Establishment Labs (NASDAQ:ESTA) Releases Earnings Results, Misses Expectations By $0.05 EPS

Establishment Labs (NASDAQ:ESTA) released its earnings results on Thursday. The company reported ($0.39) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.34) by ($0.05), FiscalAI reports. The business had revenue of $67.54 million during the quarter, compared to analysts’ expectations of $65.79 million. Establishment Labs had a negative return on equity of 205.79% and a negative net margin of 15.82%.The firm’s quarterly revenue was up 31.7% compared to the same quarter last year. During the same period in the prior year, the company earned ($0.57) earnings per share.

Here are the key takeaways from Establishment Labs’ conference call:

• Positive Sentiment: Q2 revenue rose 31.7% year over year to $67.5 million, led by U.S. revenue growth of 140.9% to $24.7 million. Management raised full-year revenue guidance to $269 million-$271 million.
• Positive Sentiment: U.S. adoption of Motiva continued to accelerate, surpassing 100,000 implants and 2,000 customer accounts in under 21 months. Increasing utilization within existing accounts and growing patient requests for Motiva are supporting momentum.
• Positive Sentiment: The minimally invasive platform generated $12.1 million in Q2 revenue and is expected to approach 15% of full-year revenue. Preservé training exceeded expectations with more than 300 certified U.S. surgeons, while the company expects to train approximately 500 during 2026.
• Positive Sentiment: Profitability and cash generation improved substantially, with gross margin expanding to 70.6% and adjusted EBITDA turning positive at $3.7 million versus a prior-year loss of $8.5 million. Management expects to become free-cash-flow positive in the second half of 2026 and for fiscal 2027, without needing additional equity raises.
• Negative Sentiment: The third quarter is expected to reflect normal seasonal weakness, with the fourth quarter typically strongest. Middle East distributor demand has fallen because of regional conflict and is expected to remain depressed for the rest of the year, although the region represents less than 5% of revenue.

Establishment Labs Stock Down 2.1%

Shares of NASDAQ ESTA traded down $1.63 during midday trading on Friday, hitting $77.42. The stock had a trading volume of 763,643 shares, compared to its average volume of 499,249. The business’s 50 day moving average is $86.43 and its 200-day moving average is $74.25. Establishment Labs has a 52 week low of $33.35 and a 52 week high of $97.59. The company has a quick ratio of 1.91, a current ratio of 2.96 and a debt-to-equity ratio of 16.82. The company has a market cap of $2.28 billion, a P/E ratio of -59.10 and a beta of 1.07.

Wall Street Analysts Forecast Growth

ESTA has been the subject of a number of analyst reports. Canaccord Genuity Group set a $105.00 target price on shares of Establishment Labs in a research note on Thursday. Citigroup upped their price target on Establishment Labs from $76.00 to $92.00 and gave the stock a “neutral” rating in a research note on Wednesday, July 8th. JPMorgan Chase & Co. raised their price objective on Establishment Labs from $84.00 to $95.00 and gave the company an “overweight” rating in a research report on Friday. Weiss Ratings reiterated a “sell (e+)” rating on shares of Establishment Labs in a research note on Wednesday, June 24th. Finally, Mizuho boosted their target price on Establishment Labs from $100.00 to $105.00 and gave the stock an “outperform” rating in a report on Wednesday, July 15th. Seven equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Establishment Labs has a consensus rating of “Moderate Buy” and an average target price of $100.25.

Hedge Funds Weigh In On Establishment Labs

A number of hedge funds have recently added to or reduced their stakes in ESTA. Geode Capital Management LLC boosted its position in shares of Establishment Labs by 1.2% in the second quarter. Geode Capital Management LLC now owns 25,917 shares of the company’s stock worth $1,105,000 after purchasing an additional 299 shares during the period. Swiss National Bank increased its stake in shares of Establishment Labs by 1.8% in the fourth quarter. Swiss National Bank now owns 34,200 shares of the company’s stock worth $2,492,000 after purchasing an additional 600 shares in the last quarter. Kestra Advisory Services LLC bought a new stake in shares of Establishment Labs during the 4th quarter valued at $47,000. Private Advisor Group LLC raised its position in shares of Establishment Labs by 14.1% during the 3rd quarter. Private Advisor Group LLC now owns 5,450 shares of the company’s stock valued at $223,000 after purchasing an additional 675 shares during the period. Finally, Quarry LP purchased a new position in shares of Establishment Labs during the 3rd quarter valued at $34,000. 72.91% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Establishment Labs

Here are the key news stories impacting Establishment Labs this week:

• Positive Sentiment: JPMorgan raised its price target on Establishment Labs from $84 to $95 and maintained an Overweight rating, implying substantial upside from the current trading level. Benzinga analyst report
• Positive Sentiment: BTIG increased its price target from $96 to $103 and reiterated a Buy rating, while Needham lifted its target from $86 to $95 and also maintained a Buy rating. These revisions suggest analysts remain optimistic about the company’s growth prospects. The Fly analyst report
• Positive Sentiment: Establishment Labs reported quarterly revenue of $67.54 million, exceeding the $65.79 million analyst estimate and increasing 31.7% year over year. The company also projected 2026 revenue of $269 million to $271 million, above the $267.5 million consensus estimate. Zacks quarterly results report
• Neutral Sentiment: Management indicated that minimally invasive procedures now account for approximately 15% of sales, highlighting potential for longer-term market expansion, but investors may remain focused on the company’s path to profitability. Seeking Alpha revenue outlook report
• Negative Sentiment: The company reported a second-quarter loss of $0.39 per share, wider than the $0.34 expected loss, though the result improved from a $0.57 loss in the year-ago quarter. The earnings miss, continued negative margins, and lack of profitability are likely weighing on the shares. MarketBeat earnings report

Establishment Labs Company Profile

Establishment Labs Holdings Inc is a global medical technology company specializing in the design, development and manufacture of silicone gel breast implants for aesthetic and reconstructive surgery. The company’s proprietary portfolio is built around patient-focused safety, customization and innovation, offering solutions intended to enhance surgical outcomes and support clinical traceability.

The company’s flagship products fall under the Motiva® brand, which includes a range of ergonomic and round breast implants featuring SilkSurface® texturing and an embedded Q Inside® Safety microtransponder for unique implant identification.