Apyx Medical Reports $48.1 Million Revenue for Fiscal Year 2024, Implements Cost-Saving Restructuring

Apyx Medical Corporation reported a total revenue of $48.1 million for the fiscal year ended December 31, 2024, reflecting an 8.1% decrease from $52.3 million in 2023. The Advanced Energy segment, which includes the company's Helium Plasma Technology products marketed as Renuvion and J-Plasma, generated $38.6 million, down 11.0% from the previous year. This decline was attributed to lower sales of generators in both domestic and international markets, driven by economic uncertainty in the capital equipment sector. In contrast, the OEM segment saw a revenue increase of 5.9%, totaling $9.5 million, primarily due to higher sales volume to existing customers.

The company incurred a loss from operations of $18.8 million in 2024, compared to a loss of $17.3 million in 2023. Apyx Medical utilized $18.0 million in cash for operations during the year, with cash and cash equivalents at $31.7 million as of December 31, 2024. In response to ongoing financial challenges, the company implemented a cost-saving restructuring in November 2024, which included a nearly 25% reduction in its U.S. workforce, expected to yield annual savings of approximately $4.3 million. Additionally, the company has identified further cost-saving measures aimed at reducing annual operating expenses below $40 million in 2025.

Strategically, Apyx Medical is focused on expanding its product offerings and market presence. On January 6, 2025, the company submitted a 510(k) premarket notification to the FDA for the AYON Body Contouring System, designed to provide comprehensive body contouring solutions. The company plans to enhance its regulatory approvals and expand product availability in new markets worldwide. Apyx Medical's direct sales force and international distributor network are actively working to increase the adoption of its products, with management estimating that its products have been sold in over 60 countries.

Operationally, Apyx Medical reported selling approximately 94,000 single-use handpieces in 2024, an 8% increase overall and a 15% increase in the U.S. market compared to 2023. The company has also reduced its board of directors from eight to five members and cut board cash compensation significantly while increasing stock-based compensation. The company’s workforce reduction and other cost-saving initiatives are part of a broader strategy to achieve cash-flow breakeven and improve financial stability.

Looking ahead, Apyx Medical anticipates continued challenges in the aesthetic market, particularly due to the impact of GLP-1 medications on consumer behavior. However, the company believes that the eventual effects of these medications may drive demand for body contouring procedures, potentially benefiting its Renuvion products. The company remains committed to its strategic initiatives and is focused on enhancing its market position while navigating the current economic landscape.