APYX

• Overall Quarterly Performance

  • Total 2Q26 revenue reached $13.9 million, a 22% year-over-year increase from $11.4 million in 2Q25.
  • Gross profit increased 25% year-over-year to $8.9 million, with gross margin expanding 160 basis points to 63.9%, driven by a higher mix of higher-margin surgical aesthetic sales.
  • Operating loss narrowed to $1.8 million from $2.6 million in 2Q25, and net loss attributable to stockholders decreased to $3.2 million from $3.8 million year-over-year.
  • As of June 30, 2026, the company held $27.6 million in cash and cash equivalents.

• Aon Platform Milestones

  • This was the fourth consecutive quarter of Aon sales following its full commercial launch in September 2025, with growing adoption and demand across the U.S. market driven by its all-in-one integrated value proposition.
  • The company received FDA 510(k) clearance to add power liposuction to the Aon platform during the quarter, completed a limited soft launch with key surgeons, and initiated initial commercial shipments in June 2026 based on positive early feedback.

• GLP-1 Market Opportunity

  • Management noted that widespread GLP-1 adoption is reshaping the body contouring market: after achieving weight loss with GLP-1s, many patients are left with loose skin that requires surgical correction, creating a growing long-term opportunity for Apex's comprehensive body contouring platforms.

• Clinical Strategy and Data

  • Two new peer-reviewed studies reinforced the clinical value of Apex's technologies: a retrospective study found that Renuvion + liposuction delivered higher patient satisfaction, lower rates of secondary abdominoplasty/revision, and comparable complication rates versus liposuction alone; a prospective study found that combined Avali + Renuvion treatment delivered measurable improvements in cellulite and skin laxity, with evidence of long-term collagen and elastin remodeling.

• Leadership Update

  • Stavros Vizianakis was appointed Executive Chairman of the Board of Directors, formalizing his existing deep engagement in strategic planning, financing initiatives, and operational guidance. He brings decades of healthcare industry leadership experience to support long-term shareholder value creation.

• Management reaffirmed its full-year 2026 total revenue guidance range of $59 million to $60 million, representing 11.7% to 13.6% growth over 2025's full-year revenue of $52.8 million. • Guidance maintains full-year 2026 surgical aesthetics segment revenue in the range of $54 million to $55 million, up from approximately $45.3 million in 2025, and OEM revenue of approximately $5 million, down from approximately $7.5 million in 2025. • Gross margin guidance for full-year 2026 is maintained at 62% to 63%. • Total full-year 2026 operating expenses are guided to not exceed $45 million. • Management expects current cash holdings will provide sufficient liquidity into 2028, and the company remains focused on reaching cash flow positive as quickly as possible.

Surgical Aesthetics Segment: Revenue increased 28% year-over-year to $12.4 million in 2Q26, up $2.7 million from $9.7 million in 2Q25. This segment contributed 89.2% of Apex Medical's total 2Q26 revenue. Growth was driven by sales of the Aon body contouring system, higher international generator sales, and increased domestic single-use handpiece volume.

OEM Segment: Revenue decreased 12% year-over-year by approximately $0.2 million to $1.5 million in 2Q26, down from $1.7 million in 2Q25. This segment contributed 10.8% of total 2Q26 revenue. The sales decline stemmed from lower sales volume to existing customers, and management expects long-term continued decline in OEM revenue as the company prioritizes the surgical aesthetics business.

Geographic breakdown: Domestic revenue grew 21% year-over-year to $9.4 million, and international revenue grew 24% year-over-year to $4.5 million in 2Q26.

• The company's forward-looking statements are subject to inherent risks and uncertainties that could cause actual results to differ materially from expectations, with key risks outlined in the company's SEC filings including Form 10-K and 10-Q. • Tariffs implemented in the second half of 2025 are putting downward pressure on gross margins, partially offsetting the benefit of the shift to higher-margin surgical aesthetic products. • The new power liposuction handpiece is in early rollout, and initial production has higher per-unit costs that may impact gross margins in the near term before manufacturing efficiencies are realized. • The company is currently operating at a net loss, and there is no guarantee that it will achieve cash flow positive on the expected timeline.

Q: Are new Aon platform users mostly coming from Apex's existing core Renuvion/plastic surgeon customer base, or are there new non-core adopters? What benefits does Aon's all-in-one design provide beyond a streamlined form factor, especially with the new power liposuction feature?

A: Aon is attracting new users who have never used Renuvion before, though nearly all current adopters are plastic/cosmetic surgeons who treat patients seeking body contouring procedures post-GLP-1 weight loss. Beyond the integrated package, every Aon technology performs better than competing standalone options: ultrasonic liposuction separates fat, power liposuction (cleared in May 2026) enables faster, more efficient fat removal that cuts procedure time, and the platform enables full body contouring including fat repositioning. Early soft launch feedback on power liposuction was exceptional, but only limited shipments began in June 2026, and the company is still ramping production to meet backordered demand.

Q: Gross margin outperformed expectations in the first half of 2026, but guidance implies a sequential gross margin decline in the second half. What is driving this expected pullback?

A: There is no fundamental change in margin trajectory; first half results simply overperformed the full-year guidance range. The expected modest softening in the second half is primarily driven by early-stage production of the new power liposuction handpieces: initial low-volume production has higher per-unit costs, which will improve over time as manufacturing throughput increases and production processes mature.

Q: Is the launch of PyroLipo (power liposuction) included in current guidance, and does the company expect to receive any tariff-related refunds this year?

A: PyroLipo launch and related revenue were included in the full-year 2026 guidance when guidance was set, as the launch timeline was previously anticipated. The company is in the process of applying for tariff refunds, and expects to receive some amount this year, but the size of any potential refund is uncertain at this time, and no expected refund benefit is included in current guidance.

Q: What share of new Aon purchases include the power liposuction attachment, and how does power liposuction impact recurring consumable revenue?

A: Management does not disclose the total cumulative number of Aon systems placed in the market. Over 95% of new Aon purchasers now buy the platform with the power liposuction attachment. Power liposuction handpieces and probes are reusable but have a limited measured useful life; busy practices typically replace 2-4 handpieces per year, adding incremental recurring replacement revenue in addition to improving the platform's overall competitiveness to drive new system sales.