Financial Data and Key Metrics Changes - Revenue for the second quarter was $44 million, a decline of 13.7% compared to the prior year quarter, with adjusted EBITDA at $5.8 million, reflecting a margin of 13.3% [8][17][19] - Same store revenue declined approximately 22% year-over-year, while cases decreased by 14.1% to 3,392 [17][19] - Average revenue per case was approximately flat at $12,975 compared to the previous year [17] Business Line Data and Key Metrics Changes - The company experienced a sequential improvement in year-over-year revenue performance and a record level of lead growth, alongside a meaningful increase in consultation volume [6][7] - The percentage of patients using financing for procedures increased to 50%, up from 44% in the first quarter [18] Market Data and Key Metrics Changes - The company noted a challenging macro environment affecting consumer spending, leading to lower case volumes [9][17] - Despite the challenges, there was strong consumer interest in AirSculpt's offerings, with record high lead generation and improved marketing efficiency [11][12] Company Strategy and Development Direction - The company is focused on enhancing its culture and improving its go-to-market strategy, which includes reallocating marketing spend to proven strategies and optimizing sales processes [10][11][12] - New service offerings, such as a skin tightening procedure pilot, are being introduced to tap into consumer demand [13][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategy to stabilize sales and return to growth, despite ongoing consumer spending uncertainty [15][16] - The company reiterated its annual outlook, expecting revenue in the range of $160 million to $170 million and adjusted EBITDA between $16 million and $18 million for fiscal 2025 [22][23] Other Important Information - The CFO announced plans to retire later this year, with a search underway for a replacement [5] - The company repaid $16 million in debt during the quarter, improving its financial position and reducing its leverage ratio to 2.87 times [20][21] Q&A Session Summary Question: Guidance implies revenues that are flattish in the second half, what are the drivers for that acceleration? - Management noted that while consumer uncertainty remains, there is strong interest in AirSculpt, with record high leads and consultations, which should help stabilize revenue [26][27] Question: Update on the skin tightening offering and its impact on revenue? - Management confirmed that there are no standalone skin tightening expectations in guidance yet, but strong interest has been observed [29][30] Question: Performance of the new centers opened in 2024? - The new centers are performing in line with expectations but are facing similar consumer pressures as existing locations [35] Question: Any seasonal considerations for the third quarter? - Management indicated a typical softening in Q3, with expectations for improvement in Q4 due to cost initiatives and marketing efforts [37] Question: Update on the London facility's performance? - The London facility has shown improvement but remains cash flow negative, with management focused on enhancing results [40] Question: Insights on consumer sentiment and market dynamics? - Management observed tentative consumer behavior, with leads and consultations strong but consumers hesitant to commit to purchases [44] Question: What needs to happen before considering expansion opportunities? - The focus remains on improving same store sales growth before revisiting expansion plans [46][47]