Apyx Medical Earnings Call: AYON Fuels Growth

Apyx Medical ((APYX)) has held its Q4 earnings call. Read on for the main highlights of the call.

Apyx Medical’s latest earnings call struck an optimistic tone, as management highlighted record revenue growth, successful commercialization of its AYON system, and a clear path toward cash-flow breakeven. While some risks remain around regulatory timing, margin pressure, and ongoing net losses, executives emphasized a strong cash position and disciplined cost control that together underpin their multi‑year growth plan.

Record Quarterly Revenue Marks Inflection Point

Apyx reported Q4 2025 revenue of $19.2 million, up 35% from $14.2 million a year earlier, signaling an inflection point in its growth trajectory. Management credited the surge primarily to the first full quarter of AYON sales, which helped push full‑year performance to the high end of prior expectations.

Surgical Aesthetics Surge Fueled by AYON

Surgical Aesthetics revenue jumped 38% year over year to $16.7 million in Q4, compared with $12.1 million in Q4 2024. Domestic Surgical Aesthetics was particularly strong, rising nearly 50% as AYON systems and higher volumes of single‑use handpieces drove deeper penetration in core aesthetic procedures.

AYON Launch Exceeds Early Expectations

Q4 was AYON’s first full commercial quarter after its September 2025 launch, and management said demand is outpacing internal forecasts across several key metrics. The system, priced around $360,000, generated robust preorder activity and positive feedback from early adopters, reinforcing Apyx’s strategy to anchor growth around this flagship platform.

Regulatory Progress Creates Embedded Upside

The company filed a follow‑up 510(k) in Q4 2025 seeking a label expansion for AYON to add power‑assisted liposuction functionality. Management described its interactions with regulators as productive and expects potential clearance by mid‑2026, noting that this feature is not included in current guidance and could offer incremental revenue when activated on installed systems.

Profitability Metrics Show Meaningful Improvement

Non‑GAAP profitability metrics turned a corner, with Q4 2025 gross profit rising to $12.0 million and gross margin at 62.6%. Adjusted EBITDA flipped to a positive $0.7 million versus a $2.2 million loss a year earlier, suggesting operating leverage is starting to emerge as AYON revenue scales.

Operating Loss Narrows as Results Improve

Income from operations in Q4 2025 was essentially breakeven at $11,000, a sharp improvement from a $3.0 million operating loss in Q4 2024. Net loss attributable to stockholders narrowed to $1.3 million, or $0.03 per share, versus $4.6 million, or $0.12 per share, highlighting progress but also the remaining path to sustained profitability.

Cash Burn Down and Balance Sheet Solid

Cash used in operating activities fell to $8.0 million for 2025, improving from $18.7 million in 2024 as restructuring and stronger sales took hold. With $31.7 million in cash and equivalents at year‑end, management expressed confidence in a cash runway through 2027 and reiterated its goal of turning cash‑flow positive by Q4 2026.

Cost Discipline Lowers Operating Expenses

Total operating expenses declined to $39.5 million in 2025, down from $48.2 million in 2024 and $53.7 million in 2023. Executives tied this trend to prior restructuring and ongoing cost controls, arguing that the leaner structure can support growth investments while preserving a path toward profitability.

Strategic Shift Away From OEM Revenue

Apyx plans a material reduction in OEM revenue, guiding to about $4.5 million in 2026 from $7.5 million in 2025 as it reallocates resources toward Surgical Aesthetics. Management framed this as a deliberate strategic shift, trading lower‑margin OEM business for higher‑value opportunities tied to AYON and the broader aesthetic portfolio.

Margins Face Slight Pressure Despite Growth

Despite strong revenue gains, Q4 2025 gross margin ticked down slightly to 62.6% from 63.0% a year earlier. The modest compression suggests some near‑term pressure from product mix and launch‑related costs, even as the company targets stable gross margins in the low 60% range going forward.

Net Loss and Execution Risks Remain

Management acknowledged that the company remains in a net loss position and that its path to sustained profitability hinges on continued AYON adoption. Execution around sales productivity, installed base utilization, and adherence to expense targets will be critical, especially if macro or competitive conditions soften.

AYON Feature Still Awaiting Clearance

A key AYON accessory, the power‑assisted liposuction handpiece, remains under regulatory review and is frequently requested by customers seeking a more complete liposuction solution. Its expected mid‑2026 clearance is excluded from current forecasts, introducing timing uncertainty but also presenting potential upside once approved and commercialized.

International Expansion a Longer‑Term Lever

AYON is currently approved only in the United States, leaving international markets such as Europe and Latin America as future growth drivers rather than immediate contributors. Management is pursuing registrations in countries including Brazil and Colombia, but stressed that these rollouts will take time and limit near‑term geographic diversification.

Guidance Seen as Conservative and Execution‑Heavy

Management framed its 2026 outlook as intentionally conservative, with projected growth that does not assume contributions from the pending liposuction indication. They noted that results will depend on ramping new sales hires, activating features on deployed AYON units, and securing international approvals, all areas where missteps could pressure the forecast.

Forward Guidance Emphasizes Steady, Not Explosive, Growth

For 2026, Apyx guided total revenue to $57.5–$58.5 million, implying roughly 9%–11% growth, with Surgical Aesthetics expected to climb 17%–19% to $53–$54 million and OEM revenue falling to about $4.5 million. The company targets gross margins of around 61%–62%, operating expenses capped at $45 million, a move to cash‑flow breakeven by late 2026, and a cash runway that stretches through 2027.

The earnings call painted a picture of a company transitioning from turnaround to targeted growth, powered by AYON’s early traction and tighter cost controls. Investors will be watching whether Apyx can convert strong launch momentum into durable profitability while navigating regulatory milestones, modest guidance, and the risks that come with scaling a high‑ticket medical device franchise.