Apyx Medical ((APYX)) has held its Q1 earnings call. Read on for the main highlights of the call.
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The recent earnings call for Apyx Medical presented a mixed sentiment, reflecting both optimism and challenges. While the company celebrated growth in advanced energy products and successful cost-cutting measures, it also faced significant declines in total and OEM revenues. However, the company remains hopeful for future growth, particularly with the anticipated launch of the AYON platform.
Advanced Energy Product Sales Growth
Sales of advanced energy products saw a positive increase of 6% to $7.9 million in the first quarter of 2025 compared to the same period last year. This growth indicates a favorable trend in the U.S. market, driven by stronger sales of single-use handpieces.
Cost-Cutting and Restructuring Success
Apyx Medical has implemented significant cost-cutting measures and a restructuring program, resulting in reduced costs and cash burn. These efforts demonstrate the company’s commitment to its commercial strategy and financial health.
Renuvion’s Market Recognition
Renuvion, Apyx Medical’s innovative product, won the 2025 NewBeauty Award for best minimally invasive skin tightener. This accolade underscores the product’s effectiveness and innovation in the aesthetic space.
AYON Platform Launch Preparedness
The company is preparing for a soft launch of the AYON platform in the latter half of 2025. This move signals Apyx Medical’s readiness to expand its market share and cater to the growing demand in the aesthetic surgery market.
Improved Financial Metrics
Apyx Medical reported a decrease in net loss attributable to shareholders, which fell to $4.2 million from $7.6 million in the previous year. Additionally, the adjusted EBITDA loss decreased by 54% to $2.4 million, reflecting improved financial performance.
Positive Cash Flow Management
The company significantly reduced cash used in operating activities to $0.7 million from $6.3 million in the prior year. Apyx Medical expects to return to a normalized cash burn for the remainder of 2025.
Revenue Decline
Total revenue for the first quarter of 2025 decreased by 7.9% to $9.4 million compared to the prior year. This decline was primarily due to a decrease in OEM product sales.
OEM Sales Drop
The OEM segment experienced a substantial sales drop of 44.7%, attributed to decreased sales volume to existing customers, which impacted the overall revenue.
International Revenue Decrease
International revenue also saw a decline, decreasing by 17.7% year-over-year to $2.7 million, contributing to the overall revenue drop.
Forward-Looking Guidance
Apyx Medical reported total revenue of $9.4 million for the first quarter of 2025, marking an 8% decrease from the previous year. Despite this, the Advanced Energy segment saw a 6% increase in sales. The company reduced operating expenses significantly and maintained a strong cash position of $31 million. Apyx reiterated its full-year 2025 revenue guidance of $47.6 million to $49 million and is preparing for the launch of its AYON body contouring platform in late 2025, pending FDA clearance.
In conclusion, Apyx Medical’s earnings call highlighted a mix of positive developments and challenges. The company is optimistic about future growth, particularly with the upcoming AYON platform launch, despite facing revenue declines. The focus on cost-cutting and restructuring, along with market recognition for Renuvion, positions Apyx Medical for potential success in the coming quarters.