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Apyx Medical Corp (APYX)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 revenue was $11.37M, down 6.4% YoY; EPS was -$0.09. Gross margin improved to 62.3% and operating expenses fell to $9.66M, driving a materially lower net loss and improved adjusted EBITDA (-$2.0M vs -$4.3M YoY) .
  • Versus Wall Street consensus, revenue modestly missed ($11.37M actual vs $11.70M estimate*) while EPS was in line (-$0.09 actual vs -$0.093 estimate*); gross margin exceeded consensus (62.3% actual vs 60.1% estimate*) . Values retrieved from S&P Global.
  • Management raised FY25 total revenue guidance to $50.0–$52.0M (from $47.6–$49.0M) on strong AYON pre-sales; Advanced Energy guidance to $42.0–$44.0M (from $39.6–$41.0M); OpEx maintained at < $40.0M .
  • Catalysts: AYON 510(k) clearance and September commercial launch, early China Renuvion uptake via GlamMoon, and gross margin resilience; management added senior sales leadership to accelerate execution .

What Went Well and What Went Wrong

What Went Well

  • AYON received FDA 510(k) clearance; early U.S. placements generated demand beyond expectations ahead of September nationwide launch .
  • Gross margin expanded to 62.3% (from 61.7% YoY), aided by favorable mix and Advanced Energy contribution; adjusted EBITDA loss improved to -$2.0M (from -$4.3M YoY) .
  • International commercialization progress: initiated Renuvion sales in China; distribution partner ramping targeted campaigns with “broad interest among surgeons and patients” .
    • “We have increased our revenue guidance for the full year 2025 to $50.0 million to $52.0 million and look forward to a nationwide launch of AYON in September” — Charlie Goodwin, CEO .

What Went Wrong

  • OEM revenue declined 28.5% YoY to ~$1.7M, reflecting decreased sales volumes to existing customers (including Symmetry Surgical) and weighing on total revenue growth .
  • Domestic revenue fell 10.5% YoY; lower generator ASPs domestically and geographic mix shifts tempered gross margin benefits .
  • Other expense net increased slightly (primarily lower interest income), and leverage remains visible with long-term debt ~$34.37M; stockholders’ equity fell to $7.25M .

Financial Results

Consolidated Metrics (Income Statement and Margins)

MetricQ2 2024Q4 2024Q1 2025Q2 2025
Revenue ($USD Millions)$12.15 $14.22 $9.43 $11.37
Diluted EPS ($)-$0.19 -$0.12 -$0.10 -$0.09
Gross Margin (%)61.7% 63.0% 60.0% 62.3%
Operating Expenses ($USD Millions)$13.04 $12.01 $8.72 $9.66
Adjusted EBITDA ($USD Millions)-$4.31 -$2.20 -$2.44 -$2.00

Actuals vs Wall Street Consensus (Q2 2025)

MetricConsensus*Actual
Revenue ($USD)$11,699,330*$11,373,000
Primary EPS ($)-$0.093*-$0.09
Gross Margin (%)60.1%*62.3%
# of Estimates (EPS / Revenue)3* / 3*—

Values retrieved from S&P Global.

Segment and Geography (Q2 2025 vs Q2 2024)

SegmentQ2 2024 ($000)Q2 2025 ($000)YoY %
Advanced Energy$9,766 $9,670 -1.0%
OEM$2,383 $1,703 -28.5%
Total$12,149 $11,373 -6.4%
GeographyQ2 2024 ($000)Q2 2025 ($000)YoY %
Domestic$8,687 $7,776 -10.5%
International$3,462 $3,597 +3.9%
Total$12,149 $11,373 -6.4%

Balance Sheet KPIs (Quarter-End)

KPIQ4 2024Q1 2025Q2 2025
Cash & Equivalents ($USD Millions)$31.74 $31.01 $29.30
Long-term Debt, net ($USD Millions)$33.89 $34.13 $34.37
Stockholders’ Equity ($USD Millions)$14.21 $10.51 $7.25

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total Revenue ($USD Millions)FY 2025$47.6–$49.0 $50.0–$52.0 Raised
Advanced Energy Revenue ($USD Millions)FY 2025$39.6–$41.0 $42.0–$44.0 Raised
OEM Revenue ($USD Millions)FY 2025~$8.0 ~$8.0 Maintained
Total Operating Expenses ($USD Millions)FY 2025< $40.0 < $40.0 Maintained
Gross Margin (%)FY 2025~60% (management commentary) ~60% (management commentary) Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4’24 and Q1’25)Current Period (Q2’25)Trend
AYON launch & technology510(k) submitted ~90 days ahead of schedule; planned H2’25 launch; early preview at The Aesthetic MEET FDA 510(k) clearance; early U.S. placements; nationwide September launch; raised guidance on pre-sales Accelerating execution
Renuvion GLP-1 opportunityEmphasized as standard-of-care for post-weight loss loose skin; strong consumer marketing traction China launch with GlamMoon; “broad interest” reported; positive early procedures Expanding internationally
Gross marginFY25 ~60% commentary, resilience via mix Q2 GM 62.3% actual, above 60.1% consensus*; FY25 ~60% reiterated on call Stable to improving
Tariffs/macroMonitoring tariff developments; manufacturing in FL and Bulgaria to mitigate risks No new Q2 specifics; mix pressures (international) noted in margin commentary Watchful; manageable
Cost actions / OpEx disciplineRIF (~25% US workforce); OpEx covenant added; OpEx expected < $40M OpEx down to $9.66M in Q2; FY25 OpEx < $40M reiterated Structural improvement
Sales leadershipNot highlightedAppointments: VP NA Sales (Featherstone), Director Int’l Sales (Davies) Strengthening go-to-market

Values retrieved from S&P Global for consensus.

Management Commentary

  • “We have increased our revenue guidance for the full year 2025 to $50.0 million to $52.0 million and look forward to a nationwide launch of AYON in September… We believe Renuvion is well-position[ed] to become the standard-of-care for the rapidly growing patient population on GLP-1 drugs who choose to address their loose skin post-weight loss.” — Charlie Goodwin, CEO .
  • “Receiving FDA clearance for the AYON Body Contouring System… marks a major step forward… The aesthetics market is expecting a rapid increase in body contouring procedures… AYON provides surgeons with all the necessary solutions in one device.” — Charlie Goodwin (AYON clearance PR) .
  • “We still anticipate gross margins of approximately 60% for the year and total operating expenses not to exceed $40,000,000.” — Matt Hill, CFO (earnings call) .

Q&A Highlights

  • AYON ramp and commercialization: Analysts probed AYON rollout cadence and demand; management cited strong pre-sales, early adopters installing systems, and nationwide launch in September .
  • China strategy and distribution: Discussion on GlamMoon partnership and early traction; management emphasized robust surgeon/patient interest and targeted campaigns .
  • FY25 outlook details: CFO reiterated OEM ~$8M, GM ~60%, and OpEx discipline; questions centered on margin durability and mix impacts .
  • Sales organization upgrades: Call noted new senior sales leaders to drive North America and international growth initiatives .

Estimates Context

  • Revenue modestly below consensus ($11.373M actual vs $11.699M estimate*); EPS effectively in line (-$0.09 actual vs -$0.093*). Gross margin exceeded consensus (62.3% actual vs 60.1%). Number of estimates was 3 for both EPS and revenue . Values retrieved from S&P Global.
  • Implications: FY25 guidance raise and AYON launch likely prompt upward revisions for Advanced Energy revenue; OEM trajectory remains pressured and may cap total revenue upside near the high end without faster AYON adoption. Margin performance suggests consensus GM can move up modestly.

Key Takeaways for Investors

  • AYON clearance and September commercial launch are the key near-term catalysts; strong pre-sales drove a guidance raise to $50–$52M, with Advanced Energy to $42–$44M .
  • Q2 showed healthy margin discipline: 62.3% gross margin and reduced OpEx ($9.66M) improved loss and adjusted EBITDA; underscores operating leverage as AYON ramps .
  • China provides an incremental growth vector for Renuvion with early interest and initial procedures; watch for regulatory expansions and sales cadence with GlamMoon .
  • Consensus setup: small revenue miss and in-line EPS, but margin beat; risk-reward hinges on AYON adoption pace and domestic generator ASPs/mix . Values retrieved from S&P Global.
  • Execution watch items: September launch readiness, supply chain/fulfillment for AYON, and sales organization effectiveness after leadership additions .
  • Balance sheet: $29.3M cash vs $34.37M long-term debt; continued OpEx discipline (<$40M FY25) is critical to fund commercialization .
  • Medium-term thesis: If AYON becomes the “operating room hub” described by management and Renuvion gains standard-of-care status for GLP-1 patients, Advanced Energy growth could re-accelerate with margin tailwinds; monitor OEM headwinds and international mix effects .

Appendix: Prior Quarter References and Additional Q2 Press Releases

  • Q1 2025 results and guidance reaffirmation (total revenue $9.43M; AE +6% YoY; OEM -45% YoY; OpEx $8.72M; adjusted EBITDA -$2.44M; FY25 revenue $47.6–$49.0M) .
  • Q4 2024 results (revenue $14.22M; AE $12.10M; OEM $2.12M; gross margin 63.0%; adjusted EBITDA -$2.20M) and FY25 initial guidance .
  • Q2 2025 additional press releases: Miami Swim Week brand activation (Renuvion), and Dolores Catania appointment as “Chief of Confidence” for consumer marketing .