Apyx Medical Corporation (APYX) Q4 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call reveals strong financial performance with increased revenues, improved EBITDA, and reduced net loss. The AYON platform's successful launch and positive feedback, along with optimistic guidance and growth strategies, contribute to a favorable outlook. Despite some conservative guidance and management's avoidance of specifics, the overall sentiment, including potential upside from liposuction expansion, indicates a positive stock price reaction.
Key Financial Performance
Total Revenue (Q4 2025) $19.2 million, a 35% increase year-over-year. This growth was driven by a 38% increase in sales of surgical aesthetics products, primarily due to the commercial launch of the AYON body contouring system.
Surgical Aesthetics Revenue (Q4 2025) $16.7 million, a 38% increase year-over-year. Growth was attributed to AYON sales and increased volume of single-use handpieces in both domestic and international markets.
OEM Segment Revenue (Q4 2025) $2.5 million, a 16% increase year-over-year. This was due to increased sales volume to existing customers, including Symmetry Surgical.
Domestic Revenue (Q4 2025) $15 million, a 42% increase year-over-year. Growth was driven by strong domestic sales of surgical aesthetics products.
International Revenue (Q4 2025) $4.2 million, a 15% increase year-over-year. Growth was driven by international sales of surgical aesthetics products.
Gross Profit (Q4 2025) $12 million, an increase from $9 million in the prior year period. Gross profit margin slightly decreased to 62.6% from 63% due to product mix.
Operating Expenses (Q4 2025) $12 million, flat year-over-year. Shifts in underlying expenses included decreases in selling, general, and administrative expenses and R&D, offset by increases in salaries and professional services.
Net Loss Attributable to Stockholders (Q4 2025) $1.3 million or $0.03 per share, compared to $4.6 million or $0.12 per share in the prior year period. Improvement was due to increased revenue and cost management.
Adjusted EBITDA (Q4 2025) $0.7 million, compared to an adjusted EBITDA loss of $2.2 million in Q4 2024. Improvement was driven by revenue growth and cost control measures.
Cash Used in Operating Activities (Q4 2025) $2.5 million, a decrease from $2.9 million in the prior year period. Improvement was due to better working capital management and AYON's launch.
Cash Used in Operating Activities (Full Year 2025) $8 million, a decrease from $18.7 million in the prior year. Improvement was due to cost reductions and better working capital management.
Operating Expenses (Full Year 2025) $39.5 million, a decrease from $48.2 million in 2024 and $53.7 million in 2023. Reduction was due to cost-cutting measures implemented in late 2024.
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Operating Highlights
AYON body contouring system: Achieved record revenue of $19.2 million in Q4 2025, driven by a 38% increase in sales of surgical aesthetics products, primarily AYON. Full commercial launch in September 2025 exceeded expectations with strong market demand and positive feedback. Features include integrated fat removal, tissue contraction, and electrosurgical capabilities. FDA clearance for power liposuction anticipated in mid-2026.
Market demand for AYON: Strong market demand for AYON, driven by its advanced features and ability to address challenges in body contouring. Positioned as a new gold standard in surgical aesthetics.
GLP-1 drugs impact: Growing adoption of GLP-1 drugs for weight loss is creating demand for treatments addressing skin laxity. Apyx's Renuvion system is positioned as a best-in-class solution for this market shift.
Cost reduction and restructuring: Implemented significant cost reduction and restructuring in 2024, resulting in a leaner operating structure and reduced cash burn. Operating expenses decreased to $39.5 million in 2025 from $48.2 million in 2024.
Revenue growth: Achieved 35% revenue growth in Q4 2025 compared to the prior year, with domestic revenue increasing by 42% and international revenue by 15%.
Focus on Surgical Aesthetics: Shifted focus to the Surgical Aesthetics segment, with revenue expected to grow by 17%-19% in 2026. OEM segment revenue is expected to decrease as resources are reallocated.
Strengthening commercial organization: Investing in high-caliber sales talent to support growth, market share expansion, and surgeon training.
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Risk or Challenges
Regulatory Hurdles: The company is awaiting FDA clearance for power liposuction functionality for its AYON system, which is anticipated in mid-2026. Delays or issues in obtaining this clearance could impact the product's market positioning and revenue potential.
Market Conditions: The aesthetics market is emerging from a period of softer demand, and while there is renewed momentum, the market dynamics have shifted significantly compared to five years ago. This could pose challenges in adapting to new consumer behaviors and expectations.
Supply Chain and Operational Challenges: The company is ramping up operations to meet the strong demand for the AYON system. Any disruptions in the supply chain or operational inefficiencies could hinder the ability to fulfill orders and capitalize on market opportunities.
Economic Uncertainties: The company’s financial health and projections are based on current market conditions and demand. Any economic downturns or changes in consumer spending could adversely affect revenue and growth.
Strategic Execution Risks: The company is investing in high-caliber sales talent and expanding its commercial organization to support growth. Misalignment in these investments or failure to achieve the desired market adoption could impact financial performance.
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Guidance & Outlook
Revenue Guidance for 2026: Total revenue is expected to range between $57.5 million and $58.5 million, reflecting a 9% to 11% increase compared to 2025.
Surgical Aesthetics Segment Revenue: Revenue is projected to range between $53 million and $54 million, representing a 17% to 19% increase compared to 2025.
OEM Segment Revenue: Revenue is expected to decrease to approximately $4.5 million, down from $7.5 million in 2025, as the company focuses resources on the Surgical Aesthetics segment.
Gross Margins: Anticipated to be approximately 61% to 62% for 2026.
Operating Expenses: Total operating expenses are not expected to exceed $45 million in 2026.
AYON Platform Growth: The company anticipates continued strong adoption of the AYON platform, with its market clearance for power liposuction expected in mid-2026, further enhancing its capabilities and revenue potential.
Market Trends and Opportunities: The company expects to capitalize on the growing demand for treatments addressing skin laxity, driven by the adoption of GLP-1 drugs for weight loss. This trend is expected to create significant opportunities for Apyx Medical's Renuvion system and AYON platform.
Cash Management: The company projects sufficient cash reserves to sustain operations through 2027, supported by the uptake of the AYON platform, working capital management, and strict cost controls.
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Shareholder Return Plan
The selected topic was not discussed during the call.
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Key Q&A
Q:Can you provide more details on the growth of capital equipment sales, particularly domestically, and whether CapEx is seeing a price uptick?
A:Growth in the fourth quarter was driven by AYON, with a focus on selling AYON systems in the U.S. Domestically, the company grew almost 50%, and overall growth was 38%. The list price of AYON is $360,000, and it offers a value proposition by integrating components at a better value than purchasing them separately.
Q:What is the mix of new customers versus repeat customers upgrading to AYON?
A:Approximately 80% of sales in the fourth quarter were from existing customers upgrading to AYON, while 20% were new customers to the Renuvion and AYON platforms.
Q:What feedback have you received from customers and commercial reps about AYON, and what areas need improvement?
A:Feedback has been overwhelmingly positive, with customers loving AYON. The main request is for a power-assisted handpiece, expected in the first half of the year. The launch has exceeded expectations, and the system is unique in the market.
Q:Is the gross margin guidance for 2025 conservative, considering the mix of OEM and Surgical Aesthetics segments?
A:The guidance is conservative, with factors including lower margins from OEM and higher margins from Surgical Aesthetics, as well as geographic sales mix, such as higher sales in China.
Q:How are you dividing territories and incentivizing the sales force with the addition of new salespeople?
A:Territories have been adjusted, and the company is leveraging AYON's strength to attract top talent. The focus is on body contouring, which is becoming a significant part of doctors' practices due to changes in patient population and weight loss trends.
Q:What countries is AYON approved in, and what are the plans for further expansion?
A:AYON is currently approved in the U.S. and a few countries that accept FDA approval, such as some in the Middle East and the Caribbean. Plans for expansion include registering AYON in Europe, Brazil, and Colombia.
Q:Does the liposuction label expansion expected midyear represent upside in this year's guidance?
A:The company does not forecast for products not yet available. AYON console sales are included in the guidance, but handpieces for liposuction will represent upside.
Q:What is the mix of console sales between AYON and Renuvion?
A:In the U.S., AYON is expected to dominate console sales, but Renuvion is still sold for standalone skin tightening. Outside the U.S., only Renuvion is sold as AYON is not yet registered.
Q:What are the assumptions for achieving cash flow positivity by the fourth quarter of 2026?
A:The company plans to be cash flow positive by Q4 2026, with cash reserves lasting through 2027. Key assumptions include continued growth and execution of the business plan.
Q:Review of Unclear Management Responses
A:Management avoided providing specific pricing details for AYON beyond the list price and did not elaborate on the geographic sales mix or the exact impact of the liposuction label expansion on guidance.
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
AYON body
AYON level
AYON reception
AYON sale
AYON shift
AYON term
AYON treatment
Advisors Goodwin
Console market
Console purchase
FDA clearance
FDA progress
Full Conference
ability
adoption GLP
aesthetic market
capability
cash burn
class
contouring system
drug weight
effort
feedback
function
headwind
increase OEM
increase sale
market clearance
momentum
outcome
phase
record
resource
sale AYON
sale increase
sale launch
space
surgery market
tissue contraction
upgrade Console
APYX Transcript
Apyx Medical Corporation (APYX) Q1 2026 Earnings Call Transcript
Positive5-7
The earnings call shows strong financial performance with significant revenue growth, improved margins, and reduced losses. The AYON platform's successful launch and international expansion plans further enhance prospects. Although management's lack of specificity on international timelines adds uncertainty, the overall sentiment remains positive due to strong domestic growth and strategic focus on high-demand segments. The positive outlook is bolstered by the company's robust cash position and cost management.
Apyx Medical Corporation (APYX) Q4 2025 Earnings Call Transcript
Positive3-10
The earnings call reveals strong financial performance with increased revenues, improved EBITDA, and reduced net loss. The AYON platform's successful launch and positive feedback, along with optimistic guidance and growth strategies, contribute to a favorable outlook. Despite some conservative guidance and management's avoidance of specifics, the overall sentiment, including potential upside from liposuction expansion, indicates a positive stock price reaction.
Apyx Medical Corporation (APYX) Q3 2025 Earnings Call Transcript
Positive11-6
The earnings call highlights a positive outlook with increased revenue guidance and improved financial metrics, such as higher gross margins and reduced net loss. The AYON system launch and international expansion are expected to drive growth. Despite some vague management responses in the Q&A, the overall sentiment is boosted by strong demand and strategic initiatives, leading to a positive stock price prediction.
Apyx Medical Corporation (APYX) Q2 2025 Earnings Call Transcript
Positive8-8
Despite a year-over-year revenue decline, the company demonstrated improved cost management, reducing losses significantly. The AYON product launch has been well-received, with strong presales and positive feedback, leading to raised guidance. The addition of experienced commercial hires and a promising partnership in China further bolster growth prospects. Although financial results were mixed, the optimistic guidance and strategic moves suggest a positive stock price movement over the next two weeks.
APYX Report
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