Apyx Medical (APYX) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue was $14.2M, down 3% year-over-year; advanced energy segment was flat at $12.1M, while OEM sales declined 16%.

• Advanced energy sales grew 30% sequentially from Q3 2024, driven by strong handpiece and capital equipment sales; U.S. handpiece shipments rose 20% year-over-year.

• Direct-to-consumer marketing exceeded expectations, boosting brand awareness and engagement.

• Restructuring in November 2024 reduced workforce by 25%, targeting $4.3M in annualized cost savings and over $4M in additional savings.

• Strengthened balance sheet via $6.8M–$7.0M direct offering and amended credit agreement.

Financial highlights

• Gross profit for Q4 2024 was $9M (up from $8.9M); gross margin rose to 63.0% from 60.9% year-over-year.

• Operating expenses fell to $12M from $14.7M, driven by reductions in SG&A, R&D, professional services, and salaries.

• Net loss attributable to stockholders was $4.6M ($0.12/share), improved from $9.6M ($0.28/share) in Q4 2023; adjusted EBITDA loss decreased 53% to $2.2M.

• Cash and equivalents at year-end were $31.7M, down from $43.7M a year prior.

• Full-year 2024 revenue declined 8% to $48.1M; Advanced Energy sales down 11%, OEM up 6%.

Outlook and guidance

• 2025 revenue expected between $47.6M–$49.0M, compared to $48.1M in 2024.

• Advanced energy revenue projected at $39.6M–$41.0M; OEM revenue at ~$8M.

• Gross margin guidance for 2025 is ~60%; operating expenses not to exceed $40M.

• Cash runway projected into 2027, supported by cost controls and capital investment.