📊 ESTA Key Takeaways
Is Establishment Labs Holdings Inc.. (ESTA) a Good Investment?
Establishment Labs exhibits strong revenue growth (27.1% YoY) and excellent gross margins (70.7%), indicating solid product economics in the orthopedic device market. However, the company remains deeply unprofitable with negative operating cash flow (-$4.3M) despite revenue growth, and carries extreme leverage (Debt/Equity of 16.82x) on a dangerously thin equity base ($14.8M), creating significant financial distress risk if profitability targets are not achieved imminently.
Establishment Labs is delivering strong top-line growth and maintains an attractive gross margin profile, which suggests solid product demand and pricing power. However, growth quality is weak because the business remains deeply unprofitable at the operating, net income, and free cash flow levels, while leverage is extremely high relative to its small equity base. The fundamentals point to a company with commercial momentum but elevated financial risk until margins and cash generation improve materially.
Why Buy Establishment Labs Holdings Inc.. Stock? ESTA Key Strengths
- Strong revenue growth of 27.1% YoY indicating market demand and scale
- Excellent gross margins of 70.7% demonstrating strong product economics and pricing power
- Adequate short-term liquidity with current ratio of 2.96x and cash position of $68.1M
- Revenue growth of 27.1% YoY indicates strong commercial traction
- Gross margin of 69.3% shows attractive unit economics and pricing power
- Current ratio of 3.04x and cash of $75.57M provide reasonable near-term liquidity
ESTA Stock Risks: Establishment Labs Holdings Inc.. Investment Risks
- Extreme leverage with Debt/Equity ratio of 16.82x and $248.6M long-term debt relative to $14.8M equity—high default risk
- Negative free cash flow of -$6.2M despite revenue growth indicates business not self-sustaining and unsustainable burn trajectory
- Negative operating income (-$6.5M, -10.9% margin) and net income (-$13.4M, -22.3% margin) with no clear path to profitability timeline
- Negative interest coverage (-0.4x) means operating losses cannot service debt obligations
- Operating margin of -18.5% and net margin of -24.2% show the business model is not yet sustainably profitable
- Free cash flow of -$56.94M and negative operating cash flow indicate continued cash burn
- Debt/equity of 10.51x with negative interest coverage signals substantial balance-sheet and refinancing risk
Key Metrics to Watch
- Operating cash flow trend—critical to assess sustainability; negative FCF despite revenue growth is unsustainable
- Path to operating profitability—company must reach positive operating margin to justify debt burden
- Debt reduction progress—with extreme leverage, any debt repayment or refinancing developments are critical
- Operating margin progression toward breakeven
- Free cash flow burn relative to cash balance and debt obligations
Establishment Labs Holdings Inc.. (ESTA) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.96x current ratio provides a solid financial cushion.
ESTA Profit Margin, ROE & Profitability Analysis
ESTA vs Healthcare Sector: How Establishment Labs Holdings Inc.. Compares
How Establishment Labs Holdings Inc.. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Establishment Labs Holdings Inc.. Stock Overvalued? ESTA Valuation Analysis 2026
Based on fundamental analysis, Establishment Labs Holdings Inc.. shows some fundamental concerns relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Establishment Labs Holdings Inc.. Balance Sheet: ESTA Debt, Cash & Liquidity
ESTA Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Establishment Labs Holdings Inc..'s revenue has grown significantly by 67% over the 5-year period, indicating strong business expansion. The most recent EPS of $-3.07 indicates the company is currently unprofitable.
ESTA Revenue Growth, EPS Growth & YoY Performance
ESTA Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $41.4M | -$13.4M | $-0.45 |
| Q3 2025 | $40.2M | -$11.1M | $-0.38 |
| Q2 2025 | $44.1M | -$16.2M | $-0.57 |
| Q1 2025 | $37.2M | -$16.2M | $-0.58 |
| Q3 2024 | $38.5M | -$11.9M | $-0.59 |
| Q2 2024 | $44.1M | -$11.9M | $-0.62 |
| Q1 2024 | $37.2M | -$11.9M | $-0.48 |
| Q3 2023 | $38.2M | -$5.9M | $-0.76 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Establishment Labs Holdings Inc.. Dividends, Buybacks & Capital Allocation
ESTA SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Establishment Labs Holdings Inc.. (CIK: 0001688757)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ESTA
What is the AI rating for ESTA?
Establishment Labs Holdings Inc.. (ESTA) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (SELL) with 82% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ESTA's key strengths?
Claude: Strong revenue growth of 27.1% YoY indicating market demand and scale. Excellent gross margins of 70.7% demonstrating strong product economics and pricing power. ChatGPT: Revenue growth of 27.1% YoY indicates strong commercial traction. Gross margin of 69.3% shows attractive unit economics and pricing power.
What are the risks of investing in ESTA?
Claude: Extreme leverage with Debt/Equity ratio of 16.82x and $248.6M long-term debt relative to $14.8M equity—high default risk. Negative free cash flow of -$6.2M despite revenue growth indicates business not self-sustaining and unsustainable burn trajectory. ChatGPT: Operating margin of -18.5% and net margin of -24.2% show the business model is not yet sustainably profitable. Free cash flow of -$56.94M and negative operating cash flow indicate continued cash burn.
What is ESTA's revenue and growth?
Establishment Labs Holdings Inc.. reported revenue of $59.9M.
Does ESTA pay dividends?
Establishment Labs Holdings Inc.. does not currently pay dividends.
Where can I find ESTA SEC filings?
Official SEC filings for Establishment Labs Holdings Inc.. (CIK: 0001688757) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ESTA's EPS?
Establishment Labs Holdings Inc.. has a diluted EPS of $-0.45.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is ESTA a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Establishment Labs Holdings Inc.. has a SELL rating with 82% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is ESTA stock overvalued or undervalued?
Valuation metrics for ESTA: ROE of -90.5% (sector avg: 15%), net margin of -22.3% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy ESTA stock in 2026?
Our dual AI analysis gives Establishment Labs Holdings Inc.. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ESTA's free cash flow?
Establishment Labs Holdings Inc..'s operating cash flow is $-4.3M, with capital expenditures of $1.9M. FCF margin is -10.3%.
How does ESTA compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin -22.3% (avg: 12%), ROE -90.5% (avg: 15%), current ratio 2.96 (avg: 2).
Is Establishment Labs Holdings Inc.. carrying too much debt?
ESTA has a debt-to-equity ratio of 16.82x, which is above the Healthcare sector average of 0.6x. However, the current ratio of 2.96 suggests adequate short-term liquidity.