Title

Earning Preview: Establishment Labs Holdings Inc. this quarter’s revenue is expected to increase by 43.01%, and institutional views are bullish

Abstract

Establishment Labs Holdings Inc. is scheduled to report quarterly results on February 24, 2026 Pre-Market; this preview consolidates recent financial metrics, quarter-on-quarter and year-over-year dynamics, and current-quarter forecasts to frame what investors should watch heading into the print.

Market Forecast

For the quarter ending near February 24, 2026, the current forecast points to revenue of 63.79 million US dollars, up 43.01% year-over-year, with adjusted EPS estimated at -0.22 (up 67.48% year-over-year) and EBIT estimated at -1.72 million US dollars (up 84.47% year-over-year). Formal guidance for gross profit margin and net profit margin is not indicated in the forecast dataset, but the prior-quarter baseline was a 70.09% gross profit margin and a -20.72% net profit margin, setting a high gross margin benchmark and emphasizing the importance of sustained operating discipline for the quarter under review. The main business is expected to sustain revenue momentum underpinned by last quarter’s strong gross profit margin, with management priorities likely centered on maintaining pricing discipline and balancing sales growth with operating cost containment to translate revenue gains into EPS improvement. The most promising revenue driver remains the core commercial portfolio reflected in the consolidated revenue outlook of 63.79 million US dollars, implying a robust 43.01% year-over-year increase; how effectively this mix converts into EBIT and adjusted EPS will be central to investor interpretation of the quarter.

Last Quarter Review

In the previous quarter, Establishment Labs Holdings Inc. delivered revenue of 53.78 million US dollars (up 33.70% year-over-year), a gross profit margin of 70.09%, GAAP net profit attributable to the parent company of -11.15 million US dollars, a net profit margin of -20.72%, and adjusted EPS of -0.38 (up 35.59% year-over-year). A notable highlight was the quarter-on-quarter change in net profit, which improved by 32.83% based on the tool’s quarter-on-quarter metric, suggesting better operating leverage or lower period costs despite the company remaining in a net loss. The company’s main commercial activities drove the overall revenue to 53.78 million US dollars, an increase of 33.70% year-over-year; the combined top-line momentum and 70.09% gross margin created a supportive backdrop for efforts to narrow operating losses and enhance adjusted EPS.

Current Quarter Outlook (with major analytical insights)

Main Business Momentum

The central focus this quarter is whether Establishment Labs Holdings Inc. can translate top-line acceleration into measurable progress on profitability. The forecast for 63.79 million US dollars in revenue, up 43.01% year-over-year, sets an ambitious growth bar compared with the prior quarter’s 53.78 million US dollars and points to continued commercial traction. The prior quarter’s 70.09% gross profit margin offers a strong baseline, but investors will monitor how product mix, pricing, and cost inputs influence the margin line this quarter, especially given the recent combination of high gross margin and negative net margin. Sustaining gross margin near last quarter’s level would provide a cushion against operating expenses, while any deviation—up or down—could significantly sway the narrative around operating leverage.

Adjusted EPS is forecast at -0.22, a marked year-over-year improvement of 67.48%, which would demonstrate that revenue gains are increasingly filtering through to the bottom line. This EPS trajectory, if achieved, implies better expense control or efficiencies relative to last year, even with a still-negative EBIT forecast of -1.72 million US dollars. The EBIT forecast itself contemplates year-over-year improvement of 84.47%, pointing to the possibility that unit economics are strengthening and fixed costs are being absorbed more effectively by rising volumes. However, the degree to which operating expenses—sales, general, administrative, and R&D lines—scale with revenue will be scrutinized, as sustained negative EBIT and net margin would keep profitability timelines a key question after the print.

The last quarter’s net profit margin of -20.72% and GAAP net loss of 11.15 million US dollars underline the necessity of translating high gross margin into net income progress. If the company can demonstrate consistency in gross margin while curbing period expenses, the pathway to reduced losses—consistent with the indicated quarter-on-quarter improvement in net profit last quarter—becomes more credible. A successful blend of revenue growth, gross margin resilience, and disciplined expense management would likely be read as confirmation of scalability, while any slippage in margins or elevated operating costs may temper the bullish interpretation around the revenue forecast.

Most Promising Business Driver

The most promising driver reflected in the numbers is the consolidated commercial portfolio that underpins the 63.79 million US dollars revenue forecast and the 43.01% year-over-year growth estimate. This growth rate suggests demand resilience and execution continuity, which, if maintained, could meaningfully compress losses and set up a stronger adjusted EPS profile in subsequent periods. The optics of combining high-level revenue growth with improving EBIT and EPS year-over-year are constructive because they indicate that scaling effects are beginning to influence operating performance, even though the company remains loss-making at the EBIT and net income lines.

A critical point for this promising driver is the relationship between mix and margin. Should the quarter exhibit a favorable mix consistent with the prior quarter’s 70.09% gross margin benchmark, investors may infer that the company’s commercial strategy is successfully balancing volume and price. Conversely, if the mix skews toward offerings with lower gross margin or if input/cost inflation pressures margin, the magnitude of EPS improvement could be constrained despite the strong top-line performance. Thus, the interplay between growth and margin remains the pivotal lens through which this promising driver will be evaluated.

In addition, year-over-year improvements in EPS and EBIT embedded in the forecasts indicate that the company’s revenue engine is not merely expanding top-line but is also exerting greater leverage on the cost structure relative to the prior year. This can be a nuanced development: even modest improvements in operating efficiency can compound meaningfully when paired with double-digit revenue growth rates. In practical terms, investors will likely assess whether the company is on a path where each incremental unit of revenue contributes more favorably to operating income than it did a year ago; the forecasted 84.47% year-over-year improvement in EBIT is a strong directional signal if realized.

Key Stock Price Factors This Quarter

The stock’s reaction is likely to hinge on four key elements: revenue delivery versus the 63.79 million US dollars estimate, gross margin sustainability relative to the prior quarter’s 70.09%, adjusted EPS progress toward the -0.22 estimate, and narrative clarity around the path to profitability. An upside revenue surprise, coupled with a gross margin at or around last quarter’s level, would support the case for stronger operating leverage and could be received favorably even if the bottom line remains negative, provided EPS improves year-over-year as forecast. Conversely, if revenue meets but gross margin deteriorates materially, the market may reassess the scalability thesis and discount the sustainability of EPS improvements.

Another significant factor is the magnitude of operating expenses and how they trend against revenue growth. The last quarter’s -20.72% net profit margin and -4.03 million US dollars EBIT highlight the sensitivity of profitability to period costs; an unexpected rise in operating expenses could offset the benefit of revenue growth. Investors will look for signals in management’s commentary and reported line items that suggest either tighter cost control or investments with clear near-term payoffs. The degree to which expenses are well-managed this quarter will inform whether the projected year-over-year improvements in EPS and EBIT are structural or simply timing-related.

Finally, the quality and granularity of guidance or qualitative commentary will influence the stock’s immediate trajectory. Clear articulation about how the company intends to maintain high gross margins while advancing toward breakeven, especially in the context of double-digit revenue growth, can anchor expectations. If the company frames a credible route to reducing operating losses in subsequent quarters—consistent with the forecasted year-over-year improvement in EPS and EBIT—investors may be more willing to look through short-term losses. However, a lack of specificity on margin durability or cost trajectories may lead to a more muted reaction, even if headline numbers align with estimates.

Analyst Opinions

Across the eligible period, the collected institutional commentary points to a majority bullish stance, with the ratio of bullish to bearish opinions registering at 100% to 0% in our screened set; BTIG’s Sam Eiber maintained a Buy rating on Establishment Labs Holdings Inc. and set a price target of 81.00 US dollars. The emphasis behind the bullish view centers on the alignment of accelerating revenue with improving year-over-year EPS and EBIT forecasts; the narrative is that strong top-line growth, if coupled with steady gross margin performance, can credibly narrow losses and move the company toward a more favorable earnings trajectory. This framing directly ties to the data: a 43.01% year-over-year revenue increase, a 67.48% year-over-year improvement in adjusted EPS, and an 84.47% year-over-year improvement in EBIT indicate momentum that, if sustained, could become a catalyst for re-rating.

The bullish perspective also focuses on the quality of the company’s margin profile. A 70.09% gross margin last quarter provides a robust foundation that can absorb fixed costs more effectively as revenue scales. If the company’s margin mix this quarter remains supportive, the negative net margin may narrow further, validating calls for buy ratings that anticipate operational progress beyond the current loss-making status. As a result, much of the analytical optimism hinges on confidence that the commercial model is capable of delivering not only revenue growth but also incremental improvements in operating efficiency.

In interpreting the buy rating and price target, the majority view recognizes that the short-term thesis is less about achieving net profitability immediately and more about demonstrating consistent quarter-over-quarter and year-over-year improvement across EPS, EBIT, and margins. From this lens, the focus will be on whether management’s execution shows durable scaling benefits and cost discipline. Should the reported numbers confirm the forecasts—revenue near 63.79 million US dollars, adjusted EPS trending toward -0.22, and evidence of margin stability—the bullish case would be reinforced, supporting continued constructive institutional sentiment toward Establishment Labs Holdings Inc. as it works through its near-term profitability challenges while sustaining strong top-line growth.