Management characterized 2025 as a year of rebuilding, involving a new go-to-market strategy, talent infusion, and the strategic exit of the only clinic outside North America to streamline operations.

Same-store sales trends inflected from a 22% decline at the start of 2025 to positive growth in February 2026, driven by enhanced marketing and stabilized core demand.

The company is pivoting to capture the GLP-1 market opportunity, identifying a $100 million-plus long-term sales potential in skin tightening and contour restoration following medical weight loss.

Operational efficiency initiatives generated over $4 million in annualized savings during 2025, which are being selectively reinvested into growth initiatives and leadership talent.

Marketing enhancements, including connected TV and influencer engagement, directly contributed to improved lead and consult volumes exiting the fiscal year.

Management emphasized a shift toward financial discipline, utilizing an ATM facility and equity issuance to reduce net debt and bring leverage below 2.5x.

Full-year 2026 revenue guidance of $151 million to $157 million assumes approximately 3% comparable growth, with momentum expected to build as the year progresses.

The company plans to expand skin removal (excision) capabilities across all locations in 2026 following a successful pilot of over 100 procedures in Q4 2025.

Guidance for 2026 does not contemplate any new de novo center openings, as management intends to focus resources exclusively on driving revenue growth within the existing clinic base.

Management is monitoring global supply chain risks related to helium plasma components, noting that a meaningful portion of global supply is currently offline due to the Iran conflict.

The company targets a net debt leverage ratio below 2.5x and intends to refinance its term loan before it becomes a current liability.

A review of accounting treatments led to immaterial changes to prior year balances, including a gross-up of ROU assets and lease liabilities by $3.8 million and $3.5 million, respectively.

The delay in the 10-K filing was attributed to a reconciliation matter related to intercompany transactions and lease accounting under ASC 842.

Management flagged that while they maintain a diversified supplier network, geopolitical conflicts in Iran have impacted the availability of certain skin tightening equipment components.

Customer acquisition cost remained flat year-over-year at approximately $3,300 per case despite the implementation of new marketing mediums.

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Management explained they are being measured in their guidance despite meaningful trend improvements, emphasizing the need to deliver consistent results before raising outlooks.

The trajectory has improved from double-digit declines to positive comps, underpinning confidence in the full-year targets.

The core fat removal business is described as holding steady and finding a baseline after the post-COVID boom.

GLP-1 medications are viewed as the 'next wave' of industry change, specifically driving demand for skin laxity and contouring procedures.

Early results from the 100-procedure pilot are encouraging, with high surgeon comfort and positive patient outcomes.

Management noted it takes approximately three months to see full clinical results, and they will monitor these outcomes before a broader ramp-up throughout 2026.

The primary focus remains maintaining a healthy balance sheet with a target net debt leverage below 2.5x.

While de novo openings are paused for 2026 to focus on existing clinic productivity, they remain a long-term part of the geographic expansion strategy.

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