Apyx Medical Corporation (APYX) Q1 2026 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
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.
Key Financial Performance
Total Revenue $12.5 million, a 32% increase year-over-year from $9.4 million. This growth was driven by a 36% increase in sales of Surgical Aesthetics products, primarily due to the strong sales ramp of the AYON body contouring system in the U.S., demand for single-use handpieces worldwide, and increased Renuvion generator sales internationally.
Surgical Aesthetics Revenue $10.7 million, a 36% increase year-over-year from $7.9 million. Growth was attributed to the commercial launch of AYON, increased international generator sales, and higher volume of single-use handpieces domestically and internationally, partially offset by decreases in domestic generator sales.
OEM Segment Revenue $1.8 million, a 14% increase year-over-year from $1.5 million. This was due to increased sales volumes to existing customers.
Domestic Revenue $8.1 million, a 20% increase year-over-year. Growth was driven by the factors contributing to the overall revenue increase.
International Revenue $4.4 million, a 63% increase year-over-year. Growth was driven by increased international sales of generators and single-use handpieces.
Gross Profit $7.9 million, a 40% increase year-over-year from $5.7 million. Gross profit margin increased to 63.5% from 60.1%, primarily due to a higher percentage of Surgical Aesthetics sales and product mix within the OEM segment, partially offset by geographic mix and tariffs.
Operating Expenses $8.8 million, relatively flat year-over-year compared to $8.7 million. A $0.3 million increase in selling, general, and administrative expenses and salaries was offset by a $0.2 million decrease in research and development and professional services expenses.
Loss from Operations $0.9 million, an improvement from a $3.1 million loss in the prior year period. This improvement reflects higher revenue and gross profit.
Net Loss Attributable to Stockholders $2.1 million or $0.05 per share, an improvement from $4.2 million or $0.10 per share in the prior year period. This was due to higher revenue and improved operating performance.
Adjusted EBITDA Loss $0.3 million, an improvement from $2.4 million in the prior year period. This reflects better operating performance and revenue growth.
Cash Used in Operating Activities $0.6 million, a decrease from $0.7 million in the prior year period. This reflects improved cash management and operational efficiency.
Cash and Cash Equivalents $31.1 million as of March 31, 2026. This reflects the company's strengthened financial position and cost controls.
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Operating Highlights
AYON body contouring system: Achieved $10.7 million in sales for Q1 2026, marking a 36% increase in Surgical Aesthetics product sales. The product is in its second full quarter post-commercial launch and has shown strong market adoption in the U.S. and internationally.
Power liposuction functionality for AYON: Anticipating FDA 510 clearance this quarter, which will expand AYON's capabilities to include advanced fat removal modalities. A limited commercial launch is planned to refine training and customer experience.
International expansion: Achieved regulatory approval for Renuvion in South Korea in December 2025. Initial customer demand for generators and handpieces exceeded expectations, indicating strong market potential.
Lean operating structure: Implemented over a year ago, reducing operating expenses and cash burn, allowing selective reinvestment in growth initiatives like AYON's rollout.
Revenue growth: Total revenue increased by 32% year-over-year to $12.5 million in Q1 2026, driven by strong sales in Surgical Aesthetics and international markets.
Broader surgical aesthetic strategy: Transitioning from individual technologies to a comprehensive presence in surgical suites, supporting a wider range of procedures and workflows.
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Risk or Challenges
Regulatory Approvals: The company is awaiting FDA 510 clearance for the AYON platform to include power liposuction. Delays or issues in obtaining this clearance could impact the product's marketability and adoption.
Geographic Expansion: While initial customer demand in South Korea exceeded expectations, the company is still in the early stages of market penetration. Challenges in sustaining momentum or meeting regulatory requirements in new markets could pose risks.
Product Adoption: Although AYON adoption is in early stages and showing promise, there is a risk that the product may not achieve widespread adoption as anticipated, which could impact revenue growth.
Supply Chain and Tariffs: The company has been affected by tariffs since the second half of 2025, which could continue to impact profit margins, especially as international sales grow.
OEM Segment Revenue Decline: The company expects a decline in OEM segment revenue over time, which could affect overall revenue diversification and stability.
Seasonality in Revenue: The medical device industry experiences seasonal revenue trends, with weaker performance in the first and third quarters. This could lead to uneven financial performance throughout the year.
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Guidance & Outlook
Revenue Guidance for 2026: The company has revised its expected total revenue for 2026 to be in the range of $59 million to $60 million, up from the previous guidance of $57.5 million to $58.5 million. This compares to $52.8 million reported for 2025.
Surgical Aesthetics Segment Revenue: Revenue for this segment is expected to be in the range of $54 million to $55 million, up from the previous guidance of $53 million to $54 million. This compares to $45.3 million reported for 2025.
OEM Revenue: OEM revenue is now expected to be approximately $5 million, up from the previous guidance of $4.5 million. This compares to $7.5 million for 2025.
Gross Margins: Gross margins are anticipated to be approximately 62% to 63% for 2026, depending on product and geographic mix.
Operating Expenses: Total operating expenses for 2026 are not expected to exceed $45 million.
AYON Platform Expansion: The company anticipates FDA 510 clearance for the AYON platform to include power liposuction sometime in the second quarter of 2026. This will expand AYON's functionality and addressable customer base.
AYON Power Liposuction Launch Strategy: Following FDA clearance, the company plans a limited commercial launch of the power liposuction functionality with targeted early adopters to refine training, optimize utilization, and evaluate customer experience before scaling.
International Market Opportunities: The company sees significant opportunities in international markets, particularly in South Korea, where initial customer demand for Renuvion and AYON products has exceeded expectations following regulatory approval in December 2025.
Cash Projections: The company projects that its cash and cash equivalents of $31.1 million as of March 31, 2026, will sustain operations through 2027.
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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 explain the detail in the press release about AYON not being part of the U.S. generator sale?
A:AYON sales are now counted as AYON sales and not generator sales, even if they include a generator for new customers or upgrades. This change reflects a shift towards selling full AYON systems rather than just generators.
Q:Will AYON be brought to South Korea and other international markets?
A:Yes, the company is working on registering AYON outside the U.S., including South Korea and other countries. Progress updates will be shared with investors.
Q:Where is the AYON rollout currently, and how does power-assisted liposuction impact adoption?
A:The AYON rollout is in its early stages, with significant potential for upgrades among existing Renuvion customers and new customers. Power-assisted liposuction is important for adoption as some doctors prefer it over ultrasonic liposuction. The label expansion for power lipo is expected to significantly enhance adoption.
Q:What is the current demand environment for procedures?
A:Despite geopolitical tensions and macroeconomic dynamics, demand remains strong. Patients are seeking procedures, particularly those who have lost weight using GLP-1 drugs.
Q:What types of clinics are adopting AYON, and how does it compare to Renuvion?
A:About 80% of AYON sales are to existing Renuvion customers, but AYON is helping the company enter new practices. AYON offers comprehensive body contouring, increased efficiency, shorter procedure times, and better outcomes, making it appealing to clinics.
Q:Has GLP-1 adoption influenced demand for Renuvion treatments?
A:Yes, GLP-1 adoption has driven demand as patients seek solutions for loose skin after weight loss. Google searches for loose skin, body contouring, and liposuction have increased, aligning with the company's offerings.
Q:What is the assumed tariff impact in the guidance, and how might policy changes affect it?
A:The guidance assumes tariffs will remain unchanged for the year. The company has minimized tariff impacts by manufacturing in both Bulgaria and Florida, but changes in policy could affect costs.
Q:What is the timeline and focus for placing AYON outside the U.S.?
A:A specific timeline cannot be provided due to varying country regulations. Key target regions include Europe, Latin America (e.g., Brazil, Colombia), the Middle East, and Asia.
Q:Review of Unclear Management Responses
A:Management avoided providing a specific timeline for AYON's international rollout, citing the variability in country-specific registration processes. This lack of detail leaves uncertainty about when AYON will be available in key markets.
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
AYON ability
AYON activity
AYON adoption
AYON center
AYON customer
AYON functionality
AYON method
AYON need
AYON suite
Aesthetics customer
Aesthetics product
Americans GLP
Apyx Console
Apyx Medical
Apyx remark
Asia South
Console use
GLP KFF
GLP treatment
GLPs adult
South Korea
Surgical Aesthetics
adoption stage
approval
clearance AYON
core
customer base
demand generator
end
increase
modality platform
month program
offering
success
training
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
Frequently Asked Questions
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