AirSculpt Technologies (AIRS) Q4 2024 earnings summary

Executive summary

• Revenue for Q4 2024 was $39.2 million, down 17.7% year-over-year, with same-store revenue down 22.6% and case volume down 16.7%.

• Full-year 2024 revenue was $180.4 million, a 7.9% decline from 2023, with case volume dropping 6.0% to 14,036.

• Adjusted EBITDA for Q4 was $1.9 million (4.7% margin), down from $10.1 million (21.2%) in Q4 2023; full-year adjusted EBITDA was $20.7 million (11.5% margin), down from $43.2 million (22.1%).

• Net loss widened to $5.0 million in Q4 and $8.3 million for the year, compared to $4.6 million and $4.5 million losses in 2023.

• Strategic focus is on stabilizing same-center sales, pausing new center openings, optimizing marketing, cost reduction, and piloting new services.

Financial highlights

• Q4 case volume declined 16.7% year-over-year to 3,064; same-center case volume declined 21.8% in Q4 and 13.7% for the year.

• Adjusted net loss for Q4 was $4.5 million, or $0.08 per diluted share; full-year adjusted net loss per share was $0.02.

• Customer acquisition cost (CAC) rose to $3,250 per case from $2,600 in Q4 2023.

• Cash flow from operations for 2024 was $11.4 million, with $9 million invested in new centers.

• Cash and cash equivalents at year-end: $8.2 million; no availability on revolving credit facility.

Outlook and guidance

• No full-year 2025 guidance provided; outlook to be updated with Q1 results in May.

• Q1 2025 same-store revenue expected to decline at a rate similar to Q4 2024, with sequential improvement anticipated through the year.

• No new center or procedure room openings planned for 2025 as focus shifts to existing center performance.

• Cost reduction program to deliver ~$3 million in annualized savings.