Apyx Medical(APYX) - 2025 Q2 - Quarterly Results

Second Quarter 2025 Earnings Report Overview Apyx Medical reported Q2 2025 financial results, including $11.4 million revenue, reduced net loss, and launched AYON Body Contouring System and Renuvion in China, raising full-year guidance Recent Financial and Operating Highlights Apyx Medical achieved key operational milestones with the AYON Body Contouring System™ launch and Renuvion® sales in China, alongside improved Q2 2025 financial metrics - Apyx Medical successfully launched the AYON Body Contouring System™ to key surgeons in critical geographies and initiated commercial sales of Renuvion® in China with strong clinical interest, leading to an increased full-year 2025 revenue guidance[3][4] Second Quarter 2025 Key Financial Highlights: | Metric | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :-------------------------------- | :-------- | :-------- | :--------- | :--------- | | Total Revenue | $11.4M | $12.1M | $(0.7M) | (6.4)% | | Advanced Energy Revenue | $9.7M | $9.8M | $(0.1M) | (1.0)% | | OEM Revenue | $1.7M | $2.4M | $(0.7M) | (28.5)% | | Net Loss Attributable to Stockholders | $(3.8M) | $(6.6M) | $2.8M | (42)% | | Adjusted EBITDA Loss | $(2.0M) | $(4.3M) | $2.3M | (54)% | - The AYON Body Contouring System™ received 510(k) clearance from the U.S. Food and Drug Administration (FDA) and is an all-in-one system integrating advanced modalities for fat removal, tissue contraction, and aesthetic enhancement[4] - The company strengthened its management team with the appointments of John Featherstone as Vice President of North American Sales and Simon Davies as Director of International Sales, Europe and Asia-Pacific, to drive sustained sales growth worldwide[4] Second Quarter 2025 Financial Performance Analysis Apyx Medical's Q2 2025 financial performance showed decreased revenue, improved gross margin, reduced operating expenses, and a significant reduction in net and Adjusted EBITDA losses Revenue Analysis Total revenue for Q2 2025 decreased by 6.4% year-over-year to $11.4 million. Advanced Energy revenue remained relatively flat, while OEM revenue saw a significant decline of 28.5% due to decreased sales volume to existing customers. Domestic sales decreased, while international sales showed a slight increase Revenue by Segment (Three Months Ended June 30): | Segment | 2025 (in thousands) | 2024 (in thousands) | $ Change | % Change | | :---------------- | :------------------ | :------------------ | :------- | :------- | | Advanced Energy | $9,670 | $9,766 | $(96) | (1.0)% | | OEM | $1,703 | $2,383 | $(680) | (28.5)% | | Total | $11,373 | $12,149 | $(776) | (6.4)% | Revenue by Geography (Three Months Ended June 30): | Geography | 2025 (in thousands) | 2024 (in thousands) | $ Change | % Change | | :---------------- | :------------------ | :------------------ | :------- | :------- | | Domestic | $7,776 | $8,687 | $(911) | (10.5)% | | International | $3,597 | $3,462 | $135 | 3.9% | | Total | $11,373 | $12,149 | $(776) | (6.4)% | - The decrease in OEM sales was primarily due to decreases in sales volume to existing customers, including Symmetry Surgical under the Company's 10-year generator manufacturing and supply agreement[6] Gross Profit and Margin Gross profit decreased to $7.1 million in Q2 2025 from $7.5 million in the prior year, but gross margin improved to 62.3% from 61.7%. This margin improvement was primarily driven by a favorable product mix, with Advanced Energy comprising a higher percentage of total sales Gross Profit and Margin (Three Months Ended June 30): | Metric | 2025 (in thousands) | 2024 (in thousands) | | :---------- | :------------------ | :------------------ | | Gross Profit | $7,083 | $7,493 | | Gross Margin | 62.3% | 61.7% | - The increase in gross margin is primarily attributable to changes in product mix between segments, with Advanced Energy comprising a higher percentage of total sales, as well as product mix within the Advanced Energy segment[7] Operating Expenses Operating expenses significantly decreased by $3.4 million to $9.7 million for the three months ended June 30, 2025, primarily due to reductions in salaries and related costs, selling, general and administrative expenses, research and development expenses, and professional services expenses - Operating expenses decreased $3.4 million to $9.7 million for Q2 2025, driven by[9][22] * $1.6 million decrease in salaries and related costs * $0.7 million decrease in selling, general and administrative expenses * $0.6 million decrease in research and development expenses * $0.5 million decrease in professional services expenses Other Income/Expense and Income Tax Other expense, net, slightly increased to $1.1 million in Q2 2025, mainly due to a decrease in interest income. Income tax expense remained stable at $49,000 Other Expense, Net and Income Tax (Three Months Ended June 30): | Metric | 2025 (in thousands) | 2024 (in thousands) | | :---------------- | :------------------ | :------------------ | | Other expense, net | $1,115 | $989 | | Income tax expense | $49 | $50 | - The increase in other expense, net, was primarily due to a $0.2 million decrease in interest income[10] Net Loss and EPS Net loss attributable to stockholders decreased substantially by 42% to $3.8 million, or $0.09 per share, for the three months ended June 30, 2025, compared with $6.6 million, or $0.19 per share, in the prior year period Net Loss and EPS (Three Months Ended June 30): | Metric | 2025 | 2024 | Change ($) | Change (%) | | :-------------------------------- | :----- | :----- | :--------- | :--------- | | Net loss attributable to stockholders | $(3.8M) | $(6.6M) | $2.8M | (42)% | | Loss per share (Basic and diluted) | $(0.09) | $(0.19) | $0.10 | (52.6)% | Adjusted EBITDA Adjusted EBITDA loss improved by 54% to $2.0 million for the three months ended June 30, 2025, down from $4.3 million in the comparable prior year period, reflecting improved operational efficiency Adjusted EBITDA Loss (Three Months Ended June 30): | Metric | 2025 (in thousands) | 2024 (in thousands) | $ Change | % Change | | :---------------- | :------------------ | :------------------ | :------- | :------- | | Adjusted EBITDA Loss | $(1,962) | $(4,312) | $2,350 | (54.5)% | Full Year 2025 Financial Guidance Apyx Medical revised its full-year 2025 financial guidance upwards, projecting total revenue between $50.0 million and $52.0 million, an increase from previous guidance. This revision is driven by increased expectations for Advanced Energy revenue, while OEM revenue is expected to decrease. Operating expenses are projected to be less than $40.0 million Revised Full Year 2025 Revenue Guidance: | Metric | Previous Guidance | Revised Guidance | FY 2024 Actual | | :---------------------- | :------------------ | :--------------- | :------------- | | Total Revenue | $47.6M - $49.0M | $50.0M - $52.0M | $48.1M | | Advanced Energy Revenue | $39.6M - $41.0M | $42.0M - $44.0M | $38.6M | | OEM Revenue | ~$8.0M (implied) | ~$8.0M | $9.5M | - The Company expects total operating expenses of less than $40.0 million for the year ended December 31, 2025[13] Company and Product Information This section provides details on the Q2 2025 conference call, introduces the AYON Body Contouring System, outlines Apyx Medical's core business, and includes a cautionary statement on forward-looking information Conference Call Details Management hosted a conference call on August 7, 2025, at 4:30 p.m. Eastern Time to discuss the second quarter 2025 results, with details provided for phone access and a live webcast - A conference call was hosted on August 7, 2025, at 4:30 p.m. Eastern Time to discuss the second quarter 2025 results and host a question and answer session[14] - Interested parties could listen to the call by phone (800-717-1738 or 646-307-1865 for international callers, access code 35370) or via a live webcast accessible through the Investor Relations section of the Company's website[14] About AYON Body Contouring System™ AYON is a groundbreaking, surgeon-designed all-in-one body contouring system that combines precision, versatility, and innovation, integrating fat removal, closed-loop contouring, tissue contraction, and electrosurgical capabilities to deliver comprehensive treatments - AYON is a surgeon-designed body contouring system that integrates fat removal, closed loop contouring, tissue contraction, and electrosurgical capabilities in an all-in-one platform[15] - The system features LIFT Technology for real-time adjustments and Renuvion for enhanced tissue contraction, aiming to streamline procedures and maximize patient outcomes[15] About Apyx Medical Corporation Apyx Medical Corporation is an advanced energy technology company specializing in Helium Plasma Platform Technology products like Renuvion, J-Plasma, and the new AYON Body Contouring System for cosmetic and hospital surgical markets, supported by extensive clinical documentation and OEM agreements - Apyx Medical Corporation is an advanced energy technology company focused on its proprietary Helium Plasma Platform Technology products, marketed as Renuvion® and the AYON Body Contouring System™ in cosmetic surgery, and J-Plasma® in the hospital surgical market[16] - The company also leverages its expertise in unique waveforms through OEM agreements with other medical device manufacturers[16] Cautionary Statement on Forward-Looking Statements This section advises that certain discussions and oral statements may contain forward-looking information, which is subject to inherent risks, trends, and uncertainties that could cause actual results to differ materially from projections. The company claims the protection of the safe harbor provisions and assumes no obligation to update these statements - Forward-looking statements are subject to certain risks, trends, and uncertainties that could cause actual results to differ materially from those projected, including regulatory approvals, supply chain disruptions, and macroeconomic or geopolitical matters[19][20] - The Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and assumes no obligation to update or supplement any forward-looking statements[20] Financial Statements This section presents the condensed consolidated statements of operations and balance sheets, providing a detailed overview of the company's financial performance and position Condensed Consolidated Statements of Operations The condensed consolidated statements of operations provide a detailed breakdown of revenues, cost of sales, gross profit, operating expenses, and net loss for the three and six months ended June 30, 2025, and 2024 Condensed Consolidated Statements of Operations (Unaudited, In thousands, except per share data): | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Sales | $11,373 | $12,149 | $20,803 | $22,393 | | Cost of sales | 4,290 | 4,656 | 8,055 | 8,951 | | Gross profit | 7,083 | 7,493 | 12,748 | 13,442 | | Total other costs and expenses | 9,657 | 13,040 | 18,373 | 25,604 | | Loss from operations | (2,574) | (5,547) | (5,625) | (12,162) | | Total other expense, net | (1,115) | (989) | (2,187) | (1,911) | | Loss before income taxes | (3,689) | (6,536) | (7,812) | (14,073) | | Income tax expense | 49 | 50 | 98 | 103 | | Net loss | (3,738) | (6,586) | (7,910) | (14,176) | | Net loss attributable to stockholders | $(3,778) | $(6,556) | $(7,928) | $(14,132) | | Loss per share: Basic and diluted | $(0.09) | $(0.19) | $(0.19) | $(0.41) | Condensed Consolidated Balance Sheets The condensed consolidated balance sheets present the company's financial position as of June 30, 2025, and December 31, 2024, detailing assets, liabilities, and equity Condensed Consolidated Balance Sheets (In thousands, except share and per share data): | (In thousands) | June 30, 2025 (Unaudited) | December 31, 2024 | | :-------------------------------- | :-------------------------- | :------------------ | | ASSETS | | | | Cash and cash equivalents | $29,301 | $31,741 | | Total current assets | 49,915 | 56,440 | | Total assets | $58,188 | $64,842 | | LIABILITIES AND EQUITY | | | | Total current liabilities | $10,566 | $10,721 | | Long-term debt, net | 34,365 | 33,893 | | Total liabilities | 50,732 | 50,507 | | Total stockholders' equity | 7,253 | 14,210 | | Total equity | 7,456 | 14,335 | | Total liabilities and equity | $58,188 | $64,842 | Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA This section provides a reconciliation of GAAP net loss to non-GAAP Adjusted EBITDA, defining Adjusted EBITDA as net income (loss) attributable to stockholders adjusted for income tax, interest, depreciation, amortization, stock-based compensation, and other non-recurring items, used by management and investors as a measure of operating performance - Adjusted EBITDA is defined as the reported net income (loss) attributable to stockholders (GAAP) plus income tax expense (benefit), interest, depreciation and amortization, stock-based compensation expense, and other significant non-recurring items[26] Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA (Unaudited, In thousands): | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss attributable to stockholders | $(3,778) | $(6,556) | $(7,928) | $(14,132) | | Interest income | (278) | (439) | (582) | (934) | | Interest expense | 1,393 | 1,427 | 2,769 | 2,823 | | Income tax expense | 49 | 50 | 98 | 103 | | Depreciation and amortization | 132 | 156 | 270 | 313 | | Stock-based compensation | 520 | 1,050 | 971 | 2,178 | | Adjusted EBITDA | $(1,962) | $(4,312) | $(4,402) | $(9,649) |