Apyx Medical Corporation Q1 FY2026 earnings call

• Charlie Goodwin started by reviewing Q1 2026 performance, noting 36% growth in surgical aesthetics products sales due to Aon body contouring system sales, single-use handpieces, and Renuvion generator sales. • Commercial program for Aon ramped up with focus on training and workflow integration. • Aon launch coincided with rapid adoption of GLP-1s, which leads to demand for body contouring solutions. • Lean operating structure implemented reduced operating expenses and cash burn. • Anticipated FDA 510 clearance for Aon platform to include power liposuction this quarter. • Strong interest in Apex One console and single-use handpieces in South Korea post-regulatory approval. • Long-term vision is to have Aon in every surgical center. • Matt Hill then reviewed financial results, noting revenue growth, segment performance details, gross profit and margin changes, operating expenses, net loss, adjusted EBITDA, and cash used in operations.

Total quarterly revenue was $12.5 million in Q1 2026 vs $9.4 million in same period 2025. Surgical aesthetics products sales increased 36% to $10.7 million, driven by Aon body contouring system sales in US, single-use handpieces worldwide, and Renuvion generator sales internationally. OEM segment sales increased 14% to $1.8 million. Domestic revenue increased 20% to $8.1 million, international revenue increased 63% to $4.4 million. Gross profit increased 40% to $7.9 million, gross profit margin 63.5% vs 60.1% prior year. Operating expenses flat at $8.8 million. Net loss $2.1 million vs $4.2 million prior year. Adjusted EBITDA loss $0.3 million vs $2.4 million prior year. Cash used in operating activities decreased to $0.6 million.

• Upward revision to total revenue for 2026 to $59 million - $60 million from previous $57.5 million - $58.5 million. • Surgical aesthetic segment revenue expected $54 million - $55 million vs prior $53 million - $54 million. • OEM revenue expected ~$5 million vs prior ~$4.5 million. • Anticipate gross margins ~62 - 63% for 2026 and total operating expenses not to exceed $45 million.

Q: Explained detail in press release about not capturing generators separately when selling AONs.

A: When selling AONs, count as AON sales not generator sales, as more people buying full AON systems now.

Q: Will bring A on to South Korea and OUS rollout?

A: Working on registering Aon outside US, plan to have it registered everywhere, working on various countries this year.

Q: Thoughts on Aon rollout, power assisted liposuction label expansion?

A: Aon rollout just starting, 80% of AONs sold to existing Renuvion customers, power lipo important as some doctors wait for it, rounds out liposuction capabilities.

Q: Underlying procedure demand with GLP-1 wave and geopolitical tensions?

A: Patients still coming in for procedures despite geopolitical tensions.

Q: Kinds of clinics Aon resonating with, new customers?

A: 80% of AONs sold to existing Renuvion customers, helps get into practices not before, with benefits like increased efficiency, lower procedure times, better outcomes.

Q: Assumed tariff impact in guide and potential policy changes?

A: Tariffs factored in, manufacture in Bulgaria and Florida to minimize impact, but changes possible.

Q: Timeline for Aon registration outside US?

A: Can't give exact timeline, major areas like Europe, Latin America (Brazil, Colombia), Middle East, Asia to register Aon