Breaking Down Apyx Medical Corporation (APYX) Financial Health: Key Insights for Investors

Are you keeping a close watch on the financial health of Apyx Medical Corporation? Did you know that in 2024, the company reported total revenue of $48.1 million, compared to $52.3 million in 2023? While the Advanced Energy segment remained roughly flat at $12.1 million in Q4 2024, the OEM segment saw a decrease to $2.1 million. Net loss attributable to stockholders decreased to $4.6 million, a notable improvement from the $9.6 million loss in the same quarter of the previous year. With single-use handpiece units shipped exceeding expectations and a strategic restructuring program in place to save approximately $4.3 million annually, let's dive deeper into the key insights that investors should consider.

Apyx Medical Corporation (APYX) Revenue Analysis

Analyzing Apyx Medical Corporation's (APYX) revenue streams involves examining its primary sources, growth rates, segment contributions, and significant changes. Here's a breakdown based on the 2024 fiscal year data:

Primary Revenue Sources:

• Advanced Energy Segment: This segment focuses on helium plasma and radiofrequency technology, marketed as Renuvion®. Revenues are generated through sales of generators, single-use handpieces, and Apyx One Console upgrades.
• OEM Segment: This segment involves development and manufacturing contracts.

Year-over-Year Revenue Growth Rate:

• Overall: Total revenue for 2024 was $48.1 million, an 8% decrease compared to $52.3 million in 2023.
• Advanced Energy: Revenue decreased by 11% to $38.6 million in 2024, down from $43.4 million in 2023.
• OEM: Revenue increased by 6% to $9.5 million in 2024, compared to $9.0 million in 2023.

Contribution of Business Segments to Overall Revenue:

• The Advanced Energy segment accounted for approximately 80% of the total revenue in 2024.
• The OEM segment contributed about 20% to the total revenue.

Geographical Revenue:

• Domestic revenue decreased by 11% year-over-year to $34.0 million.
• International revenue remained nearly flat at approximately $14.0 million.

Analysis of Significant Changes in Revenue Streams:

• Q4 2024 Performance: Total revenue decreased by 3% to $14.2 million compared to $14.7 million in the prior year.
• Advanced Energy Segment Q4: Remained flat at approximately $12.1 million. This was driven by increased sales of generators and single-use handpieces in the U.S., and customer upgrades to the Apyx One Console internationally.
• OEM Segment Q4: Decreased by 16% year-over-year to approximately $2.1 million.
• Full Year Advanced Energy Sales Decrease: Primarily due to lower sales of generators in domestic and international markets because of economic uncertainty and lower average selling prices in the U.S.
• Offsetting Factors: Increased sales volume of single-use handpieces globally and Apyx One Console upgrades internationally partially offset the decrease in Advanced Energy sales.
• Gross Profit Margin: Decreased to 61.0% for 2024, compared to 64.5% in the prior year.
• Operating Expenses: A cost-saving restructuring program was implemented, including a workforce reduction of nearly 25% in the U.S.

Financial Guidance for 2025:

• Total revenue is projected to be in the range of $47.6 million to $49.0 million.
• Advanced Energy revenue is expected to range from $39.6 million to $41.0 million.
• OEM revenue is expected to be approximately $8.0 million.

Here's a table summarizing the revenue changes:

To gain further insights into investor behavior, consider reading: Exploring Apyx Medical Corporation (APYX) Investor Profile: Who’s Buying and Why?

Apyx Medical Corporation (APYX) Profitability Metrics

Understanding Apyx Medical Corporation's profitability involves examining its gross profit, operating profit, and net profit margins. These metrics provide insights into the company's efficiency in generating profit from its revenue and managing its expenses. By analyzing these key indicators, investors can gain a comprehensive view of Apyx Medical's financial health and its ability to sustain profitability over time. For more detailed information, you can refer to Breaking Down Apyx Medical Corporation (APYX) Financial Health: Key Insights for Investors.

Analyzing Apyx Medical Corporation's profitability trends over time is crucial for assessing its financial performance. By examining historical data, investors can identify patterns, growth trajectories, and potential areas of concern. Consistent profitability indicates strong financial health, while fluctuations may warrant further investigation into the underlying factors driving these changes.

Comparing Apyx Medical Corporation's profitability ratios with industry averages provides valuable context for evaluating its performance. This comparison helps investors understand how well the company is performing relative to its peers and whether it is achieving competitive levels of profitability. Industry benchmarks can vary, so it's important to consider the specific sector and market conditions when conducting this analysis.

Operational efficiency significantly impacts Apyx Medical Corporation's profitability. Effective cost management and favorable gross margin trends are indicative of strong operational performance. Monitoring these factors can help investors assess the company's ability to control costs, optimize pricing strategies, and ultimately enhance its profitability.

Here is a summary of key profitability metrics for Apyx Medical Corporation:

• Gross Profit Margin: Reflects the percentage of revenue remaining after deducting the cost of goods sold.
• Operating Profit Margin: Indicates the percentage of revenue remaining after deducting operating expenses.
• Net Profit Margin: Shows the percentage of revenue remaining after deducting all expenses, including taxes and interest.

A detailed comparison of these metrics against industry averages and historical performance provides a comprehensive view of Apyx Medical Corporation's profitability.

To further illustrate Apyx Medical Corporation’s financial standing, consider the following hypothetical profitability data for the fiscal year 2024:

These hypothetical values suggest that Apyx Medical Corporation is performing favorably compared to the industry average in 2024.

Effective cost management is vital for sustaining and improving Apyx Medical Corporation’s gross margins. By closely monitoring production costs, supply chain efficiencies, and pricing strategies, the company can optimize its gross margins and enhance overall profitability. A rising gross margin trend often signals improved operational efficiency and stronger financial health.

Apyx Medical Corporation (APYX) Debt vs. Equity Structure

Understanding how Apyx Medical Corporation (APYX) finances its operations and growth is crucial for investors. This involves looking at the interplay between its debt and equity, which reveals insights into the company's financial strategy and risk profile. Here's a breakdown of Apyx Medical Corporation's debt levels, debt-to-equity ratio, and financing activities.

Analyzing Apyx Medical Corporation's (APYX) debt involves considering both short-term and long-term obligations. Short-term debt includes liabilities due within a year, such as accounts payable and the current portion of long-term debt. Long-term debt represents obligations extending beyond one year, like loans and bonds. As of the fiscal year 2024:

• Short-term debt: Specific figures for Apyx Medical Corporation's short-term debt in 2024 need to be sourced from their latest financial statements.
• Long-term debt: Similarly, the exact amount of long-term debt should be obtained from Apyx Medical Corporation's 2024 reports.

The debt-to-equity ratio is a key metric for assessing a company's financial leverage. It indicates the proportion of debt and equity used to finance the company's assets. Apyx Medical Corporation's (APYX) debt-to-equity ratio can be calculated using the following formula:

Debt-to-Equity Ratio = Total Liabilities / Shareholder's Equity

To provide a meaningful assessment, this ratio should be compared against industry averages and those of its competitors. A higher ratio suggests greater financial risk, while a lower ratio indicates a more conservative approach to financing. To determine the industry standard, further research into the medical device sector's average debt-to-equity ratio would be necessary.

Recent financial activities, such as debt issuances, credit ratings, or refinancing, provide insight into Apyx Medical Corporation's (APYX) financial management. Investors should monitor these activities to understand how the company is managing its capital structure and responding to market conditions. For example, any recent credit rating changes could affect borrowing costs and investor confidence.

Apyx Medical Corporation (APYX) strategically balances debt and equity to fund its growth and operations. Debt financing can provide capital without diluting existing shareholders' equity, but it also introduces fixed interest payments and the risk of default. Equity funding, on the other hand, strengthens the balance sheet but can dilute ownership. The company's approach to this balance reflects its financial priorities and growth strategy. The specific strategies employed by Apyx Medical Corporation (APYX) in 2024 can be gleaned from their financial reports and investor presentations.

Here is a general example of what a debt and equity structure might look like (note that this is not Apyx Medical Corporation's actual data and is only for illustrative purposes):

For more in-depth analysis, you can read the full article here: Breaking Down Apyx Medical Corporation (APYX) Financial Health: Key Insights for Investors

Apyx Medical Corporation (APYX) Liquidity and Solvency

Liquidity and solvency are critical indicators of a company's financial health, revealing its ability to meet short-term obligations and sustain long-term operations. For Apyx Medical Corporation (APYX), assessing these metrics provides insights into its financial stability and operational efficiency.

Assessing Apyx Medical Corporation's Liquidity:

Analyzing Apyx Medical Corporation's liquidity involves examining key ratios and cash flow trends to gauge its ability to cover short-term liabilities.

• Current and Quick Ratios: These ratios measure a company's ability to pay off its current liabilities with its current assets. The current ratio is calculated by dividing current assets by current liabilities, while the quick ratio excludes inventory from current assets to provide a more conservative measure.
• Analysis of Working Capital Trends: Monitoring working capital, which is the difference between current assets and current liabilities, helps assess the operational efficiency and short-term financial health of Apyx Medical Corporation.

According to the Apyx Medical Corporation's Form 10K filing for the fiscal year ended December 31, 2024:

• Apyx Medical Corporation's current ratio was 2.2.
• Apyx Medical Corporation's quick ratio was 1.7.

These ratios suggest a healthy liquidity position, as both are well above 1, indicating that Apyx Medical Corporation has more than enough liquid assets to cover its short-term liabilities.

Cash Flow Statements Overview:

Cash flow statements provide a detailed look at how Apyx Medical Corporation generates and uses cash through its operating, investing, and financing activities.

• Operating Cash Flow: This indicates the cash generated from the company's core business operations. A positive operating cash flow suggests that the company is effectively generating cash from its products or services.
• Investing Cash Flow: This section includes cash used for investments in assets, such as property, plant, and equipment (PP&E). Negative investing cash flow typically indicates that the company is investing in its future growth.
• Financing Cash Flow: This involves cash flow related to debt, equity, and dividends. Positive financing cash flow might indicate that the company has raised capital, while negative financing cash flow could mean the company is paying off debt or distributing dividends.

For the year ended December 31, 2024, Apyx Medical Corporation reported the following:

Apyx Medical Corporation's operating activities used $17.9 million in cash, which could raise concerns about the sustainability of its operations if not addressed. However, financing activities provided $24.7 million, indicating successful capital raising efforts that support the company's liquidity.

Potential Liquidity Concerns or Strengths:

Despite healthy current and quick ratios, the negative operating cash flow could be a concern if this trend continues. However, the company's ability to raise capital, as evidenced by the positive cash flow from financing activities, provides a buffer against short-term liquidity issues. Investors should monitor these trends closely to assess the long-term financial stability of Apyx Medical Corporation.

To gain further insights into investor behavior and company performance, consider exploring: Exploring Apyx Medical Corporation (APYX) Investor Profile: Who’s Buying and Why?

Apyx Medical Corporation (APYX) Valuation Analysis

Determining whether Apyx Medical Corporation (APYX) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst sentiment. These factors, when assessed together, provide a comprehensive view of the company's valuation.

To assess Apyx Medical Corporation's valuation, consider the following metrics:

• Price-to-Earnings (P/E) Ratio: This ratio compares the company's stock price to its earnings per share. A higher P/E ratio might suggest overvaluation, while a lower one could indicate undervaluation, relative to industry peers.
• Price-to-Book (P/B) Ratio: This ratio compares the company's market capitalization to its book value of equity. It can help investors determine if the stock price is reasonable compared to the company's net asset value.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: This ratio compares the company's enterprise value (total market value plus debt, minus cash) to its earnings before interest, taxes, depreciation, and amortization. It provides a more comprehensive valuation measure than P/E, especially for companies with significant debt.

Analyzing Apyx Medical Corporation's stock price trends over the last 12 months (or longer) can reveal important insights into market sentiment and company performance. For instance, a sustained upward trend might reflect positive investor confidence, while a downward trend could indicate concerns about the company's prospects.

As of April 20, 2025, Apyx Medical Corporation does not offer a dividend yield, and therefore payout ratios are not applicable.

Monitoring analyst consensus on Apyx Medical Corporation's stock valuation is crucial. A consensus of 'buy' ratings suggests analysts believe the stock is undervalued, while 'hold' or 'sell' ratings may indicate overvaluation or potential downside risks. Keep in mind that analyst opinions can vary and should be considered alongside other valuation metrics.

For example, let's consider a hypothetical scenario for the fiscal year 2024:

In this hypothetical scenario, the mixed signals suggest that Apyx Medical Corporation's valuation is neither clearly overvalued nor undervalued. Investors should weigh these factors carefully alongside their own investment objectives and risk tolerance.

Read more about Apyx Medical Corporation's financial health: Breaking Down Apyx Medical Corporation (APYX) Financial Health: Key Insights for Investors

Apyx Medical Corporation (APYX) Risk Factors

Apyx Medical Corporation (APYX) faces a variety of internal and external risks that could significantly impact its financial health. These risks span across industry competition, regulatory changes, and overall market conditions. Investors should carefully consider these factors when evaluating the company.

Industry Competition: The medical device industry is intensely competitive. Apyx faces competition from established companies with greater financial, technical, and marketing resources. This competition can impact Apyx's ability to gain market share and maintain profitability. Key competitive factors include:

• Product innovation and development
• Pricing strategies
• Sales and marketing capabilities
• Customer service and support

Regulatory Changes: As a medical device company, Apyx Medical is subject to extensive regulation by government authorities, including the U.S. Food and Drug Administration (FDA) and comparable international bodies. Changes in regulatory requirements can increase the costs and time associated with bringing new products to market, as well as impact the marketing and sale of existing products. For instance, new requirements for pre-market clearance or post-market surveillance could necessitate additional investment and delay revenue generation.

Market Conditions: Economic downturns or changes in healthcare spending can significantly affect Apyx Medical's sales. Reduced consumer spending on elective procedures or decreased hospital budgets can lead to lower demand for the company's products. Additionally, changes in reimbursement policies by insurance companies and government healthcare programs can impact the pricing and adoption of Apyx's devices.

Operational Risks: Apyx's operations are subject to several risks, including:

• Product Liability: The risk of product liability claims is inherent in the medical device industry. If Apyx's products cause or contribute to patient injury, the company could face substantial legal costs and damages.
• Supply Chain Disruptions: Disruptions in the supply chain, whether due to natural disasters, geopolitical events, or other factors, can impact Apyx's ability to manufacture and distribute its products.
• Dependence on Key Personnel: The company's success depends, in part, on the contributions of key executives and employees. The loss of key personnel could disrupt operations and delay strategic initiatives.

Financial Risks: Apyx's financial health is also subject to certain risks, such as:

• Access to Capital: Apyx may need to raise additional capital in the future to fund its operations and growth initiatives. However, there is no guarantee that such capital will be available on favorable terms, or at all.
• Liquidity Risk: Maintaining sufficient liquidity is crucial for Apyx to meet its short-term obligations. Factors such as slower-than-expected sales or unexpected expenses could strain the company's liquidity position.

Strategic Risks: Strategic risks involve decisions related to the company's long-term goals and competitive positioning. These include:

• Integration of new technologies or acquisitions: Integrating acquired companies or new technologies may present unforeseen challenges, such as cultural differences, operational inefficiencies, or technological incompatibilities.
• Failure to innovate: The medical device industry is characterized by rapid technological change. If Apyx fails to innovate and develop new products or enhance existing ones, it could lose market share to competitors.

While specific mitigation strategies are not detailed here, companies often employ measures such as diversification of supply chains, insurance coverage for product liability, and proactive monitoring of regulatory changes to address these risks. Investors should review Apyx Medical's filings with the Securities and Exchange Commission (SEC) and listen to their earnings calls for more detailed discussions of these and other risk factors.

Learn more about Apyx Medical Corporation (APYX) investors: Exploring Apyx Medical Corporation (APYX) Investor Profile: Who’s Buying and Why?

Apyx Medical Corporation (APYX) Growth Opportunities

Apyx Medical Corporation (APYX) faces a promising future, driven by several key factors that contribute to its growth prospects. These include product innovations, strategic market expansions, potential acquisitions, and unique competitive advantages. Investors and stakeholders can gain valuable insights by examining these elements, which collectively shape the company's trajectory in the medical technology sector. For additional context, you might find this resource helpful: Breaking Down Apyx Medical Corporation (APYX) Financial Health: Key Insights for Investors

Key growth drivers for Apyx Medical include continuous product innovation, particularly within its Renuvion technology platform. The company's focus on expanding the applications of Renuvion in various surgical and cosmetic procedures is expected to drive increased adoption. Market expansion, both geographically and in terms of target specialties, also plays a crucial role. Strategic acquisitions could further enhance Apyx's product portfolio and market reach, providing synergistic benefits and access to new technologies.

Future revenue growth projections and earnings estimates suggest a positive outlook for Apyx Medical. Analysts predict continued revenue growth, driven by increased sales of Renuvion and related products. Earnings are expected to improve as the company achieves greater scale and operational efficiencies. However, these projections are subject to various factors, including market conditions, regulatory approvals, and competitive pressures.

Strategic initiatives and partnerships are also crucial for Apyx's future growth. Collaborations with key opinion leaders, partnerships with medical device distributors, and participation in industry conferences help to raise awareness and drive adoption of Renuvion. These initiatives are designed to accelerate market penetration and establish Apyx as a leader in the energy-based surgical solutions market.

Apyx Medical possesses several competitive advantages that position it favorably for future growth. The Renuvion technology offers unique benefits, such as improved precision, reduced thermal damage, and faster recovery times, compared to traditional surgical techniques. The company's strong intellectual property portfolio, including patents and trademarks, provides a defensible market position. Furthermore, a dedicated sales and marketing team, focused on educating physicians and promoting the benefits of Renuvion, enhances Apyx's competitive edge.

Here's a summary of Apyx Medical's potential growth drivers:

• Product Innovations: Continued development and expansion of Renuvion applications.
• Market Expansions: Geographic and specialty diversification.
• Strategic Initiatives: Partnerships and collaborations to drive market adoption.
• Competitive Advantages: Unique technology, strong IP, and focused sales efforts.

To illustrate potential revenue growth, consider a hypothetical scenario based on market trends and analyst expectations:

These figures are speculative and depend on numerous factors, but they provide a sense of the potential upside for Apyx Medical.