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Operator: Good afternoon. This is the Chorus Call conference operator. Welcome, and thank you for joining the INWIT Full Year 2025 Financial Results Conference Call. [Operator Instructions]. At this time, I would like to turn the conference over to Mr. Luigi Minerva, Strategy, M&A and Investor Relations Director of INWIT. Please go ahead, sir. Luigi Minerva: Good afternoon, everyone, and thank you for joining us. With me today, I have Diego Galli, INWIT's General Manager; and Emilia Trudu, Chief Financial Officer. Before we begin, please allow me to draw your attention to the safe harbor statement on Page 2. Following a brief presentation of the full year 2025 results, we will open the floor to questions. Over to you, Diego. Diego Galli: Thank you. Good afternoon, everyone, and welcome to our third analyst call in 2 weeks. Today, no surprises. So in a way, no news is good news. And after this, we all deserve a good long weekend. In today's session, we share a solid set of fiscal year 2025 results with revenues up by 4% and EBITDA by 4.8%, confirming our dividend per share of EUR 0.55. A reminder of our 2026 guidance and medium-term baseline outlook as already communicated on March 19, a recap of our key strategic points of strength even in the current phase of tension with our customers. The telco sector in Italy continues to go through a challenging moment and neutral players can help, leveraging on sharing economics to deliver investments in digitalization in the most efficient way. The MSAs are structured in a way that creates value for both INWIT and its customers, thanks to the consolidation of the infrastructure and the unlocking of sharing synergies to the benefit of all parties. Our anchor Fast Broadband [ TIM ] sent us early termination notices. We have been clear that both heads have laid the ground and fall outside the legal framework of the MSAs. Legal certainty is fundamental not only for INWIT, but more generally for the industry in order to safeguard the ability to attract capital and execute the critical and strategic infrastructure investments that the country requires. Despite this challenging backdrop, we have delivered our 2025 guidance and our shareholders will receive a dividend per share of EUR 0.55, which at current levels implies an attractive dividend of 7.7%. We continue to expand our asset base and another solid set of industrial KPIs in the full year. We built about 800 new sites in the year, bringing the total to about 26,000. We added 2,800 new PoPs, tenancy ratio improving further to an industry-leading level of 2.4x. We delivered 1,600 real estate transactions, which continue to drive our efficiency gains. EBITDA was up by almost 5%, with margin up by 0.5 percentage point to 73%, supported by the lease cost efficiency plan. Recurring free cash flow was up by 2% year-on-year at EUR 634 million. Year-on-year growth reflects also higher cash leases and financial charges, partially offset by lower cash taxes. Leverage ratio stands at 5.2x, well within our target corridor. This reflects extraordinary shareholder remuneration of EUR 500 million, EUR 300 million share buyback and EUR 200 million special dividends on top of the EUR 500 million ordinary dividend. 2025 remained intense from a commercial perspective. We developed further the indoor coverage connectivity markets through DAS technology in a number of verticals. We continued with major projects like Roma Smart City. In summary, in the context of transition for the industry, INWIT continues to display a resilient growth trajectory and grow the asset base, affirming its leadership. We continue to support clients in their effort to improve the mobile network and stand ready to capture additional growth opportunities. However, Q4 showed the signs of a slowing market with anchors pulling from non-committed projects. Let's now skip a few pages to Slide 11. In this page, we show the industrial and financial progress of INWIT over the past few years. We had more than EUR 300 million in revenues, growing high single digit. Smart Infrastructure revenues up more than 4.5x. Cash flow was up in the double digits, nearly 3,500 new towers, tenancy ratio moving from 1.9x to 2.4x, land ownership tripled. All of this translated in a growing return on capital employed now exceeding 8%, confirming the soundness of INWIT business model with visible impact on our investments already in terms of cash flow generation and return on capital. Let me now hand it over to Emilia for a recap of our 2026 guidance. Emilia Trudu: Thank you, Diego. We reiterate our 2026 targets as communicated already on March 19. Revenues in the range of EUR 1.050 billion to EUR 1.09 billion, EBITDA margin of approximately 90%, EBITDA after leases margin above 72%, recurring free cash flow in the range of EUR 550 million to EUR 590 million, dividend per share at least in line with 2025 confirmed to EUR 0.55 per share. Leverage ratio at 5.5x, consistent with the structural target range of 5 to 6x. This reflects the current challenging market environment and ongoing complexities in anchor tenant relations. CapEx in 2026 remain elevated at around EUR 270 million due to the phasing of next-generation EU cash CapEx recognition plus investment for Smart City Roma plus land acquisitions and energy programs. The normalized 2025 total revenue space takes into account the lack of project-based noncommitted revenue components, which we have developed over time with operators capturing their discretionary flexible budget. Such discretionary budgets have been put on hold at this stage given the current context of limited budgets and conflictual relationships. Taking into account this one-off step-downs, in 2026, we expect low single-digit revenue growth driven from the following components: inflation CPI linked based on 2025 average index at 1.4%, anchor commitment, new towers, new PoPs and [ DAS ] in line with MSA commitments, well growth with steady pace with other MNOs and IoT. Smart Infra growth refers to DAS indoor across premium locations and projects in the smart city verticals. We have an efficient debt profile, 85% fixed, 15% floating with a current average cost of almost 3% and average bond maturity of 4.5 years. The first relevant maturity is in 2027 related to the EUR 500 million sustainability-linked term loan. This week, the agencies confirmed our ratings with updated outlook. Fitch ratings at BBB- investment grade in credit watch negative versus previously stable outlook. Standard & Poor's Global Ratings at BB+ with stable outlook versus previously credit watch positive. I will now hand it back to Diego for the final section of the presentation, including the medium-term outlook. Diego Galli: Thank you. Our medium-term baseline outlook, as communicated on March 19 consists of low single-digit annual revenue growth of around 3%. Half of it is inflation. Continued EBITDA margin expansion driven primarily by land acquisition, which could translate into an annual EBITDA growth of about 4% and all-in annual CapEx envelope of around EUR 200 million, including land acquisition, slightly more than 1/3 of the total. Of this, about EUR 20 million would be maintenance of CapEx and therefore, go into the recurring free cash flow definition. Dividend per share of at least EUR 0.55 at the current level, a financial structural leverage ratio target between 5 and 6x. In other words, even in the unrealistic scenario in which the market remains stuck over the medium term, we would still be able to have a decent organic growth, an attractive dividend and a solid balance sheet. The baseline outlook does not include the following potential upside: normalization of the industry dynamics, densification, both outdoor and indoor, opportunities to expand across digital infrastructure. At the same time, the baseline outlook does not include the downside risk of MSA's termination as we don't believe this is a likely or realistic outcome. The technological context for digital infrastructure assets continue to evolve. The traffic in Italy is growing at double-digit rates until 2030 or more than 2.5x from today's level. Towers are and will remain central in this evolution, part of the digital ecosystem that goes from passive [ infraive, ] small cell, thus IoT and edge computing. There is need for more investments in the network to close the gap. Mobile network investments cannot be postponed indefinitely. For towers or macro sites, we estimate a market potential between 7,000 to 12,000 new towers in Italy by 2030, and we plan on maintaining a leading market share on towers. Let me now reiterate a few important points that we discussed deeply during our ad hoc call last week following the receipt of MSA termination. We have been clear in our communication to the market that both acts have no legal ground and fall upside the legal framework of the MSAs. Our network of about 26,000 sites is the result of 40 years of work of TIM, Vodafone and INWIT, where we could take the benefit of the first-mover advantage to build top quality sites in the best available locations. About 75% of our network is not replicable. And when it comes to tower prices, it's important to compare apples with apples. It's not correct to compare fees related to the sales and leaseback transactions with pure hosting fees. MSA fees are intrinsically linked to the structure of the sales and leaseback transaction. Pure hosting fees are the result of normal demand supply competitive dynamics. In other terms, there is a captive segment of hosting that stems from the sales and leaseback transactions, which is not contestable for the entire period required to return investment. Preserving the captive segment protects the foundation of the industry, preventing potential opportunistic behavior that would destroy value across the entire value chain. As already shared, all our prices are in line with the market. With regard to the change of control clause, that's clear in the MSA, the clause was included in order to protect all 3 parties. The only relevant change in control event is the resolution in August 2022 of the shareholder agreement between TIM and Vodafone. TIM and Vodafone were up to the point jointly controlling INWIT. When TIM sold its stake in Daphne to Ardian in August 2022, joint control ceased with the dissolution of the shareholder agreement. TIM triggered the change of control clause and INWIT promptly notified it to TIM and Vodafone, locking in all parties for further 16 years until 2038. Out of clarity, the Vodafone events in 2020 consisted in intragroup transfers of the INWIT stake between entities fully owned by the Vodafone Group. Those events had no impact on the joint control of INWIT. Therefore, they are not relevant with regards to the change of control clause. As a matter of fact, if this share transfer would have been relevant with regards to the change of control of INWIT to the control of INWIT, the relevant party should have launched a mandatory tender offer. This didn't happen, obviously. We have clear and consistent legal opinions from the best law firms in the country on this. Let me now conclude. The towers business model is based on long-term contracts that create value for all parties, thanks to the sharing economics and network efficiency. The Italian telco market continues to be under pressure with low prices and subpar returns. Telcos are offloading challenges on the infra players, and this is -- and this was already visible in the final quarter of 2025. Still, we delivered the 2025 guidance, including the EUR 0.55 dividend per share, which implies an attractive dividend yield. Our 2026 guidance and the medium-term baseline outlook reflect the current challenging market conditions. Even in the unrealistic scenario in which the market remains stuck over the medium term, our baseline medium-term outlook means that we would still be able to have a decent organic growth, an attractive dividend and a solid balance sheet. The baseline outlook does not include the following potential upside, normalization of the industry dynamics, densification opportunities to expand across digital infrastructure. At the same time, as just said, the baseline outlook does not include the downside risk of MSA termination as we don't believe this is a likely or realistic outcome. We confirm that we continue to be open to constructive conversation with our clients. From our perspective, it's key to protect the integrity of the MSA as a long-term contract. We are open to optimize further the terms for new investments, and we aim to achieve a win-win outcome in terms of positive net present value and business development. With this, we thank you for your attention, and we aim to provide you with an updated business plan likely enough to as visibility allows it. We will now open the floor to Q&A. Operator: This is the Chorus Call conference operator. We will now begin the question and answer session. [Operator Instructions]. The first question is from Roshan Ranjit, Deutsche Bank. Roshan Ranjit: My question is quite simple. We've seen quite a lot of news flow over the last 1.5 weeks. And Diego, you mentioned this constructive dialogue. So since we've had the filings for the court hearing from yourself and from Swisscom, have you had dialogue with Swisscom on the MSA negotiation since. So over the last, I guess, week, have you been in discussions with them? Diego Galli: Yes. Thanks for the question. No, we are not having dialogue at this stage. Operator: The next question is from Rohit Modi of Citi. Rohit Modi: I have just one question, and apologies if you already replied to this in previous calls, but this is regarding the migration phase. Hypothetically, if both the [ MSAs ] managed to terminate the contract, are there any rights that INWIT has in the migration phase given that they'll continue to use the remaining towers as a part of migration period for foreseeable future or INWIT does have a right to terminate the contract and ask them to vacate the sites? Diego Galli: Thanks. On the migration plan, the framework is about a plan which has to be agreed between parties. The time is not shorter than 3 years. And all this will be in the spirit and logic and content of the all or nothing close. Let me also take the opportunity to highlight which -- the fact that we stress, which is about the lack of alternatives to our network and the fact that we have the majority of our sites, which are actually not... Operator: [Operator Instructions]. The next question is from [indiscernible]. Unknown Analyst: One question concerning 2026 guidance. Here, I would like to, let's say, just have a little bit of color concerning the discretionary spending that you're assuming on 2026 level of revenues. Diego Galli: Thank you. So on 2026, the base case is actually consistently with the overall baseline case is basically that the anchor tenants invest only on the committed contractualized initiatives. And we have a continued steady growth with the other customers, with the [indiscernible] with the other MNOs, and we continue gradually to develop and grow [indiscernible] in coverage to DAS and dedicated projects. Unknown Analyst: Okay. And the discretionary revenues that will have a negative contribution in 2026. What's -- I mean, this level of revenues in 2026, I mean, is that derisking for 100%? Or is it something still there? Diego Galli: Yes, the discretionary revenues is -- there is no discretionary revenues basically with the anchor tenants or all. So yes, it's actually the [indiscernible]. Operator: The next question is from Mathieu Robilliard, Barclays. Mathieu Robilliard: I had a question. I'm looking at Slide 14, and you show some growth driven by anchor commitment and all growth. I don't know if you can quantify that in terms of sites, how much that represents? And also, are the anchor commitments fully part of the MSA, the existing MSA? Or is it on top of it, it's a different contract that could go whatever happens with the legal decision? Diego Galli: Yes. Thanks for the question. In terms of towers, we are talking about a few hundred significantly lower than the last year where actually we deployed at about 800 towers per year. In terms of revenues, we are talking here about the MSA committed revenues. So contractualized contracted committed revenues where there is no dispute about. So it's -- I can say it's clean and certain and committed and in progress. Mathieu Robilliard: And if I could follow up. I mean, I think you had also some contracts with Open Fiber or maybe FiberCop in terms of growth or in terms of deployment of site for FWA. That's the topic #4 on your slide deck, right, all our growth? Diego Galli: Yes. Basically, the OLO growth is mainly the other MNOs such as Iliad, some of Wind3, as well as some fixed wireless access for Open Fiber. The main component is basically the MNOs component. In terms of revenues, it's the main component, as I said, is the other MNOs component. Mathieu Robilliard: Okay. And that is basically increasing tenancy rather than building sites. Sorry, very basic question, but... Diego Galli: It's basically secondary tenants is co-location on existing sites. Operator: The next question is from Giorgio Tavolini, Intermonte. Giorgio Tavolini: The first one is on the ground leases saving of EUR 10 million in Q4. I was wondering if it's related to a specific transaction. And back to [ Milo's ] question on discretionary revenues, how much was the exact amount in 2025 since I see the block in the presentation in the bridge for the full year 2026 guidance bridge? Diego Galli: Yes. On the discretionary revenues is on the few [indiscernible] range. And with regards to the lease cost, lease costs are continuously optimized through the program of land buyout as well as renegotiation of lease contracts and that is able to offset the impact of increasing asset base and inflation. Giorgio Tavolini: Okay. And for the discretionary revenues in 2025? Diego Galli: A few tens of millions. Giorgio Tavolini: A few tens of millions... Operator: The next question is from Ondrej Cabejsek, UBS. Ondrej Cabejšek: I have 2 questions, please. One is on the CapEx. If you can kind of walk us through the new level of roughly EUR 200 million as going back to the previous strategy update, the guidance was for CapEx to be closer to EUR 240 million over the midterm and higher in the near term. So I guess this is obviously the step down would be related to what's going on with the anchor tenants and therefore, lower growth on the top line. But maybe if you can give us a bit more detail around which of the envelopes from the full year '24 strategy update you are not cutting on and which envelopes of CapEx you are actually cutting on? And maybe the second question, if I may, are you a party to the, I guess, consultation process around the spectrum renewal, which I believe is going to be kind of finalized in the coming months or in the summer and then potentially making it into the budget in kind of late 2025? And if you are, how is the kind of reception of the regulators or authorities around the fact that maybe part of the investment that would -- or rather the fact that if there is a discount given to the anchors part of that capital that they are saved and they're supposed to be rolling out into new networks, they would potentially be directing towards duplicating infrastructure that is already there that you are providing. So are there already kind of some signals that this is not something that the authorities would be looking favorably at? Diego Galli: Thanks for the questions. With regards to the CapEx split, actually, the very relevant component will remain to be the land, land acquisition, which will account broadly 35% of the total. Then there is, let me say, half of the total envelope, which is related to growth, including CapEx for towers, for the smart infra [ so gas ] and special projects and the energy project. Then we have broadly 10% related to maintenance. Compared to the previous guidance, we have embedded in the current baseline outlook a lower number of towers, a significantly lower number of towers, and this is the main difference compared to the previous plan. With regards to the frequency renewals, that's an interesting topic. We clearly -- the industry, as we said, is under dramatic pressure. So we think it's relevant and it's important to have the frequency renewals which support the industry. Clearly, we think it's important that the support to the industry is to the whole value chain to the whole -- to the -- all operators, both the, let me say, the service cost as well as the infra cost. And so that's important in order to not only support the new investment, but also to preserve the existing infrastructure and the investments which have already been done. Clearly, in this context, but in general, as we said, we don't think that the duplication of infrastructure is an efficient way and creates efficiency and value in the industry. Actually, we think that consolidation of infra is the way to build efficiency within the industry. So continuous scale and optimization and consolidation will drive as did in the past, will continue -- is the way to continue to drive efficiency in the overall industry to the benefit of all parties. In terms of visibility, we think that there will be more visibility on the process in the second part of the fiscal year. Operator: [Operator Instructions]. Diego Galli: If there are no other questions... Operator: We do have a last question from [indiscernible]. Unknown Analyst: I just had one follow-up. So you were asked about the dialogue with Swisscom to which there hasn't been any. I just wondered if there have been any dialogue with Telecom Italia. And I guess maybe following up on that, is the lack of dialogue because you are simply dealing with this in a legal fashion and it's for them to negotiate? Or any color would be helpful. Diego Galli: Yes. I think that we received the termination notice between last, I think, Wednesday and Sunday or Monday, whatever. So just a few days ago. And clearly, we have been busy on filing responses and activating all the relevant legal steps. And now there is Easter, that's welcome. I think there is time for everything. For the time being, the dialogue has not been activated yet. But clearly, we are always open. Operator: Gentlemen, there are no more questions registered at this time. I turn the conference back to you for any closing remarks. Diego Galli: Thank you very much. So let me just thank you all of you for your attention and remark that we are confident that a realistic win-win outcome is actually achievable with our anchors. And with that, we wish you all happy Easter. Thank you, and happy Easter again. Operator: Ladies and gentlemen, thank you for joining. The conference is now over, and you may disconnect your telephones.
Operator: Greetings, and welcome to the AirSculpt Technologies, Inc. Fourth Quarter 2025 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Allison Malkin of ICR. Allison, please go ahead. Allison Malkin: Good morning, everyone. Thank you for joining us to discuss AirSculpt Technologies results for the fourth quarter and 2025 fiscal year. Joining me on the call today are Yogi Jashnani, 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 currently projected results are described in this morning's press release and the reports we 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 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. Yogesh Jashnani: Thank you, Allison and good morning, everyone. I will begin with a review of our fourth quarter and fiscal year performance, followed by our progress on our strategic priorities, which have returned the business to stabilization and beginning in February inflected to positive same-store sales growth. I'll then provide an overview of our strong liquidity position reinforced by the actions we have taken over the past few months. Michael will then review our fourth quarter and fiscal 2025 financial performance and provide the 2026 outlook. Michael will also discuss what led to the delay in our 10-K filing. In the fourth quarter, we delivered sequential improvement in same-store sales versus the first 9 months of the year and higher adjusted EBITDA compared to Q4 2024. We also saw improvements in our lead and consult volumes, which has continued into 2026 and is now converting into improved revenue trends. Stepping back, 2025 represented a year of rebuilding and transformation. We added talent, improved business processes, implemented a new go-to-market strategy and added new procedures that expanded our market potential. In addition, we strategically exited our only clinic outside of North America to streamline operations. Finally, we strengthened our balance sheet, issuing equity and utilizing our ATM to meaningfully reduce our net debt. The result of this work is already evident. Our core business has stabilized with same-store sales improving from down 22% at the start of 2025 to positive in Feb 2026. Our trends continued favorably in March, and we expect Q1 same-store sales to be flat, which would be the midpoint of the revenue range previously provided. As we prepare for our busiest quarter, we are seeing broad-based improvement in revenue across our centers. This improvement is tied directly to the actions we took starting in Q4. Our achievements reflect strong progress advancing our strategic priorities. As a reminder, these include: first, introducing new services to capture our GLP-1 market opportunity; second, enhancing our sales and marketing strategy; and third, maintaining strong financial discipline, both with margins and capital allocation. Let me share an update on each. First, introducing new services to capture our GLP-1 market opportunity. GLP-1 medications have fundamentally reshaped how consumers' approach weight loss and wellness. They have also created demand for aesthetic procedures such as skin tightening, contour restoration and overall reshaping after weight loss, all of which play into our existing brand and capabilities. Fat removal and skin tightening represent some of the largest opportunities in aesthetics today. According to the American Society of Plastic Surgeons, skin tightening and skin removal market is as large as fat removal when measured in terms of procedures done in 2024. This gives us a $100 million-plus sales opportunity long term. You might recall, we rolled out stand-alone skin tightening to all centers in the second half of last year and introduced a skin excision pilot, also known as skin removal in Q4. Skin removal procedures represent another proof point of our expanded revenue opportunity. And while early, we are pleased with the performance of these additions. Patients are seeing great results, which is giving us terrific exposure as a destination for these procedures. Skin removal provides us with more levers to grow center productivity and utilization. Just in Q4 2025, we have completed more than 100 skin removal surgeries, and we expect this to ramp in 2026 as we expand this capability across all locations. We have also deployed marketing efforts to raise awareness of our unique positioning to serve these patients. These new procedures strengthen our body contouring service and revenue streams using our existing base of centers and clinic talent. Second, enhancing our sales and marketing strategy. Starting Q4 2025, we implemented an enhanced marketing strategy that is beginning to show measurable results. This included expanding into new mediums such as connected TV, increasing influencer engagement, launching focused campaigns for skin tightening and skin removal, improving website functionality and conversion flows and optimizing spend towards higher-value audiences. These marketing enhancements directly contributed to the recent improvement in volume trends, and we expect the momentum to continue. We have also improved our patient financing options to further drive conversion while maintaining our policy of full upfront payment. Turning to our third area of focus, maintaining strong financial discipline, both in our margins and capital allocation. As mentioned in the past, debt reduction has been the focus of our capital allocation strategy. We repaid over $30 million of debt over the last 5 quarters, bringing our leverage below 2.5 as of the current date. Operationally, we simplified the business and reduced costs, generating over $4 million in annualized savings in 2025 while reinvesting selectively in growth initiatives and talent. Speaking to talent, in the first quarter, we added highly experienced executives across finance, legal and operations with significant expertise in managing multiunit operations. These additions, along with our existing sales and marketing organization, provide us with a strong leadership team and the right structure to execute and deliver on our growth goals. In summary, the work completed in 2025 meaningfully repositioned the company, setting the foundation to support long-term sustainable growth by building the engine, infusing talent and strengthening our processes. Our strategy is starting to pay off. In 2026, we are experiencing accelerating sales and demand trends. Our priority is to execute consistently, build on this momentum and drive disciplined growth in order to create value for our shareholders. And with that, I will now pass it over to Michael. Michael Arthur: Thank you, Yogi, and good morning, everyone. I'm pleased to join you today on my first conference call as CFO of AirSculpt. This morning, I will share my background and then provide perspective regarding the delay in our 10-K filing. Following this, I will review our 2025 fourth quarter and fiscal year results and 2026 outlook. I come to AirSculpt with experience across public, consumer and lifestyle businesses, most recently serving as Chief Financial Officer of Inspirato, a luxury subscription travel company. During my 3 years there, I helped lead a comprehensive turnaround, strengthening operating disciplines, improving margins and restoring profitability, which ultimately culminated in a take-private transaction at a 50% premium to the prevailing trading price. I chose to join AirSculpt for 2 primary reasons; first and foremost, the underlying economics and long-term opportunity of the business is highly compelling. AirSculpt combines strong unit level performance, a differentiated offering and a brand with the right to win in a growing aesthetics market. With attractive clinic level contribution margins and a significant white space for expansion, both geographically and across adjacent procedures, the platform is well positioned for sustained scalable growth; second, I was drawn to the team and the culture. There's an alignment across the organization to improve operational discipline, ensure accountability and create long-term value. It is clear the leadership team understands the opportunities ahead and the work required to unlock them. That level of focus and commitment is energizing to step into as the CFO. We have the right strategic initiatives underway to advance our turnaround, and I'm excited to partner with Yogi and his team to accelerate those efforts. Before I discuss business performance, I want to address a few reporting items that came up at year-end. During the close process, we identified a reconciliation matter related to intercompany transactions, which led us to conduct a broader review of certain accounting treatments, including lease accounting under ASC 842. As a result of that review, we recorded immaterial changes to prior year balances in our 10-K filing. This had no impact to revenue, cash or our day-to-day operations, and we remain fully compliant with our bank covenants. The correction included the gross up of our ROU asset and lease liability by approximately $3.8 million and $3.5 million, respectively, for the prior year ending December 31, 2024. Additionally, there was corrections to prior year rent expense that decreased expense by $239,000 in 2023 and $233,000 in 2024. We recognize these issues should have been identified earlier and hold ourselves accountable. We are taking steps to strengthen our financial processes and controls going forward. Now let me turn to a review of our fourth quarter. Revenue for the quarter was $33.4 million, down approximately 15% versus the prior year quarter. Same-store revenue, which excludes centers opened for less than a year, declined 16%. The decline in revenue reflects lower case volume amidst a challenging consumer spending environment. The percentage of patients using financing to pay for procedures was approximately 50%. As a reminder we received full payment for all procedures upfront, and we have no recourse related to patients who financed their procedures with third-party vendors. Cost of services decreased $3.1 million to $13.7 million, a decline of 18% compared to prior year period, contributing gross margin expansion of roughly 2% to approximately 59%. The Selling, General and Administrative expenses were approximately $18.2 million, a decline of approximately $5 million in the quarter compared to the same period in fiscal 2024. SG&A decline was primarily a byproduct of the cost initiatives taken throughout 2025, as Yogi called out earlier. Our customer acquisition cost for the quarter was roughly $3,300 per case flat to prior year quarter. Adjusted EBITDA was $2.5 million or 7.4% of revenue, an increase of $0.6 million and 2.8% margin expansion versus prior year, driven by gross margin expansion and operational leverage in SG&A. For the full year, we reported revenue of $151.8 million, a decrease of approximately 15.8% than fiscal 2024. Adjusted EBITDA was approximately $15 million, resulting in an adjusted EBITDA margin of approximately 10%. This compares to adjusted EBITDA of approximately $21 million or an adjusted EBITDA margin of 12% in fiscal 2024. Turning to our balance sheet. As of December 31, 2025, cash was $8.4 million. We paid down $19 million of debt in 2025, $14 million on the term loan and $5 million on the revolving credit facility. Gross debt outstanding was $56 million at year end. Under our credit agreement, our leverage ratio was below 3x and we are in compliance with all covenants at year-end. Furthermore, as Yogi mentioned, we raised an additional $14.8 million from the at-the-market facility in Q1 and paid down an additional $11 million of debt principal in the period. We expect to refinance our term loan before it becomes current, targeting a net debt leverage ratio below 2.5x. The cash flow from operations for the year was $3.1 million compared to $11.4 million in fiscal 2024. Turning to our outlook. In 2026, we expect revenue in the range of $151 million to $157 million. We expect the business to build momentum as the year progresses, but the midpoint of our revenue range, reflecting approximately 3% comparable growth, excluding London from 2025. As a reminder, our London center contributed 1% to comps in 2025. We expect fiscal 2026 adjusted EBITDA in the range of $15 million to $17 million. This outlook incorporates the benefit of improved revenue growth and the annualization of our 25 cost actions. At the same time, we plan to reinvest a portion of these savings in the targeted growth initiatives to support top line expansion. As it relates to de novos, while we have plenty of runway ahead to open new centers, our guidance does not contemplate any openings this year as we continue to focus our efforts and resources on revenue growth in our existing base. As many of you are aware, helium plasma continue to perform skin tightening procedures. While we maintain a diversified network of suppliers, a meaningful portion of the global supply is currently offline due to the Iran conflict. We are monitoring the situation closely, and we will manage the business accordingly. Lastly, before I turn it back to Yogi, I want to reiterate how excited I am to be part of AirSculpt and the leadership team and to engage with our investors. There is significant opportunity ahead, and I look forward to helping unlock long-term value for all shareholders. And with that, back to Yogi for closing remarks. Yogesh Jashnani: Thank you, Michael. In conclusion, we begin 2026 with positive momentum and enhanced marketing strategy, strengthen liquidity and the opportunity for stronger future growth. With that, I'd like to turn the call over to the operator to begin the question-and-answer portion of the call. Operator: [Operator Instructions] Our first question is coming from Josh Raskin from Nephron Research. Joshua Raskin: I've got 2 here. I guess just first on the numbers. The guidance for 1Q, the revenues indicate a slight decline on a year-over-year basis, whereas full year 2026 revenue is expected to be up slightly. So I heard the building momentum commentary, but what's causing a little bit of that change in seasonality to make the revenues a little more back-end loaded this year? Yogesh Jashnani: Josh, this is Yogi. Thank you for the question. Look, we are being measured in how we guide over here. The trends have improved meaningfully, as we mentioned, exiting the year and our trajectory has gone from down 2022, '24 to positive comps. That underpins our confidence in the full year outlook. But at the same time, we do recognize that we must deliver consistent results to make sure that we can hit our numbers, and we are focused on execution at the moment. Joshua Raskin: Okay. Perfect. And then maybe if we could just take a step back, bigger picture on the body sculpting trends outside of GLP-1-related procedures, is there any way for you to isolate just sort of market-like trends for the core business prior to the skin tightening and skin removal in some of the new products? Yogesh Jashnani: Josh, great question. We continue to see that the core business around body contouring and fat removal is holding relatively steady. I think all of aesthetics saw a bit of a boom coming out of COVID. And our belief is now we're also starting to find a baseline. Now with this industry, there is constant change, and we do see GLP-1s being the next wave of that change where we are well positioned to take advantage of that. And the demand that arises from skin laxity or loose skin does play really well into our brand and our capabilities. That's why you hear the focus on GLP-1s. Operator: Thank you. Next question is from Sam Eiber from BTIG. Sam Eiber: Maybe I can start on the excisional procedures. I think I caught in the prepared remarks about 100 procedures in Q4 as part of that pilot. I guess I would love to hear what you're hearing from customers and surgeons that were part of the pilot phase and then how that maybe is going to inform the go-to-market as this rolls out into more of a broader launch across all your centers? Yogesh Jashnani: Sam, nice to talk to you as well. So what we are seeing is that we are able to provide excellent results for our patients. Our patients are coming in. They are getting good results from the procedures. We are -- as you know, for our procedures, it takes a few months before you see the final results, but the early signs are very encouraging. From surgeons as well, this is something that they are -- many of them are comfortable with. All of them are highly effective at it. So thus far, we are pleased with both the volume and also the quality of results that we are getting with the excisional procedures. As the year goes along, we would ramp it up. As a reminder, typically, these -- as I said, it takes about 3 months minimum to see the full results for a patient. So we want to make sure we look through those, make any corrections that are needed. Thus far, we've not seen anything major and then expand it from there. Sam Eiber: Okay. That's very helpful. And maybe I can just squeeze a follow-up here on a question on the balance sheet. I know you guys paid down some debt this quarter, leverage ratio is down to 2.5x. I guess how should we be thinking about capital allocation going forward, appetite for continued debt paydown versus the comfort right now at the 2.5x? Michael Arthur: Sam, this is Michael Arthur. Thanks for the question. Yes, we -- our #1 priority still is to get the balance sheet in a healthy position. And we've done a lot of that work over the last year or so. As I mentioned, we are in early stages, but looking to refinance the debt, but targeting around the levels we're at now and somewhere below net debt of 2.5x. Beyond that, the capital allocation strategy hasn't changed much, which is really investing back into the business, both on sales and marketing and then ultimately, probably not in 2025, but new de novos as well as we look to expand our clinic portfolio. Operator: We've reached end of our question-and-answer session. I'd like to turn the floor back over to Yogi for any further closing remarks. Yogesh Jashnani: Thank you, Kevin, and team, thank you for joining us this morning. I also want to thank the AirSculpt team and our network of surgeons that provide excellent care and results to our patients. Together, we are powering the next chapter in AirSculpt's growth. We look forward to sharing our progress when we report Q1 results. Operator: Thank you. That does conclude today's teleconference webcast. You may disconnect your lines at this time, and have a wonderful day. We thank you for your participation today.
CNBC host Jim Cramer warned on Thursday that surging crude prices could trigger a painful equity selloff, arguing that oil's parabolic move under President Donald Trump risks a 20% stock market drawdown.
Spoiler: Not great
The administration announced new levies and made changes to existing tariffs for two industries that have proved influential on the president's trade policy.
Bullish sentiment increased 1.5 percentage points to 33.6%. Neutral sentiment decreased 3.1 percentage points to 15.0%.
The U.S. economy is projected to show job gains of 59,000 for the month, an anemic rate by the standards of previous years this decade but enough to keep the unemployment rate at 4.4%. With the changes to the workforce, it's requiring ever-smaller payroll growth to keep the jobless rate steady.
Investors are heading into the first long weekend since the war in Iran began, and they have reason to be anxious.
I remain bullish on tech and gold for Q2 2026, expecting rebounds as the U.S.-Iran conflict stabilizes and market fear subsides. The SaaSpocalypse is overdone; software firms, especially AI-native names like Zeta Global (ZETA), offer compelling recovery potential as earnings remain resilient.
Despite the holiday-shortened week , Wall Street was not short on drama to wrap up March and welcome in April.
Several energy stocks exit the IBD 50 after their March rally as oil prices cool and investors await a truce between the U.S. and Iran.
Inflation, Not Growth, Is the Issue—For Now Keep your eyes on real yields for signs of the economy's health Oil-driven inflation fears have investors increasingly convinced the Fed won't be cutting interest rates anytime soon—a sentiment shift that's pushed bond yields higher in recent weeks.
Dallas Federal Reserve President Lorie Logan said on Thursday that U.S. oil producers are unlikely to boost output and shield consumers from higher gasoline prices any time soon.
Markets rebounded for their best day of the year earlier this week, led by the tech-heavy NASDAQ, which gained more than 3% in a single session.
The first full week of April will focus on a number of highly anticipated inflation readings, including February's personal consumption index (PCE) and consumer price index (CPI).
A recovery on Thursday may be a sign that investors are looking beyond oil above $110 a barrel. What to own now.
The biotech sector, tracked by the iShares Biotechnology ETF (IBB), remained flat in early 2026, despite broader market declines and volatility. Recent high buyout premium M&A activity, including Biogen's $5.6B Apellis acquisition, fueled sector outperformance and an uptick in investor enthusiasm.
The outlook for the U.S. economy has deteriorated rapidly in the past two weeks, according to an out-of-the-ordinary survey conducted by the National Association for Business Economists.
Before President Trump even started speaking Wednesday night, investors had already factored in a swift end to the crisis.
The average rate on a 30-year fixed mortgage rose this week to 6.46%, according to the latest Freddie Mac data released Thursday. That is up from last week's reading of 6.38%.