Airsculpt Technologies, Inc. ((AIRS)) has held its Q2 earnings call. Read on for the main highlights of the call.

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AirSculpt Technologies walked a fine line in its latest earnings call, balancing signs of operational stabilization with acknowledgement of near-term pressure on growth and profitability. Management highlighted improving same-center trends, stronger margins, and a healthier balance sheet, yet also pointed to softer recent demand, lower pricing, and higher customer acquisition costs that are weighing on current results.

Stable Revenue With Modest Case Growth

AirSculpt reported Q2 revenue of $42.9 million, down 2.5% year over year but marking a second straight quarter of stable top line performance. Same-center case volume grew about 1% in the quarter, and same-center revenue was roughly flat year-to-date excluding London, signaling that the underlying business is no longer in the steep decline seen last year.

Same-Center Sales Recovery From Prior Weakness

The company emphasized a sharp improvement in same-center sales versus 2025, when performance was deeply negative. Same-center sales have improved by about 21 percentage points compared to Q2 last year and roughly 23 percentage points year-to-date, moving from a roughly 23% decline in the first half of 2025 to around flat so far this year.

Gross Margin Expansion to Approximately 61%

Cost of services totaled $16.6 million, supporting gross margin expansion to about 61% of revenue in Q2. This margin improvement offers evidence that operational efficiency and pricing strategy are offsetting some top-line softness, and it provides a cushion for the company as it invests in marketing and new procedure rollouts.

Positive Adjusted EBITDA and Cash Generation

Adjusted EBITDA came in at $4.9 million, roughly 11.5% of revenue, and the company generated about $3.8 million of cash from operating activities after capital spending through June 30, 2026. While profits are not robust, AirSculpt is at least producing positive earnings and cash flow, which is critical as it funds expansion and marketing initiatives.

Strengthened Balance Sheet and Liquidity Buffer

Management underscored a stronger financial position, ending Q2 with about $19 million in cash and another $5 million available on its revolver for total liquidity of roughly $24 million. Since the start of 2025, the company has cut gross debt by over $30 million, increased cash by more than $10 million, raised about $20 million through an at-the-market program, and used roughly $13 million of that to pay down debt.

New Procedures and Product Expansion Strategy

To drive future growth, AirSculpt is broadening its offerings with more than 200 skin excision procedures completed in the quarter and the rollout of upper blepharoplasty and mastopexy to more centers. It is also piloting AlloClae in partnership with Tiger Aesthetics, targeting patients who lack sufficient fat for traditional transfer, which could open a new segment of demand.

Strategic Priorities and Updated Guidance Framework

Management laid out clear priorities anchored in marketing optimization and service expansion while reaffirming full-year revenue at the lower end of prior guidance. Adjusted EBITDA guidance was updated to $12 million to $14 million, explicitly incorporating an extra $5 million of marketing spend in 2026, with expectations for Q3 comparable revenue to be down single digits and Q4 to return to year-over-year growth.

Year-Over-Year Revenue Decline Persists

Despite stabilization, revenue still declined versus last year, with Q2’s $42.9 million down 2.5% year over year. Same-center revenue fell around 1% on a comparable basis excluding London, showing that the turnaround is not yet translating into sustained growth and that the company remains vulnerable to shifts in consumer demand.

Average Selling Price Pressure Weighs on Top Line

Average selling price slipped about 2% in the quarter to roughly $12,700, driven largely by a tough comparison to a strong prior-year period. While volumes held up modestly, this ASP pressure contributed to the revenue decline, suggesting some mix or pricing adjustments as the company navigates a more competitive and value-conscious aesthetic market.

Adjusted EBITDA Decline Despite Margin Gains

Although gross margins expanded, adjusted EBITDA of $4.9 million was about $0.9 million lower than the year-ago quarter. This drop reflects higher operating costs and increased investment, underscoring the tension between improving unit economics and the near-term earnings hit from spending on growth initiatives.

Higher Marketing Spend and Rising Customer Acquisition Costs

Selling, general and administrative expenses rose by approximately $0.75 million year over year, driven by an extra $1.5 million in marketing and brand investment. Customer acquisition cost increased to about $3,500 per case from roughly $2,900 a year ago, a jump of more than 20%, indicating that attracting patients is becoming more expensive in today’s environment.

Near-Term Demand Softening and Q3 Outlook

Management noted that sales trends weakened in June and into July, pointing to a more cautious consumer backdrop. Reflecting this, the company expects Q3 comparable revenue to decline by single digits, and it described the demand environment as dynamic and choppy, suggesting that visibility remains limited in the near term.

Early-Stage New Offerings Not Yet in Numbers

The AlloClae pilot and other newly expanded procedures are still early and have been excluded from guidance, meaning their potential upside is not yet reflected in forecasts. AlloClae carries a product cost that could slightly reduce reported gross margin percentage, although management expects it to be accretive to gross margin dollars as the offering scales.

Exposure to GLP-1 Market and Policy Uncertainty

AirSculpt sees GLP-1 patients as a promising long-term market, positioning its services as complementary to weight-loss drug use. However, the company flagged payer and employer policy risks, including the possibility of reduced coverage for GLP-1 medications, and while no material impact has been observed yet, this remains a macro uncertainty for future demand.

Forward-Looking Guidance and Expectations

Looking ahead, management reaffirmed full-year revenue guidance at the low end of its prior range and set adjusted EBITDA expectations at $12 million to $14 million, factoring in a $5 million boost to marketing. It forecasts Q3 comparable revenue, excluding London, to be down single digits and Q4 to deliver year-over-year growth in both revenue and adjusted EBITDA, assuming a stable macro backdrop and no contribution from AlloClae.

AirSculpt’s earnings call painted a picture of a business that has stopped sliding and is carefully investing for its next phase of growth, yet still faces tangible short-term challenges. For investors, the story hinges on whether improved margins, a stronger balance sheet, and new procedures can overcome softer demand, higher acquisition costs, and pricing pressure to deliver the Q4 rebound management is targeting.