Apyx Narrows Losses, Boosts Q3 Sales Amid AYON Launch

TL;DR

**APYX is cutting costs and launching new products, but they're still bleeding cash and need to prove they can hit revenue targets to avoid a debt crunch.**

AI Summary

Apyx Medical Corp (APYX) reported a net loss of $1.955 million for the three months ended September 30, 2025, a significant improvement from the $4.724 million net loss in the same period of 2024. Sales increased to $12.877 million for the quarter, up from $11.487 million year-over-year. However, for the nine months ended September 30, 2025, sales slightly decreased to $33.680 million from $33.880 million in 2024, and the net loss was $9.865 million, an improvement from $18.900 million in the prior year. The company launched its AYON Body Contouring System in September 2025 after receiving 510(k) clearance from the FDA on May 13, 2025. Apyx undertook a cost-saving restructuring in November 2024, reducing its US workforce by nearly 25%, expecting annualized savings of approximately $4.3 million. Total operating expenses are projected to be below $40 million in fiscal 2025 due to these measures and reductions in professional fees, R&D, and stock-based compensation. The company maintains a long-term debt of $34.607 million with Perceptive Credit Holdings IV, LP, and was in compliance with financial covenants as of September 30, 2025.

Why It Matters

Apyx Medical's ability to significantly reduce its net loss and increase Q3 sales, despite a slight year-to-date revenue dip, signals potential operational improvements for investors. The successful FDA clearance and commercial launch of the AYON Body Contouring System in September 2025 positions Apyx to compete more effectively in the aesthetic surgery market, potentially challenging rivals with its integrated platform. The aggressive cost-cutting measures, including a 25% workforce reduction and a projected $4.3 million in annualized savings, are critical for achieving cash-flow breakeven and improving investor confidence. However, the company's recurring net losses and reliance on future financing for operations remain a key concern for long-term viability and competitive standing.

Risk Assessment

Risk Level: high — Apyx Medical has incurred recurring net losses, with a net loss of $9.865 million for the nine months ended September 30, 2025, and anticipates continued losses in the near term. The company's liquidity is a concern, as it plans to fund operations through existing cash, product sales, and potentially additional equity or debt financing, with no certainty of availability or acceptable terms. Furthermore, compliance with debt covenants, including a $37.0 million revenue target for its Surgical Aesthetics segment in 2025 and a maximum operating expense of $40.0 million, is critical, and failure to meet these could trigger default.

Analyst Insight

Investors should closely monitor APYX's Q4 2025 earnings for evidence of sustained sales growth from the AYON launch and continued adherence to its $40.0 million operating expense target. Consider a 'wait and see' approach until the company demonstrates consistent profitability and positive cash flow from operations, as the high-risk liquidity profile and debt covenants present significant hurdles.

Financial Highlights

debt To Equity

8.44

revenue

$33.680M

operating Margin

-19.2%

total Assets

$57.365M

total Debt

$34.607M

net Income

-$9.865M

eps

N/A

gross Margin

62.5%

cash Position

$25.135M

revenue Growth

-0.6%

Revenue Breakdown

Key Numbers

• $12.877M — Q3 2025 Sales (Increased from $11.487 million in Q3 2024)
• $1.955M — Q3 2025 Net Loss (Improved from $4.724 million net loss in Q3 2024)
• $9.865M — Nine Months 2025 Net Loss (Improved from $18.900 million net loss in nine months 2024)
• $33.680M — Nine Months 2025 Sales (Slightly decreased from $33.880 million in nine months 2024)
• $4.3M — Annualized Cost Savings (Expected from November 2024 workforce reduction)
• $40.0M — Maximum Operating Expense Target (For full year 2025, per Perceptive Credit Agreement)
• $37.0M — Surgical Aesthetics Revenue Target (For full year 2025, per Perceptive Credit Agreement)
• $34.607M — Long-term Debt, Net (Outstanding with Perceptive Credit Holdings IV, LP as of September 30, 2025)
• 25% — US Workforce Reduction (Undertaken in November 2024 cost-saving restructuring)
• $25.135M — Cash and Cash Equivalents (As of September 30, 2025, down from $31.741 million at December 31, 2024)

Key Players & Entities

• Apyx Medical Corporation (company) — registrant
• Perceptive Credit Holdings IV, LP (company) — initial lender and administrative agent for debt
• U.S. Food and Drug Administration (regulator) — granted 510(k) clearance for AYON
• AYON Body Contouring System (company) — newly launched product
• Renuvion (company) — Helium Plasma Platform Technology product
• J-Plasma (company) — Helium Plasma Platform Technology product
• Nasdaq Global Select Market (company) — exchange where common stock is registered
• Delaware (regulator) — state of incorporation
• 5115 Ulmerton Road, Clearwater, FL 33760 (company) — principal executive office address

FAQ

Risk Factors

• Debt Covenant Compliance [medium — financial]: The company has $34.607 million in long-term debt and must adhere to financial covenants. While in compliance as of September 30, 2025, any future breaches could lead to default.
• Restructuring Impact [medium — operational]: A November 2024 restructuring reduced the US workforce by 25%, aiming for $4.3 million in annualized savings. The success of this restructuring in achieving cost targets and maintaining operational efficiency is crucial.
• FDA Clearance for AYON [medium — regulatory]: The AYON Body Contouring System received FDA 510(k) clearance on May 13, 2025, and was launched in September 2025. Future sales and market adoption depend on regulatory acceptance and competitive positioning.
• Cash Burn Rate [high — financial]: Cash and cash equivalents decreased from $31.741 million at December 31, 2024, to $25.135 million as of September 30, 2025. Continued net losses necessitate careful cash management.
• Market Adoption of New Products [medium — market]: The successful launch of the AYON Body Contouring System is critical. Market acceptance and sales performance will significantly impact future revenue and profitability.

Industry Context

The medical aesthetics industry is characterized by innovation and regulatory oversight. Companies like APYX Medical compete by developing and obtaining FDA clearance for new devices. Market success hinges on product efficacy, physician adoption, and patient demand, often influenced by economic conditions and marketing efforts.

Regulatory Implications

The company's reliance on FDA 510(k) clearance for new products like the AYON system presents a significant regulatory hurdle. Successful clearance is necessary for market entry, but ongoing compliance and potential future regulatory changes pose continuous risks.

What Investors Should Do

1. Monitor AYON System Sales Performance
2. Analyze Operating Expense Trends
3. Evaluate Cash Burn and Runway
4. Assess Debt Covenant Compliance

Key Dates

• 2025-09-30: End of Q3 2025 — Reported $12.877M in sales and a net loss of $1.955M, showing sequential improvement.
• 2025-09-30: AYON Body Contouring System Launch — The system was launched following FDA 510(k) clearance, representing a new revenue stream opportunity.
• 2025-05-13: FDA 510(k) Clearance for AYON — Enabled the company to proceed with the commercialization of its new body contouring system.
• 2024-11-01: Cost-Saving Restructuring — Reduced US workforce by 25%, targeting $4.3 million in annualized savings and impacting operating expenses.
• 2024-12-31: End of Fiscal Year 2024 — Company had $31.741 million in cash and cash equivalents.

Glossary

510(k) clearance

A premarket submission made to the FDA to demonstrate that the device to be marketed is at least as safe and effective, that is, substantially equivalent, to a legally marketed device. (Crucial for launching new medical devices like the AYON Body Contouring System.)

Accumulated deficit

The total net losses of a company since its inception, minus any net profits. It represents a deficit in equity. (Indicates the company has historically incurred more expenses than revenues, with a deficit of $87.823 million as of September 30, 2025.)

Operating lease right-of-use assets

Assets recognized under ASC 842 for the right to use an underlying asset for the lease term. (Represents the company's long-term rental commitments, totaling $4.342 million as of September 30, 2025.)

Debt discounts and issuance costs

Reductions to the carrying amount of debt, either due to the debt being issued at a discount or the costs incurred in issuing the debt. (Affects the net carrying value of the company's long-term debt, which is $34.607 million net of these items.)

Year-Over-Year Comparison

Compared to the prior year, APYX Medical Corp. has shown improved profitability in the nine months ended September 30, 2025, with net losses narrowing significantly from $18.900 million to $9.865 million. While Q3 2025 sales saw a healthy increase of 12.1% to $12.877 million, year-to-date sales experienced a slight decrease of 0.6% to $33.680 million. Operating expenses have been reduced due to restructuring, with projected full-year expenses below $40 million, a positive sign for cost management.

Key Financial Figures

• $0.001 — , 38,241,905 shares of the registrant's $0.001 par value common stock were outstanding
• $4.3 m — the reduction in force is approximately $4.3 million, which is expected to contribute
• $0.5 million — nd reduced board cash compensation from $0.5 million annually to approximately $ 0.1 million
• $40 million — uce its annual operating expenses below $40 million in fiscal 2025. 6 Table of Contents

Filing Documents

• apyx20250930_10q.htm (10-Q) — 1144KB
• ex_854183.htm (EX-31.1) — 14KB
• ex_854184.htm (EX-31.2) — 14KB
• ex_854185.htm (EX-32.1) — 6KB
• ex_854186.htm (EX-32.2) — 6KB
• logo01.jpg (GRAPHIC) — 8KB
• 0001437749-25-033499.txt ( ) — 5536KB
• apyx-20250930.xsd (EX-101.SCH) — 42KB
• apyx-20250930_cal.xml (EX-101.CAL) — 40KB
• apyx-20250930_def.xml (EX-101.DEF) — 286KB
• apyx-20250930_lab.xml (EX-101.LAB) — 257KB
• apyx-20250930_pre.xml (EX-101.PRE) — 316KB
• apyx20250930_10q_htm.xml (XML) — 959KB

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 15 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 23 Item 4.

Controls and Procedures

Controls and Procedures 23 Part II. Other Information 24 Item 1.

Legal Proceedings

Legal Proceedings 24 Item 1A.

Risk Factors

Risk Factors 24 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 24 Item 3. Defaults Upon Senior Securities 24 Item 4. Mine Safety Disclosures 24 Item 5. Other Information 24 Item 6. Exhibits 25

Signatures

Signatures 26 1 Table of Contents

Financial Information

PART I. Financial Information

Condensed Consolidated Financial Statements

ITEM 1. Condensed Consolidated Financial Statements APYX MEDICAL CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share data) September 30, 2025 (Unaudited) December 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 25,135 $ 31,741 Trade accounts receivable, net of allowance of $ 1,180 and $ 1,000 12,995 15,480 Inventories, net of provision for obsolescence of $ 1,134 and $ 1,032 9,145 7,564 Prepaid expenses and other current assets 1,513 1,655 Total current assets 48,788 56,440 Property and equipment, net of accumulated depreciation and amortization of $ 4,270 and $ 3,989 2,390 1,987 Operating lease right-of-use assets 4,342 4,703 Finance lease right-of-use assets 33 48 Other assets 1,812 1,664 Total assets $ 57,365 $ 64,842 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 3,220 $ 2,615 Accrued expenses and other current liabilities 7,344 7,751 Current portion of operating lease liabilities 393 335 Current portion of finance lease liabilities 21 20 Total current liabilities 10,978 10,721 Long-term debt, net of debt discounts and issuance costs 34,607 33,893 Long-term operating lease liabilities 4,173 4,483 Long-term finance lease liabilities 18 33 Long-term contract liabilities 1,216 1,118 Other liabilities 293 259 Total liabilities 51,285 50,507 EQUITY Preferred stock, $ 0.001 par value; 10,000,000 shares authorized; 0 issued and outstanding as of September 30, 2025 and December 31, 2024 — — Common stock, $ 0.001 par value; 75,000,000 shares authorized; 37,819,478 issued and outstanding as of September 30, 2025, and 37,793,886 issued and outstanding as of December 31, 2024 38 38 Additional paid-in capital 93,633 92,083 Accumulated deficit ( 87,823 ) ( 77,911 ) Total stockholders' equity 5,848 14,210 Non-controlling interest 232 125 Total equity 6,080 14,335 Total liabilities and equity $

View Full Filing

View this 10-Q filing on SEC EDGAR