APYX · Apyx Medical Corporation

Apyx Medical’s Q1 2026 results reflect accelerated execution of its commercial strategy, anchored by the U.S. launch of the AYON Body Contouring System in Q3 2025 and expanding international demand—particularly for Renuvion generators and single-use handpieces. Surgical Aesthetics revenue grew 36.1% YoY to $10.7 million, representing 86% of total revenue and driving gross margin expansion to 63.5%, as this higher-margin segment displaced lower-margin OEM sales in the product mix. While OEM revenue rose modestly (13.8%) to $1.8 million, management explicitly stated that OEM revenue is expected to decline for FY2026 and beyond due to strategic reallocation toward Surgical Aesthetics—a material shift confirmed in both narrative and guidance. The $2.1 million net loss marks a significant improvement over Q1 2025’s $4.2 million loss, supported by flat operating expenses ($8.8M vs. $8.7M) despite higher salaries and SG&A, and a $2.1 million reduction in Adjusted EBITDA loss. International sales surged 62.9% YoY to $4.4 million, led by South Korea following December 2025 regulatory approval of the Apyx One Console and handpieces—highlighting geographic diversification as a key growth lever. The upward revision of full-year revenue guidance—from $57.5–$58.5 million to $59.0–$60.0 million—underscores confidence in sustained AYON adoption and international momentum, even as OEM revenue guidance rises nominally to $5.0 million (from $4.5 million) but remains well below the $7.5 million delivered in FY2025, confirming the long-term OEM contraction thesis. With $31.1 million in cash as of March 31, 2026, and management’s assertion of positive cash flow through 2027, the financial trajectory signals improving operational leverage and capital efficiency.