When Will AirSculpt Technologies, Inc. (NASDAQ:AIRS) Breakeven?

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. With the latest financial year loss of US$4.5m and a trailing-twelve-month loss of US$7.8m, the US$315m market-cap company amplified its loss by moving further away from its breakeven target. As path to profitability is the topic on AirSculpt Technologies' investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for AirSculpt Technologies

Consensus from 4 of the American Healthcare analysts is that AirSculpt Technologies is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of US$2.0m in 2025. The company is therefore projected to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 89% year-on-year, on average, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

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

One thing we would like to bring into light with AirSculpt Technologies is its relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in AirSculpt Technologies' case is 85%. Note that a higher debt obligation increases the risk in 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 put together a list of important aspects 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.