Apyx Medical Corporation — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue for the three months ended September 30, 2026, was $14.0 million, a 9% increase from $12.9 million in the same period in 2025.
• Surgical Aesthetics revenue increased 17% to $13.0 million (from $11.1 million in Q3 2025), driven by domestic AYON sales and international Renuvion generator sales.
• OEM revenue decreased 42% to approximately $1.1 million (from $1.8 million in Q3 2025) due to decreased sales volume to existing customers.
• Gross profit increased 8% to $9.0 million (from $8.3 million in Q3 2025), with gross margin remaining steady at 64.2% compared to 64.4% in the prior year period.
• Operating expenses increased to $9.6 million (from $9.1 million in Q3 2025), driven by a $0.4 million increase in salaries and related costs and a $0.2 million increase in selling, general and administrative expenses.
• Net loss attributable to stockholders was $1.8 million ($0.04 per share), an improvement from $2.0 million ($0.05 per share) in Q3 2025.
• Adjusted EBITDA was positive $0.4 million for the quarter, compared to a loss of $0.1 million in Q3 2025.
• Net cash used in operating activities was $1.6 million for the quarter, compared to $3.5 million used in Q3 2025.
• As of September 30, 2026, the Company held $25.8 million in cash and cash equivalents.
• Long-term debt stood at $35.6 million as of September 30, 2026, compared to $34.8 million as of December 31, 2025.

Guidance and Future Outlook:

• Reaffirmed full-year 2026 total revenue guidance of $59.0 million to $60.0 million, up from $52.8 million reported for the full year 2025.
• Updated full-year 2026 operating expense guidance to $41.0 million to $42.5 million, down from the previous guidance of less than $45.0 million.
• Full-year 2026 gross margin guidance remains in the range of 63% to 65%.
• Full-year 2026 Surgical Aesthetics revenue is expected to be between $54.0 million and $55.0 million (compared to $45.3 million in 2025).
• Full-year 2026 OEM revenue is expected to be approximately $5.0 million (compared to $7.5 million in 2025).
• Management expects OEM segment revenue to decrease for the year due to increased focus on the Surgical Aesthetics segment.

Business Segments and Product Lines:

• Initiated the full commercial launch of the reusable power liposuction handpiece for the AYON Body Contouring System in the third quarter of 2026.
• The power liposuction handpiece received positive feedback from key early adopter surgeons following FDA clearance earlier in the year.
• Published a prospective clinical study in Plastic and Reconstructive Surgery—Global Open showing treated tissue demonstrated 30% greater elastin fiber density and 34% less inflammation compared to untreated control areas.
• Domestic sales increased 4% to $9.7 million, while international sales increased 22% to $4.3 million for the quarter.
• Nine-month 2026 total revenue was $40.4 million, a 20% increase from $33.7 million in the same period in 2025.

Market and Competitive Landscape:

• Management estimates that approximately 70% of plastic surgeons use power liposuction, positioning the new handpiece as a significant addition to broaden AYON's appeal.
• The Company continues to leverage its Helium Plasma Platform Technology, supported by more than 90 clinical documents.

Risks and Challenges:

• Forward-looking statements are subject to risks including regulatory approvals from the FDA and other governmental bodies, supply chain disruptions, component shortages, and manufacturing or logistics challenges.
• Risks also include volatility in commodity prices, changes in economic or geopolitical conditions, and liabilities from pending or threatened litigations.

Management Commentary and Tone:

• Charlie Goodwin, President and CEO, expressed pleasure with the 17% growth in the Surgical Aesthetics business, citing continued adoption of AYON and progress in executing the commercial strategy.
• Management highlighted the value of AYON as a full suite of complementary body contouring capabilities in one integrated platform.
• The tone regarding the power liposuction launch was positive, noting very early feedback from surgeons.

Other Key Points:

• Management hosted a conference call on November 5, 2026, at 8:00 a.m. ET to discuss results and answer questions.
• The Company has no preferred stock issued or outstanding.
• Common stock issued and outstanding increased to 42,124,023 shares as of September 30, 2026, from 41,785,946 shares as of December 31, 2025.
• Inventories increased to $11.95 million as of September 30, 2026, from $8.60 million as of December 31, 2025.