AirSculpt Technologies, Inc. (AIRS) Q2 2026 Earnings: Revenue $43M (-2.5%)
AIRS — Q2 2026 Financial Report Analysis
Q2 · Fiscal year 2026 · Published by Pham Hop
AirSculpt's same-center cases rose 1% but revenue fell 2.5% to $42.9M as price per case slipped and marketing cost per patient jumped 19%; adjusted EBITDA guidance cut to $12-14M and lenders set an Oct 31 refinancing deadline.
Revenue
$43M
-2.5% YoY
Net income
-$1.1M
Diluted EPS
$-0.02
Operating margin
-0.1%
This period vs a year ago
Same period last year
This period
Revenue▼-2.5%
≈$44M
$43M
Year-ago figures (≈) are worked out from the growth rate the company reported. Each row has its own scale.
Patients are back, but each one costs more to win and pays less
AirSculpt runs 31 clinics in 20 US states and Canada that perform a minimally invasive fat-removal and skin-tightening procedure. In the second quarter of 2026 (April–June), revenue fell 2.5% to $42.9 million and the net loss widened to $1.1 million from $0.6 million. The number of procedures was essentially flat, but the average price per procedure dropped and the company spent noticeably more on advertising to bring each patient in. Management responded by cutting its full-year profit outlook by about a fifth.
At a glance
Same-center cases +1.0% — at clinics open in both years, procedure volume grew for a second straight quarter, after two years of falling cases. Demand has stopped shrinking.
Revenue per case down 2.0% to $12,707 — patients are paying less per visit, which more than cancelled the volume gain.
Adjusted EBITDA guidance cut to $12–14 million from $15–17 million — the company now expects the second half to earn well under what the first half did.
Key figures
Metric
Q2 2026
Q2 2025
YoY Change
Revenue
$42.9M
$44.0M
-2.5%
Operating income (loss)
-$0.03M
$0.8M
n/m
Operating margin
-0.1%
1.8%
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-1.9 pts
Net loss
-$1.1M
-$0.6M
n/m (loss widened by $0.5M)
Diluted EPS
-$0.02
-$0.01
n/m
Adjusted EBITDA (non-GAAP)
$4.9M
$5.8M
-15.4%
Adjusted EBITDA margin
11.5%
13.3%
-1.8 pts
Total cases
3,376
3,392
-0.5%
Same-center case growth
+1.0%
—
—
Revenue per case (same-center)
$12,707
$12,971
-2.0%
Customer acquisition cost per case
$3,467
$2,905
+19.3%
Clinics / procedure rooms
31 / 65
32 / 67
-1 / -2
"n/m" = not meaningful: percentage changes between two losses don't carry a useful sign. Adjusted EBITDA is earnings before interest, tax, depreciation and amortization, with stock pay and items the company treats as one-offs also added back.
Takeaway: The volume problem looks fixed — same-center cases have now grown two quarters running — but AirSculpt is buying that stability. Selling expenses rose to $11.7 million from $9.9 million, so it now spends about $3,467 in marketing and sales cost per patient (up 19%) while collecting about $264 less per patient. Until price per case or marketing efficiency improves, more cases don't translate into more profit, which is exactly why guidance was cut.
What drove the quarter
Revenue. The 10-Q attributes the $1.1 million decline "primarily [to] a 2.0% decrease in average selling price on a same-center basis, partially offset by a 1.0% increase in same-center case volume." The prior-year quarter also included revenue from the London clinic, which closed at the end of 2025 — so part of the reported decline is a smaller footprint, not weaker demand. That is why total cases dipped 0.5% even though same-center cases rose 1.0%.
Costs of performing procedures fell 3.7% to $16.6 million, which the company credits to "efficiencies gained in personnel costs." That kept cost of service at 38.6% of revenue, down from 39.1% — the clinic floor itself is running slightly leaner.
Marketing is where the margin went. Selling, general and administrative expense (SG&A — everything outside the operating room: advertising, sales staff, corporate overhead) rose 3.3% to $23.4 million and climbed to 54.6% of revenue from 51.5%. Advertising alone was $8.8 million versus $7.3 million a year ago. General and administrative costs actually fell to $11.7 million from $12.8 million, helped by $0.4 million lower stock compensation — so the overhead story is good and the customer-acquisition story is the problem. Management describes this as a deliberate step-up in brand marketing; the quarter's numbers show the spend lifted volume only modestly.
Below the operating line, interest expense fell to $1.0 million from $1.6 million because the company has paid down debt, which partly cushioned the operating decline.
What the headline numbers hide
Adjusted figures exclude more than stock pay. The $4.9 million adjusted EBITDA adds back $0.9 million of stock compensation, $0.3 million of restructuring and severance, $0.5 million of "one-time" Sarbanes-Oxley compliance costs (internal-controls work a public company must do) and a $0.3 million litigation settlement. Restructuring charges appear in both years ($1.3 million in the first half of 2026, $1.2 million a year earlier), so treating them as one-offs flatters the run-rate. On an adjusted basis AirSculpt earned $0.6 million; on a GAAP basis it lost $1.1 million.
Cash flow turned negative in the quarter. Operating activities used $1.2 million in Q2, versus generating $5.0 million in Q2 2025. For the half-year operating cash flow is still positive at $4.0 million (against a $3.5 million net loss, mostly thanks to $6.0 million of non-cash depreciation), but it is down from $5.9 million, and the half-year figure is helped by $1.9 million of higher unpaid supplier bills and $1.3 million more in patient deposits — timing items, not earnings.
The cash pile grew from share sales, not operations. Cash rose to $18.8 million from $8.4 million at year-end, but $19.6 million came from selling new stock through an "at-the-market" program (shares sold gradually into the market), which went mostly to repaying $12.7 million of term loans. Average shares outstanding were 70.8 million versus 59.6 million a year ago — 19% more shares, so each existing share owns a smaller slice of the company. Another 576,000 shares ($2.4 million) were sold after quarter-end.
Guidance went backwards. In May the company "reaffirmed" revenue of $151–157 million and adjusted EBITDA of $15–17 million. Now revenue is expected at the low end and adjusted EBITDA is cut to $12–14 million.
Debt and the new loan terms
Gross debt was about $44.2 million at June 30, down roughly $30 million since the start of 2025, and the company says it is in compliance with its loan covenants. On August 7 it amended its term loan, pushing maturity from May 2027 to November 2027 — but the price of that extension is $5 million of mandatory repayments in 2026 ($2.5 million at signing, $2.5 million by September 30) and a requirement that half of any future stock-sale proceeds go to repaying the loan. That halves the usefulness of the share-sale program as a source of operating cash, making the business more dependent on its own cash generation just as that has weakened.
The amendment also signals that the lenders want to be repaid in full rather than stay in the loan. AirSculpt must now give them biweekly updates on its efforts to pay off the facility entirely, and if that hasn't happened by October 31, 2026, it must hire one or more investment banks acceptable to the lenders to arrange replacement financing "or otherwise." Refinancing the roughly $39 million that would remain after this year's mandatory payments for a company that is losing money on a GAAP basis and just cut its profit outlook is the single biggest near-term question for the stock.
Outlook
Management's own numbers imply a soft second half. With $8.2 million of adjusted EBITDA already earned in the first half, the new $12–14 million full-year range leaves only $3.8–5.8 million for July–December — below the first half. Revenue at the low end (~$151 million) implies roughly $69 million for the second half versus $82.3 million in the first, consistent with Q2 being the seasonally strongest quarter.
The growth levers management is pointing to are new procedures — notably an exclusive partnership with AlloClae, an injectable fat-based filler that widens the range of patients AirSculpt can treat — and continued brand marketing. The company also flags competition from GLP-1 weight-loss drugs among its risks, while describing those patients as an opportunity.
Our read: the business has stabilized on volume, which is real progress after two years of decline, but the margin is moving the wrong way and the balance sheet relies on dilution that the new loan terms make less effective. The first thing to watch is whether a refinancing is announced around the October 31 deadline, and on what terms. After that, the two numbers to watch in Q3 are revenue per case (does pricing stop falling as new procedures are added?) and customer acquisition cost (does the advertising step-up start paying back, or keep climbing?). A further guidance cut, or Q3 operating cash flow staying negative, would signal that stabilization is not yet translating into a self-funding business.
Source: AirSculpt Technologies Form 10-Q for the quarter ended June 30, 2026, filed August 10, 2026; guidance and adjusted figures from the same-day earnings release (Exhibit 99.1) and the Q1 2026 release.