Apyx Medical Reports $9.43 Million Revenue in Q1 2025, Down 7.9% Year-Over-Year

Apyx Medical Corporation reported a total revenue of $9.43 million for the first quarter of 2025, a decrease of 7.9% compared to $10.24 million in the same period of 2024. The decline was primarily attributed to a significant drop in sales from the OEM segment, which fell by 44.7% to $1.54 million, while the Advanced Energy segment saw a modest increase of 5.8% to $7.89 million. The company’s gross profit also decreased to $5.67 million, down 4.8% from $5.95 million a year earlier, although the gross margin improved to 60.1% from 58.1% due to a favorable sales mix.

In terms of operational efficiency, Apyx Medical implemented a cost-saving restructuring in November 2024, which included a workforce reduction of nearly 25%. This restructuring is expected to yield annualized savings of approximately $4.3 million, contributing to the company's goal of achieving cash-flow breakeven. The company reported a net loss of $4.17 million for the quarter, a significant improvement from the $7.59 million loss recorded in the same period last year. The loss per share narrowed to $0.10 from $0.22.

Apyx Medical's cash and cash equivalents stood at $31.01 million as of March 31, 2025, a slight decrease from $31.74 million at the end of 2024. The company reported net cash used in operating activities of $0.70 million, a notable improvement from $6.34 million in the prior year, reflecting better management of accounts receivable and reduced operating losses. The company’s total liabilities decreased to $49.52 million from $50.51 million, while total stockholders' equity fell to $10.64 million from $14.34 million.

Strategically, Apyx Medical is focused on expanding its product offerings, having submitted a 510(k) premarket notification to the FDA for its new device, AYON, which aims to provide comprehensive body contouring solutions. The company anticipates FDA clearance in the first half of 2025, with a product launch planned for later in the year. Additionally, Apyx Medical is monitoring the impact of global supply chain issues and inflation on its operations, while also exploring cost-saving measures to mitigate these challenges.

Looking ahead, Apyx Medical expects to continue facing challenges related to market conditions and operational costs. The company plans to fund its operations through existing cash, product sales, and potentially additional equity or debt financing. However, it acknowledges the uncertainty surrounding the availability of such financing and the potential dilution of stockholder equity. The company aims to reduce annual operating expenses below $40 million in fiscal 2025, as it navigates the evolving landscape of the medical device industry.