Executive Summary

Q4 2024 revenue was $14.22M, down 3.0% year over year; gross margin improved to 63.0% and adjusted EBITDA loss narrowed to $2.2M, while net loss per share improved to $(0.12) from $(0.28) in Q4 2023 .
Advanced Energy revenue was $12.10M, roughly flat YoY but up >30% sequential vs Q3 ($9.29M), driven by stronger generator sales and U.S. single‑use handpiece growth; OEM revenue was $2.12M, down 16% YoY .
Management refined FY 2025 guidance: total revenue $47.6–$49.0M, Advanced Energy $39.6–$41.0M, OEM ~$8.0M, OpEx < $40M; this implies a modest top‑line growth vs FY 2024 and tighter OpEx discipline following a ~25% workforce reduction targeting ~$4.3M annualized savings .
Narrative catalysts: early‑ahead AYON 510(k) submission (≈90 days early) with planned H2 2025 launch, direct‑to‑consumer campaign outperformance, and GLP‑1 weight‑loss cohort expected to drive surgical demand; these were emphasized as potential drivers of Advanced Energy utilization and equipment momentum in 2025 .

What Went Well and What Went Wrong

What Went Well

Advanced Energy segment rebounded sequentially: $12.10M in Q4 (+>30% vs Q3’s $9.29M) on stronger generator unit sales and U.S. handpiece sales .
Gross margin expanded to 63.0% (vs 60.9% LY) on favorable domestic mix within Advanced Energy; adjusted EBITDA loss improved to $(2.2)M (vs $(4.7)M LY) .
Strategic execution: AYON body contouring 510(k) submission months ahead of schedule and DTC marketing metrics materially outperforming internal goals, boosting brand awareness and demand .

What Went Wrong

Total revenue declined 3.0% YoY to $14.22M; OEM revenue fell 16% YoY to $2.12M amid lower volumes to existing customers .
Pricing pressure: domestic generator ASP declines and fewer Apyx One upgrades weighed on Advanced Energy, partially offsetting U.S. consumables growth .
Macro headwinds: aesthetic capital purchases delayed and non‑invasive procedures slump; management still guides FY 2025 gross margin ~60%, reflecting mix constraints (Advanced Energy/OEM, domestic/international) .

Financial Results

Key Metrics vs Prior Quarters (oldest → newest)

Metric	Q2 2024	Q3 2024	Q4 2024
Revenue ($USD Millions)	$12.15	$11.49	$14.22
Gross Profit ($USD Millions)	$7.49	$6.95	$8.96
Gross Margin (%)	61.7%	60.5%	63.0%
Operating Expenses ($USD Millions)	$13.04	$10.59	$12.01
Adjusted EBITDA ($USD Millions)	$(4.31)	$(2.45)	$(2.20)
Net Loss Attributable to Stockholders ($USD Millions)	$(6.56)	$(4.70)	$(4.63)
Diluted EPS ($USD)	$(0.19)	$(0.14)	$(0.12)

Q4 2024 vs Prior Year and vs Estimates

Metric	Q4 2023	Q4 2024	YoY Change	Consensus Revenue	Consensus EPS
Revenue ($USD Millions)	$14.66	$14.22	−3.0%	Unavailable (S&P Global)*	Unavailable (S&P Global)*
Gross Margin (%)	60.9%	63.0%	+210 bps	Unavailable (S&P Global)*	Unavailable (S&P Global)*
Diluted EPS ($USD)	$(0.28)	$(0.12)	+$0.16	Unavailable (S&P Global)*	Unavailable (S&P Global)*

*Values retrieved from S&P Global were unavailable due to API limit at time of request.

Segment Revenue Breakdown (oldest → newest)

Segment ($USD Millions)	Q2 2024	Q3 2024	Q4 2024
Advanced Energy	$9.77	$9.29	$12.10
OEM	$2.38	$2.20	$2.12
Total	$12.15	$11.49	$14.22

Geographic Revenue Breakdown (oldest → newest)

Geography ($USD Millions)	Q2 2024	Q3 2024	Q4 2024
Domestic	$8.69	$7.79	$10.56
International	$3.46	$3.69	$3.66
Total	$12.15	$11.49	$14.22

KPIs

KPI	Q4 2024	Prior Context
Single‑use handpiece units shipped growth	+5% overall; +20% U.S. YoY	FY 2024 handpiece shipments “nearly 90,000 units” expected as of Q3 update
Handpiece mix of Advanced Energy revenue	“Now over 60%” (utilization commentary)	Low double‑digit U.S. consumables growth despite tough environment

Note: Management commentary indicates domestic revenue grew 1% YoY, but the press release table shows domestic down 1% YoY—a discrepancy to monitor in formal filings .

Guidance Changes

Metric	Period	Previous Guidance (Nov 8, 2024)	Current Guidance (Mar 13, 2025)	Change
Total Revenue	FY 2025	$47.6–$49.5M	$47.6–$49.0M	Lowered top end by $0.5M
Advanced Energy Revenue	FY 2025	$39.1–$41.0M	$39.6–$41.0M	Raised low end by $0.5M
OEM Revenue	FY 2025	~$8.5M	~$8.0M	Lowered ~$0.5M
Operating Expenses	FY 2025	< $40M	< $40M	Maintained
Gross Margin	FY 2025	Not specified	~60%	New disclosure

Earnings Call Themes & Trends

Topic	Q2 2024 (Aug 8)	Q3 2024 (Nov 8)	Q4 2024 (Mar 13)	Trend
GLP‑1 impact on aesthetics	Capital purchases delayed; handpieces +20% YoY U.S./intl	Non‑invasive procedures down; surgical focus emphasized	GLP‑1 cohort expected to drive surgical demand; Renuvion positioned as standard of care	Building tailwind to surgical demand
DTC marketing effectiveness	Initial rollout; planning emphasis	Strengthening field presence and awareness	Outperformance: +187% media placements; +13,000% impressions; influencer strategy	Strong traction, demand uplift
Product roadmap (AYON)	Preparing revolutionary platform; strategy reinforced	510(k) submission by end of Q1 2025 planned	510(k) submitted ~90 days early; H2 2025 launch planned (soft launch)	Timeline pulled forward; controlled launch
Pricing/mix headwinds	Margin decline on mix and ASPs	ASP/mix pressure persists, OEM mix higher	Margin recovery to 63% on domestic mix; still ASP headwinds	Mix improving, ASP headwind lingering
Balance sheet & covenants	Debt/interest rising; cash $32.7M	$7.0M direct offering; reduced revenue covenants; add OpEx covenants	Amendment reiterated; cash $31.7M; OpEx caps $40M/$45M (’25/’26)	Liquidity actions, tighter expense guardrails
International vs U.S. demand	Intl stable; U.S. down	Intl +11% YoY; U.S. −10% YoY	U.S. reported −1% YoY in PR; call states +1% YoY; intl −8% YoY	U.S. improving; reconcile data discrepancy

Management Commentary

“We are pleased with our financial performance in the fourth quarter of 2024… demand reflects the significant progress our team has made in ramping up the direct‑to‑consumer marketing program… GLP‑1… represents a significant opportunity… Renuvion should be the standard of care” — Charlie Goodwin, CEO .
“We are excited to have submitted the 510(k) for the AYON Body Contouring System… months ahead of schedule… planned launch in the back half of 2025” — Charlie Goodwin, CEO .
“Adjusted EBITDA loss decreased 53% to $2.2 million… net loss per share $(0.12)” — Matt Hill, CFO .
“We anticipate gross margins of approximately 60% for the year and total operating expenses not to exceed $40 million” — Matt Hill, CFO (FY 2025 guidance) .

Q&A Highlights

Gross margin outlook: Management reiterated ~60% FY 2025 gross margin driven by geographic, product, and segment mix assumptions consistent with 2024 .
AYON revenue contribution: No material uplift embedded in the FY 2025 guide due to pending clearance and soft‑launch approach; acquisition programs (buy, lease, trade‑in) to drive adoption with special pricing for existing Apyx One customers .
DTC execution: New PR partner from Jan 2024; campaigns since April 2024 “crushed” prior metrics; messaging around GLP‑1‑related skin laxity resonating strongly .
U.S. vs international: U.S. demand improving with GLP‑1 cohort; expectation for global adoption over time and surgical solutions driving utilization .
Apyx One upgrades: Significant runway remains; AYON ties into Apyx One as system “brains,” creating upgrade incentive .

Estimates Context

S&P Global consensus EPS and revenue data for Q4 2024, Q3 2024, and Q2 2024 were unavailable at request time due to API limits; therefore, beat/miss vs Street cannot be assessed here. Values retrieved from S&P Global were unavailable due to API limit at time of request.
Given the sequential rebound in Advanced Energy and gross margin expansion, Street models may need to reassess mix, pricing, and consumables utilization assumptions once consensus is available .

Key Takeaways for Investors

Sequential momentum: Advanced Energy revenue rose >30% vs Q3 on generators and U.S. handpieces; margin recovery to 63% signals improving mix despite ASP pressure .
Consumables strength: Single‑use handpiece units grew +5% overall and +20% U.S. YoY in Q4, now representing >60% of Advanced Energy revenue, supporting utilization‑driven cash flows .
Expense discipline: OpEx caps and restructuring (≈25% workforce reduction, ~$4.3M annualized savings) underpin FY 2025 OpEx < $40M and adjusted EBITDA trajectory .
AYON catalyst: 510(k) submission early; planned H2 2025 soft launch. While limited FY 2025 revenue is assumed, adoption programs (buy/lease/trade‑in) and integration with Apyx One can drive medium‑term equipment growth .
Watch data discrepancies: Press release shows U.S. revenue −1% YoY in Q4; call commentary states +1% YoY—reconcile in forthcoming filings .
OEM headwinds: FY 2025 OEM guidance trimmed to ~$8.0M (from ~$8.5M), balancing Advanced Energy low‑end raised; continued mix implications for margin .
Liquidity/covenants: Amended credit agreement reduces revenue covenants and adds OpEx caps ($40M/$45M ’25/’26), plus ~$6.8M net proceeds from Nov 2024 direct offering; cash $31.7M at year‑end .

Apyx Medical Corp (APYX)·Q4 2024 Earnings Summary