Apyx Medical ((APYX)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Apyx Medical’s recent earnings call highlighted a positive sentiment, driven by the successful launch of the AYON Body Contouring System. The company reported substantial revenue growth in the Surgical Aesthetics segment, which has bolstered their financial outlook despite challenges in OEM and international sales. The strategic focus on AYON and improved financial health contribute to a promising future for the company.
AYON Body Contouring System Launch
The launch of the AYON Body Contouring System has been a significant success for Apyx Medical, with U.S. sales increasing by over 30% for the quarter. The product has received strong market feedback, and initial sales have surpassed expectations, driving growth in the Surgical Aesthetics segment.
Revenue Growth
Apyx Medical reported a 12% increase in total revenue for the third quarter, reaching $12.9 million compared to $11.5 million in the previous year. The Surgical Aesthetics segment was a major contributor, with a 19% revenue increase to $11.1 million.
Improved Financial Health
The company has made strides in improving its financial health, with operating expenses decreasing to $9.1 million from $10.6 million. This contributed to a 77% decrease in loss from operations and a 96% reduction in adjusted EBITDA loss.
Strategic Rebranding
Apyx Medical has rebranded its Advanced Energy segment to Surgical Aesthetics, aligning with its mission and market focus. This strategic move is expected to enhance the company’s market presence and align its offerings with customer needs.
OEM Revenue Decline
The company experienced an 18% decline in OEM revenue, dropping to $1.8 million from $2.2 million in the same period last year. This decrease is attributed to reduced sales volumes to existing customers.
International Revenue Decrease
International revenue saw a 4% year-over-year decrease to $3.5 million, highlighting challenges in international markets that the company aims to address in the future.
Cash and Cash Equivalents Reduction
Apyx Medical’s cash and cash equivalents decreased to $25.1 million as of September 30, 2025, down from $31.7 million at the end of 2024, reflecting investments in growth initiatives.
Forward-Looking Guidance
Apyx Medical’s updated guidance for the full year 2025 reflects optimism following the AYON launch. The company increased its revenue target to $50.5 million to $52.5 million, driven by the strong performance of the Surgical Aesthetics segment. Gross margins are expected to be around 61%, with total operating expenses remaining below $40 million.
In summary, Apyx Medical’s earnings call conveyed a positive outlook, underscored by the successful launch of the AYON Body Contouring System and robust growth in the Surgical Aesthetics segment. Despite some challenges in OEM and international sales, the company’s strategic initiatives and improved financial health position it well for future growth.