AirSculpt Technologies, Inc.

Greetings and welcome to the AirSculpt Technologies first quarter fiscal year 2026 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the call over to your host, Allison Malkin, partner with ICR. Thank you. You may begin.

Good morning, everyone. Thank you for joining us to discuss Airscope Technologies results for the first quarter of fiscal year 2026. Joining me today on this call are Yogi Jasnani, Chief Executive Officer, and Michael Arthur, Chief Financial Officer. Before we begin, I would like to remind you that this conference call may include forward-looking statements. These statements may include our future expectations regarding financial results and guidance, market opportunities, and our growth. Risks and uncertainties that may impact these statements and could cause actual future results to differ materially from the currently projected results are described in this morning's press release and the reports we will file with the SEC, all of which can be found on our website at investors.airsculpt.com. We undertake no obligation to revise or update any forward-looking statements, or information except as required by law. During our call today, we will also reference certain non-GAAP financial measures. We use non-GAAP measures in some of our financial discussions as we believe they more accurately represent the true operational performance and underlying results of our business. A reconciliation of these measures can be found in our earnings release as filed this morning and in our most recent 10-K, which is available on our website. With that, I'll turn the call over to Yogi.

Thank you, Allison, and good morning, everyone. Nice to speak with you and share a positive start to the year. For this morning's call, I will start with a review of our first quarter performance, followed by an update on strategic priorities, which are driving our return to growth. Michael will then take you through our first quarter financials and 2026 outlook. The first quarter marked a key turning point for our company. We stabilized revenue year over year and delivered positive same center sales for the first time in over two years. We expanded gross margin and made important investments in marketing and talent. At the same time, we reduced non-consumer-facing expenses, which combined generated healthy profitability. We also strengthened our balance sheet, ending the quarter with over $16 million in cash and leverage below 2.5 times, a reduction of over-return compared to the same time last year. Our positive start to the year reflects the success of the transformational work completed in 2025. This gives us a solid foundation from which to grow. While still early, we are encouraged by the progress made and the trajectory of our business as we enter the second quarter. Today, we are well positioned in an attractive and growing industry with the right team and strategies in place to capitalize on the meaningful opportunity ahead. We remain confident in our outlook and our ability to deliver sustained long-term profitable growth and value creation for our shareholders. Let me now share highlights of our progress on the strategic priorities that have repositioned our company for sustainable and consistent growth. As a reminder, these are introducing new services to capture our GLP-1 market opportunity, enhancing our sales and marketing strategy and maintaining strong financial discipline. First, introducing new services to capture our GLP-1 market opportunity. GLP-1 medications continue to fundamentally reshape the aesthetics landscape. The GLP-1 user base is expected to grow from approximately 5 million in 2023 to 25 million by 2030, a roughly 400% increase that creates a significant and durable tailwind for body contouring in a 200 billion GLP-1 market. With 63% of these patients indicating interest in treatment, this translates to nearly 19 million potential patients pursuing body contouring or related procedures. AirSculpt is a desired solution for these patients. Our minimally invasive procedures have little downtime and address the need for additional fat removal, which is the mainstay of our business and has been a catalyst to expand our offering to address GLP-1 user needs. Our recently introduced procedures such as standalone skin tightening and skin removal are the latest examples. Combined, we are effectively addressing the side effects from GLP-1 use and helping patients achieve their desired look. While not a meaningful contributor today, traction for these newer procedures is growing. We completed over 150 skin excision procedures in Q1 alone. Combined with fat removal and fat transfer, these procedures have the potential to unlock more than $100 million in long-term revenue across our existing centers. Second, enhancing our sales and marketing strategy. The marketing initiatives we launched at the end of 2025 are translating into more consistent demand. We continue to see benefits from our expanded media mix including connected TV, increased influencer engagement, and more targeted campaigns across skin tightening and skin removal. At the same time, improvements to our digital funnel and website are driving higher quality leads and better conversion. Sales execution has improved as well. Through better training, deeper product understanding, and aligned incentives, our teams are converting demand more effectively. As a result, we are seeing improvement in conversion rates and revenue. Third, maintaining strong financial discipline. Debt reduction remains a key focus of our capital allocation strategy. As discussed in our last call, we repaid nearly $30 million of debt over the last five quarters, bringing our leverage below 2.5 turns, a reduction of over a turn. We are also in process to refinance our term loan and look forward to sharing the details when we report our Q2 results. As we look ahead, we remain focused on continuing to advance our strategic priorities and are pleased to begin our seasonally strongest quarter of the year with continuing positive momentum. In the second quarter, we are targeting sequential improvement in same-store sales as we build upon the progress made in Q1. In summary, we have a strong start to 2026 as our actions to reposition the business are bearing fruit. AirSculpt has always had a strong differentiation in the marketplace given its highly effective and minimally invasive body contouring procedures. Our Q1 results demonstrate that our strategic priorities are working. We remain focused on building this momentum and driving sustainable growth to create value for our shareholders. And with that, I will now pass it over to Michael.