Sign in
AM

Apyx Medical Corp (APYX)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 revenue of $12.9M grew 12.1% year over year; Surgical Aesthetics rose 19% to $11.1M while OEM fell 17.6%; gross margin expanded to 64.4% from 60.5% .
  • EPS of -$0.05 was a clear beat vs Wall Street consensus of -$0.10*, and revenue beat $12.0M consensus*; adjusted EBITDA loss improved to -$0.1M from -$2.4M YoY .
  • Guidance raised: FY25 revenue to $50.5–$52.5M (prior $50.0–$52.0M); Surgical Aesthetics $43–$45M (prior $42–$44M); OEM ~$7.5M (prior ~$8.0M); OpEx maintained “< $40M”; management added gross margin outlook of ~61% for FY25 .
  • Catalysts: Full U.S. commercial launch of AYON in September with pre-orders exceeding expectations; new 510(k) submitted to expand AYON label to power liposuction (anticipated clearance Q1’26), reinforcing mix shift to higher-margin Surgical Aesthetics .

What Went Well and What Went Wrong

  • What Went Well
    • AYON full U.S. launch exceeded expectations with strong pre-orders and initial deliveries; CEO: “Initial feedback…continues to be overwhelmingly positive…resulted in pre-orders for AYON” .
    • Mix-driven margin expansion: gross margin rose to 64.4% on higher Surgical Aesthetics share and domestic mix .
    • Operating discipline: OpEx fell $1.5M YoY to $9.1M; adjusted EBITDA loss improved 96% YoY to -$0.1M .
  • What Went Wrong
    • OEM revenue decreased 17.6% YoY to $1.8M on lower volumes to existing customers (including Symmetry Surgical) .
    • International revenue fell 4% YoY; domestic growth largely offset but geographic mix remains a watch item .
    • Continued GAAP net loss (-$2.0M) and cash used in operations ($3.5M in Q3), though improving vs last year; tariff impacts remain uncertain per management .

Financial Results

MetricQ3 2024Q2 2025Q3 2025
Revenue ($USD Millions)$11.487 $11.373 $12.877
Diluted EPS ($)-$0.14 -$0.09 -$0.05
Gross Margin %60.5% 62.3% 64.4%
Operating Expenses ($USD Millions)$10.589 $9.657 $9.129
Adjusted EBITDA ($USD Millions)-$2.449 -$1.962 -$0.091

Actual vs Wall Street Consensus (Q3 2025)

MetricConsensusActual
Revenue ($USD Millions)$12.001*$12.877
Primary EPS ($)-$0.1025*-$0.05
# of EstimatesRevenue: 4*; EPS: 4*—

Segment Revenue Breakdown

Segment ($USD Millions)Q3 2024Q3 2025YoY Change
Surgical Aesthetics$9.288 $11.065 +19.1%
OEM$2.199 $1.812 -17.6%
Total$11.487 $12.877 +12.1%

Geographic Revenue Breakdown

Geography ($USD Millions)Q3 2024Q3 2025YoY Change
Domestic$7.793 $9.332 +19.7%
International$3.694 $3.545 -4.0%
Total$11.487 $12.877 +12.1%

Additional KPIs

KPIQ3 2024Q2 2025Q3 2025
Cash & Equivalents ($USD Millions)—$29.301 $25.135
Cash Used in Operations ($USD Millions)——$3.5 (quarter)
Net Loss ($USD Millions)$4.703 $3.778 $1.984

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total Revenue ($M)FY 2025$50.0–$52.0 $50.5–$52.5 Raised
Surgical Aesthetics Revenue ($M)FY 2025$42.0–$44.0 $43.0–$45.0 Raised
OEM Revenue ($M)FY 2025~$8.0 ~$7.5 Lowered
Gross Margin (%)FY 2025—~61% (mgmt outlook) New
Total Operating Expenses ($M)FY 2025< $40.0 < $40.0 Maintained

Earnings Call Themes & Trends

TopicQ1 2025 (Prior-2)Q2 2025 (Prior-1)Q3 2025 (Current)Trend
AYON launch & adoptionPreparing for H2’25 launch pending FDA; strong surgeon interest Soft launch; pre-orders; plan full launch in Sept Full U.S. launch; exceeds expectations; initial deliveries; guidance raised Accelerating
Label expansion (510(k))AYON submission pending clearance —510(k) submitted for power liposuction; anticipate Q1’26 clearance Regulatory momentum
Mix & marginsAE growth, GM 60% GM 62.3%; mix effects detailed GM 64.4%; mix shift to Surgical Aesthetics and domestic Improving
OEM dynamicsOEM down 45% YoY in Q1 OEM down 28.5% YoY OEM down 17.6% YoY; resources shifted to AYON Pressure moderating
GeographyIntl down 18% YoY; domestic -3% Domestic -10.5%; intl +3.9% Domestic +19.7%; intl -4% Domestic strength
Tariffs/macroMonitoring tariff exposure —Monitoring; impact uncertain Watch item
GLP-1 demand tailwindsRenuvion positioned for GLP-1 patients China launch interest; GLP-1 strategy emphasized GLP-1 creating new-to-aesthetics demand; multi-year tailwind Strengthening narrative

Management Commentary

  • “Initial feedback from leading board-certified plastic and cosmetic surgeons continues to be overwhelmingly positive…resulted in pre-orders for AYON” — Charlie Goodwin, CEO .
  • “Upon receiving [power liposuction] market clearance, we will be able to activate this new functionality in AYON systems already installed” — CEO .
  • “Operating expenses decreased…driven by [SG&A], R&D, salaries and professional services” — CFO .
  • “We now anticipate gross margins of approximately 61% for the year and total operating expenses not to exceed $40 million” — CFO .
  • “We…shifted our focus and manufacturing resource from OEM towards our Surgical Aesthetics segment, particularly the AYON launch” — CEO .

Q&A Highlights

  • Classification of generator sales with AYON: management clarified that AYON systems include Apyx One generator integration, which changes how generator sales are classified within AYON packages .
  • Margin trajectory: while not guiding long-term margins, management reiterated U.S. Surgical Aesthetics has highest gross margins; gross margin outlook set at ~61% for FY25 .
  • Consumables pull-through: strongest driver is adding new customers; Q3 consumables were “good” in U.S. and internationally; utilization focus continues .
  • Pipeline and installations: demand accelerating; supply chain shored up; third-party installers used to scale implementations; international registrations targeted in 2026 (CE mark, Middle East accepting FDA) .
  • GLP-1 tailwinds: growing patient population new to aesthetics; AYON + Renuvion positioned to address skin laxity needs; multi-year opportunity .

Estimates Context

  • Q3 2025 results beat consensus: revenue $12.877M vs $12.001M*; EPS -$0.05 vs -$0.1025*; both had 4 estimates*. Management’s guidance raise supports estimate revisions higher for Surgical Aesthetics, with OEM reduced modestly .
  • Forward implications: gross margin outlook of ~61% and AYON launch ramp suggest upward bias to FY25 revenue/margin models, with OEM softness offset by mix; watch international rollout pacing and timing of power lipo clearance .

Key Takeaways for Investors

  • AYON is the primary growth and margin driver; full U.S. launch plus pending power lipo clearance positions FY25/26 for mix-led margin expansion .
  • Surgical Aesthetics strength offsetting OEM softness; guidance explicitly reweights toward higher-margin segment .
  • Operating discipline is tangible: OpEx down, EBITDA loss near breakeven; path to improved cash burn in back half supported by working capital management .
  • Domestic momentum robust (+19.7% YoY); international softness merits monitoring ahead of broader registrations in 2026 .
  • GLP-1 tailwinds are structurally expanding addressable market; Renuvion attach and AYON capabilities create a compelling platform story .
  • Near-term trading lens: focus on AYON order flow, handpiece utilization, Q4 revenue cadence implied by guidance increase; regulatory clearance for power lipo is a key 1H’26 catalyst .
  • Risk checks: OEM demand variability, tariff uncertainty, international registration timelines; however, mix shift and domestic strength create buffer .
  • Values retrieved from S&P Global