarter with ~$19 million cash and ~$24 million of total liquidity.
- Advanced the procedure portfolio: completed over 200 skin excision procedures and expanded to more centers, added upper breastoplasty and mastopexy, and announced an alloClae partnership with Tiger Aesthetics to broaden the addressable body-contouring market.
What went wrong
- Total revenue of $42.9 million declined 2.5% year-over-year; on a same-center basis (excluding London) revenue declined approximately 1%.
- Average selling price fell about 2% to roughly $12,700, driven by comparison against an unusually high ASP in the prior-year period.
- Adjusted EBITDA of $4.9 million (roughly 11.5% of revenue) decreased $900,000 from the prior year, reflecting a deliberate $1.5 million increase in marketing and brand investment in the quarter.
- Customer acquisition cost rose to roughly $3,500 per case versus approximately $2,900 a year ago, as brand-marketing spend is not yet fully optimized.
- Same-center sales trends softened in June from earlier in the quarter and continued to soften into July, which management attributed to a dynamic, choppy consumer environment.
Guidance Changes
| Metric | Period | Current guidance |
|---|---|---|
| Full-year revenue | FY2026 | Reaffirmed at the lower end of the revenue guidance range |
| Adjusted EBITDA | FY2026 | Updated to $12 million-$14 million, reflecting an additional $5 million of intentional marketing investment this year |
| Revenue (comparable, ex-London) | Q3 2026 | Expected to be down single digits year-over-year |
| Revenue and adjusted EBITDA (comparable) | Q4 2026 | Expected year-over-year growth, driven by continued ramp of existing and new service offerings and marketing efforts |
| alloClae / new-procedure contribution | FY2026 | Excluded from guidance given how early these offerings are in implementation |
Performance Breakdown
| Metric | YoY | Note |
|---|---|---|
| Total revenue | -2.5% | Revenue of $42.9 million; on a same-center basis (ex-London) down ~1%, as positive 1% case growth was offset by a ~2% ASP decline. |
| Same-center case volume (ex-London) | +1% | Second consecutive quarter of year-over-year case growth, a sign of ongoing stabilization. |
| Average selling price | -2% | ASP of ~$12,700, down primarily on comparison against an unusually high ASP in the prior-year period; still within historical range. |
| Gross margin | Expanded to ~61% | Cost of services of $16.6 million; margin improvement driven by cost discipline. |
| SG&A | +~$750,000 (to ~$23.4 million) | A deliberate $1.5 million increase in marketing and brand development, partially offset by G&A efficiencies. |
| Adjusted EBITDA | -$900,000 (to $4.9 million, ~11.5% of revenue) | Lower on intentional incremental marketing investment during the quarter. |
| Customer acquisition cost | Up to ~$3,500 from ~$2,900 | Intentional top-of-funnel brand-building investment that is not yet fully optimized. |
| Operating cash flow after capex (YTD through June 30) | Up slightly | Approximately $3.8 million, modestly higher year-over-year. |
Earnings Call Themes & Trends
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| GLP-1 opportunity | Emerging growth driver targeted over prior ~18 months | Positioned as a significant long-term driver with nearly 19 million potential patients and a $100+ million long-term revenue opportunity across existing centers; increasing share of consultations are from patients on GLP-1s. | — |
| Procedure portfolio expansion | Core body contouring (fat removal/transfer) plus skin tightening and skin excision | Expanded with 200+ skin excisions completed, added upper breastoplasty and mastopexy, and announced alloClae (adipose tissue allograft) via Tiger Aesthetics, rolling into centers later this quarter. | — |
| Marketing strategy | Marketing around ~18% of revenue last year | Running ~20% of revenue year-to-date with an incremental $5 million planned this year; heavy test-and-learn approach targeting GLP-1 patients, with CAC expected to decline as investments mature. | — |
| Same-center sales trajectory | -23% in the first half of 2025 | Roughly flat year-to-date, though trends softened in June and into July amid a dynamic consumer environment. | — |
| Balance sheet and refinancing | Elevated debt entering 2025 | Gross debt down over $30 million since start of 2025 to ~$44 million; term loan maturity amended to November 2027, with multiple refinancing term sheets received and ~$24 million of liquidity. | — |
| De novo expansion | Paused during turnaround | Near-term focus remains on same-center sales; intends to resume de novo center expansion over time as balance sheet and cash flow strengthen. | — |
Q&A Summary
What market trends have you seen in July and August, and can you sustain procedure volume growth in the back half?
Management is pleased with two consecutive quarters of stability and underlying case growth, but noted trends softened in June and continued into July, attributed to executing a transformation in a choppy consumer environment. They provided extra Q3/Q4 color and remain confident the new services, marketing strategy, and cost discipline will let them finish the year with growth and at the low end of the original revenue guidance.
What is the strategic rationale for the alloClae partnership, and is AirSculpt evolving from a body-contouring business into a full aesthetics platform?
alloClae is viewed as complementary to core body contouring, extending reach to patients who lack enough fat for a traditional transfer or prefer external fat, and it can be performed in existing facilities under local anesthesia. Management said the procedure pipeline is robust and they will keep adding procedures that increase center productivity and drive same-store sales while fitting the brand.
With some employers dropping GLP-1 coverage intra-year, have you seen a case-volume headwind, and how would moderating GLP-1 uptake affect the business?
They have not seen a noticeable impact; GLP-1 adoption continues trending up and an increasing share of consultations are from GLP-1 patients. Even if adoption hiccups, the business can serve both patients dealing with GLP-1 side effects and those who forgo GLP-1s and need traditional fat removal or transfer.
What evidence shows the increased marketing spend is generating higher ROI, and what KPIs do you monitor in real time?
Management frames every marketing dollar around whether it returns more than a dollar of profit over its life rather than spending to an average, with some returns inside the quarter and some beyond it. They pointed to two consecutive quarters of stability with case growth as evidence and expect marketing to become more efficient as they learn how to reach GLP-1 customers.
How long did it take to build the alloClae capability, and was it a direct response to GLP-1 patient concerns or customer surveys?
Over the past year they mapped the universe of body-contouring procedures starting from patient needs, and had been in discussions with Tiger Aesthetics about alloClae even before it hit the market given a deep existing relationship. It solves the problem of patients lacking enough fat to transfer; they will start in a few locations, learn, then expand, guided in part by a medical advisory board.
How are you adapting marketing spend across quarters, and how are you responding to the AI-search landscape where click-through rates are low?
They take a heavy test-and-learn approach across channels, messaging, creatives, and landing pages, judging each dollar by expected profit over its life. Management acknowledged AI search overviews are creating headwinds on clicks and said they are investing in how they show up across LLMs (such as Google, OpenAI, and Claude) and in non-AI touchpoints like ratings, reviews, and word-of-mouth.
How many of the 31 centers are performing the newer procedures like skin tightening and skin removal, and how do their economics compare?
Skin tightening is available in all centers, skin removal/excision is in roughly 20 of the 31 locations and expanding based on surgeon availability and preference, and alloClae goes into pilot later this quarter. Skin tightening and removal carry gross margins similar to the core business (~60%, and ticking up), with higher tickets when combined with other procedures; alloClae will have a lower gross-margin percentage but is expected to be accretive on a gross-margin-dollar basis.
How should we expect customer acquisition cost to trend over the balance of the year given the marketing investments?
CFO Michael Arthur said CAC was about $3,500 in the quarter versus roughly $2,800-$2,900 a year ago, with a meaningful portion going to top-of-funnel brand building that does not show up in current-quarter case volume. As case volume builds and investments mature, CAC is expected to come down and marketing to trend back toward a lower percentage of revenue (around 18% last year versus ~20% year-to-date).
More on Airsculpt Technologies, Inc.
Reported 2026-08-10 · figures from the Airsculpt Technologies, Inc. Q2 2026 earnings call.
See how Top Bucket AI works for your firm
Request DemoTop Bucket AI Research
Stay ahead of private markets
Research and market intelligence for private-markets professionals.
✓
You're subscribed.
Thanks for signing up.