Total Revenue Growth
Total Q1 2026 revenue increased 32% year-over-year to $12.5 million from $9.4 million in Q1 2025.
Surgical Aesthetics Segment Surge Driven by AYON
Surgical Aesthetics revenue rose 36% year-over-year to $10.7 million (from $7.9 million), driven by AYON body contouring system ramp in the U.S., increased single-use handpiece volume, and higher Renuvion generator sales internationally. This was the second full quarter of AYON sales following its commercial launch in Sept 2025.
Strong International Momentum
International revenue increased 63% year-over-year to $4.4 million while domestic revenue grew 20% to $8.1 million. Notable initial demand following regulatory approval in South Korea exceeded expectations.
Improved Profitability Metrics
Gross profit rose 40% year-over-year to $7.9 million and gross margin expanded to 63.5% from 60.1%, driven by favorable product/segment mix (higher Surgical Aesthetics contribution).
Operating Performance and Cash Flow Improvements
Loss from operations narrowed to $0.9 million (from $3.1 million). Net loss improved to $2.1 million or $(0.05) per share (from $4.2 million or $(0.10)). Adjusted EBITDA loss improved to $0.3 million (loss) from $2.4 million (loss). Cash used in operations was $0.6 million vs $0.7 million prior year; cash and equivalents totaled $31.1 million.
Upwardly Revised 2026 Guidance
Full-year 2026 revenue guidance raised to $59M–$60M (from $57.5M–$58.5M). Surgical Aesthetics revenue guidance increased to $54M–$55M (from $53M–$54M). OEM revenue guidance set at ~$5M (up from $4.5M guidance). Company expects full-year gross margins of ~62%–63% and operating expenses not to exceed $45M.
Product Roadmap and Regulatory Milestone
Company expects FDA 510(k) clearance for AYON to include power-assisted liposuction 'sometime this quarter,' which would expand AYON functionality to support multiple advanced fat removal modalities and is expected to broaden addressable market and adoption.
Disciplined Commercial Execution and Lean Cost Structure
Management highlighted a lean operating structure implemented ~a year ago that materially reduced operating expenses and cash burn, enabling selective reinvestment (e.g., AYON rollout). The commercial launch emphasized training and workflow integration to drive customer success.