📊 ESTA Key Takeaways
Is ESTA a Good Investment? Thesis Analysis
Despite strong revenue growth of 27.1% YoY, Establishment Labs is burning significant cash with negative operating income of -39.0M and negative free cash flow of -56.9M, indicating the company is not yet profitable and cannot self-fund operations. The company carries an extremely high debt-to-equity ratio of 10.51x with long-term debt of 247.5M against stockholders' equity of only 23.5M, creating substantial financial risk that could be difficult to sustain if operational losses continue.
Why Buy ESTA? Key Strengths
- Strong revenue growth of 27.1% YoY demonstrating market demand for products
- High gross margin of 69.3% showing strong pricing power and manufacturing efficiency
- Adequate liquidity with current ratio of 3.04x and 75.6M in cash providing near-term operational runway
ESTA Investment Risks to Consider
- Severe negative operating and net margins (-18.5% and -24.2%) with company burning cash and unable to achieve profitability
- Dangerously high leverage with debt-to-equity ratio of 10.51x and negative interest coverage of -2.6x indicating inability to service debt from operations
- Negative free cash flow of -56.9M means company is consuming rather than generating cash, unsustainable without significant operational improvements or capital raises
Key Metrics to Watch
- Operating margin improvement trajectory toward breakeven profitability
- Free cash flow inflection point and path to positive operating cash flow
- Debt reduction progress and covenant compliance as liquidity buffer depletes
ESTA Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 3.04x current ratio provides a solid financial cushion.
ESTA Profitability Ratios
ESTA vs Default Sector
How ESTABLISHMENT LABS HOLDINGS INC. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is ESTA Overvalued or Undervalued?
Based on fundamental analysis, ESTABLISHMENT LABS HOLDINGS INC. shows some fundamental concerns relative to the Default 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.
ESTA Balance Sheet & Liquidity
ESTA 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
ESTA Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| 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 |
| Q2 2023 | $41.2M | -$5.9M | $-0.65 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
ESTA Capital Allocation
ESTA SEC 10-K & 10-Q Filing 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 an AI rating of SELL with 85% confidence, based on fundamental analysis of SEC EDGAR filings.
What are ESTA's key strengths?
Claude: Strong revenue growth of 27.1% YoY demonstrating market demand for products. High gross margin of 69.3% showing strong pricing power and manufacturing efficiency.
What are the risks of investing in ESTA?
Claude: Severe negative operating and net margins (-18.5% and -24.2%) with company burning cash and unable to achieve profitability. Dangerously high leverage with debt-to-equity ratio of 10.51x and negative interest coverage of -2.6x indicating inability to service debt from operations.
What is ESTA's revenue and growth?
ESTABLISHMENT LABS HOLDINGS INC. reported revenue of $211.1M.
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 $-1.72.
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 March 2026, ESTABLISHMENT LABS HOLDINGS INC. has a SELL rating with 85% 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 -216.9% (sector avg: 15%), net margin of -24.2% (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 $-50.9M, with capital expenditures of $6.0M. FCF margin is -27.0%.
How does ESTA compare to other Default stocks?
Vs Default sector averages: Net margin -24.2% (avg: 12%), ROE -216.9% (avg: 15%), current ratio 3.04 (avg: 1.8).