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Financial Performance - Revenue for Q1 2025 was $39.371 million, a decrease of 17% compared to $47.620 million in Q1 2024[18] - The net loss for Q1 2025 was $2.847 million, compared to a net income of $6.029 million in Q1 2024, reflecting a significant decline in profitability[18] - Adjusted net loss for the three months ended March 31, 2025, was $1.1 million, compared to an adjusted net income of $1.9 million for the same period in 2024[123] - For the three months ended March 31, 2025, the company generated approximately $39.4 million in revenue, a decline of approximately 17% compared to $47.6 million for the same period in 2024[101] - The company reported a net loss of $2.847 million for Q1 2025, compared to a net income of $6.029 million in Q1 2024[112] Expenses and Costs - Operating expenses increased to $40.960 million in Q1 2025, up from $36.608 million in Q1 2024, primarily due to a rise in selling, general, and administrative expenses[18] - Selling, general and administrative expenses increased by $6.0 million, or 38.2%, for the three months ended March 31, 2025, with selling expenses decreasing to approximately $9.6 million from $11.2 million[126][127] - Cost of service decreased by $2.1 million, or 11.6%, compared to the same period in 2024, with cost of service as a percentage of revenue at 40.5% for 2025 and 37.9% for 2024[125] - The company incurred rent expenses of $1.8 million for medical office suites in Q1 2025, compared to $1.5 million in Q1 2024[76] Cash and Liquidity - Cash and cash equivalents decreased to $5.553 million as of March 31, 2025, down from $8.235 million at the end of 2024[15] - The Company maintains cash balances that may exceed the amount covered by the Federal Deposit Insurance Corporation, with no losses experienced in such accounts[37] - The company is required to maintain minimum liquidity of $3.0 million as of March 31, 2025, increasing to $7.5 million thereafter[147] Assets and Liabilities - Total assets as of March 31, 2025, were $203.260 million, a decrease from $209.996 million at the end of 2024[15] - Total liabilities decreased to $125.927 million as of March 31, 2025, compared to $130.706 million at the end of 2024[15] - As of March 31, 2025, total debt, net was $68.5 million, down from $69.7 million as of December 31, 2024[74] Tax and Regulatory - The effective tax rate for the three months ended March 31, 2025, was approximately 11.4%, significantly lower than the 36.4% rate for the same period in 2024[59] - The effective tax rate for the three months ended March 31, 2025, was 11.4%, compared to 36.4% for the same period in 2024[131] Operational Metrics - The company performed 3,076 cases in Q1 2025, down from 3,746 cases in Q1 2024, representing a case growth decline of 17.9%[104] - Same-center case growth declined by 24.3% in Q1 2025, with revenue per case slightly increasing by 0.5% to $12,777[107] - The number of facilities increased to 32 in Q1 2025 from 27 in Q1 2024, and the total number of procedure rooms rose to 67 from 57[104] Debt and Financing - The Company voluntarily prepaid $10.0 million of the principal balance of term loans under the Credit Agreement on September 29, 2023[69] - The Company entered into a credit agreement on November 7, 2022, with an original aggregate principal amount of term loans of $85.0 million and a revolving loan facility of up to $5.0 million[144] - As of March 31, 2025, the total indebtedness of the company was $73.5 million, including $5.0 million drawn on the revolving credit facility[143] Equity and Compensation - The Company granted 888,301 restricted stock units (RSUs) in Q1 2025, up from 411,456 RSUs in Q1 2024[79] - The Company recorded equity-based compensation expense of $1.2 million for Q1 2025, compared to a reversal of $(6.8) million in Q1 2024[83] Strategic Initiatives - The company has implemented a cost reduction program expected to eliminate approximately $3.0 million in annual overhead costs and contracted expenses[102] - The company is focusing on new product innovation, including a pilot skin tightening procedure as a standalone offering[105] - The company plans to launch expanded consumer financing offerings across all centers by the end of Q2 2025[105] Miscellaneous - There were no changes in internal control over financial reporting that materially affected the company during the quarter ended March 31, 2025[157] - No relevant financial performance or user data was provided in the documents[169] - There are no future outlook or performance guidance details available in the content[170] - No information regarding new products or technology development was found in the documents[171] - There are no mentions of market expansion or acquisitions in the provided content[172] - No new strategies or initiatives were outlined in the documents[172]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $39.4 million, a decline of 17.3% from Q1 2024, with adjusted EBITDA at $3.8 million and a margin of 9.5%, down from $7.3 million and 15.4% in the prior year [7][21][24] - Same store revenue declined approximately 24% year-over-year, consistent with expectations and Q4 trends [9][21] - Average revenue per case was $12,799, slightly higher than the first quarter of 2024 [21] Business Line Data and Key Metrics Changes - The decline in revenue was primarily driven by lower case volume, with cases down 17.9% to 3,070 [21] - Cost of service decreased by $2.1 million compared to the prior year, but as a percentage of revenue increased to 40.5% from 37.9% [22][23] - Customer acquisition cost for the quarter was $3,130 per case, up from $2,990 in the prior year quarter [24] Market Data and Key Metrics Changes - The percentage of patients using financing to pay for procedures was 44%, down from 50% in Q4 2024 [22] - The company operates in a challenging macroeconomic environment, impacting consumer spending and case volumes [19][50] Company Strategy and Development Direction - The company is focused on stabilizing performance and laying the foundation for long-term growth, with a plan to improve marketing efficiency and operational rigor [6][19] - New services, such as a skin tightening procedure pilot, are being introduced to tap into more consumer demand [16] - The company is reallocating marketing spend to proven strategies, including search engine and social media marketing, while testing new areas like online video [15][44] Management's Comments on Operating Environment and Future Outlook - Management remains confident in the business's ability to return to growth and improve profitability, despite current challenges [20][19] - The guidance for fiscal 2025 revenue is projected between $160 million and $170 million, with adjusted EBITDA between $16 million and $18 million [18][26] - The company is closely monitoring consumer behavior and economic conditions, particularly inflationary pressures and changes in sentiment [19][50] Other Important Information - The company is focused on reducing leverage to historical levels, with a leverage ratio of 3.76 times as of March 31, 2025 [25] - Cash flow from operations for the quarter was $900,000, down from $3.4 million in Q1 2024 [26] Q&A Session Summary Question: Can you speak to some of the specific cost savings that you saw in the quarter? - Management noted that significant cost savings were achieved through workforce changes, targeting $3 million in savings for the year [29] Question: What is the potential margin you think you can achieve on $160 million to $170 million of revenues? - Management expects to approach long-term EBITDA margins of around 30% as revenue trends improve [31] Question: Have you seen any improvement in the rate of conversion to cases? - Management indicated that the time to book cases remains elongated due to macroeconomic pressures, but lead volume growth is encouraging [38] Question: What does the low end versus the high end of your guidance assume for the current macro environment? - The low end assumes further moderation in consumer spending, while the high end incorporates benefits from initiatives like financing options [49] Question: When will the new financing options roll out? - The rollout of expanded financing options is expected by the end of Q2 2025 [54]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $39.4 million, a decline of 17.3% from Q1 2024, with adjusted EBITDA at $3.8 million and a margin of 9.5%, down from $7.3 million and 15.4% in the prior year [7][21][25] - Same store revenue decreased approximately 24% year-over-year, consistent with expectations [9][21] - Average revenue per case was $12,799, slightly higher than the previous year [21] Business Line Data and Key Metrics Changes - The decline in revenue was primarily driven by lower case volumes, with cases down 17.9% to 3,070 [21] - Cost of service decreased by $2.1 million compared to the prior year, but as a percentage of revenue increased to 40.5% from 37.9% due to fixed costs [22][23] - Customer acquisition cost rose to $3,130 per case from $2,990 in the prior year, driven by decreased case volumes [25] Market Data and Key Metrics Changes - The percentage of patients using financing for procedures was 44%, down from 50% in the previous quarter [22] - The company operates in a challenging macroeconomic environment, impacting consumer spending and case volumes [6][19] Company Strategy and Development Direction - The company is focused on stabilizing performance and laying the foundation for long-term growth, with a strategic emphasis on cost discipline, marketing efficiency, and operational rigor [6][7] - New marketing strategies have been implemented, reallocating spend to effective channels such as search engine marketing and social media [15][46] - A pilot for a new skin tightening procedure is being launched, expected to broaden consumer reach and create a new revenue stream [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the softening consumer environment and internal challenges but remains confident in the steps taken to reposition the business for sustained success [6][19] - The company expects fiscal 2025 revenue in the range of $160 million to $170 million and adjusted EBITDA between $16 million and $18 million, reflecting current economic conditions [18][27] - Management is closely monitoring consumer behavior and inflationary pressures, which could impact discretionary spending [19] Other Important Information - The company is committed to reducing leverage to historical levels and is in compliance with all covenants under its credit agreement [26] - Cash flow from operations for the quarter was $900,000, down from $3.4 million in the prior year [27] Q&A Session Summary Question: Can you speak to some of the specific cost savings that you saw in the quarter? - Management noted significant cost savings from workforce changes, targeting $3 million in savings for the year [30] Question: What is the potential margin you think you can achieve on $160 million to $170 million of revenues? - Management expects to approach long-term EBITDA margins of around 30% as revenue trends improve [32] Question: Have you seen any improvement in the rate of conversion to cases? - Management indicated that the time to book cases remains elongated due to macroeconomic pressures, but lead volumes are growing [40] Question: What does the low end versus the high end of your guidance assume for the current macro? - The low end assumes further moderation in consumer spending, while the high end incorporates benefits from new initiatives [52] Question: When will the new financing options roll out? - The rollout is expected by the end of Q2, aimed at providing consumers with more flexible payment options [56]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $39.4 million, a decline of 17.3% from Q1 2024, with adjusted EBITDA at $3.8 million and a margin of 9.5%, down from $7.3 million and 15.4% in the prior year [6][23][24] - Same store revenue decreased approximately 24% year-over-year, consistent with previous trends [7][20] - Average revenue per case was $12,799, slightly higher than the first quarter of 2024 [20][23] Business Line Data and Key Metrics Changes - Cases declined by 17.9% to 3,070, primarily due to lower consumer spending and reduced marketing efforts [20][21] - The percentage of patients using financing for procedures was 44%, down from 50% in the previous quarter [21] Market Data and Key Metrics Changes - The company operates in a challenging macroeconomic environment, impacting consumer spending and case volumes [5][18] - Despite the decline, there was an improvement in lead generation and case performance from February to April 2025 [7][20] Company Strategy and Development Direction - The company is focused on stabilizing performance and laying the foundation for long-term growth through cost discipline, marketing efficiency, and operational rigor [5][6] - Strategic priorities include reallocating marketing spend to effective channels, optimizing sales processes, and introducing new services to meet consumer demand [14][15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's transformation efforts and the potential for future growth, despite current economic pressures [5][19] - The guidance for fiscal 2025 anticipates revenue between $160 million and $170 million, with adjusted EBITDA between $16 million and $18 million, reflecting a cautious outlook due to uncertain consumer behavior [17][25] Other Important Information - The company is monitoring inflationary pressures and consumer sentiment, which could impact discretionary spending on procedures [18] - Cost of service decreased by $2.1 million compared to the prior year, but as a percentage of revenue increased to 40.5% due to fixed costs [21][22] Q&A Session Summary Question: Specific cost savings and sustainability - Management noted significant cost savings from workforce changes, targeting $3 million in savings for the year [28] Question: Potential EBITDA margins and case growth - Management expects EBITDA margins to approach historical levels of around 30% as same store revenue improves [30] Question: Momentum in cases and seasonal patterns - Management confirmed improvements in cases were both seasonal and due to strategic initiatives, with a target for same store sales growth by year-end [31] Question: Underlying assumptions in guidance - Guidance incorporates a range of scenarios, with the low end accounting for further moderation in consumer spending [47][48] Question: Financing options and their impact - Financing options are expected to roll out by the end of Q2, which management believes will help increase case volumes [52][54]

Financial Performance - First quarter 2025 revenue was $39.4 million, a decline of 17.3% from $47.6 million in the first quarter of fiscal year 2024[6] - The net loss for the quarter was $2.8 million, compared to a net income of $6.0 million in the first quarter of fiscal year 2024[6] - Adjusted EBITDA for the first quarter was $3.8 million, down from $7.3 million in the first quarter of fiscal year 2024[6] - Adjusted net loss for Q1 2025 was $1,108,000, while adjusted net income for Q1 2024 was $1,880,000[31] - Basic and diluted Adjusted Net Income per share for Q1 2025 was $(0.02), compared to $0.03 in Q1 2024[31] Case Volume and Revenue per Case - Case volume decreased by 17.9% to 3,076 in the first quarter of 2025, down from 3,746 in the same period last year[6] - For the three months ended March 31, 2025, the company reported 2,837 cases, a decrease of 24.3% compared to 3,746 cases in the same period of 2024[22] - The average revenue per case increased slightly to $12,799 in the first quarter of 2025 from $12,712 in the first quarter of 2024[20] - Revenue per case increased by 0.5% to $12,777 from $12,712 year-over-year[22] Cash Flow and Guidance - The company generated $0.9 million in operating cash flow for the first quarter of 2025, compared to $3.4 million for the same period in 2024[5] - As of March 31, 2025, the company had $5.6 million in cash and cash equivalents, down from $8.2 million at the end of 2023[20] - The company projects full year 2025 revenue guidance of approximately $160 to $170 million[6] - Adjusted EBITDA guidance for the full year 2025 is expected to be approximately $16 to $18 million[6] Operational Costs and Expenses - The company incurred $1,239,000 in equity-based compensation in Q1 2025, compared to a reversal of $(6,781,000) in Q1 2024[29] - Restructuring and related severance costs were $863,000 in Q1 2025, up from $296,000 in Q1 2024[29] - The company reported an interest expense of $1,625,000 in Q1 2025, slightly up from $1,532,000 in Q1 2024[29] Facilities and Services - The company maintained 27 facilities and 57 total procedure rooms in both Q1 2025 and Q1 2024[22] - The company is piloting a standalone skin tightening service, which has seen increasing interest from consumers[3]

Core Insights - AirSculpt Technologies, Inc. reported first-quarter results for 2025, indicating a focus on returning to growth through strategic initiatives and cost management [1][2]. Financial Performance - Case volume for Q1 2025 was 3,076, a decline of 17.9% from 3,746 in Q1 2024 [6][22]. - Revenue decreased by 17.3% to $39.4 million from $47.6 million in the same quarter of the previous year [6][17]. - The company reported a net loss of $2.8 million compared to a net income of $6.0 million in Q1 2024 [6][17]. - Adjusted EBITDA was $3.8 million, down from $7.3 million in Q1 2024, with an adjusted EBITDA margin of 9.5% compared to 15.4% [6][22]. Strategic Initiatives - The CEO expressed confidence in the company's transformation efforts and highlighted the early benefits from a new go-to-market strategy, which has improved lead volumes and revenue decline [2]. - The company is focusing on increasing lead generation, consultations, and case conversions through enhanced marketing and sales efforts [2]. - AirSculpt is piloting a standalone skin tightening service, which has garnered increasing interest, positioning the company to capitalize on this opportunity [2]. Liquidity and Cash Flow - As of March 31, 2025, the company had $5.6 million in cash and cash equivalents, down from $8.2 million at the end of 2023 [5][19]. - Operating cash flow for Q1 2025 was $0.9 million, a decrease from $3.4 million in Q1 2024 [5][21]. 2025 Outlook - The company projects full-year 2025 revenue between $160 million and $170 million, with adjusted EBITDA guidance of approximately $16 million to $18 million [4][6].

Core Viewpoint - Palo Alto Networks has launched Prisma AIRS™, a comprehensive AI security platform aimed at protecting the entire AI ecosystem, including applications, agents, models, and data, in response to the rapid adoption of AI across enterprises [1][2]. Group 1: AI Adoption and Security Needs - Enterprises are increasingly deploying AI applications and large language models (LLMs) across various functions, which drives innovation but also creates security vulnerabilities [2]. - There is a critical need for a comprehensive AI security platform to effectively protect AI initiatives and prevent security incidents [2]. Group 2: Features and Capabilities of Prisma AIRS - Prisma AIRS offers capabilities such as AI model scanning for vulnerabilities, posture management for security risks, AI red teaming for automated penetration testing, runtime security against various threats, and AI agent security against new threats [6]. - The platform is designed to provide continuous visibility and real-time insights into AI usage, helping organizations identify potential security issues [4]. Group 3: Strategic Enhancements and Future Plans - Palo Alto Networks plans to enhance Prisma AIRS through the acquisition of Protect AI, a leader in securing AI usage, which is expected to close by the first quarter of fiscal 2026 [4].

Company Overview - AirSculpt Technologies, Inc. is an industry leader in premium body contouring procedures [1] - The company offers a next-generation body contouring treatment that emphasizes comfort and precision, available exclusively at its offices [3] Financial Results Announcement - AirSculpt will report its first quarter 2025 financial results before market open on May 2, 2025 [1] - A conference call will follow the financial results announcement on the same day at 8:00 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 a specific conference ID [2] - A live webcast of the conference call will be available on the investor relations section of the AirSculpt website, with a replay accessible for approximately 90 days [2]

Group 1 - AirSculpt Technologies, Inc. (AIRS) has been added to the Zacks Rank 5 (Strong Sell) List due to a 121.7% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - The Carlyle Group Inc. (CG) is also on the Zacks Rank 5 (Strong Sell) List, with an 8.4% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Cars.com Inc. (CARS) has seen a 12.9% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days, leading to its inclusion in the Zacks Rank 5 (Strong Sell) List [2]