Apyx Medical’s Power Lipo Guidance and Tariff Refund Claims Clash in 2026Q2 Call

Date of Call: Aug 6, 2026

Financials Results

• Revenue: $13.9M, up 22% YOY
• EPS: -0.7 cents per share (net loss attributable to stockholders), compared to -9 cents per share in the prior year period
• Gross Margin: 63.9%, compared to 62.3% in the prior year period

Guidance:

• Full year total revenue guidance reaffirmed in the range of $59 million to $60 million.
• Surgical aesthetics segment revenue expected in the range of $54 million to $55 million.
• OEM revenue expected to be approximately $5 million.
• Gross margins expected in the range of 62 to 63%.
• Total operating expenses not to exceed $45 million for the full year.

Business Commentary:

Revenue Growth and Product Demand:

• APEX Medical reported quarterly revenue of $13.9 million, an increase of 22% compared to $11.4 million in the same period last year.
• The growth was driven by a 28% increase in sales of surgical aesthetics products, particularly the Aon body contouring system, increased international generator sales, and higher domestic single-use handpiece volume.

Surgical Aesthetics Segment Performance:

• The surgical aesthetics segment revenue increased 28% to $12.4 million, compared to $9.7 million for the prior year period.
• This was primarily due to increased sales of the Aon platform, which combines multiple core technologies into one system, and growing recognition of its value among U.S. surgeons.

Impact of GLP-1 Medications on Market Opportunity:

• The company's sales and interest in the Aon platform are benefiting from the increasing adoption of GLP-1 medications.
• As these therapies lead to significant weight loss, they create a long-term opportunity for body contouring procedures to address resulting skin laxity and excess fat.

Gross Margin Improvement:

• APEX Medical's gross profit increased by 25% to $8.9 million, with a gross margin improvement to 63.9%, up from 62.3% in the prior year period.
• The improvement was attributed to a favorable mix of segments and products within the OEM segment, partially offset by tariffs affecting operations in the second half of 2025.

Power Liposuction Launch and Feedback:

• The company received expanded 510K clearance to add power liposuction to the Aon platform, with initial commercial shipments commencing in June 2026.
• Positive feedback from key surgeons during a limited commercial launch indicates strong acceptance and potential for increased recurring revenue from reusable handpieces.

Sentiment Analysis:

Overall Tone: Positive

• Management expressed being "very pleased with the momentum in the business this quarter" and noted "fourth consecutive quarter of Aon sales" with "increasing awareness of and demand for the platform." They also highlighted positive feedback on the new power liposuction feature and confidence in the long-term opportunity.

Q&A:

• Question from Dave Terkelay (Citizen): Are there non-Renuvion users and people outside your core plastic surgery base adopting the Aon product, and what benefits does it offer beyond an all-in-one package?
  Response: Yes, they are getting new users who have never used Renuvion. The primary benefit is that each technology in Aon is superior to existing ones, with the new power liposuction feature receiving exceptional feedback and significantly improving procedure efficiency.

• Question from Alex Furman (Lucid Capital Markets): What is driving the expected sequential decline in gross margin in the second half despite the beneficial mix shift to surgical aesthetics?
  Response: The expected sequential change is not seen as significant; it is attributed to the initial higher costs of manufacturing the new power liposuction handpieces, which will improve as production scales.

• Question from Matt Hewitt (Craig Hallam): Is the power liposuction rollout embedded in the guidance, and are tariff refunds expected this year?
  Response: Yes, the power liposuction rollout is embedded in the guidance. Tariff refunds are possible but not included in the current guidance, and the amount is uncertain.

• Question from Yi Chen (HE Wainwright): How many Aon systems have been placed since launch, and what is the expected attachment rate for power liposuction? Can you share preliminary recurring consumable revenue data?
  Response: The company did not disclose the number of Aon systems placed. They expect north of 95% of new Aon buyers to include the power liposuction attachment. Preliminary recurring revenue includes Renuvion handpieces and an additional $100 per case for Aon consumables like tubings and canisters.

Contradiction Point 1

Power Lipo Launch Timeline and Guidance Inclusion

It involves differing statements on when the power lipo launch was integrated into annual guidance, impacting expectations for 2026 financial performance.

Matt Hewitt (Craig Hallam) - Matt Hewitt (Craig Hallam)

2026Q2: Yes, the power lipo launch is embedded in the 2026 guidance. - Matt Hill(CFO)

Is the power lipo launch embedded into the 2026 guidance and are you expecting any tariff refunds this year? - Tal Cohen (Craig-Hallum) [for Matt Hewett]

2026Q2: Yes, the PowerLipo feature was anticipated for the back half of the year and is included in the current guidance. - Charlie Goodwin(CFO)

Contradiction Point 2

Tariff Refund Timeline and Inclusion in Guidance

Contradiction on whether potential tariff refunds are included in current financial guidance, affecting the accuracy of financial forecasts.

Matt Hewitt (Craig Hallam) - Matt Hewitt (Craig Hallam)

2026Q2: Regarding tariffs, the company is in the process of seeking potential refunds but does not know the exact amount. Any potential tariff refunds are not included in the current financial guidance. - Matt Hill(CFO)

Is the power lipo launch included in the 2026 guidance and are tariff refunds expected this year? - Tollef Kohrman (Craig-Hallum)

2026Q1: The guidance assumes that current tariffs will remain for the rest of the year and factors in their cost and impact on gross profit. While policy changes are possible, the company’s dual manufacturing sites... help minimize tariff impact, and they continuously seek ways to control costs. - Charlie Goodwin(CEO)

Contradiction Point 3

International Rollout Timeline for Aon (AYON) System

Contradiction on the specificity and certainty of the international registration timeline, impacting market expansion strategy clarity.

Yi Chen (HE Wainwright) - Yi Chen (HE Wainwright)

2026Q2: The company does not disclose the total number of Aon systems placed... However, it expects that north of 95% of new Aon buyers will include the power lipo attachment... The power lipo launch is embedded in the 2026 guidance. - Charlie Goodwin(CEO)

Could you provide the number of Aon systems placed since launch, the expected adoption rate of the power liposuction attachment, and the average first or second-year recurring consumable revenue for Aon? - Tollef Kohrman (Craig-Hallum)

2026Q1: A timeline is difficult to specify due to the regulatory process in each country. Key target regions include all of Europe, Latin American countries like Brazil and Colombia, the Middle East, and key markets in Asia. The company plans to register AYON globally over time. - Charlie Goodwin(CEO)

Contradiction Point 4

Financial Inclusion of Power Lipo Handpiece Contribution

Contradiction on whether the power lipo launch is factored into 2026 guidance, directly impacting financial forecasts and investor expectations.

Matt Hewitt (Craig Hallam) - Matt Hewitt (Craig Hallam)

2026Q2: Yes, the power lipo launch is embedded in the 2026 guidance. - Matt Hill(CFO)

Is the power lipo launch included in the 2026 guidance, and are tariff refunds expected this year? - Tollef Kohrman (Craig-Hallum) (on for Matt Hewitt)

2025Q4: The guidance for 2026 does not include the contribution from the power-assisted liposuction handpieces, as they are not yet cleared. The sale of these handpieces will be considered upside once cleared. - Charles Goodwin(CEO)

Contradiction Point 5

Gross Margin Guidance and Its Drivers

Contradiction on the primary driver for the expected gross margin change, affecting understanding of financial performance expectations.

Alex Furman (Lucid Capital Markets) - Alex Furman (Lucid Capital Markets)

2026Q2: The slight expected sequential change is due to the rollout of the power lipo handpiece, where the first units produced are typically more expensive. - Charlie Goodwin(CEO)

What is driving the expected decline in growth margin sequentially despite continued mix shift to surgical aesthetics? - Sam Eiber (BTIG)

2025Q4: The guidance is intentionally conservative. The main lever is the mix shift from OEM (lower margin) to Surgical Aesthetics (higher margin), partially offset by geographic sales mix (e.g., higher sales in China). - Matthew Hill(CFO)