AirSculpt Technologies prepays $10 million in debt after stock offering

MIAMI BEACH - AirSculpt Technologies, Inc. (NASDAQ:AIRS), a $284 million market cap company, has voluntarily prepaid $10 million of its outstanding term loan debt using cash on hand, the company announced Monday. According to InvestingPro data, this debt reduction comes at a crucial time, as the company’s current ratio stands at 0.57, indicating short-term obligations exceed liquid assets.

The debt reduction follows the company’s recent completion of a common stock offering that generated approximately $13.8 million in net proceeds after estimated expenses. The offering involved 3,634,000 shares, bringing the company’s total outstanding common stock to 62,436,670 shares. The stock has shown significant volatility, with InvestingPro reporting a -9.9% return over the past week, though maintaining a strong gross profit margin of 63.81%.

"On the heels of our successful offering of common stock, we are pleased to apply a substantial portion of the proceeds to prepay $10.0 million in our outstanding debt," said Yogi Jashnani, Chief Executive Officer of AirSculpt.

The body contouring procedures provider stated that it does not anticipate the need for additional material capital raises this year, assuming no significant changes in the current macroeconomic environment.

According to the press release statement, the company will have full availability of $5 million under its revolving credit facility after completing the remaining payment of $2.9 million on the outstanding principal on June 16, 2025.

AirSculpt Technologies describes itself as a provider of minimally invasive body contouring treatments designed to remove fat and tighten skin while sculpting targeted areas of the body.

The announcement comes as part of the company’s efforts to improve its capital structure and enhance financial flexibility, which it says will help implement strategic priorities aimed at transformation and positioning for long-term growth.

In other recent news, AirSculpt Technologies reported its first-quarter 2025 financial results, revealing a revenue of $39.4 million, which marks a 17.3% decline from the previous year. Despite this, the company exceeded earnings expectations with an earnings per share (EPS) of -$0.02, compared to the forecasted -$0.0333. Additionally, AirSculpt has announced a public offering of 3.16 million shares of common stock, priced at $3.80 per share, aiming to raise $12 million before expenses. The proceeds are intended to reduce some of the company’s outstanding debt and fund general corporate purposes.

The company’s recent annual meeting confirmed the election of two directors and the appointment of Grant Thornton as the independent auditor. AirSculpt’s strategic initiatives, including cost-saving measures and marketing reallocations, are expected to save $3 million annually. The company’s revenue guidance for 2025 is projected between $160 million and $170 million, with an adjusted EBITDA target of $16 million to $18 million. Leerink Partners is managing the public offering, and the company remains optimistic about returning to same-store sales growth by the year’s end.

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