APYX — Apyx Medical Corporation

Apyx Medical Q1 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• Total Revenue: $12.5 million, a 32% increase from $9.4 million in Q1 2025.
• Surgical Aesthetics Segment: Revenue rose 36% to $10.7 million, driven by strong sales of the AYON body contouring system, single-use handpieces, and international generator sales.
• OEM Segment: Revenue increased 14% to $1.8 million, but is expected to decline over time as focus shifts to Surgical Aesthetics.
• Gross Profit: Increased 40% to $7.9 million, with a gross margin of 63.5%, up from 60.1% year-over-year.
• Operating Expenses: Relatively flat at $8.8 million.
• Net Loss: $2.1 million or $0.05 per share, improved from a loss of $4.2 million or $0.10 per share in Q1 2025.
• Adjusted EBITDA Loss: $0.3 million, compared to a loss of $2.4 million in the prior year.
• Cash Position: $31.1 million as of March 31, 2026, with reduced cash burn.

2. Strategic Updates and Business Highlights

• The AYON body contouring system has seen strong market adoption, with significant engagement from both existing and new accounts.
• The company is preparing for FDA 510 clearance for power liposuction, which is expected to enhance AYON's capabilities and market appeal.
• International growth is strong, particularly in South Korea, following recent regulatory approvals.
• Apyx is focused on a lean operating structure to reduce costs and enhance flexibility for reinvestment in growth initiatives.

3. Forward Guidance and Outlook

• Revenue Guidance: Increased to $59 million to $60 million for 2026, up from previous guidance of $57.5 million to $58.5 million.
• Surgical Aesthetics revenue is now expected to be $54 million to $55 million, while OEM revenue is projected at approximately $5 million.
• Anticipated gross margins for the year are approximately 62% to 63%, with total operating expenses not exceeding $45 million.

4. Bad News, Challenges, or Points of Concern

• Domestic sales of generators have decreased, which could indicate a shift in purchasing patterns as customers opt for AYON systems instead.
• The OEM segment is expected to decline over time as the focus shifts to Surgical Aesthetics.
• Tariff impacts are being monitored, and while the company has mitigated some effects through diversified manufacturing, ongoing geopolitical tensions could pose risks.

5. Notable Q&A Insights

• Management clarified that AYON sales are now categorized separately from generator sales, which may have contributed to the perceived decline in generator sales.
• The rollout of AYON is still in early stages, with significant potential for growth among existing Renuvion customers.
• There is strong demand for body contouring solutions linked to the increasing use of GLP-1 medications, which lead to loose skin issues that AYON can address.
• The company is actively working on international registrations for AYON, targeting key markets in Europe, Latin America, the Middle East, and Asia.

Overall, Apyx Medical is experiencing strong growth driven by the AYON system, while maintaining a cautious outlook on potential challenges in the OEM segment and external economic factors.