Establishment Labs Holdings Inc. (NASDAQ: ESTA) announced its financial results for the third quarter ended September 30, 2026, in a Form 8-K filed on October 29, 2026. The company reported total revenue of $72.0 million for the quarter, a 33.9% increase compared to $53.8 million in the same period in 2025. The company noted that U.S. revenue increased 119.0% to $26.0 million, while revenue outside the United States (OUS) increased 9.7% to $46.0 million.
GAAP gross profit for the quarter was $49.7 million, or 69.1% of revenue. Adjusted gross margin, excluding $1.3 million in inventory charges, was 70.8%. GAAP operating expenses totaled $52.3 million. Adjusted operating expenses, excluding litigation and restructuring costs, were $49.6 million, or 68.8% of revenue. The company reported a GAAP net loss of $10.7 million, or $(0.35) per share, for the quarter.
Adjusted EBITDA increased to $6.4 million, or 8.9% of revenue. Notably, the company generated $5.1 million of free cash flow for the quarter, marking the first positive quarter in its history. As of September 30, 2026, the company held $75.8 million in cash and cash equivalents.
Regarding guidance, Establishment Labs updated its full-year 2026 expectations. The company now anticipates revenue of more than $274 million, up from the previous guidance of $269 million to $271 million. The company expects adjusted gross margin to be approximately 70.7% and adjusted operating expenses to be $195 million to $200 million. The company also expects to deliver positive Adjusted EBITDA for the full year.
