Apyx Medical Corp
For the period ended Jun 30, 2026. Filed Aug 6, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 6, 2026
APYX$2.93-4.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-07.
0001437749-26-015652
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0001437749-26-026346
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 59 previous paragraphs and 66 current paragraphs.
41 unchanged; 17 reworded; 4 added; 1 removed; 0 previous and 4 current paragraphs rearranged.
Tables are not compared: 8 previous and 8 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (4)
Current report
On May 11, 2026, the we announced that we received expanded 510(k) clearance from the U.S. Food and Drug Administration (the “FDA”) for the AYON Body Contouring System™ (“AYON”) to include power liposuction, an advanced form of liposuction that uses a reciprocating cannula to enhance efficiency of fat removal to reduce a surgeon’s effort and operating room time. We commenced a limited commercial launch of power liposuction at the end of June 2026.
Current report
Operating Segments
Current report
Research and development expenses decreased 4.3% for the six months ended June 30, 2026 primarily due to lower spending on our product development initiatives.
Current report
During the three months ended June 30, 2026, selling, general and administrative expense increased 23.9%, primarily due to increases in Executive Chairman of the Board of Directors stock-based compensation expense ($0.7 million), advertising expense ($0.3 million) and commissions ($0.2 million) and increases in non-Executive Chairman board of directors compensation stock-based expense ($0.1 million). These increases were partially offset by decreases in allowances for credit losses ($0.1 million), travel expenses ($0.1 million) and insurance expense, including claims on our policies ($0.1 million).
Removed paragraphs (1)
Previous report
October 13, 2025, we announced that we had submitted the 510(k) premarket notification to the FDA for the label expansion of AYON to include power liposuction. We anticipate receiving clearance in the second quarter of 2026.
Reworded paragraphs (17)
Previous wording
We operate in two business segments: OEM and Surgical Aesthetics, formerly known as Advanced Energy. The OEM segment is primarily development and manufacturing contracts and product driven. The Surgical Aesthetics segment sells both capital equipment and consumables in the form of a single-use handpiece. Sales of handpiece units are a substantial portion of our business and for the three months ended March 31, 2026 and 2025, we sold approximately 26,000 and 19,000 units, respectively. In the U.S. Handpiece revenue accounts for more than 50% of our total Surgical Aesthetics revenue.
Current wording
We operate in two business segments: OEM and Surgical Aesthetics, formerly known as Advanced Energy. The OEM segment is primarily development and manufacturing contracts and product driven. The Surgical Aesthetics segment sells both capital equipment and consumables in the form of a single-use handpiece. Sales of handpiece units are a substantial portion of our business and for the six months ended June 30, 2026 and 2025, we sold approximately 48,000 and 40,000 units, respectively. In the U.S., handpiece revenue accounts for more than 50% of our total Surgical Aesthetics revenue.
Previous wording
Glucagon- like peptide -1 receptor agonists ("GLP-1s"), such as Mounjaro®, Wegovy® and Ozempic®, are prescribed for the treatment of diabetes and/or weight loss in combination with exercise to improve glycemic control. GLP-1’s have also been found to mimic the GLP-1 satiety hormone in our bodies. When one eats, GLP-1 is released in the small intestines regulating blood sugar and sending signals to the brain centers that control appetite. Studies have shown patients taking GLP-1’s have experienced a significant loss of body weight.
Current wording
Glucagon- like peptide -1 receptor agonists (“GLP-1s”), such as Mounjaro®, Wegovy® and Ozempic®, are prescribed for the treatment of diabetes and/or weight loss in combination with exercise to improve glycemic control. GLP-1s have also been found to mimic the GLP-1 satiety hormone in our bodies. When one eats, GLP-1 is released in the small intestines regulating blood sugar and sending signals to the brain centers that control appetite. Studies have shown patients taking GLP-1’s have experienced a significant loss of body weight.
Previous wording
Total revenue increased by 32.4%, or approximately $3.1 million, for the three months ended March 31, 2026 when compared with the three months ended March 31, 2025. Surgical Aesthetics segment sales increased 36.1%, or approximately $2.8 million, for the three months ended March 31, 2026 when compared with the three months ended March 31, 2025. The Surgical Aesthetics sales increase was driven by sales of AYON, as we commenced our commercial launch in the third quarter of 2025, increased sales of generators internationally and increased volume of single-use handpieces in both domestic and international markets. These increases were partially offset by decreases in domestic sales of generators, including upgrades to the Apyx One Console, where the purchase of AYON was not part of the sale, as expected, and upgrades to the Apyx One Console in international markets. OEM segment sales increased 13.8%, or approximately $0.2 million, for the three months ended March 31, 2026 when compared with the three months ended March 31, 2025. The increase in OEM sales was due to increases in sales volume to existing customers. While OEM segment sales increased for the three month period, with the increased focus on Surgical Aesthetics, we expect that OEM segment revenue will decrease for the year and that this trend will continue over time.
Current wording
Total revenue increased by 22.1%, or approximately $2.5 million, for the three months ended June 30, 2026 when compared with the three months ended June 30, 2025. Surgical Aesthetics segment sales increased 28.1%, or approximately $2.7 million, for the three months ended June 30, 2026 when compared with the three months ended June 30, 2025. The Surgical Aesthetics sales increase was driven by sales of AYON, as we commenced our commercial launch in the third quarter of 2025, increased sales of generators internationally and increased volume of single-use handpieces domestically. These increases were partially offset by decreases in domestic sales of standalone generators. OEM segment sales decreased 12.0%, or approximately $0.2 million, for the three months ended June 30, 2026 when compared with the three months ended June 30, 2025. The decrease in OEM sales was due to a decrease in sales volume to existing customers. With the increased focus on Surgical Aesthetics, we expect that OEM segment revenue will decrease for the year and that this trend will continue over time.
Previous wording
International sales represented approximately 35.1% of total revenues for the three months ended March 31, 2026 as compared with 28.5% of total revenues for the same period in the prior year. Management estimates our products have been sold in more than 60 countries through local dealers, coordinated by our sales and marketing personnel through our facilities in Clearwater, Florida and Sofia, Bulgaria.
Current wording
International sales represented 32.2% and 33.6% of total revenues for the three and six months ended June 30, 2026 as compared with 31.6% and 30.2% of total revenues for the same periods in the prior year. Management estimates our products have been sold in more than 60 countries through local dealers, coordinated by our sales and marketing personnel through our facilities in Clearwater, Florida and Sofia, Bulgaria.
Previous wording
Gross profit for the three months ended March 31, 2026, increased 39.9% to $7.9 million, compared to $5.7 million for the same period in the prior year. Gross margin for the three months ended March 31, 2026, was 63.5%, compared to 60.1% for the same period in 2025. The increase in gross margin for the three months ended March 31, 2026 from the prior year period is primarily attributable to mix between our segments with Surgical Aesthetics comprising a higher percentage of total sales and product mix within our OEM segment. This was partially offset by geographic mix, with international sales comprising a higher percentage of total sales and tariffs that began effecting us in the second half of 2025.
Current wording
Gross profit for the six months ended June 30, 2026, increased 31.7% to $16.8 million, compared to $12.7 million for the same period in the prior year. Gross margin for the six months ended June 30, 2026, was 63.7%, compared to 61.3% for the same period in 2025. The increase in gross margin for the six months ended June 30, 2026 from the prior year period is primarily attributable to mix between our segments with Surgical Aesthetics comprising a higher percentage of total sales and product mix within our OEM segment. This was partially offset by geographic mix, with international sales comprising a higher percentage of total sales and tariffs that began affecting us in the second half of 2025.
Previous wording
Research and development expenses decreased 4.9% for the three months ended March 31, 2026. There were no significant changes from the prior period in the components of research and development expense.
Current wording
Research and development expenses decreased 3.8% for the three months ended June 30, 2026. There were no significant changes from the prior period in the components of research and development expense.
Previous wording
Professional services expense decreased 9.0% for the three months ended March 31, 2026, primarily due to a decrease in physician and marketing consulting expenses ($0.1 million) and legal expense ($0.1 million). These decreases were partially offset by an increase in recruiting expense ($0.1 million).
Current wording
Professional services expense decreased 13.8% for the six months ended June 30, 2026, primarily due to a decrease in physician and marketing consulting expenses ($0.4 million) and legal expense ($0.1 million). These decreases were partially offset by an increase in recruiting expense ($0.1 million).
Previous wording
During the three months ended March 31, 2026, salaries and related expenses increased 5.6%, primarily due to an increase in salaries and benefits to existing employees ($0.3 million). This was partially offset by a decrease in stock-based compensation expense as we have not granted any options in 2026.
Current wording
During the three months ended June 30, 2026, salaries and related expenses increased 9.8%, primarily due to an increase in salaries and benefits to existing employees and certain additional employees in sales and marketing to support the launch of AYON ($0.4 million). This was partially offset by a decrease in stock-based compensation expense ($0.1 million).
Previous wording
During the three months ended March 31, 2026, selling, general and administrative expense increased 3.2%, primarily due to an increase in commissions ($0.2 million), travel expenses ($0.1 million) and miscellaneous other expenses ($0.2 million). These increases were partially offset by a decrease in advertising expense ($0.4 million).
Current wording
During the six months ended June 30, 2026, selling, general and administrative expense increased 14.6%, primarily due to increases in Executive Chairman of the Board of Directors compensation stock-based expense ($0.7 million), commissions ($0.4 million) and miscellaneous other expenses ($0.3 million). These increases were partially offset by decreases in advertising expense ($0.1 million), allowances for credit losses ($0.1 million) and insurance expense, including claims on our policies ($0.1 million).
Previous wording
Interest income decreased approximately $0.1 million for the three months ended March 31, 2026 when compared with the same period in the prior year. This decreases are due to a lower average yield in our cash equivalents in money market funds and U.S. Treasury securities.
Current wording
Interest income was flat at approximately $0.3 million for the three months ended June 30, 2026 and 2025. Interest income decreased approximately $0.1 million for the six months ended June 30, 2026, when compared with the same period in the prior year. This decrease is due to a lower average yield in our cash equivalents in money market funds and U.S. Treasury securities.
Previous wording
Interest expense was largely unchanged at approximately $1.4 million for the three months ended March 31, 2026 and 2025.
Current wording
Interest expense was flat at approximately $1.4 million and $2.8 million for the three and six months ended June 30, 2026 and 2025, respectively.
Previous wording
Income tax expense was approximately $143,000 and $49,000 with effective tax rates of (7.2)% and (1.2)% for the three months ended March 31, 2026 and 2025, respectively. For the three and three months ended March 31, 2026 and 2025, the effective rate differs from the statutory rate primarily due to the full valuation allowance recorded on the net operating loss (“NOL”) and net deferred tax assets generated during the period.
Current wording
Income tax expense was approximately $124,000 and $49,000 with effective tax rates of (4.2)% and (1.3)% for the three months ended June 30, 2026 and 2025, respectively. Income tax expense was approximately $267,000 and $98,000 with effective tax rates of (5.4)% and (1.3)% for the three months ended June 30, 2026 and 2025, respectively. For the three and six months ended June 30, 2026 and 2025, the effective rate differs from the statutory rate primarily due to the full valuation allowance recorded on the net operating loss (“NOL”) and net deferred tax assets generated during the periods.
Previous wording
At March 31, 2026, we had approximately $31.1 million in cash and cash equivalents as compared to approximately $31.7 million in cash and cash equivalents at December 31, 2025. Our working capital at March 31, 2026 was approximately $45.3 million compared with $46.8 million at December 31, 2025.
Current wording
At June 30, 2026, we had approximately $27.6 million in cash and cash equivalents as compared to approximately $31.7 million in cash and cash equivalents at December 31, 2025. Our working capital at June 30, 2026 was approximately $43.8 million compared with $46.8 million at December 31, 2025.
Previous wording
For the three months ended March 31, 2026, net cash used in operating activities was approximately $0.6 million, compared with net cash used in operating activities of approximately $0.7 million in the three months ended March 31, 2025. The decrease in cash used in operations is primarily due to the reduction in our operating loss, which was driven by an increase in Surgical Aesthetics sales. This was partially offset by the payment of 2025 bonuses in the first quarter of 2026 and cash used to procure inventory for our expanded product portfolio.
Current wording
For the six months ended June 30, 2026, net cash used in operating activities was approximately $4.1 million, compared with net cash used in operating activities of approximately $2.0 million in the six months ended June 30, 2025. The increase in cash used in operations is primarily due to the payment of 2025 bonuses in the first quarter of 2026 and cash used to procure inventory for our expanded product portfolio. This was partially offset by the reduction in our operating loss, which was driven by an increase in Surgical Aesthetics sales.
Previous wording
Net cash used in investing activities for each of the three months ended March 31, 2026 and 2025, was $0.1 million, related to investments in property and equipment.
Current wording
Net cash used in investing activities was $0.1 million and $0.3 million for the six months ended June 30, 2026 and 2025, respectively, related to investments in property and equipment.
Previous wording
Net cash provided by financing activities for the three months ended March 31, 2026 was $0.1 million and was primarily related to proceeds on the exercise of stock options.
Current wording
Net cash provided by financing activities for the six months ended June 30, 2026 was $0.1 million and was primarily related to proceeds on the exercise of stock options.
Previous wording
At March 31, 2026, we had purchase commitments totaling approximately $4.2 million, substantially all of which is expected to be purchased within the next twelve months.
Current wording
At June 30, 2026, we had purchase commitments totaling approximately $3.8 million, substantially all of which is expected to be purchased within the next twelve months.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
Total revenue increased by 26.8%, or approximately $5.6 million, for the six months ended June 30, 2026 when compared with the six months ended June 30, 2025. Surgical Aesthetics segment sales increased 31.7%, or approximately $5.6 million, for the six months ended June 30, 2026 when compared with the six months ended June 30, 2025. The Surgical Aesthetics sales increase was driven by sales of AYON, as we commenced our commercial launch in the third quarter of 2025, increased sales of generators internationally and increased volume of single-use handpieces in both domestic and international markets. These increases were partially offset by decreases in domestic sales of standalone generators. OEM segment sales were relatively flat for the six months ended June 30, 2026 when compared with the six months ended June 30, 2025. With the increased focus on Surgical Aesthetics, we expect that OEM segment revenue will decrease for the year and that this trend will continue over time.
Current report — wording carried from elsewhere
Gross profit for the three months ended June 30, 2026, increased 25.2% to $8.9 million, compared to $7.1 million for the same period in the prior year. Gross margin for the three months ended June 30, 2026, was 63.9%, compared to 62.3% for the same period in 2025. The increase in gross margin for the three months ended June 30, 2026 from the prior year period is primarily attributable to mix between our segments with Surgical Aesthetics comprising a higher percentage of total sales and product mix within our OEM segment. This was partially offset by tariffs that began affecting us in the second half of 2025.
Current report — wording carried from elsewhere
Professional services expense decreased 18.2% for the three months ended June 30, 2026, primarily due to a decrease in physician and marketing consulting expenses ($0.3 million).
Current report — wording carried from elsewhere
During the six months ended June 30, 2026, salaries and related expenses increased 7.7%, primarily due to an increase in salaries and benefits to existing employees and certain additional employees in sales and marketing to support the launch of AYON ($0.7 million). This was partially offset by a decrease in stock-based compensation expense ($0.2 million).