Apyx Medical Corporation 2025 Annual Report: Key Developments, Risks, and Opportunities for Investors

Executive Summary

Apyx Medical Corporation has released its Annual Report for the fiscal year ended December 31, 2025. This comprehensive review brings together critical financial, operational, and strategic updates, with an emphasis on factors that may materially impact shareholders and potentially drive share price movements. The report details the company’s performance, ongoing risk factors, capital-raising activities, and strategic direction.

Key Highlights for Shareholders

• Continued Listing on Nasdaq Global Select Market: Apyx Medical’s common stock trades under the ticker “APYX” and remains listed on the Nasdaq Global Select Market.
• Significant Capital Raises in Late 2024 and 2025: The company closed a \$7.0 million registered direct offering in November 2024, and in November 2025, completed an underwriting agreement raising net proceeds of approximately \$9.1 million. In December 2025, Apyx filed a new shelf registration statement for up to \$100 million in securities, replacing its expired prior shelf. These capital raising actions are critical for liquidity and operational continuity and may have a dilutive impact on existing shareholders.
• Ongoing Operating Losses and Liquidity Risks: Apyx Medical continues to report recurring net losses. The company warns that it may need to adjust operating expenditures, raise additional capital, or potentially limit operations if further financing is not secured. If new equity is issued, it will be dilutive and could pressure the stock price.
• Cost Savings Initiative: Operating expenses have been reduced to below \$40 million in 2025, compared to \$48.2 million in 2024 and \$53.7 million in 2023, as a result of organizational changes and other direct cost savings.
• Human Capital: As of year-end 2025, the company employed 205 full-time staff globally, including 4 executive officers. The company maintains a strong safety record, reporting no lost time accidents in 2024 or 2025.

Major Risk Factors and Potential Price-Sensitive Issues

• Liquidity and Going Concern Risks:
  • Apyx Medical’s history of operating losses and the possibility of further losses raises questions about its ability to continue as a going concern. The company explicitly states that it may need to raise additional capital to fund operations, and failure to do so could have a material adverse effect on the business and share value.
  • Any new capital raised through equity offerings will be dilutive to existing shareholders and may weigh on the stock price.
• Debt and Covenant Risks:
  • The company’s ability to service its debt depends on generating sufficient cash from operations. Failure to meet debt covenants, or generate adequate cash flow, could force asset sales, further equity issuance, or other actions adverse to shareholders.
• Regulatory Uncertainty:
  • The company faces ongoing regulatory hurdles, particularly with the FDA and other global health authorities. Delays or failures in gaining regulatory approvals for new products or indications could significantly impact future growth.
  • Any negative regulatory action (e.g., product recalls, non-approval, or enforcement actions) could materially impact the company’s reputation, operations, and share price.
• Competitive and Market Risks:
  • The energy-based medical device market, especially for aesthetics, remains highly competitive with larger, better-resourced rivals. Failure to innovate, obtain regulatory clearance, or defend intellectual property could impede growth.
  • Significant reliance on single-source suppliers for key raw materials and components increases vulnerability to supply chain disruptions, which could hurt revenue and margins.
• Macroeconomic and Consumer Risks:
  • Inflation, higher interest rates, and reduced consumer credit availability may adversely impact demand for the company’s products and services.
• Product Liability and Quality Concerns:
  • Quality problems or product liability claims could lead to costly recalls, lawsuits, and reputational damage, with material adverse effects on financial results.
• Stock Price Volatility:
  • The company’s stock price has experienced, and may continue to experience, high volatility. Announcements relating to capital raises, regulatory developments, litigation, or operating results can significantly move the share price.

Strategic Initiatives and Market Position

• Product Focus: The company’s growth remains tied to the continued commercialization of its Helium Plasma Technology and related devices (e.g., Renuvion, AYON). Success depends on regulatory approvals, market adoption, and effective sales and marketing.
• Segment Structure: Apyx operates two reportable segments: Surgical Aesthetics and OEM. The Surgical Aesthetics segment targets the high-growth cosmetic surgery market, while OEM focuses on development and manufacturing contracts.
• Cost Reductions and Organizational Changes: Management implemented cost-saving measures, including reductions in professional fees, R&D costs, and stock-based compensation.
• Sales Channels and Growth Strategy: The company is investing in direct sales and distributor networks, international expansion, and training programs to accelerate adoption among surgeons and healthcare providers.

Recent Capital Market Activity

• On November 7, 2024, Apyx closed a \$7.0 million registered direct offering, issuing 3 million shares and over 2.9 million pre-funded warrants. On November 18, 2025, the company raised a further \$9.1 million net in an underwritten public offering, selling over 2.7 million shares at \$3.62 each.
• On December 1, 2025, Apyx filed a shelf registration statement for up to \$100 million in securities, giving management flexibility to raise additional capital as needed, but also signaling the potential for further dilution.
• As of March 9, 2026, 41,829,226 shares of common stock were outstanding.
• Public float as of June 30, 2025, was approximately \$79.8 million.

Outlook and Forward-Looking Statements

Management cautions that forward-looking statements in the report are subject to numerous risks, uncertainties, and assumptions. Key risk factors include regulatory outcomes, capital needs, competition, supply chain disruptions, and macroeconomic trends. Investors should not place undue reliance on projections, as actual results may differ materially.

Conclusion

Potentially Price-Sensitive Information: The company’s ongoing capital raising efforts, recurring operating losses, liquidity risks, and regulatory uncertainties are all potentially material to the share price. Any significant developments—positive or negative—in these areas could drive major movements in APYX shares.

Investors should closely monitor:

• Ongoing capital raising and the potential for further dilution
• Progress on regulatory approvals and product launches
• Updates on supply chain and cost control initiatives
• Competitive dynamics and market share in aesthetics

Disclaimer: This summary is for informational purposes only and does not constitute investment advice. Forward-looking statements are subject to risks and uncertainties. Investors should review the full Annual Report and consult with their financial advisors before making investment decisions.

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