Apyx Medical Corp
For the period ended Sep 30, 2026. Filed Nov 5, 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.
Sep 30, 2026 · Filed Nov 5, 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 2026-06-30; filed 2026-08-06.
0001437749-26-026346
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-05.
0001437749-26-035127
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 66 previous paragraphs and 67 current paragraphs.
40 unchanged; 25 reworded; 2 added; 1 removed; 0 previous and 0 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 (2)
Current report
We are seeking refunds of IEEPA tariffs paid; however, the ultimate amount, timing, and final resolution of any additional refunds remain uncertain pending the outcome of the ongoing litigation and related administrative processes. We did not receive any refund payments during the nine months ended September 30, 2026, and accordingly, given the uncertainty regarding the amount or timing of collection, we will record the refunds as they are received. Any tariff recoveries will be reflected as a reduction of cost of sales for inventory that has already been sold and as a reduction of the carrying value for unsold inventory.
Current report
Research and development expenses increased 6.0% for the three months ended September 30, 2026, primarily due to higher compensation and benefits costs.
Removed paragraphs (1)
Previous report
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.
Reworded paragraphs (25)
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 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.
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 nine months ended September 30, 2026 and 2025, we sold approximately 68,000 and 63,000 units, respectively. In the U.S., handpiece revenue accounts for more than 50% of our total Surgical Aesthetics revenue.
Previous wording
We believe the increased use of GLP-1s had an initial negative impact on revenue for plastic and cosmetic surgeons and created uncertainty in the aesthetic space. However, we believe, that the use of these drugs will have a ripple effect which will drive people towards plastic surgery and may provide a tailwind for sales of our Renuvion products. Rapid weight loss caused by these drugs can contribute to loose skin. To address this, the cosmetic surgery market focuses on body contouring. Body contouring is a customizable treatment for patients to target specific fat deposits, engage in the transfer of fat, and treatments to address loose or lax skin. Renuvion is the only FDA-approved device for the treatment of this issue post liposuction. Additionally, Renuvion may be used to treat skin laxity without the use of liposuction, potentially increasing the total available market for our products.
Current wording
We believe the increased use of GLP-1s had an initial negative impact on revenue for plastic and cosmetic surgeons and created uncertainty in the aesthetic space. However, we believe, that the use of these drugs will have a ripple effect which will drive people towards plastic surgery and may provide a tailwind for sales of our Renuvion products. Rapid weight loss caused by these drugs can contribute to loose skin. To address this, the cosmetic surgery market focuses on body contouring. Body contouring is a customizable treatment for patients to target specific fat deposits, engage in the transfer of fat, and treatments to address loose or lax skin. Renuvion is the only FDA-cleared device for the treatment of this issue post liposuction. Additionally, Renuvion may be used to treat skin laxity without the use of liposuction, potentially increasing the total available market for our products.
Previous wording
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 wording
On May 11, 2026, 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 and a full launch during the third quarter 2026.
Previous 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.
Current wording
Total revenue increased by 9.0%, or approximately $1.2 million, for the three months ended September 30, 2026 when compared with the three months ended September 30, 2025. Surgical Aesthetics segment sales increased 17.2%, or approximately $1.9 million, for the three months ended September 30, 2026 when compared with the three months ended September 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 and increased sales of generators internationally. These increases were partially offset by decreases in domestic sales of standalone generators and sales of single-use handpieces globally. OEM segment sales decreased 41.5%, or approximately $0.8 million, for the three months ended September 30, 2026 when compared with the three months ended September 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.
Previous wording
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 wording
Total revenue increased by 20.0%, or approximately $6.7 million, for the nine months ended September 30, 2026 when compared with the nine months ended September 30, 2025. Surgical Aesthetics segment sales increased 26.1%, or approximately $7.5 million, for the nine months ended September 30, 2026 when compared with the nine months ended September 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 decreased 14.7%, or approximately $0.7 million, for the nine months ended September 30, 2026 when compared with the nine months ended September 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.
Previous 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.
Current wording
International sales represented 30.8% and 32.6% of total revenues for the three and nine months ended September 30, 2026 as compared with 27.5% and 29.2% 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 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 wording
Gross profit for the three months ended September 30, 2026, increased 8.5% to $9.0 million, compared to $8.3 million for the same period in the prior year. Gross margin for the three months ended September 30, 2026, was 64.2%, compared to 64.4% for the same period in 2025. The decrease in in gross margin for the three months ended September 30, 2026 from the prior year period is primarily attributable to geographic mix, with international sales comprising a higher percentage of total sales and product mix within both the Surgical Aesthetics and OEM segments. These decreases were partially offset by an increase due to mix between our segments, with Surgical Aesthetics comprising a higher percentage of total sales.
Previous 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.
Current wording
Gross profit for the nine months ended September 30, 2026, increased 22.6% to $25.8 million, compared to $21.0 million for the same period in the prior year. Gross margin for the nine months ended September 30, 2026, was 63.8%, compared to 62.5% for the same period in 2025. The increase in gross margin for the nine months ended September 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. This was partially offset by geographic mix, with international sales comprising a higher percentage of total sales, product mix within the Surgical Aesthetics segment and tariffs that began affecting us in the second half of 2025.
Previous wording
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 wording
Research and development expenses decreased 0.9% for the nine months ended September 30, 2026, primarily due to lower spending on our product development initiatives. This was partially offset by higher compensation and benefits costs.
Previous wording
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 wording
Professional services expense decreased 13.1% for the three months ended September 30, 2026, primarily due to a decrease in physician and marketing consulting expenses ($0.2 million).
Previous 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).
Current wording
Professional services expense decreased 13.6% for the nine months ended September 30, 2026, primarily due to decreases in physician and marketing consulting expenses ($0.6 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 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).
Current wording
During the three months ended September 30, 2026, salaries and related expenses increased 12.7%, primarily due to increases in salaries and benefits to existing employees and certain additional employees in sales and marketing to support the launch of AYON ($0.3 million) and higher stock-based compensation expense ($0.1 million).
Previous 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).
Current wording
During the nine months ended September 30, 2026, salaries and related expenses increased 9.4%, 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 ($1.0 million). This was partially offset by a decrease in stock-based compensation expense ($0.1 million).
Previous wording
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).
Current wording
During the three months ended September 30, 2026, selling, general and administrative expense increased 4.3%, primarily due to increases in insurance expense, including claims on our policies ($0.2 million) and Executive Chairman of the Board of Directors stock-based compensation expense ($0.1 million). These increases were partially offset by a decrease in commissions ($0.2 million).
Previous 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).
Current wording
During the nine months ended September 30, 2026, selling, general and administrative expense increased 11.2%, primarily due to increases in Executive Chairman of the Board of Directors compensation stock-based expense ($0.8 million), commissions ($0.2 million), insurance expense, including claims on our policies ($0.1 million) and miscellaneous other expenses ($0.3 million). These increases were partially offset by a decrease in allowances for credit losses ($0.1 million).
Previous 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.
Current wording
Interest income was flat at approximately $0.3 million for the three months ended September 30, 2026 and 2025. Interest income decreased approximately $0.1 million for the nine months ended September 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 flat at approximately $1.4 million and $2.8 million for the three and six months ended June 30, 2026 and 2025, respectively.
Current wording
Interest expense was flat at approximately $1.4 million and $4.2 million for the three and nine months ended September 30, 2026 and 2025, respectively.
Previous 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.
Current wording
Income tax expense was approximately $116,000 and $78,000 with effective tax rates of (6.9)% and (4.2)% for the three months ended September 30, 2026 and 2025, respectively. Income tax expense was approximately $383,000 and $176,000 with effective tax rates of (5.8)% and (1.8)% for the nine months ended September 30, 2026 and 2025, respectively. For the three and nine months ended September 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 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.
Current wording
At September 30, 2026, we had approximately $25.8 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 September 30, 2026 was approximately $43.0 million compared with $46.8 million at December 31, 2025.
Previous 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.
Current wording
For the nine months ended September 30, 2026, net cash used in operating activities was approximately $5.7 million, compared with net cash used in operating activities of approximately $5.5 million in the nine months ended September 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 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.
Current wording
Net cash used in investing activities was $0.4 million and $0.8 million for the nine months ended September 30, 2026 and 2025, respectively, related to investments in property and equipment.
Previous 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.
Current wording
Net cash provided by financing activities for the nine months ended September 30, 2026 was $0.1 million and was primarily related to proceeds on the exercise of stock options.
Previous wording
On November 7, 2024, we entered into an amendment to the Perceptive Credit Agreement. The amendment reduced the financial covenant trailing twelve-month revenue targets relating to its Surgical Aesthetics segment (tested quarterly), with amended year-end targets of $52.4 million and $60.3 million for 2026 and 2027, respectively. The amendment also introduced a maximum operating expense financial covenant, with a full year target of $45.0 million for 2026. The Perceptive Credit Agreement, as amended, continues to contain customary affirmative and negative covenants, including covenants limiting the ability of us and our subsidiaries, among other things, to incur debt, grant liens, make distributions, enter certain restrictive agreements, pay or modify subordinated debt, dispose of assets, make investments and acquisitions, enter into certain transactions with affiliates, and undergo certain fundamental changes, in each case, subject to limitations and exceptions set forth in the Perceptive Credit Agreement. Additionally, we must maintain a balance of $3.0 million in cash and cash equivalents during the term of the Perceptive Credit Agreement. As of June 30, 2026, we were in compliance with the financial covenants contained within the Perceptive Credit Agreement, as amended. Our continued compliance with covenants is subject to meeting or exceeding forecasted Surgical Aesthetics revenues, as amended and controlling operating expenses.
Current wording
On November 7, 2024, we entered into an amendment to the Perceptive Credit Agreement. The amendment reduced the financial covenant trailing twelve-month revenue targets relating to its Surgical Aesthetics segment (tested quarterly), with amended year-end targets of $52.4 million and $60.3 million for 2026 and 2027, respectively. The amendment also introduced a maximum operating expense financial covenant, with a full year target of $45.0 million for 2026. The Perceptive Credit Agreement, as amended, continues to contain customary affirmative and negative covenants, including covenants limiting the ability of us and our subsidiaries, among other things, to incur debt, grant liens, make distributions, enter certain restrictive agreements, pay or modify subordinated debt, dispose of assets, make investments and acquisitions, enter into certain transactions with affiliates, and undergo certain fundamental changes, in each case, subject to limitations and exceptions set forth in the Perceptive Credit Agreement. Additionally, we must maintain a balance of $3.0 million in cash and cash equivalents during the term of the Perceptive Credit Agreement. As of September 30, 2026, we were in compliance with the financial covenants contained within the Perceptive Credit Agreement, as amended. Our continued compliance with covenants is subject to meeting or exceeding forecasted Surgical Aesthetics revenues, as amended and controlling operating expenses. Monthly principal payments on the Perceptive Credit Agreement commence in November 2027 at 3% of the outstanding balance through maturity in November 2028.
Previous 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.
Current wording
At September 30, 2026, we had purchase commitments totaling approximately $3.9 million, substantially all of which is expected to be purchased within the next twelve months.
Previous wording
The preparation of the consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Our estimates and assumptions, including those related to inventories, intangible assets, property, plant and equipment, legal proceedings, research and development, warranty obligations, product liability, sales returns and discounts, stock-based compensation and income taxes are updated as appropriate, which in most cases is at least quarterly. We base our estimates on historical experience, or various assumptions that are believed to be reasonable under the circumstances and the results form the basis for making judgments about the reported values of assets, liabilities, revenues and expenses. Actual results may materially differ from these estimates.
Current wording
The preparation of the consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Our estimates and assumptions, including those related to inventories, legal proceedings, warranty obligations, product liability, sales returns and discounts, stock-based compensation and income taxes are updated as appropriate, which in most cases is at least quarterly. We base our estimates on historical experience, or various assumptions that are believed to be reasonable under the circumstances and the results form the basis for making judgments about the reported values of assets, liabilities, revenues and expenses. Actual results may materially differ from these estimates.