ESTAEstablishment Labs Holdings Inc.
Is the business good?
The checks split: nothing decisive, though margins widening.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating margin has widened over the past few years, the business is getting more profitable per dollar of sales.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is ESTA?
Establishment Labs Holdings Inc. earns −7.0% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 16 points below what the capital costs: growth destroys value
- Operating margin
- −7.6%
Operating margin · Medical Devices median 2.1% · 12 months to Q2 2026
- Share count, year on year
- +4.2%
Share count, year on year · shareholders own a smaller slice than a year ago
- R&D as % of revenue
- 8.3%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2020 | −33% |
| FY2021 | −20% |
| FY2022 | −25% |
| FY2023 | −39% |
| FY2024 | −30% |
| FY2025 | −18% |
Details›
- Gross margin12 months to Q2 2026
- 70%
- Operating margin12 months to Q2 2026
- −7.6%
- Net margin12 months to Q2 2026
- −16%
- Free cash flow margin
- −17%
- R&D as % of revenue
- 8.3%
- Revenue, trailing twelve months
- $246M
- Free cash flow, trailing twelve months
- −$42M
- Net income, trailing twelve months
- −$39M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- −7.0%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.