Apyx Medical Q2 2025 Earnings Report

Apyx Medical EPS Results

• Actual EPS: -$0.09
• Consensus EPS: -$0.09
• Beat/Miss: Beat by +$0.00
• One Year Ago EPS: N/A

Apyx Medical Revenue Results

• Actual Revenue: $11.37 million
• Expected Revenue: $11.69 million
• Beat/Miss: Missed by -$313.00 thousand
• YoY Revenue Growth: N/A

Apyx Medical Announcement Details

• Quarter: Q2 2025
• Date: 8/7/2025
• Time: After Market Closes
• Conference Call Date: Thursday, August 7, 2025
• Conference Call Time: 4:30PM ET

Apyx Medical (NASDAQ:APYX), an energy technology company, engages in the design, development, and manufacture of medical devices in the United States and internationally. The company operates through two segments: Advanced Energy and Original Equipment Manufacturing (OEM). It offers Helium Plasma Generator for delivery of RF energy and helium plasma to cut, coagulate, and ablate soft tissue during open and minimally invasive surgical procedures. The company's Helium Plasma Technology products are marketed and sold under the Renuvion name in the cosmetic surgery market and under the J-Plasma name in the hospital surgical market. It also develops and manufactures various hand pieces for open and laparoscopic procedures; and OEM generators, as well as related accessories. The company was formerly known as Bovie Medical Corporation and changed its name to Apyx Medical Corporation in January 2019. Apyx Medical Corporation was incorporated in 1982 and is based in Clearwater, Florida.

Apyx Medical Q2 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: ApiX appointed John Featherstone and Simon Davies as senior sales leaders for North America and Europe/Asia, leveraging their combined 50+ years of aesthetics industry experience to drive growth.
• Negative Sentiment: Total Q2 revenue fell 6% year-over-year to $11.4 M, reflecting lower OEM sales and a strategic reduction in single-use handpiece volumes.
• Positive Sentiment: Early presales of the new Aon system exceeded expectations, leading to an upgraded 2025 revenue guidance of $50 M–$52 M, up from $47.6 M–$49 M.
• Positive Sentiment: Cost-cutting and restructuring initiatives launched in November 2024 halved cash burn, with adjusted EBITDA loss down 54% and cash used in operations reduced to $1.2 M in Q2.
• Positive Sentiment: Renuvion momentum continues, highlighted by strong Miami Swim Week engagement and a new distribution partnership in China that has already generated initial sales.

Presentation

[Operator]

Good afternoon, ladies and gentlemen, and welcome to the Apyx Medical Second Quarter twenty twenty five Earnings Conference Call. At this time, all lines are in listen only mode. Following the presentation, we will conduct a question and answer session. This call is being recorded on Thursday, 08/07/2025. I would now like to turn the conference over to Jeremy Feffert, LifeSci Advisors. Please go ahead.

[Jeremy Feffer, Managing Director at LifeSci Advisors, LLC]

Thank you and welcome everyone to our second quarter twenty twenty five earnings call. Representing the company on the call are Charlie Goodwin, Chief Executive Officer and Matt Hill, Chief Financial Officer of ApiX Medical. Before we begin, I would like to remind everyone that our remarks and responses to your questions today may contain forward looking statements that are based on the current expectations of management and involve inherent risks and uncertainties that could cause actual results to differ materially from those indicated, including without limitation, those identified in the Risk Factors section of our most recent annual report on Form 10 ks, our most recent 10 Q filing and the company's other filings with the Securities and Exchange Commission. Such factors may be updated from time to time in our filings with the SEC, which are available on our website. We undertake no obligation to publicly update or revise our forward looking statements as a result of new information, future events or otherwise.

[Jeremy Feffer, Managing Director at LifeSci Advisors, LLC]

This call will also include references to certain financial measures that are not calculated in accordance with generally accepted accounting principles or GAAP. We generally refer to these as non GAAP financial measures. Reconciliations of those non GAAP financial measures to the most comparable measures calculated and presented in accordance with GAAP are available in the earnings press release on the Investor Relations portion of our website. I would now like to turn the call over to Mr. Charlie Goodwin, ApiX Medical's President and Chief Executive Officer. Please go ahead.

[Charles Goodwin, President, CEO & Director at Apyx Medical]

Thank you, Jeremy, and thank you all for joining us today. First, with our focus on returning to growth, I am excited to announce the appointment of two senior sales leaders for the domestic and international markets. John Featherstone will head North American sales, and has over twenty years experience in the aesthetics industry, along with Simon Davies, who will head Europe and Asia, and has over thirty years experience in the industry, most recently with Vaser. For our usual format on these quarterly calls, I will be providing a review of our performance in the 2025, And then I will turn the call over to Matt for a review of our second quarter financial results, as well as our updated full year 2025 guidance. We will then open the call for questions.

[Charles Goodwin, President, CEO & Director at Apyx Medical]

Let me begin with a review of our second quarter performance. We reported total revenue of $11,400,000 compared to $12,100,000 in the same period last year. This slight decline was anticipated and primarily driven by a decrease in sales of our OEM products. Importantly, this aligns with our strategic shift in focus and resource allocation. Sales of our advanced energy products were $9,700,000 reflecting continued customer interest and steady demand in an overall market that remains challenged.

[Charles Goodwin, President, CEO & Director at Apyx Medical]

While we experienced a modest decrease in the volume of single use handpieces sold domestically, this was due in part to a decline of overall procedures and our sales rep focus on the pre sales of Aon in preparation for its commercial launch. This was a strategic decision to support the rollout of our most advanced system to date, and that investment is already paying off. I am pleased to report that early results from the Aon presales have exceeded our expectations, which I'll discuss in more detail shortly. Taking a closer look at our financial performance this quarter, we are beginning to see meaningful benefits from the cost reduction and restructuring initiatives that we implemented in November 2024. In just the past nine months, these efforts have driven significant improvements, resulting in a leaner operating structure and a substantial reduction in our cash burn.

[Charles Goodwin, President, CEO & Director at Apyx Medical]

These improvements have strengthened the overall financial health of the company, providing the flexibility to invest in our growth strategy with greater confidence. As a result, we are now better positioned to scale substantially and deliver long term value for our shareholders. While the global aesthetic market remains challenging, our APICS team has continued to execute with focus and resilience, identifying key growth opportunities and implementing the disciplined long term strategy that is already delivering meaningful results. At the center of this momentum is Renuvion, our innovative, minimally invasive surgical solution for treating loose and lax skin. Renuvion provides durable transformational outcomes and is rapidly gaining traction among surgeons.

[Charles Goodwin, President, CEO & Director at Apyx Medical]

We believe it represents best in class option for skin tightening and should be considered as the new standard of care, particularly for patients experiencing skin laxity after significant weight loss, including those using GLP-one medications. This expanded patient population presents a tremendous opportunity. With more than fifteen million people currently on GLP-one drugs in The US alone, we're still in the early innings of this powerful market shift. We believe APICS is uniquely positioned to meet this demand and to help lead aesthetics market into this next phase of growth. We were thrilled to see Renuvion take center stage at this year's Miami swim week, generating strong buzz and meaningful engagement.

[Charles Goodwin, President, CEO & Director at Apyx Medical]

As part of our campaign, we've shared powerful real life stories from patients who have regained their self confidence through Renuvion treatments, culminating in a runway moment where these individuals proudly showcased their transformation. It was an emotional and inspiring celebration of what Renuvion can help people achieve. Our presence in Miami is just one element of a much broader integrated direct to consumer marketing strategy that has significantly exceeded expectations in 2025. This campaign has delivered exceptional results in terms of reach, engagement, and earned media coverage. At the heart of our message is a clear and consistent theme.

[Charles Goodwin, President, CEO & Director at Apyx Medical]

Renuvion is the most trusted body contouring technology among aesthetic professionals backed by compelling clinical data and real world results. As many of you are aware, expanding Renuvion's footprint in new international markets is a key strategic priority. Just last month, we announced its launch in China, following receipt of an initial market clearance for the system from the National Medical Products Administration of China. Subsequently, we entered a distribution agreement with GlamMoon Medical Technology, the wholly owned equipment distribution division of Bo Care Clinics Investment Company, a leading platform company in China's medical aesthetics industry. We are excited by the early success GlamMoon has had with its initial marketing campaign for Renuvion in China, which quickly ramped up activities and immediately resulted in a tremendous response from surgeons and patients alike.

[Charles Goodwin, President, CEO & Director at Apyx Medical]

With initial sales already completed and growing interest, we foresee an exciting new growth driver and look forward to providing updates to you all. Building on the success of Renuvion, it brings us great pleasure to share the strong progress we have made in introducing the Aon system to the market over the past two months. This all in one platform seamlessly integrates Renuvion, ultrasound assisted liposuction, infiltration, aspiration, electro coagulation, and fat transfer into a single streamlined device, and look forward to expanding our indications to include power liposuction later this year. Considering the major shifts in the market with the rapid adoption of GLP-one drugs, we are confident it will further differentiate us as the surgical aesthetics company and a trusted surgical partner for the next era of aesthetic care. As I may remind you, we only just introduced the system publicly during our quarterly call in March.

[Charles Goodwin, President, CEO & Director at Apyx Medical]

We then went to the aesthetics meet in Austin, Texas later that year to offer board certified plastic and cosmetic surgeons an early look at the system, and gathered valuable initial feedback as we were planning out the commercial launch. This was followed up in May when we were pleased to announce AON has received five ten clearance from the US FDA. We have since focused on executing a soft commercial launch. As part of our limited release, we have installed a number of systems under our ambassador program. This program will place 20 systems with key opinion leaders in critical geographies throughout The US.

[Charles Goodwin, President, CEO & Director at Apyx Medical]

It has also allowed our sales and customer service teams to refine their processes and optimize the customer experience, ensuring we are well prepared to scale the broader commercial rollout. We have also been taking preorders from surgeons outside of our ambassador program, and look forward to the commercial launch in September. Again, I can't express it enough, the interest in Aon goes beyond anything that we were anticipating just a few months ago, which is what pushed us to update our revenue targets for 2025, which Matt will detail in a moment. For some of you that might not follow the industry closely, the activity around Aon's launch, while still early in the process, looks to be indicative of a broader shift in the market. What I mean by this is that over the past few years, capital equipment spending across the aesthetics market has generally been subdued, a trend experienced by nearly all manufacturers in the space.

[Charles Goodwin, President, CEO & Director at Apyx Medical]

However, we believe Aon sales are going against the pattern. The energy and enthusiasm from customers around this system is unlike anything we've seen in recent years. Surgeons are recognizing the value of a comprehensive next generation platform designed specifically for today's body contouring needs. And we are thrilled to be delivering it to them. While we were still in early stages of the launch, this momentum brings us significantly closer to realizing my long term vision to walk into almost any surgical practice and see an Aon system at the center of the operating room.

[Charles Goodwin, President, CEO & Director at Apyx Medical]

With the trajectory we are on, we believe that future is well within reach. I will now turn the call over to Matt for a review of our second quarter twenty twenty five financial results in more detail, along with our updated financial guidance for 2025.

[Matthew Hill, CFO at Apyx Medical]

Thank you, Charlie. Before I get started, please note that all references to second quarter financial results will be on a GAAP and year over year basis, unless noted otherwise. As Charlie mentioned, total revenue for the second quarter twenty five decreased 6% to $11,400,000 compared to $12,100,000 in the prior year period. Revenue for the Advanced Energy segment was relatively flat at $9,700,000 compared to $9,800,000 last year. As Charlie referenced, the flattening of our sales growth curve in this quarter reflects a decrease in the volume of single use handpieces domestically.

[Matthew Hill, CFO at Apyx Medical]

We expect to resume growth with the launch of Aon ramping in the third quarter, which is reflected in the updated guidance I will provide in a minute. Turning to the OEM segment, sales decreased 29% or approximately $1,700,000 for the 2025 when compared to the 2024. The decrease in OEM sales is due to decrease in sales volume to existing customers, including Symmetry Surgical under our ten year generator manufacturing and supply agreement. Domestic revenue decreased 11% year over year to $7,800,000 and international revenue decreased 4% year over year to $3,600,000 As a reminder, the medical device industry typically experiences some seasonality with revenue trends generally the lowest in the first and third quarters and strongest in the second and fourth. That said, the timing of new product shipments, particularly related to the Aon launch, could influence the revenue distribution in the second half of the year.

[Matthew Hill, CFO at Apyx Medical]

Depending on the pace and timing of these deliveries, we may see a different seasonal pattern in Q3 and Q4 compared to historical norms. Gross profit for the second quarter twenty twenty five decreased to $7,100,000 compared to $7,500,000 in the prior year period. Gross profit margin for the second quarter twenty twenty five increased slightly to 62.3% compared to 61.7% in the prior year period. With respect to tariffs, we continue to monitor trade policy and tariff announcements, including the recent executive orders issued by the U. S.

[Matthew Hill, CFO at Apyx Medical]

Federal Administration regarding tariffs on imports from various countries. At this time, the overall impact on our business related to these or any other tariffs that may be imposed remains uncertain and depends on multiple factors. Operating expenses decreased to $9,700,000 for the second quarter twenty twenty five compared to $13,000,000 in the prior year period. The decrease in operating expenses was driven by a $1,600,000 decrease in salaries and related costs, a $700,000 decrease in selling, general and administrative expenses, a $600,000 decrease in research and development expenses, and a $500,000 decrease in professional services expenses. We're pleased to see the results of the cost cutting measures taken in the '4 in our current numbers.

[Matthew Hill, CFO at Apyx Medical]

Loss from operations decreased $3,000,000 or 54% to $2,600,000 Net loss attributable to stockholders was $3,800,000 or $09 per share for the second quarter twenty twenty five compared with $6,600,000 or $0.19 per share in the prior year period. Adjusted EBITDA loss decreased 54% to $2,000,000 compared to $4,300,000 in the '24. As a reminder, we provide a detailed reconciliation from net loss attributable to stockholders to non GAAP adjusted EBITDA loss in our earnings press release. For the three months ended 06/30/2025, cash used in operating activities decreased to $1,200,000 compared to $4,300,000 used in the prior year period. We were pleased with the cash and working capital management in the 2025, with cash burn returning to more normalized rates in the back half of the year as a result of the impact of changes in working capital as a result of the Aon launch.

[Matthew Hill, CFO at Apyx Medical]

As of June 3025, the company had cash and cash equivalents of $29,300,000 compared to $31,700,000 as of December 3124. We believe based on our projections, including uptake of the Aon platform, working capital management and our strict cost controls, we will yield cash through 2027. Turning to our 2025 guidance, which we updated in the second quarter twenty twenty five financial results press release issued earlier today. For the twelve months ending December 3125, we expect total revenue in the range of $50,000,000 to $52,000,000 up from our previous guidance of $47,600,000 to $49,000,000 This is compared to $48,100,000 for the year ended December 3124. Our revenue guidance assumes advanced energy revenue in the range of $42,000,000 to $44,000,000 up from our previous guidance of 39,600,000.0 to $41,000,000 This is compared to $38,600,000 for the year ended 12/31/2024.

[Matthew Hill, CFO at Apyx Medical]

OEM revenue is expected to come in at approximately $8,000,000 as compared to $9,500,000 for the year ended 12/31/2024. We still anticipate gross margins of approximately 60% for the year and total operating expenses not to exceed $40,000,000 This completes our prepared remarks. Charlie and I will now open the calls for questions. Operator?

[Operator]

Thank you. Ladies and gentlemen, we will now begin the question and answer session. One moment please for your first question. Your first question comes from Sam Eber with BTIG. Your line is now open.

[Sam Eiber, VP & Medical Technology Analyst at BTIG]

Hi, Charlie. Hi, Matt. Thanks for taking the questions this afternoon. Maybe I can start here on Aon. It sounds like a lot of enthusiasm and pent up demand is building here.

[Sam Eiber, VP & Medical Technology Analyst at BTIG]

Charlie, you also talked about the existing market environment that we're in. So guess how should we be thinking about the customer receptivity at this point to Aon going forward maybe beyond this early group of customers and general receptivity to capital purchases in this market environment?

[Charles Goodwin, President, CEO & Director at Apyx Medical]

Yeah, thanks for the question Sam. The reaction from the doctors has been nothing short of spectacular so far since we've launched Aon. And there has really not been a lot of innovation in this space. There hasn't been anything to update the technologies and to combine the technologies and to work on the workflow. And remember, this system was designed by surgeons for surgeons.

[Charles Goodwin, President, CEO & Director at Apyx Medical]

We just facilitated their wishes, if you will, in the nicest possible way. And it seems that the team did an incredible job of meeting the doctor's needs. And the doctors have been obviously overwhelmingly positive to Aon. And obviously, the presales show that. And that's obviously the reason that we were very comfortable to raise our guidance today with that.

[Charles Goodwin, President, CEO & Director at Apyx Medical]

And yes, it does fly in the face of a little bit of what's going on in the marketplace. But when you really look at it, body contouring procedures are the procedures that are in focus for these doctors. They are obviously taking care of the patients that have the loose and lax skin. A lot of them have been on GLP-one drugs for weight loss. But we really believe, as I've said before, that the next decade is going to be a huge boon for surgeons.

[Charles Goodwin, President, CEO & Director at Apyx Medical]

And we're just incredibly grateful and incredibly proud that we can be their surgical partner and be that surgical company that helps them take care of their patients' needs.

[Sam Eiber, VP & Medical Technology Analyst at BTIG]

Makes a lot of sense. Maybe I can use my follow-up here on some of the new commercial hires. Really glad to see John and Simon come in here ahead of some of these product launches. Guess what are they bringing to the table here that's maybe different or positions you guys to take advantage of this opportunity in front of you?

[Charles Goodwin, President, CEO & Director at Apyx Medical]

Yeah, Sam, I'm glad you're thrilled that they're here. Remember, I've been doing this job too for the last nine months. So nobody's happier than I am to have them here. But we are incredibly fortunate to have their expertise and their knowledge to help us drive Aon and Renuvion, both in North America and in Europe and Asia. And obviously John Featherstone brings over twenty years of experience in the aesthetic space, setting up procedures, driving sales forces, building high powerful teams.

[Charles Goodwin, President, CEO & Director at Apyx Medical]

And we're very fortunate to have him on board. Simon Davies comes to us obviously with a lot of experience too. But remember, he was the leader of VASER in Europe and The Middle East for the last quite a few years. And his passion and his knowledge in body contouring is quite honestly almost second to none of anybody out there. And so we're very happy with the people that we have on board.

[Charles Goodwin, President, CEO & Director at Apyx Medical]

And we obviously expect big things out of them to keep driving the adoption of Aon worldwide.

[Sam Eiber, VP & Medical Technology Analyst at BTIG]

If I could just squeeze one last question here from Matt on the comments about seasonality. Are those comments really referencing typical seasonality? Think of a sequential dip in Q3 and then a rebound in Q4. You saying that we might see Q3 step up because maybe some of the initial orders from Aon and then decline in Q4? Just want to make sure I'm thinking about those comments correctly.

[Matthew Hill, CFO at Apyx Medical]

No, Sam, it's a great question. So what I'm looking at, you normally see a dip from Q2 to Q3. We're launching commercially launching Aon in September. So depending on the timing of those orders, you might see a change between Q2 and Q3. We're still going to have a very strong Q4 as most of Aon shipments are going to go out October through December. Are currently in the backlog, yeah.

[Sam Eiber, VP & Medical Technology Analyst at BTIG]

Okay, very good. Thanks for taking the questions, guys.

[Matthew Hill, CFO at Apyx Medical]

Our pleasure.

[Operator]

There are no further questions at one moment, please. Your next question comes from Sam Eber with BTIG. Your line is now open.

[Sam Eiber, VP & Medical Technology Analyst at BTIG]

Yeah, maybe I'll just squeeze in a final question here on the China opportunity because that's new here also. I'd love to understand maybe the market opportunity there, how to think about revenue contribution either this year or maybe next year. And then as a third part of the question, why GlamMoon is maybe the right partner to really be successful with Renuvion? Thanks for taking the questions.

[Charles Goodwin, President, CEO & Director at Apyx Medical]

Yeah. No, look, we've obviously been after China for a while. We've got the joint venture over there. And obviously are very happy that we're now starting commercial operations in China. And the China opportunity is a big opportunity.

[Charles Goodwin, President, CEO & Director at Apyx Medical]

There's about 5,000 plastic surgeons in China. So it's a very good market. A very good middle to upper class is obviously emerging there. And so we've future a lot in China for the next few years. The partner that we've got, we think we've got an amazing partner in Glamun.

[Charles Goodwin, President, CEO & Director at Apyx Medical]

They're looking at this in the long run and taking a really nice approach. But they own a lot of facilities over in China, a lot of aesthetic facilities. And so we believe that they will be able to obviously get the technology into those right away and then obviously branch out from there. And so we're very happy with our partnership so far. It's obviously in the early innings of that.

[Charles Goodwin, President, CEO & Director at Apyx Medical]

But we expect China to be a revenue driver for years to come.

[Operator]

There are no further questions at this time. I will now turn the call over to Charlie Goodwin for closing remarks.

[Charles Goodwin, President, CEO & Director at Apyx Medical]

Thank you everybody for attending the call. I really want to thank the entire APICS team for their dedication, their tireless execution over the past few months. It has been an incredibly exciting time to be with the company as we see our vision and plan turn into reality. And we appreciate all the support we've received from our shareholders during this time too. So just thank you all and it couldn't be a better time to be with APICS. So thank you.

[Operator]

Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines.

Participants

Executives

• Charles Goodwin, President, CEO & Director
• Matthew Hill, CFO

Analysts

• Jeremy Feffer, Managing Director at LifeSci Advisors, LLC
• Sam Eiber, VP & Medical Technology Analyst at BTIG