Apyx Medical Corporation Q4 FY2025 earnings call

• Charlie Goodwin began by reviewing key highlights of the fourth quarter and full year 2025 performance, including the record revenue driven by surgical aesthetics products, particularly the Aon body contouring system. • Discussed the launch of the Aon system, its positive market reception, and the submission of a follow-up 510 for label expansion to include power liposuction, with anticipation of mid-2026 clearance. • Mentioned the impact of GLP-1 drugs on the aesthetics market and how the Renuvion system serves as a solution for skin laxity. • Actively working on strengthening the commercial organization by acquiring sales talent. • Highlighted the successful cost reduction and restructuring efforts that have led to a leaner operating structure and reduced cash burn. • Matt Hill then reviewed the fourth quarter and full year 2025 financial results and the 2026 guidance, covering revenue breakdown by segments, gross margin, operating expenses, and cash flow management

Fourth quarter 2025 total revenue was $19.2 million, up 35% from $14.2 million in the prior year. The surgical aesthetics segment revenue was $16.7 million, a 38% increase from $12.1 million in the prior year period. This growth was driven by sales of the Aon body contouring system. The OEM segment sales were $2.5 million, a 16% increase from $2.1 million in the fourth quarter of 2024. Domestic revenue for the surgical aesthetics segment increased nearly 50% year over year. Gross profit for the fourth quarter of 2025 was $12 million, up from $9 million in the prior year period, but the gross profit margin decreased to 62.6% from 63%. Operating expenses were flat at $12 million for the fourth quarter of 2025 compared to the prior year period. Income from operations was $11,000 in the fourth quarter of 2025 compared to a loss from operations of $3 million in the prior year period. The net loss attributable to stockholders was $1.3 million or 3 cents per share in the fourth quarter of 2025 compared to $4.6 million or 12 cents per share in the prior year period. Adjusted EBITDA was $0.7 million in the fourth quarter of 2025 compared to an adjusted EBITDA loss of $2.2 million in the prior year period. For the full year 2025, cash used in operating activities decreased to $8 million from $18.7 million in the prior year period. Cash and cash equivalents as of December 31, 2025 and 2024 were $31.7 million. The 2026 guidance includes total revenue expected to be in the range of $57.5 million to $58.5 million, with the surgical aesthetics segment revenue expected to be in the range of $53 million to $54 million and OEM revenue expected to be approximately $4.5 million. Gross margins are anticipated to be approximately 61 to 62% for the year, and total operating expenses are not expected to exceed $45 million

• For the 12 months ended December 31, 2026, total revenue is expected to be in the range of $57.5 million to $58.5 million, representing an approximately 9% to 11% increase compared to the full year of 2025. • The surgical aesthetics segment revenue is expected to be in the range of $53 million to $54 million, which is a 17 to 19% increase from 2025. • OEM revenue is expected to be approximately $4.5 million, a decrease from 2025. • Gross margins are anticipated to be approximately 61 to 62% for the year. • Total operating expenses are not expected to exceed $45 million. • The plan is to be cash flow positive no later than the fourth quarter of 2026

Q: Dave Turkley inquired about handpiece and CapEx sales, the direction of growth, pricing, and new customers.

A: Growth in the fourth quarter was driven by Aon. Domestically, the US saw nearly a 50% increase. There is a combination of existing Renuvion platform users upgrading to Aon (about 80%) and new customers (about 20%). Pricing: the list price of Aon is about $360,000, which is the list price of the Apex One generator plus other components.

Q: Sam Iber asked about what's going well with the Aon launch, updates from customers and commercial reps, and the gross margin guidance.

A: Customers love the Aon system, feedback has exceeded expectations. The gross margin guide is conservative considering the mix of lower margin OEM and higher margin surgical aesthetic segments, as well as geographic sales mix.

Q: Alex Furman asked about new salespeople, territory division, and incentivizing the sales force.

A: Are adding high-caliber sales talent, leveraging the strength of the Aon product in the aesthetics market.

Q: Matt Hewitt asked about Aon approved countries and the contribution of the liposuction label expansion.

A: Aon is currently approved in the US, with plans to register in key countries outside the US such as Europe, Brazil, and Colombia. The liposuction label expansion mid-year is considered upside.

Q: Kyle Bowser asked about console sales mix and the 2027 cash flow positive plan.

A: Still sell Renuvion only outside the US where Aon isn't registered. In the US, more people may acquire Renuvion through Aon over time. The plan is to be cash flow positive no later than the fourth quarter of 2026