Financial Data and Key Metrics Changes - In Q4 2025, revenue was $33.4 million, down approximately 15% year-over-year, with same-store revenue declining 16% [14] - For the full year 2025, total revenue was $151.8 million, a decrease of approximately 15.8% compared to fiscal 2024 [15] - Adjusted EBITDA for Q4 was $2.5 million, representing a margin of 7.4%, an increase of $0.6 million and 2.8% margin expansion year-over-year [15] - Full year adjusted EBITDA was approximately $15 million, resulting in an adjusted EBITDA margin of approximately 10% [15] Business Line Data and Key Metrics Changes - The company reported improvements in lead and consult volumes, which have continued into 2026, contributing to improved revenue trends [5] - Over 100 skin removal surgeries were completed in Q4 2025, with expectations for ramp-up in 2026 as capabilities expand across all locations [8] Market Data and Key Metrics Changes - The skin tightening and skin removal market is projected to be as large as fat removal, representing a long-term sales opportunity exceeding $100 million [7] - The percentage of patients using financing for procedures was approximately 50% [14] Company Strategy and Development Direction - The company is focused on introducing new services to capture the GLP-1 market opportunity, enhancing sales and marketing strategies, and maintaining strong financial discipline [6] - Strategic exit from the only clinic outside North America was made to streamline operations [5] - The company aims to build on momentum and drive disciplined growth to create shareholder value [10] Management's Comments on Operating Environment and Future Outlook - Management noted that 2025 was a year of rebuilding and transformation, with same-store sales improving from down 22% at the start of 2025 to positive in February 2026 [5] - The company expects revenue in 2026 to range from $151 million to $157 million, reflecting approximately 3% comparable growth [17] - Management expressed confidence in the full-year outlook, citing improved trends and a focus on execution [22] Other Important Information - The company paid down $19 million of debt in 2025, with gross debt outstanding at $56 million at year-end [16] - A reconciliation matter related to intercompany transactions was identified, leading to immaterial changes in prior year balances, but had no impact on revenue or cash [13] Q&A Session Summary Question: Guidance for 1Q indicates a slight decline year-over-year, while full year 2026 revenue is expected to be up slightly. What is causing this change in seasonality? - Management acknowledged improved trends and emphasized the need for consistent results to meet guidance [22] Question: Can you provide insights on body sculpting trends outside of GLP-1 related procedures? - Management noted that the core business around body contouring and fat removal is holding steady, with GLP-1s expected to drive future demand [23] Question: What feedback have you received from customers and surgeons regarding excisional procedures? - Management reported positive early results from patients and comfort among surgeons, with plans to ramp up procedures throughout the year [27] Question: How should capital allocation be viewed going forward regarding debt pay down versus investments? - Management indicated that the priority remains on maintaining a healthy balance sheet while also investing back into the business for growth initiatives [29]

Financial Data and Key Metrics Changes - In Q4 2025, revenue was $33.4 million, down approximately 15% year-over-year, with same-store revenue declining 16% [14] - For the full year 2025, total revenue was $151.8 million, a decrease of approximately 15.8% compared to fiscal 2024 [15] - Adjusted EBITDA for Q4 was $2.5 million, representing a margin of 7.4%, an increase of $0.6 million and 2.8% margin expansion year-over-year [15] - Full year adjusted EBITDA was approximately $15 million, resulting in an adjusted EBITDA margin of approximately 10% [15] Business Line Data and Key Metrics Changes - The company reported improvements in lead and consult volumes, contributing to better revenue trends moving into 2026 [5] - Over 100 skin removal surgeries were completed in Q4 2025, with expectations for ramp-up in 2026 as capabilities expand across all locations [8] Market Data and Key Metrics Changes - The skin tightening and skin removal market is projected to be as large as fat removal, representing a long-term sales opportunity exceeding $100 million [7] - The percentage of patients using financing for procedures was approximately 50% [14] Company Strategy and Development Direction - The company is focusing on introducing new services to capture the GLP-1 market opportunity, enhancing sales and marketing strategies, and maintaining strong financial discipline [6] - Strategic exit from the only clinic outside North America was made to streamline operations [5] - The company aims to build on momentum and drive disciplined growth to create shareholder value [10] Management's Comments on Operating Environment and Future Outlook - Management noted that 2025 was a year of rebuilding and transformation, with same-store sales improving from down 22% at the start of 2025 to positive in February 2026 [5] - The company expects revenue in 2026 to range from $151 million to $157 million, reflecting approximately 3% comparable growth [17] - Management acknowledged the need to monitor the helium plasma supply situation due to geopolitical issues affecting skin tightening procedures [18] Other Important Information - The company paid down $19 million of debt in 2025, with gross debt outstanding at $56 million at year-end [16] - Cash flow from operations for the year was $3.1 million, down from $11.4 million in fiscal 2024 [17] Q&A Session Summary Question: Guidance for 1Q indicates a slight decline year-over-year, while full year 2026 revenue is expected to be up slightly. What is causing this change in seasonality? - Management indicated that trends have improved significantly, and they are focused on execution to ensure they meet their numbers [22] Question: Can the company isolate market trends for the core business outside of GLP-1 related procedures? - Management noted that the core business around body contouring and fat removal is holding steady, with GLP-1 being the next wave of change [23] Question: What feedback has the company received regarding excisional procedures from the pilot phase? - Management reported excellent results from patients and comfort from surgeons, with plans to ramp up procedures as the year progresses [27] Question: How should capital allocation be viewed going forward regarding debt pay down versus business investment? - Management emphasized the priority of maintaining a healthy balance sheet while also investing back into the business for growth initiatives [29]

Financial Data and Key Metrics Changes - In Q4 2025, revenue was $33.4 million, down approximately 15% year-over-year, with same-store revenue declining 16% [14] - For the full year 2025, total revenue was $151.8 million, a decrease of approximately 15.8% compared to fiscal 2024 [15] - Adjusted EBITDA for Q4 was $2.5 million, representing a margin of 7.4%, an increase of $0.6 million and 2.8% margin expansion year-over-year [15] - Full year adjusted EBITDA was approximately $15 million, resulting in an adjusted EBITDA margin of approximately 10% [15] Business Line Data and Key Metrics Changes - The company reported improvements in same-store sales, which improved from down 22% at the start of 2025 to positive growth in February 2026 [5] - Over 100 skin removal surgeries were completed in Q4 2025, with expectations for ramp-up in 2026 as capabilities expand across all locations [8] Market Data and Key Metrics Changes - The skin tightening and skin removal market is projected to be as large as fat removal, representing a long-term sales opportunity exceeding $100 million [7] - The percentage of patients using financing for procedures was approximately 50% [14] Company Strategy and Development Direction - The company is focusing on introducing new services to capture the GLP-1 market opportunity, enhancing sales and marketing strategies, and maintaining strong financial discipline [6] - Strategic exit from the only clinic outside North America was made to streamline operations [5] - The company aims to build on momentum and drive disciplined growth to create shareholder value [10] Management's Comments on Operating Environment and Future Outlook - Management noted that 2025 was a year of rebuilding and transformation, with a focus on stabilizing the core business and improving operational performance [5] - For 2026, the company expects revenue in the range of $151 million to $157 million, reflecting approximately 3% comparable growth [17] - Management expressed confidence in the full-year outlook, citing improved trends and a focus on execution [21] Other Important Information - The company paid down $19 million of debt in 2025, with gross debt outstanding at $56 million at year-end [16] - A reconciliation matter related to intercompany transactions was identified, leading to immaterial changes in prior year balances, but had no impact on revenue or cash [13] Q&A Session Summary Question: Guidance for 1Q indicates a slight decline year-over-year, while full year 2026 revenue is expected to be up slightly. What is causing this change in seasonality? - Management acknowledged improved trends and emphasized the need for consistent results to meet guidance [21] Question: Can the company isolate market trends for the core business outside of GLP-1 related procedures? - Management noted that the core business around body contouring and fat removal is holding steady, with GLP-1s expected to drive future demand [22] Question: Feedback on excisional procedures pilot and plans for broader rollout? - Management reported excellent results from the pilot, with positive feedback from patients and surgeons, and plans to ramp up procedures throughout the year [25] Question: Thoughts on capital allocation and debt pay down strategy? - Management indicated that the priority remains on maintaining a healthy balance sheet, with plans to refinance debt while investing back into the business [28]

Company Overview - AirSculpt Technologies, Inc. is an industry leader in premium body contouring procedures, focusing on next-generation treatments that optimize comfort and precision [3]. Financial Results Announcement - AirSculpt will report its fourth quarter and fiscal year 2025 financial results on April 2, 2026, before market open, followed by a conference call at 8:30 a.m. Eastern Time [1]. Conference Call Details - The conference call can be accessed via a toll-free domestic number or an international number, using the conference ID 13758597, and a live webcast will be available on the company's investor relations website [2].

Financial Performance - For the year ended December 31, 2025, the company generated $151.8 million in revenue, a decline of approximately 15.8% compared to $180.4 million in 2024[19] - For the year ended December 31, 2025, the company reported approximately $152 million in revenue, a decline of approximately 15.8% compared to $180 million in 2024[34] - Average revenue per case in 2025 was $12,809, with a requirement for 100% private pay upfront, eliminating reimbursement risk[32] - Selling expenses for 2025 were approximately $36.9 million, representing about 24.3% of total revenue[52] - Customer acquisition costs were approximately $3,114 per customer in 2025[52] - Total advertising costs for 2025 were $27.3 million, with approximately 90% allocated to digital advertising[51] Market Dynamics - The addressable market for body fat reduction procedures was estimated to be $11 billion in 2022, with a projected compound annual growth rate of 9% through 2027[20] - The increasing use of weight-loss drugs may lead to higher demand for body contouring and skin tightening procedures, indicating a shift in market dynamics[21] - Increased market acceptance of weight-loss drugs may lead to higher demand for body contouring and skin tightening procedures, although long-term impacts remain uncertain[21] - The company aims to enhance brand awareness and attract new patients, capitalizing on the growing acceptance of body contouring and cosmetic treatments[35] Operational Scale and Innovation - The company performed 11,852 body contouring procedures in 2025, showcasing its operational scale and market presence[18] - The introduction of new procedures, such as AirSculpt + and AirSculpt Smooth, reflects the company's commitment to innovation in body contouring[18] - In fiscal year 2025, the company focused on new product innovation, including the introduction of new services like the skin tightening procedure and the Hip Flip® and CankCure®[35] - The proprietary AirSculpt method allows for minimally invasive fat removal and skin tightening, differentiating the company from traditional procedures[25] - The AirSculpt procedure is designed to be minimally invasive, requiring no needle, scalpel, stitches, or general anesthesia, which differentiates it from traditional liposuction[38] Geographic Presence - The company operates 31 centers across 20 U.S. states and Canada, enhancing its geographical reach and patient access[18] - As of March 31, 2026, the company operates 31 centers across 20 U.S. states and Canada, generating an average revenue per case of $12,809 in 2025[32] - The company aims to expand its footprint with over 200 potential locations identified in North America, although new center openings are currently on hold to improve liquidity[37] - The company’s centers typically range from 3,000 to 5,000 square feet and are staffed by independent surgeons and support personnel, operating six days a week[49] Human Resources and Talent Acquisition - Surgeons at the company are compensated competitively, often earning more than the average full-time salary in private practice, which aids in attracting top talent[30] - The company employs approximately 330 full-time employees and 33 part-time employees, with contracts with about 90 surgeons as of December 31, 2025[74] - Each Professional Association contracts with surgeons, who are paid a percentage of the professional fees collected, typically ranging from 40% to 60%[62] - The company faces competition for high-quality surgeons and professionals in the body contouring and cosmetic surgery industry[64] Compliance and Regulatory Environment - The company has structured its operations to comply with healthcare laws and regulations, but acknowledges potential risks from evolving interpretations of these laws[67] - The company acknowledges the potential impact of regulatory changes on its business structure and operations[67] - The company operates under strict state laws that prohibit non-physicians from practicing medicine, which could impact its operational structure[71] - The company emphasizes the importance of maintaining necessary licenses and accreditations for its centers to operate profitably[69] - The company seeks accreditation from The Joint Commission for all its centers, demonstrating its commitment to safety and quality in patient care[69] Marketing and Customer Engagement - The company plans to optimize marketing investments to enhance efficiency and drive sustainable revenue growth through data-driven insights[53] - The company generated over 625,000 monthly website visits through optimized digital marketing efforts[37] - Approximately 50% of cases in 2025 involved patients securing third-party financing, enhancing affordability and customer accessibility[54] - Approximately 50% of cases in 2025 involved patients securing third-party financing, indicating a focus on expanding consumer financing options[54] Intellectual Property - The company's patent portfolio includes multiple issued and pending patents, underscoring its focus on protecting innovative technologies in body contouring[28] - The company has a patent portfolio consisting of two issued U.S. utility patents and one pending application, with expectations for patents to expire in 2033 or later[55] - The company’s patent portfolio includes two issued U.S. utility patents and several pending applications, supporting its proprietary technology in body contouring[28] Business Structure and Agreements - The company has entered into long-term Management Services Agreements (MSAs) with Professional Associations, typically with an initial term of 10 years, which automatically renew for successive 5-year terms[63] - The company has established Continuity Agreements with Surgeon Owners to ensure operational stability and continuity within its Professional Associations[65] - The company has entered into Continuity Agreements to ensure the stability of Professional Associations, which include provisions for ownership transfer under specific circumstances[65] Company History - The company was founded in 2012 and reorganized in 2018, completing its IPO on October 28, 2021[77]

Core Insights - Palo Alto Networks has launched Prisma® AIRS™ 3.0, enhancing its AI security platform to secure the entire Agentic AI lifecycle, allowing enterprises to transition from observing AI interactions to authorizing autonomous execution [1][2]. Group 1: Product Features and Capabilities - Prisma AIRS 3.0 addresses systemic security challenges associated with AI-powered enterprises, including unmanaged Shadow AI and agentic identity risks, by providing visibility and security from design to runtime [2][3]. - The platform replaces fragmented point solutions with a comprehensive system to manage threats and risks related to AI applications and autonomous agents, enabling organizations to future-proof their operations [3]. - New capabilities include the ability to inventory AI agents across various environments, assess AI agent risks continuously, and protect AI ecosystems in real-time at scale [7]. Group 2: Industry Context and Collaboration - The shift towards agentic AI necessitates overcoming visibility and control challenges, with organizations needing to understand agent locations, data access, and post-deployment behaviors [4]. - Collaboration with Accenture Cybersecurity aims to help enterprises enforce consistent security measures, allowing for secure scaling of agentic AI [4].

Core Insights - Chernett Jorey, a significant shareholder, purchased 77,702 shares of AirSculpt Technologies at $2.64 per share, increasing his total holdings to 6,753,761 shares, indicating confidence in the company despite market challenges [1][6] - AirSculpt has received a Buy rating despite a 70% decline in its stock price, attributed to attractive valuation and increased buying volume, although the company faces near-term revenue softness [2] - The company is focusing on profitable segments, particularly targeting GLP-1 users, to drive future growth [2][6] Financial Metrics - AirSculpt has a negative price-to-earnings (P/E) ratio of approximately -9.54, indicating it is not currently profitable, while the price-to-sales ratio is about 1.13 [3] - The enterprise value to sales ratio is around 1.63, but the enterprise value to operating cash flow ratio is notably high at approximately 30.79, indicating low operating cash flow compared to its enterprise value [4] - The debt-to-equity ratio is about 1.03, reflecting a moderate level of debt, while the current ratio of approximately 0.51 suggests potential liquidity challenges [5]

Group 1 - AirSculpt Technologies, Inc. (AIRS) was upgraded to a Buy in October of the previous year due to improving fundamentals [1] - The company operates as a holding company along with its subsidiaries [1] Group 2 - The investment strategy focuses on buying undervalued profitable stocks with strong balance sheets and minimal debt [1] - Additional income is generated by writing calls against positions when opportunities arise [1] - Risk management is implemented through position sizing and the use of trailing stop losses over time [1]

Core Viewpoint - Johnson Fistel, PLLP is investigating potential claims on behalf of investors of AirSculpt Technologies, Inc. due to significant losses reported by the company, focusing on whether these losses can be recovered under federal securities laws [1][4]. Financial Performance - On November 7, 2025, AirSculpt reported a revenue decline of approximately 17.8% year-over-year, totaling around $35 million [3]. - The company experienced a case volume decline of approximately 15.2% year-over-year and a same-store revenue decline of approximately 22% [3]. - AirSculpt reported a net loss of approximately $9.5 million for the third quarter of 2025 [3]. Market Reaction - Following the earnings call where management acknowledged that third quarter revenue was lower than anticipated, the stock price of AirSculpt Technologies declined significantly [4]. Legal Investigation - Johnson Fistel is investigating whether AirSculpt Technologies complied with federal securities laws in light of the financial disclosures and subsequent stock price decline [4].

Financial Performance - AirSculpt Technologies, Inc. announced preliminary, unaudited financial information for Q4 and full fiscal year 2025 on March 16, 2026[4] - The company provided an update on current revenue trends for 2026, indicating a focus on growth[4] - The press release is attached as Exhibit 99.1, which includes detailed financial data[5]