Establishment Labs(ESTA) - 2025 Q3 - Quarterly Results

Revenue Performance - Total revenue for Q3 2025 was $53.8 million, a 33.8% increase from $40.2 million in Q3 2024[4] - US Motiva sales contributed $11.9 million to the total revenue in Q3 2025[5] - The company expects 2025 revenue to exceed $210 million, up from previous guidance of $208 million to $212 million[5] Profitability Metrics - Gross margin for Q3 2025 was 70.1%, compared to 63.9% in Q3 2024[6] - Adjusted EBITDA for Q3 2025 was positive $1.2 million, a significant improvement from a loss of $7.0 million in Q3 2024[5] - The net loss for Q3 2025 was $11.1 million, reduced from a net loss of $16.7 million in the same period last year[8] Cash Flow and Liquidity - Cash balance as of September 30, 2025, was $70.6 million, a decrease of $19.7 million from December 31, 2024[9] - The company aims to achieve cash flow positive status in 2026, with an expected 20% share of the US breast augmentation market[3] - Cash and cash equivalents decreased from $90,347 million as of December 31, 2024, to $70,624 million as of September 30, 2025, a decline of about 21.8%[23] Expenses - SG&A expenses increased to $37.2 million in Q3 2025, up from $34.1 million in Q3 2024, primarily due to increased investment in the US[7] - R&D expenses decreased slightly to $4.6 million in Q3 2025 from $4.8 million in Q3 2024[8] Balance Sheet Changes - Total assets decreased from $346,831 million as of December 31, 2024, to $338,895 million as of September 30, 2025, representing a decline of approximately 2.7%[23] - Total current liabilities increased from $68,278 million as of December 31, 2024, to $71,981 million as of September 30, 2025, reflecting a rise of approximately 5.0%[23] - Inventory increased from $78,766 million as of December 31, 2024, to $88,158 million as of September 30, 2025, representing a growth of approximately 11.0%[23] - Total shareholders' equity decreased significantly from $53,095 million as of December 31, 2024, to $16,363 million as of September 30, 2025, a decline of approximately 69.1%[23] - Long-term liabilities increased from $219,577 million as of December 31, 2024, to $246,458 million as of September 30, 2025, reflecting an increase of about 12.2%[23] Interest and EBITDA - Interest expense for the three months ended September 30, 2025, was $6,203 million, compared to $5,313 million for the same period in 2024, indicating an increase of about 16.7%[25] - EBITDA for the three months ended September 30, 2025, was a loss of $2,179 million, compared to a loss of $9,103 million for the same period in 2024, showing a significant improvement[25] - Adjusted EBITDA for the nine months ended September 30, 2025, was a loss of $19,454 million, compared to a loss of $15,116 million for the same period in 2024, indicating a worsening performance[25]