Apyx Medical Q2 2026 Earnings: Surgical Aesthetics Drives 22% Revenue Growth

Apyx Medical (NASDAQ: APYX) reported Q2 2026 revenue of $13.9 million, up 22.1% from $11.4 million a year earlier, while diluted GAAP loss per share narrowed to $0.07 from $0.09. Surgical Aesthetics revenue rose 28.1% as AYON sales, international generator sales, and domestic single-use handpiece volumes more than offset weaker OEM and domestic standalone generator sales. The non-GAAP adjusted EBITDA loss narrowed to $0.7 million, although operating cash use increased to $3.5 million because of working-capital changes.

Core Financial Results

Higher revenue and a more favorable sales mix lifted gross profit by 25.2%, slightly faster than the top-line increase. Operating expenses rose by $1.0 million, but the increase in gross profit was sufficient to narrow the GAAP operating loss.

Apyx remained unprofitable during the quarter. However, both the GAAP net loss attributable to stockholders and the non-GAAP adjusted EBITDA loss improved from the prior-year period.

Adjusted EBITDA is a non-GAAP measure that excludes items including interest, taxes, depreciation and amortization, and stock-based compensation.

Business and Segment Performance

Surgical Aesthetics accounted for most of the quarterly growth. The segment benefited from AYON, which was commercially launched in Q3 2025, as well as higher international generator sales and increased domestic volumes of single-use handpieces. Lower domestic sales of standalone generators partially offset those gains.

OEM revenue declined because of lower sales volumes to existing customers. Management expects OEM revenue to decrease for FY2026 and indicated that the downward trend will continue as the company focuses more resources on Surgical Aesthetics.

Apyx also received expanded FDA 510(k) clearance for AYON to include power liposuction. It began a limited commercial launch of the reusable power liposuction handpiece with selected surgeons, with initial shipments in June 2026. The company did not quantify the handpiece’s revenue contribution during the quarter.

Better Sales Mix Narrows Losses, but Working Capital Increases Cash Use

Gross margin increased to 63.9% primarily because Surgical Aesthetics represented a larger share of total revenue and because of product mix within OEM. Tariffs, which began affecting Apyx in the second half of 2025, partially offset that improvement.

Gross profit increased by $1.787 million, exceeding the $1.019 million increase in operating expenses and narrowing the operating loss by $0.768 million. The expense increase included $1.0 million of additional selling, general and administrative spending and $0.3 million of higher salary-related costs, partly offset by a $0.3 million reduction in professional services.

Cash flow moved in the opposite direction from operating profitability. Operating cash use increased to $3.5 million because of working-capital changes, despite the smaller operating loss. Between December 31, 2025 and June 30, 2026, inventory increased from $8.6 million to $10.7 million, while accounts payable and accrued liabilities declined.

Apyx ended the quarter with $27.6 million in cash and cash equivalents, down from $31.7 million at the end of 2025. Long-term debt was $35.3 million. Management believes its projections—including AYON adoption, working-capital management, and cost controls—provide sufficient cash through 2027.

FY2026 Guidance

Apyx reaffirmed rather than raised its guidance for the year ending December 31, 2026. The outlook continues to assume that Surgical Aesthetics growth will more than offset a material decline in OEM revenue.

First-half revenue totaled $26.374 million, so the full-year target implies approximately $32.6 million to $33.6 million of revenue in the second half of 2026.

Recent Insider Transactions

The available insider data show no reported insider purchases or sales during the latest six-month summary period. Transactions reported over the last two years were primarily derivative-security exercises and stock awards; these are distinct from direct purchases or sales.

The data do not support drawing conclusions about management’s outlook from these transactions alone.

Risks for Investors to Monitor

• Dependence on Surgical Aesthetics: FY2026 guidance relies on continued AYON and Renuvion-related growth as OEM revenue contracts.
• Elevated cash consumption: Operating cash use increased even as operating and adjusted EBITDA losses narrowed. Continued working-capital demands could pressure the $27.6 million cash balance.
• Tariff pressure: Tariffs already partially offset the benefit of a more favorable sales mix and could continue affecting gross margin.
• Expense and interest burden: Operating expenses rose during the quarter, while interest expense remained approximately $1.4 million, limiting the improvement in the bottom line.
• Structural OEM decline: Management expects OEM revenue to fall in 2026 and continue decreasing over time, increasing the company’s concentration in Surgical Aesthetics.

Summary

Apyx Medical’s Q2 2026 growth was led by Surgical Aesthetics and the expanding AYON platform, producing higher gross margin and narrower GAAP and adjusted EBITDA losses. The main counterpoint was increased operating cash use from working-capital changes. Execution during the second half will center on AYON adoption, converting the expanded power-liposuction clearance into sales, controlling expenses, and delivering the Surgical Aesthetics growth embedded in reaffirmed FY2026 guidance.