AirSculpt Technologies, Inc.

Greetings and welcome to the Aeroscope Technologies, Inc. second quarter 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 requires 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 conference over to your host, Alison Malkin with ICR. Please begin.

Good morning, everyone. Thank you for joining us to discuss AirSculpt Technologies results for the second quarter of fiscal 2026. Joining me on the call today are Yogi Jashnani, Chief Executive Officer, and Michael Arthur, Chief Financial Officer. For this morning's call, Yogi will begin with a review of our second quarter results and the progress made on our strategic priorities. Then Michael will share a detailed review of our second quarter and first six-month performance and guidance. Before we begin, I would like to remind you that this conference call may include four 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 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.airstop.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 their 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 will also be available on our website. With that, I'll turn the call over to Yogi.

Thank you, Alison, and good morning, everyone. Welcome to AirSculpt's second quarter earnings call. I am pleased to share that our second quarter and first half results marked meaningful progress on our transformation. For the quarter, on a comparable basis, we delivered stable revenue and positive same center case growth. Same center sales began the quarter positively and saw moderating sales trends in June, which we attribute to a dynamic consumer environment. Overall, we generated a 21 percentage point improvement in same center sales versus Q2 last year and a 23 percentage point improvement year to date. Over the past 18 months, we have broadened our consumer reach to capture the growing opportunity presented by GLP-1 patients, bolstered our talent, invested in new marketing strategies, and strengthened our balance sheet to provide the financial flexibility to support future growth. Those actions are showing in the continued stabilization of the business with roughly flat same-center sales growth in the first half. Our near-term focus remains squarely on increasing same-center sales. Longer term, we believe there is meaningful growth in new procedures and de novo expansion. As a balance sheet and cash flow generation strengthen, we intend to expand our geographic footprint and center base over time. Let me now turn to our progress on the three strategic priorities. As a reminder, these are, first, Introducing new services to capture our GLP-1 market opportunity. Second, enhancing our sales and marketing strategy. And third, maintaining strong financial discipline. First, introducing new services to capture our GLP-1 market opportunity. GLP-1 continues to represent a significant long-term growth driver for AirSculpt, with nearly 19 million potential patients interested in body contouring or related aesthetic procedures over time. Our core body contouring procedures continue to resonate with GLP-1 patients, and we are expediting the expansion of our portfolio of procedures to serve their evolving aesthetic needs. During the quarter, we completed over 200 skin excision procedures and expanded the offering to additional centers. We also broadened our services to include upper blepharoplasty and mastopexy. These procedures further expand our addressable market and increase our center productivity, while allowing us to better serve the needs of our patients. We continue to expect this to represent a 100 million plus long-term revenue opportunity across our existing base of centers with an increasing long-term potential as we resume De Novo's. As part of our strategy to expand our body contouring platform, today we are announcing a partnership with Tiger Aesthetics to offer Alloclay for patients. Alloclay is a structural adipose tissue allograft used for non-surgical body contouring designed to add subtle, natural-looking, targeted volume. We are excited about this partnership for several reasons. First, it allows us to reach patients we previously could not serve, including those without enough fat for a traditional fat transfer. Second, we expect a quicker ramp as many of our surgeons are trained in this procedure already. And finally, consumer interest in this category continues to grow as the use of GLP-1 creates the need for targeted restoration of volume. We believe this further strengthens our ability to serve consumers across their entire aesthetics journey. Alloclay will start rolling into our centers later this quarter. Looking forward, we have additional procedures in the pipeline that are core to body contouring and are a strong fit for our brand. We remain focused on thoughtfully expanding our capabilities to enhance the patient experience and increase center productivity. Our second focus is enhancing our sales and marketing strategy. As we expand our portfolio of procedures, we're also evolving how we market and sell them. During the quarter, we refined our marketing through a test and learn approach, optimizing how we reach GLP-1 patients and educate prospective patients on our new procedures. As we fine tune our marketing investments in these procedures, we expect to achieve a higher return on that spend, driving revenue growth and greater marketing efficiency. At the same time, We trained our sales team and implemented additional sales optimization tools to make them more efficient and effective, recognizing that selling these procedures requires a different approach than a traditional body contouring business. We believe these investments will enable us to better reach patients and improve commercial execution as our portfolio continues to grow. Third area of focus is maintaining strong financial discipline. Maintaining a strong balance sheet remains a key priority as we execute our long-term strategy. During the quarter, we raised approximately $5 million to our ATM program, which continues to provide us with the balance sheet flexibility and liquidity to support our growth. Michael will discuss our balance sheet in more detail shortly. In summary, we made progress in the second quarter, and while our results reflect the expected variability of a turnaround being executed in a dynamic consumer environment, we entered the second half of the year a stronger company with the right strategy and team. Our addressable market is larger, our procedure mix is broader, and our operating platform is more disciplined than it was 12 months ago. Our focus for the balance of the year is unchanged. convert the stabilization achieved year-to-date into sustained profitable growth. That means same-center sales, marketing efficiency, and consistent execution across our locations. We expect the actions underway to be reflected in our results in the quarters ahead. And with that, I will now pass it over to Michael.