Apyx Medical Q3 Earnings Call Highlights

Key Points

• Q3 revenue rose 9% to $14 million, driven by 17% growth in Surgical Aesthetics and stronger international demand; OEM revenue fell 41.5% to $1.1 million.
• Apyx reported adjusted EBITDA of $0.4 million, versus a $0.1 million loss a year earlier, and narrowed its net loss to $1.8 million. Operating cash use also declined to $1.6 million, with $25.8 million in cash at quarter-end.
• The company reaffirmed 2026 revenue guidance of $59 million to $60 million and lowered its operating expense range to $41 million–$42.5 million from a prior ceiling of less than $45 million. It is expanding AYON’s Power Lipo rollout and pursuing registrations in additional international markets.

Apyx Medical NASDAQ: APYX reported a 9% increase in third-quarter 2026 revenue, driven by sales of its AYON body contouring system in the United States and international demand for Renuvion. The company also narrowed its full-year operating expense target while reaffirming its revenue outlook.

Revenue rose to $14 million from $12.9 million a year earlier. The net loss attributable to shareholders narrowed to $1.8 million, or $0.04 per share, from $2 million, or $0.05 per share.

President and CEO Charlie Goodwin said the company had achieved positive EBITDA on a cumulative trailing 12-month basis. For the third quarter, adjusted EBITDA was $0.4 million, compared with an adjusted EBITDA loss of $0.1 million a year earlier.

Surgical Aesthetics Growth Offsets OEM Decline

Surgical Aesthetics revenue increased 17% to $13 million, helped by AYON sales and higher international generator sales, CFO Matt Hill said. Those gains were partly offset by lower U.S. standalone generator sales and lower global sales of single-use handpieces. For the first nine months of 2026, the segment grew 26% year over year.

Revenue from the original equipment manufacturer, or OEM, segment fell 41.5% to $1.1 million as sales volume to existing customers declined. Hill said Apyx expects OEM revenue to decrease for the year as it focuses more on Surgical Aesthetics.

Domestic revenue rose 4% to $9.7 million, while international revenue increased 22% to $4.3 million. Goodwin said Korea, where Renuvion is in its first year of launch, contributed to international growth.

Gross margin edged down to 64.2% from 64.4%, reflecting geographic and product mix. Operating expenses rose to $9.6 million from $9.1 million, while the operating loss narrowed to $0.6 million from $0.8 million.

Cash used in operating activities fell to $1.6 million for the quarter from $3.5 million a year earlier. Apyx ended September with $25.8 million in cash and cash equivalents.

AYON Rollout and International Plans

Goodwin said Apyx has begun a broader commercial rollout of AYON’s power liposuction capability following its clearance and launch. The feature uses a reciprocating cannula to assist fat removal and is activated through a software update and the purchase of a handpiece and cannula.

The CEO said existing AYON customers had received at least one Power Lipo handpiece by the end of the quarter and that buyers can now obtain the feature with a new system. He estimated that about 75% of AYON sales to date have been to existing Renuvion customers and 25% to customers new to Apyx.

AYON is currently sold only in the U.S. Goodwin said the company is pursuing registrations in markets including Europe, the Middle East, Brazil, Colombia and Mexico, but did not provide a timeline. He said management sees a potential longer-term opportunity in reconstructive procedures, including in hospitals.

Goodwin also said management sees a potential opportunity from patients who have lost weight using GLP-1 medications and may seek treatment for loose skin or residual fat.

Clinical Study and Fourth-Quarter Outlook

Goodwin highlighted a prospective Renuvion study published in September in Plastic and Reconstructive Surgery Global Open. Seven facelift patients enrolled, and six completed a six-month follow-up. In those six patients, treated tissue showed 30% greater elastin fiber density and 34% less inflammation than untreated control areas, he said. All six reported improved skin quality and satisfaction with their outcomes.

For the fourth quarter, Goodwin said he expects both handpiece and capital equipment sales to be strong, noting that the quarter typically has the greatest number of procedures and is the company’s best capital-sales quarter. He cautioned that year-over-year comparisons will be affected by AYON units sold before the 2025 launch but shipped in the latter part of that year.

2026 Guidance

Apyx reaffirmed its full-year revenue forecast of $59 million to $60 million, compared with $52.8 million in 2025. The outlook includes $54 million to $55 million from Surgical Aesthetics and approximately $5 million from OEM.

The company now expects full-year gross margin of 63% to 64% and operating expenses of $41 million to $42.5 million. Its previous expense target was less than $45 million. Goodwin said Apyx tightened the range after spending came in well below that earlier limit through the first three quarters.

About Apyx Medical (NASDAQ:APYX)

Apyx Medical Corporation develops and commercializes energy-based medical technologies for use in surgical and aesthetic procedures. The company's platform is based on helium plasma technology, which is designed to deliver controlled energy for soft-tissue coagulation, cutting, and contraction.

Apyx Medical's principal product line is Renuvion, a system that combines helium plasma with radiofrequency energy. Renuvion devices and handpieces are used by physicians in a range of surgical and aesthetic applications, including procedures intended to coagulate tissue and address skin laxity.

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