← All companies ← AIR Manual AIT → ← AHCO Health Care Providers & Services AMED →

AIRS, AirSculpt Technologies Inc.

Health Care Providers & Services diversified UnprofitableDistress / turnaroundCyclical

Our treatment results—highlighted by a vast gallery of "before and after" photos across gender, body shape and treatment areas—are a powerful tool to build our brand through digital marketing on our website and social media accounts.

Patients first target any area containing excess fat with AirSculpt , then have that same area treated with a technology that instantly tightens skin and improves laxity.

We operate within the large and growing market for body fat reduction procedures.

Latest annual: FY2025 10-K/A

AIRS · AirSculpt Technologies Inc.

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$152M

−15.8% YoY · 19% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $152M 5-yr avg $166M

Operating margin −7.8% 5-yr avg 1.1%

ROIC −7% 5-yr avg 1%

Owner-earnings margin 5% 5-yr avg 6%

Free cash flow margin 5% 5-yr avg 6%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

Situation: Unprofitable. No sustained operating profit across the record; an earnings multiple has nothing to rest on. What the record does show is revenue, the gross-margin trajectory, and the burn against the cash on hand. Distress / turnaround. Thin interest coverage, or operating cash burned against real debt, across the record. The balance sheet carries this situation; the debt schedule sets the clock. Cyclical. Margins collapse and recover repeatedly across the record; a single year, good or bad, misstates the through-cycle earning power.
What moves the needle: Operating margin has run about 1.6% through the cycle, a thin margin, where volume, cost discipline and the price it gets all bear on the result. The operating margin has swung widely — from −7.6% to 16% over the years — so the through-cycle figure carries more than any single year, and the worst year more than the best. On its own account, the filing leans hardest on pricing power & competition, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has rarely cleared the cost of capital (median −1%, above 15% in 0 of 5 years). By owner earnings: roughly 7% of revenue reaches owners as cash, consistently. The cycle and the balance sheet decide this one; the worst year tells more than the median, and the rest is in the 10-K.

Every line is arithmetic on the company's filings, shown in full in the sections below.

The record

Ten years of arithmetic, read across the cycle.

The record, 2019–2025

realized figures from each filing · older years to the left

2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMMar 2026
								Income statement
$41M	$63M	$133M	$169M	$196M	$180M	$152M	$152M	RevenueRevenue
49%	38%	49%	60%	52%	55%	54%	55%	SG&A / revenueSG&A/rev
$663K	$10M	$16M	($5M)	$10M	($2M)	($12M)	($12M)	Operating incomeOp. inc.
1.6%	16.0%	11.8%	−2.7%	5.0%	−0.9%	−7.6%	−7.8%	Operating marginOp. mgn
($2M)	$8M	$11M	($15M)	($4M)	($8M)	($12M)	($11M)	Net incomeNet inc.
								Cash flow & returns
$5M	$14M	$27M	$24M	$24M	$11M	$3M	$7M	Operating cash flowOp. cash
$5M	$6M	$7M	$8M	$10M	$12M	$13M	$13M	DepreciationDeprec.
$2M	$414K	$2M	$2M	($281K)	$4M	($349K)	$5M	Working capital & otherWC & other
$4M	$4M	$7M	$13M	$10M	$14M	$2M	$554K	CapexCapex
10.8%	5.9%	5.3%	7.7%	5.1%	7.8%	1.6%	0.4%	Capex / revenueCapex/rev
$499K	$10M	$20M	$16M	$14M	($3M)	$692K	$7M	Owner earningsOwner earn.
1.2%	16.4%	14.6%	9.7%	7.2%	−1.5%	0.5%	4.6%	Owner earnings marginOE mgn
$499K	$10M	$20M	$12M	$14M	($3M)	$692K	$7M	Free cash flowFCF
1.2%	16.4%	14.6%	6.8%	7.2%	−1.5%	0.5%	4.6%	Free cash flow marginFCF mgn
—	$0	$0	$23M	$385K	$252K	$0	$0	Dividends paidDiv. paid
—	—	11%	-2%	3%	-1%	-7%	-7%	ROICROIC
—	—	13%	-21%	-5%	-10%	-13%	-11%	Return on equityROE
—	—	13%	−53%	−6%	−11%	−13%	−11%	Retained to equityRetained/eq
								Balance sheet
$5M	$10M	$25M	$10M	$10M	$8M	$8M	$17M	Cash & investmentsCash+inv
—	$1M	$3M	$4M	$4M	$6M	$5M	$7M	Accounts payablePayables
—	$12M	$29M	$17M	$16M	$17M	$15M	$24M	Current assetsCur. assets
—	$9M	$16M	$22M	$20M	$29M	$28M	$32M	Current liabilitiesCur. liab.
—	1.2×	1.8×	0.7×	0.8×	0.6×	0.6×	0.7×	Current ratioCurr. ratio
—	$82M	$82M	$82M	$82M	$82M	$82M	$82M	GoodwillGoodwill
—	$180M	$201M	$201M	$204M	$213M	$187M	$192M	Total assetsAssets
—	$33M	$83M	$84M	$72M	$70M	$56M	$45M	Total debtDebt
—	$22M	$57M	$74M	$61M	$61M	$48M	$28M	Net debt / (cash)Net debt
0.2×	4.1×	3.2×	-0.7×	1.5×	-0.3×	-1.9×	-2.1×	Interest coverageInt. cov.
—	—	$84M	$71M	$83M	$78M	$88M	$100M	Shareholders’ equityEquity
0.8%	0.5%	5.4%	17.5%	9.3%	2.1%	1.5%	1.1%	Stock comp / revenueSBC/rev
								Per share
—	0K	55.6M	55.7M	56.8M	57.7M	60.5M	69.5M	Shares out (diluted)Shares
—	—	$2.40	$3.03	$3.45	$3.13	$2.51	$2.19	Revenue / shareRev/sh
—	—	$0.19	$-0.26	$-0.07	$-0.14	$-0.19	$-0.16	EPS (diluted)EPS
—	—	$0.35	$0.29	$0.25	$-0.05	$0.01	$0.10	Owner earnings / shareOE/sh
—	—	$0.35	$0.21	$0.25	$-0.05	$0.01	$0.10	Free cash flow / shareFCF/sh
—	—	$0.00	$0.42	$0.01	$0.00	$0.00	$0.00	Dividends / shareDiv/sh
—	—	$0.13	$0.23	$0.17	$0.24	$0.04	$0.01	Cap. spending / shareCapex/sh
—	—	$1.50	$1.27	$1.46	$1.36	$1.45	$1.44	Book value / shareBVPS

Per-share growththe realized rate an owner's share compounded

	6-yr	5-yr
Revenue / share	+1.2%/yr (4-yr)	+1.2%/yr (4-yr)
Owner earnings / share	−57.5%/yr (4-yr)	−57.5%/yr (4-yr)
Capital spending / share	−25.3%/yr (4-yr)	−25.3%/yr (4-yr)
Book value / share	−0.8%/yr (4-yr)	−0.8%/yr (4-yr)

The record, charted

FY2019–2025

Each measure over its full record; the current point and the worst year marked.

Share count

60Mpeak FY2025

ROIC

−7%low FY2025

Net debt ÷ owner earnings

68.8×peak FY2025

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$692Kowner earningsvs.($12M)net incomelow FY2024

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetained

Each year's operating cash, by what management did with it: the mix, and how it drifts.

FY2019FY2025

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business turned a $12M loss into $692K of owner earnings: more cash than the profit line showed, after the non-cash charges and the capital it put back in.

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	($12M)	($8M)	($4M)	($15M)	$11M
Depreciation & amortizationnon-cash charge added back	+$13M	+$12M	+$10M	+$8M	+$7M
Stock-based compensationreal costnon-cash, but a real cost	+$2M	+$4M	+$18M	+$29M	+$7M
Working capital & othertiming of cash in and out, other non-cash items	−$349K	+$4M	−$281K	+$2M	+$2M
Cash from operations	$3M	$11M	$24M	$24M	$27M
Maintenance capital expenditurethe spending needed just to hold position and volume	−$2M	−$14M	−$10M	−$8M	−$7M
Owner earnings	$692K	($3M)	$14M	$16M	$20M
Growth capital expenditurediscretionary; spent to get bigger, not to stand still	—	—	—	−$5M	—
Free cash flow	$692K	($3M)	$14M	$12M	$20M
Owner-earnings marginowner earnings ÷ revenue	0%	-1%	7%	10%	15%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position . The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $2M), owner earnings is nearer ($2M).

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K/A · source on SEC EDGAR →

Will it survive?

Can it pay its interest? -1.9×

Does not cover its interest

Operating income ($12M) ÷ interest expense $6M

What this means
A full year of operating profit didn't cover the interest bill. This is the zombie zone: the business depends on refinancing, asset sales, or forbearance to service its debt.
How heavy is the debt, net of cash? $48M

Net debt against an operating loss

Cash $8M − debt $56M

What this means
Netting $8M of cash and short-term investments against $56M of debt leaves $48M owed, with no operating profit this year to measure it against — understand that combination before anything else about the company. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? —

Not enough data

What this means
The filing data didn't include the inputs for this check.

Is it a good business?

Return on invested capital -1%

Below average through the cycle

5-yr median, range -7%–11%; -7% latest = NOPAT ($9M) ÷ invested capital $135M

Industry peers: median -14%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 5 years (it ran -7% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin 7%

Solid through the cycle

7-yr median margin, range -1%–16%; latest $692K = operating cash $3M − maintenance capex $2M

Industry peers: median -30%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 0% of revenue this year, a 7% median across 7 years. Treating stock comp as the real expense it is (less $2M of SBC) leaves ($2M).
Are earnings backed by cash? $3M

Loss, but cash-generative

Net income ($12M) · cash from operations $3M

In the filing’s words And the filing leans heavily on adjusted, non-GAAP earnings — steering you off the GAAP figure just where the cash is not backing it. Read the reconciliation in the notes before taking the adjusted number.

What this means
The company reported a net loss, so a conversion ratio isn't meaningful. What matters then is whether operations still threw off cash, here, they did.

How is the cash used?

Where do the earnings go? 0%

Reinvests most of it

Dividends + buybacks $0 ÷ Owner Earnings $692K

What this means
Of $692K Owner Earnings, $0 (0%) went back to shareholders, $0 dividends, $0 buybacks. Returning most of it is the mark of a mature business with little left to reinvest at a high return; reinvesting most could mean a long runway, or empire-building. The split doesn't say which; the return earned on it (see ROIC) does.
Investing or harvesting? 0.19×

Harvesting

Capex $2M ÷ depreciation $13M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 0 of 6 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Miss

Revenue ≥ $2B · $152M

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Miss

Current ratio ≥ 2× · 0.55×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Miss

Debt ≤ working capital · $56M vs ($12M) WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Miss

A profit every year (7-yr record) · 5 loss years

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Miss

Uninterrupted dividends · 3 of 7 yrs

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth Miss

Earnings +33% over the record · −250%

What this means
At least a third more earnings than a decade ago, averaging three years at each end. Net income (not per-share), so stock splits don't distort it, buybacks and dilution show up in the share-count line instead.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $-0.11/share (latest year $-0.17), the averaged base the calculator's gate runs on, and book value is $1.24/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2019–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 2 of 7

What this means
Lost money in 5 year(s), look at what happened there before trusting the average.
Return on capital ≥ 15% 0 of 5 yrs

What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
Operating margin 10% → −1% (3-yr avg ends)

In the filing’s words The filing attributes gains to higher prices, but the margin in the record has not followed — the claim outruns the result here.

What this means
Through the cycle the operating margin slipped — about 10% early to −1% lately, median 2% — competition or costs are biting in.
Reinvestment, incremental ROIC returns capital

What this means
The capital base barely grew: this business returns cash through dividends and buybacks rather than reinvesting. Judge it on the cash returned, not on compounding.
Worst year 2025 · −7.6% op. margin

What this means
Operations went underwater in 2025, understand why before trusting the good years.
Dividend record paid

What this means
Paid a dividend in 3 of the years on record.

Does AI threaten the moat?

Moderate contestability

AI is likely to reshape costs and some products here without clearly contesting or sparing the core moat; how the company itself frames it is the tell.

The question is whether a moat the record shows as durable outlasts a technology that lowers the cost of part of what the firm sells. The durability is read in the record above, the filing's own framing of AI beside it; the industry label decides nothing on its own.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Mar 31, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$24M

Cash & short-term investments$17M
Other current assets$8M

Current liabilities$32M

Debt due within a year$5M
Accounts payable$7M
Other current liabilities$20M

Current ratio0.75×all current assets ÷ what's due · Graham looked for 2×

Quick ratio0.75×stricter: inventory excluded

Cash ratio0.51×strictest: cash alone against what's due

Working capital($8M)the cushion left after near-term bills

Debt due this year vs. cash$5M due · $17M cash covered by cash on hand, no refinancing forced · both figures from the Mar 31, 2026 balance sheet

Revenue, latest quarter vs. a year ago+0.0%the freshest read on whether the business is still growing

Current ratio, recent quarters0.9× → 0.7×

Deeper floors

Tangible book value($17M)equity stripped of goodwill & intangibles

Net current asset value($67M)Graham's net-net: current assets less all liabilities

Debt incl. operating leases$71M$26M of it operating leases

Deferred revenue$4Mcustomer cash collected before delivery; operating float

From the company's latest filing.

How the cash was used, 2019–2025

Over the record, the business generated $108M of operating cash; how management split it reads as a reinvestor, most operating cash is plowed back into the business.

Reinvested$54M · 50%
Dividends$24M · 22%
Retained (debt / cash)$30M · 28%

Returned to owners$24M
41% of the owner earnings the business produced over the span, $24M as dividends and $0 as buybacks.
Net change in share count24.8%
The diluted count rose from 56M to 69M: issuance (stock pay, deals) outran any buybacks, so owners were diluted on net.
Dividend record$0.00/sh
Paid in 3 of the years on record. It was cut at least once along the way.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Acquisitions & goodwill

from the balance sheet & the 7-year cash-flow record

Goodwill grows only when a company acquires and falls only when it concedes it overpaid. The size of that bet, the cash put into buying rather than building, and how much has already been written off.

Goodwill & intangibles$119M63% of all assets; the premium carried on the balance sheet for businesses acquired

Against book equity93%goodwill is this share of book equity; the rest is the company’s own retained and paid-in capital

Cash spent acquiring$0over 7 years buying other businesses, against $54M of capital spent building

None written down over the record; the goodwill is still carried at full cost. That is the deals holding their value on the books so far; whether they keep doing so is the test an owner watches, since the write-down, when it comes, is the admission the price was too high.

Goodwill, acquired intangibles and equity from the latest balance sheet; acquisition spend and write-downs summed across the 7-year record, from the company's own filings.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid.

Insider ownership44.6%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
Stock-based compensation$2M
The slice of the business handed to employees in shares this year, 2% of revenue. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Inverting the record

Invert: instead of why AirSculpt Technologies Inc. is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2019–2025.

2 of the 3 tests turned up something to look into; the other 1 came back clean.

Look hereIs it less profitable than it was?2.0% vs 10.7%
The owner-earnings margin averaged 10.7% early in the record and 2.0% across the last three years, and the latest year has not recovered. Ask the filing whether that is a structural drift or a cyclical trough — price, mix, cost, or a competitor — and whether it is permanent.
Look hereDid the share count rise anyway?24.8%
Diluted shares grew 24.8% over 2019–2025. Owners were diluted on net; each share owns less of the business than it did. Read the buyback line beside this one, not on its own.

And these came back clean

Are "one-time" charges a yearly habit?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

What an owner would ask, FY2025

read the 10-K →

Which reported numbers are a judgment call?
Management names Revenue recognition, Acquisitions, Stock compensation as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →

The questions the record and the charts do not answer on their own; each carries the figure and the place to look.

Peers, Health Care Providers & Services

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
CAICaris Life Sciences Inc.	$812M	—	-62.4%	—	-62%
USPHU.S. Physical Therapy	$781M	—	12.8%	14%	12%
TOIThe Oncology Institute Inc.	$503M	—	-18.9%	-55%	-10%
FLGTFulgent Genetics Inc.	$323M	57%	-10.0%	-3%	7%
SRTAStrata Critical Medical Inc.	$197M	19%	-36.6%	-9%	-30%
AIRSAirSculpt Technologies Inc.	$152M	—	1.6%	-1%	7%
GRALGRAIL Inc. Common Stock	$147M	—	-1627.6%	-19%	-464%
PSNLPersonalis Inc.	$70M	26%	-80.7%	-48%	-58%
Group median	—	—	-27.8%	-9%	-20%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what AirSculpt Technologies Inc. has delivered.

Today’s price $

Through the cycle, AirSculpt Technologies Inc. earns about $11M on its 7.2% median owner-earnings margin. This year’s 0.5% margin runs below that; the reported figure may understate a lean year. Normalize, below, values the price on that through-cycle figure rather than the latest year.

Base Normalize · through-cycle ($11M) Net of stock comp (−$2M)

—

The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth, delivered—

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Owner earnings $7M on 71M shares outstanding, per the 10-Q cover, as of 2026-05-07; net debt $28M. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh AIRS against another business →

Cite: Owner Scorecard, "AirSculpt Technologies Inc. (AIRS), the owner's record," https://ownerscorecard.com/c/AIRS, data as of 2026-07-09.

Manual order: ← AIR its page in the Manual AIT →

Industry order: ← AHCO the Health Care Providers & Services chapter AMED →