0001437749-26-007471
SEC filingApyx Medical Corporation reported FY 2025 net sales of $52.8 million, representing a 9.9% increase from $48.1 million in FY 2024. Despite revenue growth, the company incurred a net loss of $11.1 million, significantly improved from a $23.6 million loss in the prior year. Gross profit increased to $33.0 million with a gross margin of 62.5%, up from 61.0% in 2024. Operating expenses were reduced to $39.5 million, below the $40.0 million covenant target, compared to $48.2 million in 2024. The company used $8.0 million in operating cash flow and ended the year with $31.7 million in cash. Key developments include FDA clearance and commercial launch of the AYON system in September 2025, expansion into China, and a capital raise of $9.3 million. The company faces ongoing challenges with debt service obligations and compliance with financial covenants requiring Surgical Aesthetics revenue targets of $52.4 million for 2026.
Apyx Medical Corporation reported FY 2025 net sales of $52.8 million, representing a 9.9% increase from $48.1 million in FY 2024. The company significantly improved its net loss position to $11.1 million compared to $23.6 million in the prior year, a 52.9% improvement. Gross profit increased to $33.0 million with gross margin expanding to 62.5% from 61.0% in 2024. Operating expenses were reduced to $39.5 million, below the $40.0 million covenant target, representing an $8.7 million reduction from $48.2 million in 2024. The company used $8.0 million in operating cash flow during the year, ending with $31.7 million in cash and cash equivalents. Total assets stood at $66.8 million with total liabilities of $52.0 million, including long-term debt of $34.8 million.
The company's revenue growth of 9.9% to $52.8 million was driven by the commercial launch of the AYON Body Contouring System in September 2025 following FDA clearance in May 2025. The document does not provide segment breakdown or geographic mix details. The company's Surgical Aesthetics segment is subject to financial covenants requiring trailing twelve-month revenue targets of $37.0 million for 2025 (which was met), $52.4 million for 2026, and $60.3 million for 2027. The company also expanded internationally with the launch of Renuvion in China following clearance from the National Medical Products Administration of China in July 2025.
Gross margin improved to 62.5% in FY 2025 from 61.0% in the prior year, representing a 150 basis point expansion. The company achieved significant operating expense reductions through cost-saving initiatives implemented in November 2024, including a 25% reduction in U.S. workforce that generated estimated annualized savings of $4.3 million. Operating expenses decreased by $8.7 million to $39.5 million, with reductions across research and development ($3.4 million vs $5.1 million), professional services ($6.3 million vs $6.9 million), salaries and related costs ($14.0 million vs $17.4 million), and selling, general and administrative ($15.8 million vs $18.9 million). The operating loss improved to $6.4 million from $18.8 million in the prior year.
The company used $8.0 million in operating cash flow during FY 2025, improved from $18.0 million used in the prior year. Investing activities used $1.1 million primarily for property and equipment purchases. Financing activities provided $9.6 million, including $9.3 million from a capital raise and $488,000 from stock option exercises. The company ended the year with $31.7 million in cash and cash equivalents, total current assets of $58.5 million, and total current liabilities of $11.7 million, resulting in a current ratio of approximately 5.0. Long-term debt stands at $34.8 million, net of discounts and issuance costs. The company must maintain a minimum of $3.0 million in cash under its credit agreement covenants.
The company anticipates continued losses in the near term and plans to fund operations through existing cash, product sales, and potential additional equity or debt financing. Management has identified the need to raise additional capital to fund future operations, with cash needs dependent on revenues, FDA clearance activities, commercialization success, and cost control. The company faces financial covenants requiring Surgical Aesthetics revenue targets of $52.4 million for 2026 and $60.3 million for 2027, along with operating expense targets of $45.0 million for 2026. The company submitted a 510(k) premarket notification to the FDA in October 2025 for label expansion of AYON to include power liposuction, with clearance anticipated in Q2 2026. Risk factors include dependence on third-party manufacturers, competitive pressures in the aesthetic device market, intellectual property protection challenges, and potential litigation exposure.