Here's Why Establishment Labs Holdings (ESTA) Soared in Q4

Carillon Tower Advisers, an investment management company, released its fourth-quarter 2025 investor letter for the “Carillon Eagle Small Cap Growth Fund”. You can download a copy of the letter here. Small-cap stocks delivered marginal gains in the fourth quarter of 2025. The Russell 2000® Value Index outperformed the Russell 2000® Growth Index in the quarter, with more balanced results. In line with the broader stock market, small-cap stocks delivered solid results in 2025. The Russell 2000 Growth Index returned 13.01%, outperforming the Russell 2000 Value Index’s 12.58% gain. The firm anticipates a favorable year ahead for equity markets. The letter outlined the potential opportunities within Cyclicals, Healthcare, Information Technology, Financials, and Consumer spending sectors heading to 2026. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, Carillon Eagle Small Cap Growth Fund highlighted Establishment Labs Holdings Inc. (NASDAQ:ESTA) as one of the leading contributors. Establishment Labs Holdings Inc. (NASDAQ:ESTA) is a medical device company focused on breast implants and other reconstructive plastic surgeries. On February 13, 2026, Establishment Labs Holdings Inc. (NASDAQ:ESTA) stock closed at $74.60 per share. Establishment Labs Holdings Inc. (NASDAQ:ESTA) delivered an 8.35% return in the past month, and its shares are up 102.73% over the past twelve months. Establishment Labs Holdings Inc. (NASDAQ:ESTA) has a market capitalization of $2.125 billion.

Carillon Eagle Small Cap Growth Fund stated the following regarding Establishment Labs Holdings Inc. (NASDAQ:ESTA) in its fourth quarter 2025 investor letter:

"Establishment Labs Holdings Inc. (NASDAQ:ESTA) develops and markets advanced breast implants, including its flagship Motiva line. Following FDA approval in late 2024, the company saw robust demand in 2025, fueled by strong brand recognition and clinical advantages over competitors. Management has effectively controlled expenses, positioning the company to reach earnings before interest, taxes, depreciation, and amortization (EBITDA) profitability by late 2025 or early 2026 and cash flow positivity in 2026. We believe Establishment Labs has substantial growth potential, supported by the company’s recent FDA application for its implant for primary and revision breast reconstruction, along with reporting strong third-quarter revenue growth that significantly outpaced industry trends."

Establishment Labs Holdings Inc. (NASDAQ:ESTA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 29 hedge fund portfolios held Establishment Labs Holdings Inc. (NASDAQ:ESTA) at the end of the third quarter, up from 28 in the previous quarter. While we acknowledge the potential of Establishment Labs Holdings Inc. (NASDAQ:ESTA) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Establishment Labs Holdings Inc. (NASDAQ:ESTA) and shared Baron Discovery Fund's views on the company. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.