Core Insights - The adoption of AI agents in enterprises is experiencing significant growth, with production numbers expected to reach 1.3 billion by 2028 [1] Group 1 - The article highlights the importance of enabling customers to safely adopt AI agents across their enterprises while addressing security concerns [1]

Core Insights - The health care sector is experiencing a trend of oversold stocks, presenting potential buying opportunities for undervalued companies [1][2] Group 1: Oversold Stocks - Inotiv Inc (NASDAQ:NOTV) has an RSI of 26.7, with shares falling 33.2% to close at $0.69. The company anticipates fourth-quarter revenue between $137.5 million and $138.5 million, a 60% increase year-over-year in its Discovery and Safety Assessment services [3][8] - Airsculpt Technologies Inc (NASDAQ:AIRS) has an RSI of 29.3, with shares declining 23.8% to close at $4.17. The company reported lower-than-expected third-quarter results and reduced its FY25 revenue outlook, with a 60% drop in stock price over the past month [4][8] - Neuronetics Inc (NASDAQ:STIM) has an RSI of 23.9, with shares falling 17.1% to close at $1.65. The company cut its FY2025 sales guidance, experiencing a 40% decline in stock price over the past month [5][8]

Company Overview - AirSculpt Technologies, Inc. is a national provider of premium body contouring procedures, focusing on next-generation treatments that optimize comfort and precision [1][3] - The company's minimally invasive procedure removes fat and tightens skin, allowing for quick healing with minimal bruising and precise results [3] Leadership Appointment - Mike Doyle has been appointed as the Non-Executive Chairman of the Board of Directors, bringing over 30 years of leadership experience in the multi-center healthcare sector [1][2] - Doyle has a strong background in building successful multi-site healthcare organizations and has held several leadership positions, including CEO of Surgery Partners, where he scaled the organization from 3 to over 175 locations [2] Strategic Vision - The CEO of AirSculpt, Yogi Jashnani, expressed enthusiasm about Doyle's appointment, highlighting his experience in partnering with surgeons and developing new centers and service lines as the company enters a new phase of transformation [2] - Doyle emphasized his excitement to work with the management team to capture new market opportunities and create value for all stakeholders [2]

Financial Performance - Revenue for the three months ended September 30, 2025, was $34.993 million, a decrease of 17.6% compared to $42.548 million for the same period in 2024[17]. - Net loss for the three months ended September 30, 2025, was $9.512 million, compared to a net loss of $6.040 million for the same period in 2024, representing a 57.5% increase in loss[24]. - Comprehensive loss for the three months ended September 30, 2025, was $9.949 million, compared to $5.834 million for the same period in 2024, an increase of 70.5%[24]. - For the nine months ended September 30, 2025, the company reported a net loss of $12.95 million, compared to a net loss of $3.22 million for the same period in 2024[30]. - Adjusted net loss for the three months ended September 30, 2025, was $2.4 million, with an Adjusted net loss per share of $0.04[124]. - Basic loss per share for the three months ended September 30, 2025, was $0.15, compared to $0.10 for the same period in 2024[87]. Assets and Liabilities - Total current assets decreased to $12.218 million as of September 30, 2025, from $17.117 million as of December 31, 2024, a decline of 28.7%[15]. - Total liabilities increased to $103.815 million as of September 30, 2025, from $130.706 million as of December 31, 2024, reflecting a 20.5% increase[15]. - The company reported an accumulated deficit of $40.752 million as of September 30, 2025, compared to $27.802 million as of December 31, 2024, an increase of 46.5%[15]. - Total debt, net as of September 30, 2025, was $56.913 million, down from $69.706 million as of December 31, 2024, indicating a reduction of approximately 18.3%[71]. - The company had a working capital deficit of $(11.9) million as of September 30, 2025, compared to $(11.5) million at December 31, 2024[158]. Cash Flow and Expenses - Cash and cash equivalents decreased to $5.405 million as of September 30, 2025, from $8.235 million as of December 31, 2024, a decline of 34.5%[15]. - Net cash provided by operating activities was $5.63 million for the nine months ended September 30, 2025, a decrease of 34.8% from $8.64 million in 2024[30]. - Net cash used in investing activities was $2.3 million for the nine months ended September 30, 2025, significantly lower than $10.5 million in 2024[159]. - Operating expenses for the three months ended September 30, 2025, were $44.743 million, slightly down from $46.264 million in the same period of 2024, a decrease of 3.3%[17]. - Selling, general and administrative expenses decreased by $6.0 million, or 23.4%, to $19.525 million for the three months ended September 30, 2025, accounting for 55.8% of revenue[138]. Impairment and Charges - The company recorded a loss on impairment of long-lived assets amounting to $7.137 million during the third quarter of fiscal year 2025[21]. - The company recorded a loss on impairment of long-lived assets amounting to $7.25 million for the nine months ended September 30, 2025, compared to only $4,000 in the prior year[30]. - An impairment charge of $4.6 million was recorded for a portion of the Salesforce software implementation project as of September 30, 2025[44]. - The company closed its facility in the United Kingdom, resulting in a loss of $2.3 million related to impairment of property, plant, and equipment[43]. Equity and Offerings - The Company completed an underwritten follow-on equity offering on June 11, 2025, raising net proceeds of approximately $13.8 million from the sale of 3,634,000 shares[82]. - The Company has an at-the-market offering program with a potential aggregate offering price of up to $50.0 million, which is part of a larger $100.0 million registration statement[84]. - The company filed a Registration Statement covering an aggregate initial offering price not to exceed $100.0 million for various securities to enhance liquidity[153]. Operational Highlights - For the three months ended September 30, 2025, the company performed 2,780 cases, representing an 18% decline in revenue to approximately $35.0 million compared to the same period in 2024[105]. - Same-center case growth for the three months ended September 30, 2025, declined by 20.5% compared to the same period in 2024[116]. - The company has implemented a cost reduction program expected to eliminate approximately $3.0 million in annual overhead costs[108]. - The company plans to enhance customer experience and expand consumer financing offerings in fiscal year 2026[113]. - The company aims to focus on new product innovation and introduce new services to expand customer reach and generate incremental revenues[113]. Tax and Compliance - The effective tax rate for the nine months ended September 30, 2025, was approximately 14.5%, compared to (38.5)% for the same period in 2024[55]. - The effective tax rate for the three months ended September 30, 2025, was 14.7%, compared to (13.8)% for the same period in 2024[89]. Internal Controls and Legal Matters - The company is classified as an "emerging growth company" and may not be required to provide certain disclosures for up to five years post-IPO[179]. - As of September 30, 2025, the company's management concluded that its disclosure controls and procedures were effective at a reasonable assurance level[183]. - The management recognizes inherent limitations in internal controls, which may not prevent or detect all misstatements[185]. - The company is subject to ordinary legal proceedings that are not expected to materially affect its financial condition or results of operations[189]. - There were no material changes to the risk factors disclosed in the Annual Report for the year ended December 31, 2024[190].

Financial Data and Key Metrics Changes - Revenue for Q3 was $35 million, a decline of 17.8% compared to the prior year quarter, with same-store revenue down approximately 22% [13] - Cases declined 15.2% to 2,780, with same-store cases down approximately 20% [13] - Average revenue per case was $12,587, a decline of approximately 3% from the prior year quarter [14] - Adjusted EBITDA was $3 million, down from $4.7 million in the prior year quarter, with an adjusted EBITDA margin of 8.7% compared to 11% [15] - Net loss for the quarter was $9.5 million, with an adjusted net loss of $2.4 million, or $0.04 per diluted share [15] Business Line Data and Key Metrics Changes - The introduction of skin tightening services has seen a lift in demand, but many clients require additional procedures for loose skin beyond what skin tightening can address [8][26] - The company is expanding its service offerings to include skin excisions and removals, which are currently in pilot [26] Market Data and Key Metrics Changes - Global GLP-1 prescriptions have grown at approximately 38% annually between 2022 and 2024, with total sales expected to reach $100 billion by 2030 [6] - 63% of GLP-1 patients are seeking aesthetic treatments post-use, indicating a new consumer base for the company [7] Company Strategy and Development Direction - The company is focusing on three key areas: introducing new services to capture the GLP-1 opportunity, enhancing sales and marketing strategies, and maintaining financial discipline [4][12] - The strategy includes adapting marketing spend to align with revenue trends and prioritizing initiatives that drive higher conversion rates [8] Management's Comments on Operating Environment and Future Outlook - Management noted that while Q3 revenue was lower than expected, it reflects timing rather than a change in business trajectory [4] - The company updated its annual outlook, expecting 2025 revenue of approximately $153 million, down from previous guidance of $160 million to $170 million [10][19] Other Important Information - The company announced the appointment of Michael Arthur as the new CFO starting January 2026, succeeding Dennis Dean [11] - The closure of the London center was confirmed as part of a strategic review, as it was the only unprofitable center [10][17] Q&A Session Summary Question: Can you elaborate on the cost-cutting measures taken by line and their sustainability? - Management indicated that cost controls have primarily focused on SG&A, with ongoing efforts to identify additional savings [22][23] Question: What is the uptake of the standalone skin tightening service and plans for expansion? - Management noted that while demand for skin tightening is evident, many clients require additional procedures, leading to the introduction of skin excisions [25][26] Question: What happened regarding the timing issue in Q3? - Management explained that while leads and consultations remained strong, consumer hesitance to purchase impacted revenue [31][32] Question: How will marketing strategies shift to target the GLP-1 user segment? - Management confirmed that messaging will be tailored to GLP-1 users, focusing on addressing loose skin and uneven weight loss [34][36]

Financial Data and Key Metrics Changes - Revenue for Q3 was $35 million, a 17.8% decline compared to the prior year quarter, with same-store revenue down approximately 22% [13] - Cases declined 15.2% to 2,780, with same-store cases down approximately 20% [13] - Average revenue per case was $12,587, a decline of approximately 3% from the prior year quarter [14] - Adjusted EBITDA was $3 million, down from $4.7 million in the prior year quarter, with an adjusted EBITDA margin of 8.7% compared to 11% [15] - Net loss for the quarter was $9.5 million, with an adjusted net loss of $2.4 million, or $0.04 per diluted share [15] Business Line Data and Key Metrics Changes - The introduction of skin tightening services has seen a lift in demand, but many clients require additional procedures for loose skin beyond what skin tightening can address [6][7] - The company is expanding its service offerings to include skin excisions and removals, which are currently in pilot [25][26] Market Data and Key Metrics Changes - Global GLP-1 prescriptions have grown at roughly 38% annually between 2022 and 2024, with total sales expected to reach $100 billion by 2030 [5] - 63% of GLP-1 patients are seeking aesthetic treatments post-use, indicating a new consumer base for the company [6] Company Strategy and Development Direction - The company is focusing on three key areas: introducing new services to capture the GLP-1 opportunity, enhancing sales and marketing strategies, and maintaining financial discipline [4][11] - A strategic review led to the closure of the unprofitable London center, allowing resources to be redirected to North America locations [9] Management's Comments on Operating Environment and Future Outlook - Management noted that while Q3 revenue was lower than expected, it reflects timing rather than a change in business trajectory, with improving same-store sales trends anticipated for Q4 [9][32] - The company updated its annual outlook, expecting 2025 revenue of approximately $153 million, down from previous guidance of $160 million-$170 million [9][19] Other Important Information - Michael Arthur will join as Chief Financial Officer in January 2026, succeeding Dennis Dean, who will retire [10] - Dr. Aaron Rollins resigned from the board for personal reasons, with no disagreements reported [10] Q&A Session Summary Question: Can you elaborate on the cost-cutting measures taken by line and their sustainability? - Management indicated that cost controls have primarily focused on SG&A, with ongoing efforts to identify additional savings [21][22] Question: What is the uptake for the standalone skin tightening service and plans for expansion? - Management noted that demand for solutions addressing loose skin is evident, with plans to pilot skin excisions and expand services across centers [24][25] Question: What were the timing issues affecting Q3 performance? - Management explained that while leads and consultations remained strong, consumer hesitance to convert from interest to purchase impacted revenue [30][31] Question: How will marketing strategies shift to target the GLP-1 user segment? - Management confirmed that messaging will be tailored to GLP-1 users, focusing on addressing loose skin and uneven weight loss [33][35]

Financial Data and Key Metrics Changes - Revenue for Q3 was $35 million, a decline of 17.8% compared to the prior year quarter, with same-store revenue down approximately 22% [13] - Cases declined 15.2% to 2,780, with same-store cases down approximately 20% [13] - Average revenue per case was $12,587, a decline of approximately 3% from the prior year quarter [14] - Adjusted EBITDA was $3 million, down from $4.7 million in the prior year [15] - Net loss for the quarter was $9.5 million, with an adjusted net loss of $2.4 million, or $0.04 per diluted share [15] Business Line Data and Key Metrics Changes - The introduction of skin tightening services has seen a lift in demand, although many clients require additional procedures for loose skin [8][26] - The company is expanding its service offerings to include skin excisions to address the needs of patients with loose skin post-weight loss [26] Market Data and Key Metrics Changes - Global GLP-1 prescriptions have grown at roughly 38% annually between 2022 and 2024, with total sales expected to reach $100 billion by 2030 [5] - 63% of GLP-1 patients are seeking aesthetic treatments post-use, indicating a new consumer base for the company [6] Company Strategy and Development Direction - The company is focusing on three key areas: introducing new services to capture the GLP-1 opportunity, enhancing sales and marketing strategies, and maintaining financial discipline [4][12] - The strategy includes adapting marketing spend to align with revenue trends and prioritizing initiatives that drive higher conversion rates [8] Management's Comments on Operating Environment and Future Outlook - Management noted that while Q3 revenue was lower than expected, it reflects timing rather than a change in business trajectory [4] - The company updated its annual outlook, expecting 2025 revenue of approximately $153 million, down from previous guidance of $160 million to $170 million [10][19] Other Important Information - The company announced the appointment of Michael Arthur as the new Chief Financial Officer starting January 2026 [11] - The closure of the London center was confirmed as part of a strategic review, as it was the only unprofitable center [10][17] Q&A Session Summary Question: Can you elaborate on the cost-cutting measures taken and their sustainability? - Management indicated that cost controls have primarily focused on SG&A expenses, with ongoing efforts to identify additional savings [22][23] Question: What is the uptake of the standalone skin tightening service and future service additions? - Management noted that while demand for skin tightening is evident, many clients require additional procedures, leading to the introduction of skin excisions [25][26] Question: What were the timing issues affecting Q3 performance? - Management explained that despite strong leads and consultations, consumer hesitance in making purchases impacted revenue, but Q4 trends are improving [29][31]

Core Insights - AirSculpt Technologies, Inc. (AIRS) reported a quarterly loss of $0.04 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.01, marking a 300.00% earnings surprise [1] - The company generated revenues of $34.99 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 12.73% and down from $42.55 million year-over-year [2] - AirSculpt Technologies has outperformed the S&P 500 with a 102.1% increase in share price since the beginning of the year, compared to the S&P 500's 14.3% gain [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is breakeven on revenues of $39.44 million, while for the current fiscal year, it is -$0.01 on revenues of $162.93 million [7] - The estimate revisions trend for AirSculpt Technologies was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Technology Services industry, to which AirSculpt Technologies belongs, is currently in the top 33% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential trading opportunities before the market opens [1] Premarket Gainers - Motorsport Games Inc. (MSGM) has seen a substantial increase of 122%, trading at $4.88 [3] - Globus Medical, Inc. (GMED) is up 27%, currently priced at $78.75 [3] - JFrog Ltd. (FROG) has risen by 26%, trading at $59.60 [3] - FIGS, Inc. (FIGS) is up 19%, with a trading price of $8.97 [3] - Organogenesis Holdings Inc. (ORGO) has increased by 18%, trading at $4.59 [3] - PureCycle Technologies, Inc. (PCT) is up 17%, currently priced at $11.31 [3] - Expedia Group, Inc. (EXPE) has risen by 16%, trading at $255.10 [3] - 10x Genomics, Inc. (TXG) is up 13%, currently priced at $14.72 [3] - Abacus Global Management, Inc. (ABL) has increased by 12%, trading at $5.95 [3] - GigaCloud Technology Inc. (GCT) is up 9%, currently priced at $27.80 [3] Premarket Losers - Davis Commodities Limited (DTCK) has experienced a significant decline of 65%, trading at $2.23 [4] - Eledon Pharmaceuticals, Inc. (ELDN) is down 46%, currently priced at $2.19 [4] - Treace Medical Concepts, Inc. (TMCI) has decreased by 35%, trading at $4.00 [4] - Energys Group Limited (ENGS) is down 30%, currently priced at $2.77 [4] - Intellia Therapeutics, Inc. (NTLA) has seen a decline of 27%, trading at $8.89 [4] - Fox Factory Holding Corp. (FOXF) is down 24%, currently priced at $16.60 [4] - Opendoor Technologies Inc. (OPEN) has decreased by 24%, trading at $4.94 [4] - AirSculpt Technologies, Inc. (AIRS) is down 21%, currently priced at $8.27 [4] - Power Solutions International, Inc. (PSIX) has seen a decline of 20%, trading at $64.25 [4] - ClearPoint Neuro, Inc. (CLPT) is down 17%, currently priced at $15.00 [4]

Compensation and Benefits - Executive's annual base salary is set at $400,000, payable in equal installments[13] - Executive is eligible for an annual target cash performance bonus of 50% of the salary, based on performance criteria[14] - A sign-on bonus of $100,000 will be provided, with $50,000 paid on the next payroll date and the remaining $50,000 by March 15, 2026[15] - Executive will receive an equity award consisting of $300,000 in restricted stock units (RSUs) and $300,000 in performance-based restricted stock units (PSUs)[17] - The RSUs will vest over three years, with one-third vesting each year[17] - The PSUs are tied to a total shareholder return performance goal relative to the S&P Health Care Select Industry Index[17] - Executive will be eligible for customary retirement and welfare benefits available to executives[20] Employment Terms - Executive will commence employment as Chief Financial Officer on January 5, 2026[4] - The employment relationship is "at-will," allowing termination by either party at any time[12] - Executive's principal office location is in Miami, Florida, with the option to work remotely from Denver, Colorado[10] Termination and Severance - The Company will pay accrued but unpaid Salary for services rendered prior to the Termination Date, which must be paid on or before the time required by law[26] - In the event of termination without Cause, the Executive will receive a lump sum payment equal to the sum of the Executive's annual Salary plus the target Bonus, payable on the next regular pay date following the effective Release[37] - If the Executive was participating in the Company's health plans prior to termination, the Company will pay a monthly amount equal to the employer contribution for health insurance for up to twelve months following termination[38] - All unvested RSUs granted to the Executive will immediately become 100% vested upon termination without Cause or resignation for Good Reason during the Change in Control Period[39] - The Company must provide written notice to the Executive specifying the acts or omissions that constitute "Cause" before termination can occur[29] - The Executive is entitled to receive any Bonus earned in respect of a prior completed year that has not yet been paid upon termination[37] - The Company will continue to pay the Executive's Salary in equal installments over nine months following termination without Cause[29] - Severance Payments require the execution of a separation agreement and general release within 60 days of termination[45] Change in Control - A Change in Control is defined as any person owning more than 50% of the combined voting power of the Company's outstanding securities[40] - The term "Change in Control" includes scenarios where stockholders do not own more than 50% of the combined voting power after a merger or similar transaction[41] - A sale or disposition of all or substantially all assets does not constitute a Change in Control if the acquiring entity is owned by the stockholders of the Company in the same proportions[42] Tax and Legal Compliance - The Company will reimburse the Executive for taxes payable on any portion of payments treated as nondeductible taxable income[38] - The Agreement is intended to comply with Section 409A of the Internal Revenue Code, ensuring no additional tax penalties for the Executive[68] - The Company and Executive must execute amendments to ensure compliance with Section 409A as mutually agreed[68] - The Company will cooperate in determining any parachute payments to avoid excise tax implications under Section 280G of the Code[74] - The Company will provide the Executive with an estimate of any parachute payments prior to a change in ownership[74] Confidentiality and Non-Compete - Confidential Company Information includes financial data, operational plans, and customer information, which the Executive agrees to protect and not use for personal benefit[97][100] - Employee must safeguard Confidential Company Information and return all related materials upon termination of employment[104] - Employee agrees to a non-competition clause for 12 months post-termination, prohibiting engagement with Competing Businesses[114] - Employee is restricted from soliciting or inducing Company employees or customers for 6 months post-termination[115] - Employee must keep the terms of the Agreement confidential, with limited disclosure allowed[105] General Provisions - The Agreement supersedes any prior agreements regarding the Executive's employment and obligations[76] - The Agreement constitutes the entire agreement between the parties, superseding all previous understandings[129] - Amendments to the Agreement require written consent from both Employee and the Company[130] - Notices under the Agreement must be in writing and delivered through specified methods[133] - Employee acknowledges understanding of the Agreement and has had the opportunity to consult with legal counsel[135] - The Agreement may be executed in multiple counterparts, each considered an original[134] Intellectual Property - Employee agrees to disclose all Covered Contributions and Inventions promptly to the Company[109] - All Covered Contributions and Inventions will belong solely to the Company from conception[111] - Employee will assist the Company in obtaining and enforcing intellectual property protections for Covered Contributions and Inventions[112] Release and Indemnification - The Executive acknowledges that any claims arising from employment or termination are released, except for vested compensation or benefits[83] - The General Release allows the Executive to revoke the agreement within seven days of signing[89] - The Company has entered into an indemnification agreement for directors and officers, ensuring coverage under liability insurance during and after the Executive's term[75] - Employee agrees to cooperate with the Company in defense of claims and provide information as needed[121] - Employee's obligations under the Agreement continue regardless of changes in title, position, or termination of employment[123] - The Company has the right to assign the Agreement to its successors and assigns, including asset purchasers[123] - Employee must provide a copy of the Agreement to any prospective employer during the Restricted Period[124] - Any unenforceable provisions of the Agreement will be limited to the extent deemed enforceable by a court[128]