Apyx Medical Corp (APYX)·Q1 2025 Earnings Summary

Executive Summary

• Mixed top-line with improving quality: Revenue declined 8% year-over-year to $9.43M as OEM fell 45%, but Advanced Energy grew 6% and gross margin expanded to 60% on favorable mix .
• Cost discipline showing up in P&L: Operating expenses fell 31% to $8.7M and adjusted EBITDA loss improved to $(2.4)M from $(5.3)M, reflecting Q4 2024 restructuring benefits .
• Consensus beat: Q1 revenue modestly topped S&P Global consensus ($9.43M vs $9.39M*) and EPS beat by $0.02 (−$0.10 vs −$0.12*) as mix and OpEx drove upside; 3 estimates for each metric* (S&P Global) .
• Catalysts: Reaffirmed FY25 guide (revenue $47.6–$49.0M; OpEx < $40M) and maintained ~60% gross margin outlook; subsequent AYON 510(k) FDA clearance (May 13) sets up H2’25 KOL launch and potential capital cycle re-acceleration .

What Went Well and What Went Wrong

• What Went Well

  • Advanced Energy resilience and mix improvement: AE revenue +6% to $7.9M; gross margin rose to 60% (from 58%) on stronger domestic mix and handpiece/generator contribution .
  • Cost actions tangible: OpEx down $3.8M to $8.7M; adjusted EBITDA loss nearly halved to $(2.4)M (from $(5.3)M) .
  • Demand signals: “U.S. single-use handpiece revenue grew 14% y/y”; management sees Renuvion as only FDA-cleared device after liposuction and positioned for GLP‑1 tailwind. “Feedback [on AYON] exceeded all expectations” at The Aesthetic MEET (prepared remarks) .

• What Went Wrong

  • Total revenue down 8% y/y to $9.43M; OEM revenue −45% to $1.54M on lower volume from existing customers (ex‑Symmetry) .
  • International softness and pricing pressure: International revenue −18% y/y; domestic generator ASP lower, impacting AE pricing mix .
  • Ongoing losses and leverage: Net loss of $(4.15)M (−$0.10/sh); long‑term debt ~$34.1M; equity declined sequentially as losses continued .

Financial Results

• Values marked with * retrieved from S&P Global.

Segment revenue breakdown

KPIs and P&L drivers

Narrative highlights

• AE growth drivers: increased U.S. single‑use handpiece volume, Apyx One console upgrades, and new generators; partially offset by lower domestic generator ASPs and weaker international sales .
• OEM decline: lower volume from existing customers (ex‑Symmetry Surgical) .
• Cash and liquidity: Cash & equivalents $31.0M at 3/31/25 (vs. $31.7M at 12/31/24); company projects cash runway into 2027 under current plans .

Guidance Changes

Additional color: CFO expects Q2 OEM revenue similar to Q1 with balance in 2H; OpEx covenant at $40M in 2025 remains in place .

Earnings Call Themes & Trends

Management Commentary

• “We believe Renuvion…is positioned to be the standard-of-care for the rapidly growing patient population on GLP‑1 drugs… Building on the growing success of Renuvion, we are planning the highly anticipated launch of the AYON Body Contouring System in the second half of this year, pending FDA clearance… feedback… was overwhelmingly positive.” — CEO Charlie Goodwin (press release) .
• “We are pleased to announce that the significant cost cutting measures implemented during the fourth quarter of last year are reflected in our financial results for the first quarter of 2025… [We are] better positioned to be on a path to profitability.” — CEO (press release) .
• “We still anticipate gross margins of approximately 60% for the year and total operating expenses not to exceed $40 million.” — CFO Matthew Hill (call) .
• “We believe based on our projections, including the uptake of the AYON platform… we will yield cash into 2027.” — CFO (call) .

Q&A Highlights

• AYON seeding strategy: 20 “AYON ambassadors” identified for H2’25 soft launch post-clearance; prioritization for practices upgrading to Apyx One console .
• Tariffs: Management expects minimal impact to FY gross margin (~60%); can flex manufacturing between U.S. and Bulgaria to mitigate .
• Investment vs. cash burn: Will protect AYON launch investments while maintaining expense discipline; launch is a top strategic priority .

Estimates Context

• Q1 2025 S&P Global consensus vs. actual: Revenue $9.389M* (3 est.) vs. $9.430M actual (beat), EPS −$0.12* (3 est.) vs. −$0.10 actual (beat) .
• Near-term modeling: Management reaffirmed FY25 revenue and OpEx guide; CFO indicated Q2 OEM similar to Q1 with 2H-weighted OEM, and gross margin ~60% for the year .
• Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

• Mix and cost actions are working: AE growth, domestic mix, and lower OpEx delivered EPS and revenue beats vs S&P Global consensus* and supported 60% gross margin .
• OEM remains a drag but manageable: Expect similar Q2 OEM to Q1 with 2H weighting; total FY guide maintained, de-risked by consumables and OpEx control .
• AYON is the key catalyst: Now FDA-cleared (May 13) with KOL rollout planned in H2’25; potential to re-accelerate capital cycle and expand TAM in aesthetic surgery .
• GLP‑1 tailwind supports Renuvion utilization: Management positioning Renuvion as standard of care for post-weight-loss skin laxity; U.S. handpiece revenue +14% y/y in Q1 .
• Margin outlook steady amid tariff noise: Management reaffirmed ~60% FY gross margin with flexible manufacturing footprint .
• Liquidity runway into 2027 under current plan provides time to execute AYON launch and drive pathway to profitability .
• Trading implication: Near-term stock sensitivity to AYON commercialization milestones and evidence of sustained handpiece growth; watch for 2H capital orders and any guidance updates on AYON contribution .

Additional relevant press releases and context

• AYON 510(k) submission (Jan 6, 2025), later cleared May 13, 2025 .
• Renuvion wins 2025 NewBeauty Award, supporting brand and DTC strategy .

Notes:

• Values marked with * retrieved from S&P Global.
• All other figures and statements are sourced from Apyx Medical’s Q1 2025 press release and 8‑K, Q1 2025 earnings call, and prior-quarter materials – – – – – – – – –.