AirSculpt Technologies, Inc.'s (NASDAQ:AIRS) Profit Outlook

AirSculpt Technologies, Inc. (NASDAQ:AIRS) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. AirSculpt Technologies, Inc., together with its subsidiaries, focuses on operating as a holding company for EBS Intermediate Parent LLC that provides body contouring procedure services in the United States. The US$241m market-cap company’s loss lessened since it announced a US$4.5m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$3.4m, as it approaches breakeven. Many investors are wondering about the rate at which AirSculpt Technologies will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

See our latest analysis for AirSculpt Technologies

According to the 3 industry analysts covering AirSculpt Technologies, the consensus is that breakeven is near. They expect the company to post a final loss in 2024, before turning a profit of US$861k in 2025. The company is therefore projected to breakeven just over a year from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 121% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won’t go into details of AirSculpt Technologies' upcoming projects, though, bear in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one issue worth mentioning. AirSculpt Technologies currently has a relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in AirSculpt Technologies' case is 83%. Note that a higher debt obligation increases the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of AirSculpt Technologies which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at AirSculpt Technologies, take a look at AirSculpt Technologies' company page on Simply Wall St. We've also compiled a list of key factors you should look at:

1. Valuation: What is AirSculpt Technologies worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether AirSculpt Technologies is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on AirSculpt Technologies’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.