AirSculpt Technologies Reports 17% Revenue Decline and Net Loss in Q1 2025

AirSculpt Technologies, Inc. reported a significant decline in financial performance for the first quarter of 2025, with revenues totaling $39.4 million, down 17% from $47.6 million in the same period last year. The company experienced a net loss of $2.8 million, compared to a net income of $6.0 million in the prior year. This downturn is attributed to weaker performance in the aesthetics industry, which has impacted the number of procedures performed, decreasing from 3,746 cases in Q1 2024 to 3,076 cases in Q1 2025.

Operating expenses rose to $41.0 million, up from $36.6 million a year earlier, primarily due to increased selling, general, and administrative costs, which surged by 38% to $21.8 million. This increase was influenced by a prior year reversal of stock compensation expenses, which had inflated the previous year's figures. The cost of services also decreased, reflecting the lower case volume, but as a percentage of revenue, it increased to 40.5% from 37.9% in the prior year, indicating challenges in leveraging fixed costs.

In response to the declining revenue, AirSculpt has initiated several strategic measures aimed at stabilizing growth. These include optimizing marketing investments, enhancing sales strategies, and improving customer experience. The company is also expanding its consumer financing options and exploring new product innovations, such as a pilot skin tightening procedure. Additionally, a cost reduction program is expected to save approximately $3 million annually by eliminating overhead costs and pausing new center openings.

As of March 31, 2025, AirSculpt had total assets of $203.3 million, a slight decrease from $210.0 million at the end of 2024. The company’s cash and cash equivalents fell to $5.6 million from $8.2 million, while total liabilities decreased to $125.9 million from $130.7 million. The company’s employee headcount has also increased, with 32 centers now operational across 20 states, Canada, and the UK, up from 27 centers a year prior.

Looking ahead, AirSculpt remains cautious about its financial outlook, emphasizing the need for effective execution of its strategic initiatives to improve revenue and operational efficiency. The company has also entered into an at-the-market offering program to raise additional capital, which may provide further liquidity as it navigates the current market challenges.