Apyx Medical(US:APYX)2025-11-06 14:00Financial Data and Key Metrics Changes - Total revenue for Q3 2025 increased by 12% to $12.9 million compared to $11.5 million in the same period last year [5][14] - Gross profit for Q3 2025 increased to $8.3 million, with a gross profit margin of 64.4%, up from 60.5% in the prior year [15][17] - Net loss attributable to stockholders decreased to $2 million, or $0.05 per share, compared to $4.7 million, or $0.14 per share in the prior year [17] - Cash used in operating activities decreased to $3.5 million from $4.4 million in the prior year [17][18] Business Line Data and Key Metrics Changes - Revenue from the surgical aesthetics segment increased by 19% to $11.1 million, driven by the commercial launch of the Aon body contouring system [5][14] - OEM revenue decreased by 18% to $1.8 million, attributed to reduced sales volumes to existing customers [6][15] Market Data and Key Metrics Changes - Domestic revenue increased by 20% year-over-year to $9.3 million, while international revenue decreased by 4% year-over-year to $3.5 million [15] - The market for aesthetic procedures is expected to grow significantly due to the increasing adoption of GLP-1 medications, with over 15 million people currently on these drugs in the U.S. [11][32] Company Strategy and Development Direction - The company announced a rebranding of its advanced energy segment to "surgical aesthetics" to better align with its mission and product offerings [5] - The Aon system is positioned as a comprehensive solution for body contouring, integrating multiple functions that address market needs [8][10] - The company plans to expand the Aon system internationally, targeting markets such as Europe and Latin America [43][44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing commercial launch of Aon, which has exceeded expectations in terms of market interest and pre-orders [12][19] - The company anticipates a strong future in the aesthetic market, particularly due to the impact of GLP-1 drugs on patient demand for body contouring solutions [11][32] Other Important Information - The company updated its 2025 revenue guidance to a range of $50.5 million to $52.5 million, reflecting strong performance in the surgical aesthetics segment [18][20] - Gross margins are expected to be approximately 61% for the year, with total operating expenses not exceeding $40 million [21] Q&A Session Summary Question: Clarification on generator sales decline - Management explained that the decline in generator sales is due to the integration of the Aon system, where existing customers can upgrade their generators instead of purchasing new ones [24] Question: Gross margin impact from Aon rollout - Management refrained from providing specific guidance on gross margins but indicated that the surgical aesthetics business typically has the highest gross margins [26] Question: Expected uptake in consumables alongside capital sales - Management noted that new customer acquisitions would drive consumable sales, while existing customers may not see significant increases [30] Question: Market environment and GLP-1 dynamics - Management highlighted that the market is being disrupted by GLP-1 drugs, with a significant percentage of patients being new to aesthetic treatments [32] Question: Growth in handpiece sales - Management indicated that growth in handpiece sales was driven by new doctor adoption, higher attach rates, and standalone uses of Renuvion technology [36] Question: Pipeline growth and implementation - Management confirmed an increase in guidance due to strong interest in Aon and mentioned that a third party is assisting with installations to meet demand [40][41] Question: International rollout of Aon - Management stated that while the focus is currently on the U.S. market, plans for international registration and rollout are in consideration for 2026 [43][44]