ESPA3 Espaçolaser

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 with the goal of offering a technological alternative to traditional hair removal methods. The business was created with the proposal of democratizing access to laser hair removal in Brazil through a replicable and scalable model of specialized clinics. After an initial phase of organic growth, the company consolidated its operations over the 2010s, when it went 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 a listing on B3’s Novo Mercado, a segment that brings together companies with higher corporate governance standards.

Espaçolaser’s business model is predominantly based on providing laser hair removal services in company-owned stores in Brazil, complemented by franchise revenues 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, in addition to operations in other Latin American countries. The operating segment structure is organized into three main fronts: Laser, which comprises company-owned stores in Brazil; International Operation, which includes activities in Argentina, Chile, Colombia, and Paraguay; and Franchises, which covers the collection of royalties and licensing of the Espaçolaser brand to franchisees. In 2024, the Laser segment accounted for approximately 93% of consolidated net revenue, underscoring the central role of domestic company-owned operations in generating results.

The services offered by the company include laser hair removal treatments for men and women, sold in packages structured by body areas, which can reach up to 28 areas for men and 34 for women. Each package includes 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 use an average of five to six sessions to complete the treatment. Procedures are carried out exclusively by qualified professionals who undergo more than 100 hours of training in technical and practical content, including skin knowledge, laser application, and safety protocols. A typical store operates with a lean team made up of technical specialists, sales professionals, and a manager, which reinforces the service-intensive nature of the business rather than product inventory.

Espaçolaser’s expansion has combined organic growth with the development of a franchise network and acquisitions of franchise groups. Starting in 2015, with the creation of EL Franchising and its association with SMZTO, a franchise holding company, the business began to scale its national presence through franchisees, rapidly increasing its number of units. In 2016, it received an investment from private equity manager L Catterton, which specializes in consumer and retail businesses, reinforcing corporate governance and financing a faster growth cycle. Between 2017 and 2018, the company opened around 290 new stores and acquired control of franchise groups considered strategic operators, internalizing results and consolidating key regions. The corporate consolidation movement continued until 2022, with the incorporation of hundreds of CNPJs 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 entered Colombia with organic store openings, later reorganized in 2024 through a strategic partnership with F3L, a group that assumed the local operation in a franchise format and operates in several countries in the region. In Chile, entry occurred in 2021 with the acquisition of 66.7% of the capital of Centro Estético Láser Alemán (Cela), a local laser hair removal network 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 the highly relevant Brazilian beauty and aesthetics market, with the country ranking among the world’s largest in spending on personal care and aesthetic procedures. The specific segment of laser hair removal has been gaining ground compared with traditional methods, and over two decades Espaçolaser has built a prominent position in terms of number of stores, customers served, and revenue. Women account for most of its customer base, with 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 an app, website, chat, and telesales, which supports an omnichannel approach. The standard store format, with an area between 25 m² and 60 m² and low inventory needs, enables rapid replication and adaptation to different regions.

From a regulatory standpoint, Espaçolaser’s activities are subject to a set of health, professional, and equipment-use regulations. Store operations require municipal sanitary 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 Physical Therapy and Occupational Therapy, as well as the Federal and Regional Councils of Biology and Biomedicine, with a mandatory technically responsible professional duly registered at each unit, according to 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 their own environmental licensing, except for any requirements directed at the developments where the stores are located, such as shopping centers.

Espaçolaser’s corporate governance has been strengthened over time with the entry of institutional investors, its IPO, and the issuance of debentures, which have been used to extend the debt maturity profile and reorganize the capital structure. Listing on B3’s Novo Mercado under the code ESPA3 requires high standards of transparency and protection for minority shareholders. The company also carries out initiatives to train and develop its technical staff through its “Universidade do Laser” (Laser University), which is responsible for training thousands of specialists and standardizing clinical and service protocols across the network, both in company-owned stores and franchises. In parallel, the company mentions initiatives related to gender equality, 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 its network operations. Among them, the Espaçolaser Operating System (ELOS) stands out for connecting operational processes of company-owned and franchised stores, enabling standardized routines, performance monitoring, and greater management efficiency. The company maintains an exclusivity agreement with Skintec for the purchase 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 advancement of remote sales solutions, virtual channels, and additional features in its app, which have become part of 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 already operates, 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 operations in four additional Latin American countries. The combination of scale, operational standardization, brand strength in the laser hair removal niche, and a financial structure supported by the capital markets helps position Espaçolaser as one of the leading specialized laser hair removal service groups with shares traded on B3, in a discretionary consumer sector influenced by income levels, beauty culture, and wellness trends.