Apyx Medical at Canaccord Genuity: Strategic Growth and Market Adaptation

On Tuesday, 12 August 2025, Apyx Medical (NASDAQ:APYX) presented at Canaccord Genuity’s 45th Annual Growth Conference, highlighting its strategic initiatives amidst evolving market dynamics. The company, a leader in surgical aesthetics, discussed both opportunities and challenges, including the impact of GLP-1 drugs on demand for skin tightening procedures.

Key Takeaways

• Apyx Medical’s Renuvion business saw a 14% growth in single-use handpiece sales in the U.S.
• The AON body contouring system is expected to significantly boost revenue following its September launch.
• Operating costs are projected to decrease to less than $40 million by 2025.
• Revised revenue guidance for 2025 is set between $50 and $52 million.
• Apyx plans to manufacture Renuvion in China following recent market approval.

Financial Results

• Single-use handpiece sales reached 93,000 units in 2024, contributing to a 14% growth in the U.S.
• Operating costs have been reduced from $53 million in 2023 to $48 million in 2024, with a target of less than $40 million in 2025.
• The company holds $30 million in cash and carries $37.5 million in debt.
• Revenue guidance has been increased by $2.7 million, now projected at $50 to $52 million.
• Advanced energy revenue is expected to grow by 10%, reaching $42 to $44 million.

Operational Updates

• The AON body contouring system received FDA approval on May 11 and is set for a commercial launch in September.
• AON’s ultrasonic liposuction technology offers improved efficiency and safety compared to existing technologies.
• Renuvion’s direct-to-consumer marketing has been revamped, increasing website traffic and physician finder usage.
• Apyx Medical has expanded its global footprint with facilities in the U.S., Bulgaria, and China, and plans to produce Renuvion in China.

Future Outlook

• Apyx Medical is focused on launching AON and increasing Renuvion adoption.
• The company is pursuing a direct-to-consumer strategy for Renuvion and a B2B focus for AON.
• Expansion outside the U.S. is planned through AON registration.
• A continued emphasis on evidence-based medicine and clinical papers supports AON’s market presence.
• GLP-1 drugs are expected to drive demand for surgical aesthetic solutions, positioning Apyx as a market leader.

Q&A Highlights

• High demand from surgeons for AON’s advanced features to improve patient outcomes.
• Apyx Medical’s focus remains on partnering with surgeons.
• The GLP-1 trend is recognized as a global phenomenon, not limited to the U.S.

For further insights, readers are encouraged to refer to the full transcript provided below.

Full transcript - Canaccord Genuity’s 45th Annual Growth Conference:

Operator: we go.

Caitlin Cronin, Medical Device Team, Canaccord Genuity: Okay. Thanks. Good afternoon, everyone, and thank you for joining us at this year’s Canaccord Genuity global growth conference. My name is Caitlin Cronin, and I am on the medical device team here at Canaccord Genuity. I’m joined today by Apics Medical, a medical technology company specializing in helium plasma energy solutions for minimally invasive cosmetic and surgical procedures.

With me today are, Charlie Goodwin’s CEO, and thank you for joining me. Before we begin, I want to remind everyone of any relevant disclosures which can be found on our conference and our firm website. So with that, I’ll hand it over to management. Charlie?

Operator: Thank you very much. Appreciate you having us here. My name, as she said, is Charlie Goodwin. I’m the CEO of Apex Medical and we believe we are the leader in surgical aesthetics and I’m going to walk you through the company story. This is what my lawyers have put up so you can I’ll skip that part and go right into the good stuff.

So, we are the leading developer of surgical technologies used in minimally invasive aesthetic procedures and we believe that the aesthetic market over the last two years has incredibly changed and it’s incredibly changed because of the GLP-one drugs and we’ll get into that a little bit more. But Renuvion is the only FDA approved device for treatment of loose and lax skin which obviously if you know anybody that is on these drugs, that is one of the number one side effects of the drugs is loose and lax skin and we have always believed in evidence based medicine. We’ve got over 90 published clinical papers that talk about the safety and efficacy of Renuvion and we believe that we’ve established this as the leading technology for skin tightening. And fortunately, this last May, I think it was May 11, we got approval for our AON body contouring system and we are planning to start selling devices into the market in September. Talked a little bit about some of the trends that are going on in the market.

The GLP-one therapies are huge. Mackenzie talks about them being a $100,000,000,000 drug by 02/1930. We all know a lot of people individually that are on the drugs and they’re just going to be more and more people. Most of these users, almost half of them, are spending money on aesthetic treatments and sixty three percent of these patients are new to aesthetics. And so we think this is going to be a big boon over many years to come and quite frankly, I think that the next decade is going to be a home run for plastic surgeons because a lot of these people are going to be looking for solutions to take care of their bodies and the plastic surgeons are where they’re going to go.

We’ve also seen a shift in procedures and what we mean by that is liposuction procedures are down a little bit. They’re down about ten percent. But if you look at surgical lifts, they are up more than twenty percent and that makes a ton of sense in the environment of GLP-one drugs because as the patients start to lose weight and they start to gain laxity, they need some type of surgical intervention and some type of lift. And so, those numbers that are out there make a ton of sense to us. And skin tightening now is the number one requested treatment after weight loss.

In fact, seventy two percent of GLP-one users cited as the number one concern that they’ve had. The other thing that we see is a change in the treatment environment for these patients. Doctors are having to change their practice and change their treatment and we’re seeing combination procedures. And what we mean by combination procedures are combination incisional surgery and then skin tightening. And so, all of this is transforming the entire aesthetics market and we believe that’s why the market has been disrupted over the last couple years.

We don’t believe that it’s been the economy. We don’t believe that it’s been interest rates. We believe that it’s because of the mass shift that is coming from the GLP-one drugs. And fifty seven percent of these patients are seeking treatment within six months after they get to their ideal weight. So depending on how long they’re on the drug, they’ll usually wait about six months to make sure that they can keep the weight off and then they’ll seek some type of intervention And for most of these patients, we believe that’s a surgical intervention.

So here’s just some more data that is out there. If you follow Doctor. Randy Boyette, she does an incredible job on the med spas and has always got some of the most up to date information that is out there but the number one thing for GLP-one users is sixty three percent of them are seeking treatments for skin tightening and that is you can see the data where it comes from but it just means that we believe every aesthetic practice should have a Renuvion in it. Market opportunity is huge. I’m not even going to go into it or get to specifics about it.

We’re a company that did about $50,000,000 last year and total the play that the market that we play in is about $10,000,000,000. So, a huge, huge market. This is historically, we’ve our business has been predicated on Renuvion and Renuvion is a device that goes underneath the skin to treat loose and lax skin. This is our Capital Apex One generator. It has a list price of $165,000 and we will talk more in-depth on Renuvion itself here in a couple of slides.

Last year, in 2024, we sold the most single use handpieces that we’ve ever sold as a company and we sold 93,000 handpieces. Those single use disposables have an ASP of around $500 think about that, they are single use. And that handpiece business in The United States grew 14% in a time where a lot of the aesthetic companies were looking for growth. And we’re a little bit different too as far as most of our aesthetic peers in that 60% of our revenue is from the single use disposables. So, we really are partners with the surgeons.

We want them to help grow their surgical practice. Quite frankly, if they grow their practice and do more surgery, we sell more handpieces and it’s true partnership with the practice. This is how Renuvion works and it’s a minimally invasive surgical procedure and that is a three millimeter probe that you see up top there and it goes subdermally underneath the skin. So it’s only a three millimeter defect, it’s really small. And in the second picture there, those white bands are collagen bands and what Renuvion simply does is it heats collagen to the right temperature for the right amount of time to cause that maximum contraction and the end effect of that that you see and that you notice is skin tightening.

And collagen is usually stretched for two reasons. The most common one is fat. As you get fat in there, that stretches out the collagen. That’s what those yellow balls are. And if you stretch out your collagen because of fat, you need to have liposuction first to take the fat out to create the space so the bands can contract.

The other reason that collagen contracts or stretches is just because of the normal aging process. As you get older, your skin starts to sag a little bit and if it’s only from sagging skin from age and there’s no fat that needs to come out, you can actually just use Renuvion on its own to go in and contract the collagen bands, okay? And then, the body goes through a neocologenesis process that takes about nine to twelve months and so the results keep getting better over time and that’s what you see down there at the bottom picture. These are just some results. This gentleman obviously had some fat that needed to come out of his neck and his submental area and then you can see was treated with Renuvion.

The picture is pretty transformational. And then this is another very common procedure that is difficult to treat is women don’t like their back and bra roll and it’s historically been a tough area to treat and you can see that they removed the fat with liposuction and then came in with Renuvion after and tightened that up and you can see that the result is pretty remarkable for this patient. So, we were a one technology company. We had Renuvion where we had the piece of capital that I told you about, the single use disposable for skin tightening. And one of the things that we looked at as a company was what are we, what do we do, and what else can we bring to the marketplace that can help our surgeons?

And we started to develop what we call AON even before we knew what a GLP-one drug was. And the reason that we went down the surgical path is for a couple of reasons. First, we believe that in aesthetics, to get a truly durable and transformational result, you need to have a surgical intervention. And unfortunately, that’s the case but everybody in aesthetics would like to strap something to their abdomen, go have my Popeyes lunch, put something on my abdomen for half an hour and come out looking at it like Adonis with no pain, no downtime or no anything else. And unfortunately, that really doesn’t exist and so the only way to really get these results is through either a minimally invasive surgical procedure or an incisional surgical procedure.

And so, we got together a group of surgeons that actually designed the ultimate body contouring surgical platform in aesthetics. And when we looked at the environment and we looked at the competitors that were out there on the surgical side of things, a lot of the technologies hadn’t been updated in over twenty years. And all the technologies that exist in Aon today are represented in about four or five different companies. And so picture these doctors that have these procedure rooms in their offices and they’ve got four or five different technologies that are all around their table, that has all now been consolidated in Aon And not only just consolidated, but every technology that is in Aon is better than the existing technology that is on the marketplace today. Okay?

And so we got approval for Aon, as I mentioned earlier, on May 11. We actually are in a phase right now where we are rolling it out to our Aon ambassadors. We have about 20 Aon ambassadors throughout The United States that is only approved so far in The U. S. And they are doing a soft launch for us right now.

We have been taking pre orders for the commercial side of our business and we will be hopefully fulfilling those starting in September throughout the rest of this year. And we reported our second quarter on this past Thursday where we increased our guidance for the year by about $2,700,000 and that was on the confidence of AON pre orders that we have. And so, we think that AON not only is a game changer for the surgeons, their patients, and their practices, but we think that it totally transforms us as a company and really delivers value to the marketplace from the surgical side of things. And I’ll talk just about a couple of things since I’ve got a couple of minutes here to talk about one of the things that we really did that we really made different was the ultrasonic technology and we call it LIFT technology that we have in there. And the gold standard for ultrasonic liposuction that is on the marketplace today is called VASER.

It’s owned by Solta Medical and it is the gold standard in liposuction. It’s a great technology but it was developed about twenty years ago and really hasn’t had any significant change to it in that time. And one of the things that we were able to do is to make a smart instrument and that’s what Lift technology really is, is it senses the tissue environment that it’s in and the device works at the optimal efficiency in different tissue types. And what that means is it has the ability to emulsify fat faster than the existing technology. It also has the ability to work safer where the probe tip doesn’t get as hot and one of the downsides of ultrasonic technology is if that probe tip gets too hot, it can create a burn and a patient event.

And so by having this instrument now that is always looking for the most optimal way to work, you can create an instrument that is more efficient, safer and faster for the doctor. The other thing that’s incredibly important with Aon is it also has simultaneous activation which was incredibly important from our doctor surgeon group that developed this. And what I mean by simultaneous activation is you can have two doctors or a doctor and assistant doing two of the same thing at the same time or two different things at the same time. So, from a workflow perspective, from an efficiency perspective, from everything like that, Aon adds an incredible amount of efficiency into the OR for the doctors and we think it’s going to deliver precise superior results that the market hasn’t seen ever in something like this, okay? So, we have also have a direct to consumer marketing program for Renuvion and we think it’s really important to keep educating the consumer on their options for skin laxity that if they have loose and lax skin, they need to go find a provider near them.

And we have done an amazing job in the last year and a half of really transforming our DTC program to where with all the metrics that we’re measuring now, they’re kind of blowing up and we have more people today coming to our website for our physician finder to find a provider in their area that has Renuvion. And so, we will keep engaging on the D2C side Renuvion and then we will focus with Aon on the B2B side as that’s really a conversation for the provider and for their practice and for things like that. And so, we want to make sure that in this marketplace of GLP-one drugs that people that are going through this weight loss journey understand at the other end that there are options for them and that Renuvion is that option. We just won the Best Minimally Invasive Skin Tightener award from New Beauty, which the reason that I have this up here is it’s not a brand new technology and so it just kind of shows how important this category is to consumers and the beauty market as a whole, if you will, to have just won this award. Our company, we have a global presence.

We’re headquartered out of Clearwater, Florida here in The United States where we have R and D and manufacturing and distribution and in Sofia, Bulgaria where we also have R and D manufacturing and distribution. Bulgaria supports primarily the Europe and The Middle East. But obviously, if things change from a tariff perspective, we can ship out of each location depending on whatever happens there. And then we also have a joint venture and a contract manufacturing place in Ningbo, China. And we just actually got approval for the Chinese market just last month and so we’ve started our commercial operations there.

And our plan in China, having a JV, has always been to manufacture Renuvion in China for the Chinese market because obviously the Chinese government gives preferential treatment to Chinese manufactured goods. So, we announced a lot of strategic initiatives in ’4 and I’m not going to read all of those and if I miss any of those, you can read them all yourself. But really the biggest thing for us as a company was to shore up our balance sheet and to get to profitability as quickly as we possibly can in this marketplace. And so, the big thing that Matt, the CFO is back there that he and his team really did is we dug in and we looked for ways to reduce cost in the business and we took our operating costs, they will be less than $40,000,000 this year and no more than $45,000,000 the following year. And just to give some level of context for that, in ’twenty three, our operating costs were $53,000,000 and last year, they were $48,000,000 So, when we looked at areas of the business to cut, we looked at actually everything.

We even started with our Board of Directors. We took that down from eight people down to five. We took most of their cash compensation away and gave them equity. Nobody would let me have a bonus until, you know, this company starts to grow and all of those things again and so we did all of that kind of stuff in order to get this company profitable as quickly as we can. A couple of the things that we’ve said publicly about that is that we would be EBITDA positive no later than the ’6 and Matt just announced that we have cash through ’twenty seven.

We have about $30,000,000 of cash on our balance sheet and we’ve got about $37,500,000 of debt through our debt partner, Perceptive. This is our financial guidance that we just revised upwards of about $2,700,000 with the total revenue being $50 to $52 and that means advanced energy goes from 42 to about 44, which advanced energy would represent about 10% growth at that level, okay? And then, obviously, our focus as a company here in ’twenty five is the launch of Aeon and, you know, obviously, we talked about the importance of GLP-one drugs, I think, from the surgical side of the business. And if you believe that patients that are on these drugs are going to have loose and laced skin and they’re going to need a surgical intervention, I would argue to find a better company in the aesthetic space positioned with the right technologies than us. We will continue to expand the adoption of Renuvion, as I said, our D2C strategy and focus on that.

We will continue to keep working outside. We’ve got a lot of work to do to get Aon registered in countries outside The United States. We talked about our evidence based medicine and the clinical papers that we have. We will do the same thing for Aon. We believe in evidence based medicine and we will continue to manage this business hard from an expense point of view and drive the top line as fast as we can to get to profitability as quickly as we can.

That is all I’m going to talk about. Caitlin said I should stop at about twenty minutes to allow five minutes for questions but you’ve got two minutes and forty nine seconds if there’s any questions. I went a little longer, sorry. Yes? Yes.

Clinicians are the ones that developed this. They’re the ones that were asking for this. So, if you look at the aesthetics market historically, everybody would like to have something that is non invasive, a non surgical intervention. That is just bar none, that’s what everybody would rather have. Any time that they’re going to have surgery, they’re always worried about any type of complication that could come along because it’s an elective surgery, it’s a cash pay surgery, typically it’s a vanity surgery, all of those things in it.

And so, one of the biggest things that surgeons want to have happen is they want to try to eliminate as best that they can any adverse event that can come from that. And so, yes, surgeons will want this because surgeons were asking for this and this is all the things that they want that are in Aon to help give better patient outcomes and all of that type of stuff. No, none. All surgeons. We only focus on surgeons in the aesthetic space.

There are a lot of other technologies and a lot of other companies that are with nurse practitioners, that are with PAs, with everything else. Our focus is to really be a partner with the plastic surgeon and to really help them grow their surgical practice. Yeah, thank you. Yes. Yeah, U.

S. Is obviously on has been at the tip of the spear with the GLP-one drugs. We tend to jump on those things first, but yeah, absolutely. And in fact, I was even down in Brazil last year and the GLP-one drugs are sold over the counter in Brazil. You don’t even need a prescription for them.

You can walk up and just buy one. So, yes, we’re going to see that trend happen everywhere.

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