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    Apyx Medical (APYX)

    APYX Q2 2024: 20%+ Handpiece Growth Offsets Weak U.S. System Sales

    Reported on Aug 4, 2025 (After Market Close)
    Pre-Earnings Price$1.02Last close (Aug 8, 2024)
    Post-Earnings Price$1.19Open (Aug 9, 2024)
    Price Change
    $0.17(+16.67%)
    • Robust Handpiece Growth: Both U.S. and international handpiece sales have grown over 20% year-over-year, driven by strong demand—including treatment for loose skin among GLP‑1 patients—which supports a solid revenue base and scaling potential for the company.
    • Strong New Customer Adoption: The vast majority of system sales are being made to new customers, suggesting expanding market penetration and broadening the user base for the technology.
    • Geographic Expansion Prospects: Registrations in key untapped markets such as South Korea and China offer potential avenues for future growth as these markets are not yet fully penetrated.
    • Capital Equipment Weakness: Despite robust handpiece sales, the Q&A highlighted that the U.S. capital equipment environment remains challenged due to financing concerns and macroeconomic uncertainties, which could continue to depress generator sales and impact overall revenue.
    • Reliance on New Customer Acquisitions: The discussion noted that the vast majority of system sales are to new customers. This reliance on new customer acquisitions raises concerns about the sustainability of repeat business and long-term revenue stability.
    • Seasonality Risks: The Q&A pointed out that Q3 is expected to be seasonally slower, implying that the business must rely heavily on a strong Q4 recovery. This dependency on seasonal upticks introduces additional revenue volatility risks.
    1. System Sales
      Q: Are system sales mostly to new customers?
      A: Management emphasized that the vast majority of system sales were to new customers, indicating robust technology adoption despite market challenges.

    2. New Markets
      Q: Adding new geographies this year?
      A: They are advancing registrations in South Korea and China, with updates to follow when available.

    3. Handpiece Utilization
      Q: What drives handpiece utilization growth?
      A: Strong handpiece sales grew over 20% year-over-year, partly driven by increasing demand from GLP-1 patients addressing loose skin issues.

    4. Geographic Performance
      Q: How do U.S. and international handpiece sales compare?
      A: Both U.S. and international markets saw over 20% growth in handpiece sales, though the U.S. continues to face capital equipment challenges.

    5. Micro Handpiece Impact
      Q: Is the micro handpiece driving additional growth?
      A: The micro handpiece, being a new product, is adding incremental growth, with core demand still driven by body contouring handpieces.

    Research analysts covering Apyx Medical.