ESTABLISHMENT LABS HOLDINGS INC. recently released its 10-Q report. The company is a medical technology business focused on breast aesthetic and reconstructive plastic surgery devices, selling silicone gel-filled implants under the Motiva Implants brand and breast tissue expanders in Europe, the Middle East, Africa, Latin America, Asia, and the United States. It sells primarily to physicians, hospitals, and clinics through distributors and its direct sales force, and it is based in Austin, Texas.
In Item 2, management said Motiva Implants remain the core of the company’s platform and noted that the products were first sold in October 2010, with U.S. FDA approval received in September 2024. The company also said it has incurred net losses every year since inception and has financed operations mainly through equity and debt.
For the quarter ended March 31, 2026, revenue rose 44.7% to $59.9 million from $41.4 million a year earlier. U.S. sales increased by $13.5 million, while sales outside the U.S. rose by $5.0 million, led by Asia-Pacific and Latin America; EMEA sales were relatively stable.
Gross profit increased to $42.3 million from $27.8 million, and gross margin improved to 70.7% from 67.2%. Cost of revenue climbed to $17.5 million from $13.6 million, in line with the higher sales volume.
Operating expenses totaled $48.8 million, up from $44.8 million. SG&A increased 9.8% to $43.6 million, mainly because of higher personnel and consulting costs and freight tied to stronger sales, partly offset by lower bad debt expense and lower sales and marketing spending. R&D was essentially flat at $5.2 million.
The company’s operating loss narrowed to $6.5 million from $16.9 million. Interest expense increased to $7.1 million from $5.9 million, while other income, net fell to $0.5 million from $3.0 million, largely because foreign currency movements turned into a $0.3 million loss versus a $2.8 million gain a year earlier. Net loss improved to $13.4 million from $20.7 million.
As of March 31, 2026, the company reported an accumulated deficit of $509.1 million and cash of $68.1 million, down from $75.6 million at year-end 2025. Net cash used in operating activities was $4.3 million, compared with $20.7 million in the prior-year quarter.
Investing cash outflow was $2.0 million, mainly for property and equipment, including work on an enterprise resource planning system for the U.S. legal entity. Financing cash outflow was $0.9 million, driven by repayment of short-term notes payable for insurance premium financing and tax withholding payments, partly offset by $1.0 million from stock option exercises.
After quarter-end, on April 30, 2026, the company entered an amended and restated credit agreement that allows for up to $300 million in term loans. It drew $265 million in the first tranche and used about $259 million of the proceeds to repay prior debt and related transaction costs.
As of March 31, 2026, $246.4 million was outstanding under the prior credit agreement, including $150 million in Tranche A, $25 million each in Tranches B, C, and D, plus $21.4 million of accrued interest added to principal. As a result of these announcements, the company's shares have moved -0.43% on the market, and are now trading at a price of $71.72. If you want to know more, read the company's complete 10-Q report here.
