Apyx Medical 2025 Q3 Earnings 58.6% Reduction in Net Loss

Apyx Medical (APYX) reported third-quarter 2025 earnings that exceeded expectations, with a net loss narrowing to $1.96 million (EPS -$0.05) from $4.72 million (EPS -$0.14) in 2024. The company raised full-year revenue guidance to $50.5–$52.5 million, reflecting strong demand for its AYON Body Contouring System.

Revenue

Total revenue rose 12.1% to $12.88 million, driven by a 19% surge in Surgical Aesthetics revenue to $11.1 million, attributed to AYON adoption and higher single-use handpiece sales. Meanwhile, OEM revenue declined 18% to $1.8 million due to reduced sales volume. Domestic revenue grew 20% year-over-year to $9.3 million, while international revenue fell 4% to $3.5 million.

Earnings/Net Income

The company narrowed its loss per share to $0.05 from $0.14, marking a 64.3% improvement. Net losses decreased by 58.6% to $1.96 million, though Apyx has sustained losses for 13 consecutive years. Despite the EPS progress, the persistent net loss underscores ongoing financial challenges.

Post-Earnings Price Action Review

Apyx’s stock surged 17.96% month-to-date, with a 13.56% weekly gain and a 5.35% daily increase following the earnings report. The stock’s 46.7% rise in the quarter and 98.7% annual gain reflect investor optimism about AYON’s commercial momentum. Analysts raised revenue guidance, and the stock’s performance aligns with its upgraded outlook.

CEO Commentary

CEO Charlie Goodwin emphasized AYON’s “overwhelmingly positive” reception, with strong pre-orders and clinical engagement. He highlighted the system’s anticipated FDA clearance for power liposuction, which could streamline workflows and solidify AYON’s market position.

Guidance

Apyx raised 2025 total revenue guidance to $50.5–$52.5 million, with Surgical Aesthetics projected at $43.0–$45.0 million. OEM revenue is expected at ~$7.5 million. Operating expenses remain capped at $40 million, with the outlook hinging on AYON’s adoption and regulatory progress.

Additional News

1. Segment Rebranding: Apyx rebranded its Advanced Energy segment to Surgical Aesthetics to align with its core mission.

2. FDA Submission: The company submitted a 510(k) application for AYON’s power liposuction label expansion, aiming to enhance its surgical utility.

3. Strategic Shift: Resources were reallocated from OEM to Surgical Aesthetics, reflecting confidence in the latter’s growth potential.

Guidance Adjustments

The company’s revised revenue guidance reflects stronger-than-expected AYON sales and cost discipline. Surgical Aesthetics revenue now targets $43.0–$45.0 million, up from $38.6 million in 2024, while OEM revenue guidance was lowered to $7.5 million.

Financial Performance

Gross profit reached $8.3 million, with a 64.4% margin, driven by higher-margin Surgical Aesthetics sales. Operating expenses dropped to $9.1 million, a 77% reduction in the loss from operations to $0.8 million. Cash reserves stood at $25.1 million as of September 30, 2025.

Analyst Reactions

Analysts praised Apyx’s improved margins and AYON’s market traction, with a “buy” average rating. The stock’s 21.5% premium over its closing price of $3.14 reflects optimism about its long-term trajectory.

Risks

Management noted uncertainties around tariffs and OEM revenue declines due to resource reallocation. However, AYON’s commercial success and regulatory progress are seen as key mitigants.

Conclusion

Apyx’s Q3 results highlight a turnaround in profitability and strategic focus on Surgical Aesthetics. With AYON’s FDA clearance pending and strong pre-order momentum, the company is positioned to capitalize on market demand for advanced surgical aesthetics solutions.