Establishment Labs (NASDAQ:ESTA) Releases Earnings Results

Establishment Labs (NASDAQ:ESTA) issued its earnings results on Thursday. The company reported ($0.35) earnings per share for the quarter, missing the consensus estimate of ($0.26) by ($0.09), Zacks reports. Establishment Labs had a negative return on equity of 196.69% and a negative net margin of 15.82%. The company had revenue of $71.99 million during the quarter, compared to analysts’ expectations of $66.81 million. During the same period in the previous year, the company earned ($0.38) EPS. Establishment Labs’s quarterly revenue was up 33.8% on a year-over-year basis.

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

• Q3 revenue rose 33.9% to $72 million, led by 119% growth in the U.S. and 9.7% growth internationally. Management raised full-year 2026 revenue guidance to more than $274 million and expects 25% growth in 2027.
• The company generated its first-ever positive free cash flow, with $5.1 million in Q3 free cash flow and $7.7 million in operating cash flow. Adjusted EBITDA increased to $6.4 million, or an 8.9% margin, from $1.2 million a year earlier.
• U.S. adoption continues to expand, with Motiva available in 2,100 accounts and approximately 30% estimated market share. Management is shifting its focus toward increasing utilization among existing surgeons, while minimally invasive revenue is now expected to exceed $40 million for 2026.
• The company said its breast reconstruction submission is progressing, with FDA information requests addressed and site inspections completed; approval is expected in late 2026 or early 2027. However, hospital value-analysis processes could delay meaningful revenue contribution until the second half of 2027.
• Adjusted gross margin was 70.8%, below prior guidance, because distributor sales comprised 60% of OUS revenue rather than the expected 50%. Management maintained full-year adjusted gross margin guidance at approximately 70.7%, reflecting the lower-margin channel mix.

Establishment Labs Stock Down 7.8%

ESTA stock traded down $5.34 during midday trading on Friday, hitting $63.07. 731,369 shares of the company’s stock were exchanged, compared to its average volume of 517,360. The firm has a 50 day moving average price of $67.25 and a 200-day moving average price of $72.36. Establishment Labs has a 12-month low of $47.00 and a 12-month high of $97.59. The stock has a market capitalization of $1.88 billion, a price-to-earnings ratio of -47.95 and a beta of 1.06. The company has a current ratio of 3.84, a quick ratio of 2.52 and a debt-to-equity ratio of 12.11.

Trending Headlines about Establishment Labs

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

• Positive Sentiment: Revenue rose 33.9% year over year to approximately $72.0 million, exceeding analyst expectations of $66.8 million. U.S. revenue more than doubled to $26.0 million, while the company expanded its commercial footprint to more than 2,100 U.S. accounts and trained over 400 surgeons on its Preservé breast implant system. Establishment Labs Q3 Revenue Rises 33.9% to $72.0 Million
• Positive Sentiment: Management raised its 2026 revenue outlook to more than $274 million and projected approximately 25% revenue growth for 2027, supporting the long-term growth narrative. The quarter also produced the company’s first positive operating cash flow and free cash flow, of roughly $7.7 million and $5.1 million, respectively. Establishment Labs 2027 Growth and 2026 Guidance
• Neutral Sentiment: Gross margin was a solid 69.1%, and cash and equivalents totaled $75.8 million at quarter-end. However, institutional ownership changes were mixed, with several large funds adding shares while others reduced positions.
• Negative Sentiment: Adjusted or GAAP loss came in at $0.35 per share, worse than the consensus loss estimate of $0.26–$0.27, although it improved from a $0.38 loss a year earlier. The earnings miss is likely the main near-term pressure on ESTA. Establishment Labs Q3 Loss and Revenue Results
• Negative Sentiment: Operating expenses increased to $52.3 million from $41.7 million, while the company remains unprofitable. Reported insider activity was also cautious: nine sales and no purchases were recorded over the past six months.

Analysts Set New Price Targets

A number of equities analysts have weighed in on the company. Weiss Ratings restated a “sell (e+)” rating on shares of Establishment Labs in a report on Monday, September 21st. Stifel Nicolaus began coverage on shares of Establishment Labs in a research note on Wednesday, October 14th. They set a “buy” rating and a $85.00 price objective on the stock. Citigroup upgraded shares of Establishment Labs from a “neutral” rating to a “buy” rating and set a $92.00 target price for the company in a research note on Thursday, August 13th. Needham & Company LLC raised their price target on shares of Establishment Labs from $86.00 to $95.00 and gave the company a “buy” rating in a report on Thursday, August 6th. Finally, Canaccord Genuity Group set a $105.00 price target on shares of Establishment Labs in a research note on Thursday, August 6th. Nine investment analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $95.00.

Establishment Labs Company Profile

Establishment Labs Holdings Inc is a medical technology company focused on women’s health and the breast aesthetics market. The company develops, manufactures and commercializes breast implants and related technologies designed for breast augmentation, reconstruction and revision procedures.

Its product portfolio includes the Motiva line of breast implants, which incorporates the company’s proprietary implant materials, surface technologies and design features. Establishment Labs also offers Motiva Flora tissue expanders for use in breast reconstruction and has developed Mia Femtech, a minimally invasive breast enhancement procedure intended to provide a less invasive alternative to traditional augmentation techniques.

Founded in 2004, Establishment Labs is headquartered in Costa Rica and serves physicians, hospitals and patients in international markets.