Establishment Labs Holdings ((ESTA)) has held its Q3 earnings call. Read on for the main highlights of the call.
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The recent earnings call of Establishment Labs Holdings painted a picture of strong performance and optimism for the future. The company reported significant achievements in revenue growth, gross margin improvement, and achieving positive EBITDA for the first time. Despite facing challenges such as tariff impacts and rising operating expenses, the company’s robust growth in key markets, particularly the U.S. and Europe, and its strategic focus on innovation and market expansion, suggest a promising outlook.
Record Revenue Growth
Global revenue for Establishment Labs grew by an impressive 34% in the third quarter of 2025, reaching $53.8 million. The U.S. market contributed $11.9 million to this figure, highlighting the company’s expanding footprint in key regions.
First Positive EBITDA
A significant milestone was achieved as Establishment Labs reported its first quarter of positive EBITDA, amounting to $1.2 million in Q3 2025. This marks a pivotal moment in the company’s financial journey.
U.S. Market Performance
The U.S. market showed remarkable performance with a revenue of $11.9 million in Q3, representing a 16% sequential increase. This growth is particularly notable given the typically slower seasonal period for breast procedures.
Gross Profit Margin Milestone
For the first time, Establishment Labs exceeded a 70% gross profit margin, reaching 70.1%. This achievement underscores the company’s operational efficiency and pricing strategy.
European Market Success
The European direct market sales saw a 20% increase over Q3 2024, reflecting the company’s successful expansion and market penetration strategies in the region.
Strong Cash Position
The company’s cash reserves increased by $16 million in Q3, bringing the total to $70.6 million. This was primarily driven by the credit facility, providing a solid financial foundation for future growth.
Mia and Preserve Adoption
The adoption of the Mia and Preserve platforms is progressing well, with Mia expected to generate $8-10 million in revenue in 2025. Preserve continues to see positive adoption trends.
Challenges in Distributor Markets
Sales to distributors in the EMEA region were lower due to the timing of orders, highlighting a challenge in aligning supply chain logistics with market demand.
Tariff Impact
The imposition of duties on goods imported from Costa Rica to the U.S. has impacted the company’s gross margin, presenting a challenge that Establishment Labs is actively addressing.
Rising Operating Expenses
Operating expenses, specifically SG&A, increased by $3.1 million from Q3 2024, reflecting higher costs associated with the company’s growth initiatives.
Forward-Looking Guidance
Looking ahead, Establishment Labs has raised its 2025 revenue guidance to exceed $210 million, with expectations to capture a 20% share of the U.S. breast augmentation market by year-end. The company also anticipates its minimally invasive platforms, Mia and Preserve, to generate over $30 million in revenue by 2026. With a strong cash position, the company aims to achieve cash flow positive status in 2026 without further equity raises.
In summary, Establishment Labs Holdings’ earnings call highlighted a period of robust growth and strategic achievements. The company’s strong performance in key markets, coupled with its focus on innovation and expansion, paints an optimistic picture for the future. Despite challenges such as tariffs and rising expenses, the company’s forward-looking guidance suggests continued momentum and financial strength.