APYX — Apyx Medical Corporation

Apyx Medical Q4 2025 Earnings Call Summary

1. Key Financial Results and Metrics:

• Revenue: Q4 2025 revenue reached $19.2 million, a 35% increase from $14.2 million in Q4 2024. Full-year revenue was up 10% year-over-year.
• Surgical Aesthetics Segment: Sales increased 38% to $16.7 million, driven by the AYON body contouring system.
• Gross Profit: Q4 gross profit rose to $12 million, with a gross margin of 62.6%, slightly down from 63% in the prior year.
• Operating Expenses: Flat year-over-year at $12 million for Q4.
• Net Loss: Q4 net loss was $1.3 million ($0.03 per share), improved from a loss of $4.6 million ($0.12 per share) in Q4 2024.
• Adjusted EBITDA: Positive at $0.7 million, compared to a loss of $2.2 million in Q4 2024.
• Cash Position: Cash and equivalents remained stable at $31.7 million as of December 31, 2025.

2. Strategic Updates and Business Highlights:

• AYON Launch: The AYON system, launched in September 2025, has exceeded sales expectations, with strong market demand and positive feedback from early adopters.
• Market Positioning: Apyx is capitalizing on the growing demand for body contouring, particularly among patients experiencing skin laxity due to weight loss from GLP-1 drugs.
• Sales Force Expansion: The company is enhancing its commercial organization by hiring experienced sales talent to boost market share and support surgeons.
• FDA Submission: Apyx submitted a 510(k) application for power liposuction, with anticipated clearance in mid-2026, which is expected to enhance AYON's capabilities.

3. Forward Guidance and Outlook:

• 2026 Revenue Guidance: Projected total revenue between $57.5 million and $58.5 million, reflecting a 9% to 11% increase over 2025. Surgical Aesthetics revenue is expected to grow by 17% to 19%.
• Gross Margin Expectations: Anticipated gross margins of 61% to 62% for 2026.
• Cash Flow: The company expects to be cash flow positive by Q4 2026, with cash reserves projected to last through 2027.

4. Challenges and Points of Concern:

• OEM Segment Decline: Revenue from the OEM segment is expected to decrease to approximately $4.5 million in 2026, down from $7.5 million in 2025, as resources are focused on the Surgical Aesthetics segment.
• Market Competition: The aesthetic surgery market is evolving, and while Apyx is well-positioned, it faces competition from other technologies and systems.
• Operational Risks: Continued reliance on successful product launches and FDA approvals poses inherent risks, including potential delays or regulatory challenges.

5. Notable Q&A Insights:

• Sales Mix: AYON is driving significant growth, with 80% of sales coming from existing Renuvion customers upgrading to AYON, while 20% are new customers.
• Pricing Strategy: The list price for AYON is approximately $360,000, reflecting a competitive value proposition compared to purchasing components separately.
• Geographic Expansion Plans: Currently approved only in the U.S., Apyx plans to register AYON in key international markets, including Europe and South America.
• Sales Incentives: The company is leveraging the excitement around AYON to attract top sales talent, enhancing its market position and execution capabilities.

Overall, Apyx Medical demonstrated strong financial performance in Q4 2025, driven by the successful launch of AYON, while strategically positioning itself for continued growth in the aesthetic surgery market. However, challenges remain, particularly in the OEM segment and regulatory landscape.