Total Revenue Growth
Total Q1 2026 revenue increased 32% year-over-year to $12.5 million from $9.4 million in Q1 2025.
Apyx Medical
· APYX
May 7th, 2026
Summary
- Earnings Call Date:
- 2026-05-07
- Change Since:
- +15.73%
- Next Earnings Date:
- 2026-08-06
Earnings Call Sentiment
PositiveThe call conveyed substantial positive operational and financial momentum driven by the AYON commercial launch and strong Surgical Aesthetics demand: double-digit revenue growth, expanding gross margins, reduced operating losses, improved adjusted EBITDA, a raised full-year revenue guide, and a healthy cash balance with a runway into 2027. Offsetting risks include a remaining GAAP net loss, tariff-related cost pressure, an expected long-term decline in the OEM business, some domestic generator sales decline/reclassification, and adoption timing dependency on the forthcoming power-liposuction label and international registrations. Overall, the positives—particularly the robust AYON ramp, international traction, margin expansion, and upgraded guidance—significantly outweigh the negatives.
Company Guidance
Management raised full‑year 2026 revenue guidance to $59.0–60.0 million (up from prior $57.5–58.5M and versus $52.8M in 2025), with Surgical Aesthetics now expected to contribute $54.0–55.0M (up from $53–54M; ~$45.3M in 2025) and OEM revenue forecast at approximately $5.0M (up from $4.5M but down versus ~$7.5M in 2025); they expect full‑year gross margins of ~62%–63% (depending on product/geographic mix), total operating expenses not to exceed $45.0M, and said current cash & cash equivalents of $31.1M (as of March 31, 2026) plus working‑capital management should provide runway through 2027.
Surgical Aesthetics Segment Surge Driven by AYON
Surgical Aesthetics revenue rose 36% year-over-year to $10.7 million (from $7.9 million), driven by AYON body contouring system ramp in the U.S., increased single-use handpiece volume, and higher Renuvion generator sales internationally. This was the second full quarter of AYON sales following its commercial launch in Sept 2025.
Strong International Momentum
International revenue increased 63% year-over-year to $4.4 million while domestic revenue grew 20% to $8.1 million. Notable initial demand following regulatory approval in South Korea exceeded expectations.
Improved Profitability Metrics
Gross profit rose 40% year-over-year to $7.9 million and gross margin expanded to 63.5% from 60.1%, driven by favorable product/segment mix (higher Surgical Aesthetics contribution).
Operating Performance and Cash Flow Improvements
Loss from operations narrowed to $0.9 million (from $3.1 million). Net loss improved to $2.1 million or $(0.05) per share (from $4.2 million or $(0.10)). Adjusted EBITDA loss improved to $0.3 million (loss) from $2.4 million (loss). Cash used in operations was $0.6 million vs $0.7 million prior year; cash and equivalents totaled $31.1 million.
Upwardly Revised 2026 Guidance
Full-year 2026 revenue guidance raised to $59M–$60M (from $57.5M–$58.5M). Surgical Aesthetics revenue guidance increased to $54M–$55M (from $53M–$54M). OEM revenue guidance set at ~$5M (up from $4.5M guidance). Company expects full-year gross margins of ~62%–63% and operating expenses not to exceed $45M.
Product Roadmap and Regulatory Milestone
Company expects FDA 510(k) clearance for AYON to include power-assisted liposuction 'sometime this quarter,' which would expand AYON functionality to support multiple advanced fat removal modalities and is expected to broaden addressable market and adoption.
Disciplined Commercial Execution and Lean Cost Structure
Management highlighted a lean operating structure implemented ~a year ago that materially reduced operating expenses and cash burn, enabling selective reinvestment (e.g., AYON rollout). The commercial launch emphasized training and workflow integration to drive customer success.
Operator
Ladies and gentlemen, good morning, and welcome to Apyx Medical First Quarter 2026 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jeremy Feffer from LifeSci Advisors. Please go ahead.
Jeremy Feffer
Thank you, and welcome, everyone, to our first quarter 2026 earnings call. Representing the company on the call are Charlie Goodwin, Chief Executive Officer; and Matt Hill, Chief Financial Officer of Apyx. Before we begin, I would like to remind everyone that our remarks and responses to your questions today may contain forward-looking statements that are based on the current expectations of management and involve inherent risks and uncertainties that could cause actual results to differ materially from those indicated, including, without limitation, those identified in the Risk Factors section of our most recent annual report on Form 10-K, our most recent 10-Q filing and the company's other filings with the Securities and Exchange Commission. Such factors may be updated from time to time in our filings with the SEC, which are available on our website. We undertake no obligation to publicly update or revise our forward-looking statements as a result of new information, future events or otherwise. This call will also include references to certain financial measures that are not calculated in accordance with generally accepted accounting principles or GAAP. We generally refer to these as non-GAAP financial measures. Reconciliations of those non-GAAP financial measures to the most comparable measure...
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