Apyx Medical Reports 6.4% Revenue Decline and Net Loss Improvement in Q2 2025

Apyx Medical Corporation reported a decline in financial performance for the second quarter of 2025, with total revenue decreasing by 6.4% to $11.4 million compared to $12.1 million in the same period of 2024. The Advanced Energy segment, which includes the company's Helium Plasma Platform Technology products, saw a slight decrease in sales of 1.0%, while the OEM segment experienced a more significant drop of 28.5%. For the first half of 2025, total revenue was $20.8 million, down 7.1% from $22.4 million in the prior year. The company reported a net loss of $3.8 million for the quarter, an improvement from a loss of $6.6 million in the same quarter last year.

The company's financial position showed a decrease in total assets, which fell to $58.2 million from $64.8 million at the end of 2024. Cash and cash equivalents also declined to $29.3 million from $31.7 million. Apyx Medical's accumulated deficit increased to $85.8 million, up from $77.9 million at the end of the previous fiscal year. The company attributed the improved loss from operations, which was $2.6 million compared to $5.5 million in the prior year, to cost-cutting measures implemented in late 2024, including a workforce reduction of nearly 25% and other operational efficiencies.

Strategically, Apyx Medical announced the receipt of 510(k) clearance from the FDA for its AYON Body Contouring System, which is set to launch commercially in the second half of 2025. This system is expected to enhance the company's product offerings in the aesthetic treatment market, particularly for addressing skin laxity post-liposuction. The company plans to expand the indications for AYON, including an additional submission for power liposuction later this year. The launch is anticipated to leverage existing relationships with key surgeons in critical markets.

Operationally, Apyx Medical reported a decrease in the number of handpiece units sold, with approximately 40,000 units sold in the first half of 2025 compared to 45,000 in the same period of 2024. The company noted that international sales accounted for approximately 31.6% of total revenues in the second quarter, reflecting a slight increase from the previous year. The company continues to monitor market conditions, including the impact of GLP-1 receptor agonists on the aesthetic surgery market, which may influence future sales of its products.

Looking ahead, Apyx Medical anticipates ongoing challenges, including the need for additional financing to support operations and product development. The company has outlined plans to reduce annual operating expenses below $40 million in 2025 through various cost-saving measures. However, it remains uncertain about the availability of future financing and the potential impact of tariffs and inflation on its operations. The company is focused on achieving cash-flow breakeven and improving its financial stability in the coming quarters.