ESPA3

Espaçolaser, traded on B3 under the ticker ESPA3, is a company focused on laser hair removal and aesthetic services, founded in 2004 by three entrepreneurs aiming to offer a technological alternative to traditional hair removal methods. The business was created with the goal of democratizing access to laser hair removal in Brazil through a replicable and scalable model of specialized clinics. Following initial organic growth, the company consolidated its presence during the 2010s, expanding from a few dozen units to a nationwide network supported by operational standardization, intensive use of technology, and a focus on customer experience. This development culminated in its IPO in 2021, with listing on B3’s Novo Mercado, a segment that gathers companies with higher corporate governance standards.

Espaçolaser’s business model is predominantly based on providing laser hair removal services in its own stores in Brazil, complemented by franchise revenue and international operations. As of December 31, 2024, the group had 872 laser hair removal units in Brazil, including both company-owned stores and franchises, as well as operations in other Latin American countries. The operational segments are organized into three main fronts: Laser, which concentrates the company-owned stores in Brazil; International Operation, which encompasses activities in Argentina, Chile, Colombia, and Paraguay; and Franchises, which includes the collection of royalties and the licensing of the Espaçolaser brand to franchisees. In 2024, the Laser segment accounted for approximately 93% of consolidated net revenue, highlighting the central role of the domestic company-owned operation in generating results.

The services offered by the company include laser hair removal treatments for men and women, sold in packages structured by body area, which can include up to 28 areas for men and 34 for women. Each package comprises up to ten sessions, with an average interval of 45 days between applications and a total treatment duration of around 11 months per area. In practice, customers typically use an average of five to six sessions to conclude treatment. Procedures are performed exclusively by qualified professionals, who undergo more than 100 hours of training in technical and practical content, including knowledge of skin, laser application, and safety protocols. A typical store operates with a lean team made up of technical specialists, sales staff, and a manager, reinforcing the service-intensive nature of the business rather than reliance on product inventory.

Espaçolaser’s expansion has combined organic growth with the development of a franchise network and acquisitions of franchisee groups. Starting in 2015, with the creation of EL Franchising and the partnership with SMZTO, a franchise holding company, the firm began scaling its national presence through franchisees, quickly increasing the number of units. In 2016, it received an investment from private equity manager L Catterton, which specializes in consumer and retail businesses, strengthening corporate governance and funding a faster growth cycle. Between 2017 and 2018, the company opened around 290 new stores and acquired control of franchisee groups considered strategic operators, internalizing results and consolidating key regions. This corporate consolidation movement continued until 2022, with the incorporation of hundreds of CNPJs (legal entities) and the acquisition of 100 franchises, enabling process standardization and operational efficiency gains.

Espaçolaser’s international operations are developed mainly in Latin America, through company-owned stores, franchises, and joint ventures. The first unit outside Brazil was opened in 2018 in Buenos Aires, under the brand Definit, which represents its laser hair removal offering in the Argentine market. In 2020, the company began operating in Colombia with the organic opening of stores, later reorganized in 2024 through a strategic partnership with F3L, a group that took over the local operation under a franchise model and operates in several countries in the region. In Chile, entry occurred in 2021 with the acquisition of 66.7% of Centro Estético Láser Alemán (Cela), a local laser hair removal chain that uses the same technology employed in Brazil and that, at the end of 2024, had 18 company-owned stores and 14 franchises. The company also opened a franchise in Paraguay in 2022, expanding its regional presence in Spanish-speaking markets.

The company operates in a beauty and aesthetics market considered highly relevant in Brazil, a country that ranks among the world’s largest in spending on personal care and aesthetic procedures. The specific segment of laser hair removal has been gaining ground over traditional methods, and Espaçolaser has built over two decades a prominent position in terms of number of stores, customers served, and revenue. Women account for the largest share of the customer base, at around 87.3% in 2024, while men represented 12.7%. The company’s commercial strategy leverages the capillarity of its physical network, with units located in shopping malls, street locations, and high-traffic commercial centers, as well as digital channels such as app, website, chat, and telesales, supporting an omnichannel approach. The standard store format, with an area between 25 m² and 60 m² and low inventory requirements, allows for rapid replication and adaptation to different regions.

From a regulatory standpoint, Espaçolaser’s activities are subject to a set of sanitary, professional, and equipment-use regulations. Store operations require municipal health licensing and the issuance of permits from local health authorities, with periodic renewals. The company is also subject to oversight by professional councils such as the Federal and Regional Councils of Physiotherapy and Occupational Therapy, as well as the Federal and Regional Councils of Biology and Biomedicine, and each unit must have a duly registered technical manager, depending on the service profile. Laser hair removal equipment is classified as high risk and must be certified by the health authority in compliance with ANVISA resolutions. Additionally, the business is potentially exposed to environmental regulations in an indirect way, although the company believes that, given the nature and low impact of its activities, its units do not require specific environmental licenses, except for occasional requirements imposed on the properties where its stores are located, such as shopping centers.

Espaçolaser’s corporate governance has been strengthened over time with the entry of institutional investors, the IPO, and the issuance of debentures used to extend the debt profile and reorganize the capital structure. Listing on B3’s Novo Mercado, under the code ESPA3, requires high standards of transparency and minority shareholder protection. The company also implements training and development initiatives for its technical staff through the so-called “Laser University,” which is responsible for training thousands of specialists and standardizing clinical and service protocols across the entire network, both company-owned stores and franchises. In parallel, the company highlights initiatives related to gender equity, recognition in awards focused on female empowerment, and the construction of units with an emphasis on energy efficiency, indicating the gradual incorporation of environmental, social, and governance aspects into business management.

From a technological and operational perspective, Espaçolaser has developed proprietary systems to integrate and control network operations. Among them, the Espaçolaser Operating System (ELOS) stands out, connecting operational processes of company-owned stores and franchises, enabling standardized routines, performance monitoring, and greater management efficiency. The company maintains an exclusivity agreement with Skintec for the acquisition of GentleLase equipment, as well as the cooling consumable used in procedures, which defines a relevant part of the technological base of its service delivery. Digitalization has also intensified, especially since the COVID-19 pandemic, with the expansion of remote sales solutions, virtual channels, and additional features in its app, which have contributed to a more integrated service model between physical and digital environments.

The company’s growth strategy combines selective expansion of company-owned stores, franchise development, and consolidation of operations in markets where it is already present, both in Brazil and abroad. In 2024, the company maintained relevant operating margins in its consolidated operation, with a presence in all Brazilian states and activities in four additional Latin American countries. The combination of scale, operational standardization, brand strength in the laser hair removal niche, and a capital-market-backed financial structure helps position Espaçolaser as one of the main specialized laser hair removal service groups with shares traded on B3, in a discretionary consumer sector influenced by income, beauty culture, and wellness trends.