Apyx Medical Corporation (APYX): Business Model Canvas [Dec-2025 Updated]

You're digging into Apyx Medical Corporation's engine room to see how they actually make money, especially now that they've clearly pivoted hard into surgical aesthetics. Honestly, the numbers from late 2025 tell a compelling story: they're driving significant growth through the recurring sales of Renuvion handpieces-moving about 63,000 units in the first nine months alone-which supports a healthy 64.4% gross margin in Q3. This focus on their AYON platform and aesthetic procedures is central, with the segment guiding to $43.0M to $45.0M for the full year. Let's break down the nine building blocks that make this model tick, from their key partnerships to the costs eating into that revenue.

Apyx Medical Corporation (APYX) - Canvas Business Model: Key Partnerships

Apyx Medical Corporation relies on strategic alliances to expand market reach and maintain product development, leveraging external entities for distribution, manufacturing support, and clinical validation.

The partnership with GlamMoon Medical Technology is central to Apyx Medical Corporation's international commercialization strategy, specifically for the Renuvion product launch in China following initial market clearance from the National Medical Products Administration of China on July 28, 2025. GlamMoon Medical Technology is the wholly owned equipment distribution division of BeauCare Clinics Investment Co., Ltd. (BCC).

The scope of BCC's established presence in China is significant, providing a commercial foundation for Apyx Medical Corporation's technology.

The OEM relationship with Symmetry Surgical, which acquired Apyx Medical Corporation's Core business in 2018 for $97 million in cash consideration, continues to be a component of the business structure. The 10-year generator manufacturing and supply agreement remains active, though Q2 2025 results noted a decrease in OEM sales volume to existing customers, including Symmetry Surgical.

Key Opinion Leaders are utilized to drive adoption for new product introductions, such as the AYON Body Contouring System™. The company hosted a virtual event on October 14, 2025, featuring KOLs like Dr. Paul Vanek, Jr., to discuss the commercial launch of AYON, which began its nationwide commercial launch in September 2025.

Clinical validation is a core resource, with the following established facts:

• The effectiveness of Renuvion and J-Plasma is supported by over 90 clinical documents.
• Apyx Medical Corporation announced the publication of two articles in Q1 2025 in Aesthetic Plastic Surgery and Aesthetic Surgery Journal Open Forum.
• The Renuvion Users' Summit in April 2024 featured 27 key opinion leader speakers sharing clinical experiences.

The GlamMoon/BCC partnership provides access to a large network, as BCC also manages a purchasing alliance with more than 400 members across over 30 cities as of the end of Q1 2025.

Apyx Medical Corporation (APYX) - Canvas Business Model: Key Activities

You're looking at the core things Apyx Medical Corporation has to do to make this business model work, focusing on the tangible outputs and efforts as of late 2025. It's all about getting the product made, approved, and into the hands of surgeons.

Manufacturing and commercialization of Renuvion and AYON systems

The main activity here is driving sales for the Advanced Energy segment, which houses the Renuvion and the newly launched AYON systems. The company is actively commercializing these platforms, with a full U.S. commercial launch of the AYON Body Contouring System™ initiated at the end of Q3 2025.

The financial performance related to this activity shows a clear focus on the Advanced Energy side:

The commercialization effort also involves consumables; approximately 63,000 single-use handpiece units were sold in the first nine months of 2025. Renuvion also saw an international expansion, initiating commercial sales in China. The system itself is gaining recognition, having won the 2025 NewBeauty Award for "Best Minimally Invasive Skin Tightener."

Research and Development (R&D) for new product clearances and label expansion

Apyx Medical Corporation is actively working to expand the utility of the AYON system through regulatory submissions. This R&D focus is critical to maximizing the platform's value proposition.

The financial commitment to R&D has been managed tightly:

• R&D expenses for the three months ended March 31, 2025, decreased by $0.6 million compared to the prior year period.
• R&D expenses decreased by $0.6 million for the three months ended June 30, 2025, compared to the prior year period.

The key R&D milestone for late 2025 is the submission of a new 510(k) premarket notification to the U.S. Food and Drug Administration (FDA) in October 2025 to expand the AYON Body Contouring System label to include power liposuction. This submission is planned to activate new functionality in already installed AYON systems upon clearance.

Direct sales and marketing focus on the U.S. Surgical Aesthetics segment

The company is clearly prioritizing the domestic Surgical Aesthetics market, which is where the AYON launch is centered. This requires significant sales and marketing execution.

The results of this focus show a divergence between domestic and international performance for the three months ended September 30, 2025:

• Domestic sales increased by 19.7%.
• International sales decreased by 4.0%.

The Surgical Aesthetics segment, which includes Renuvion and AYON, saw sales increase by 19.1% for the three months ended September 30, 2025, compared to the same period in 2024. Marketing efforts include appointing Dolores Catania as Chief of Confidence for Renuvion's Renew You consumer marketing campaign. Cost control in this area is evident, as Selling, General and Administrative expenses decreased by $1.5 million in Q1 2025 and by $0.7 million in Q2 2025, year-over-year for those respective quarters.

Maintaining regulatory compliance, including FDA 510(k) clearances

Regulatory clearance is a foundational activity, especially for a new platform like AYON. The initial clearance secured in May 2025 was for the AYON Body Contouring System™, the first FDA-cleared all-in-one platform for aesthetic surgical procedures. This initial clearance covers several functions:

• Renuvion to address loose and lax skin.
• Ultrasound-assisted liposuction.
• Electrocoagulation to support procedures requiring removal of excess tissue.

The company's technology base is supported by a substantial body of evidence; Renuvion and J-Plasma are supported by over 90 clinical publications. The ongoing activity involves maintaining compliance while pursuing the power liposuction label expansion.

Apyx Medical Corporation (APYX) - Canvas Business Model: Key Resources

You're looking at the core assets that Apyx Medical Corporation (APYX) relies on to run its business as of late 2025. These aren't just ideas; they are the tangible and intangible things that make their value propositions possible.

The foundation of Apyx Medical Corporation's offering is its Proprietary Helium Plasma and Radiofrequency Platform Technology. This technology is marketed and sold as Renuvion® in the cosmetic surgery market and as J-Plasma® in hospital surgical markets. The effectiveness of Renuvion and J-Plasma is supported by more than 90 clinical documents. This technology gives surgeons a unique way to apply controlled heat to tissue to get the results they want.

Regulatory approvals are a massive resource in medical devices. Apyx Medical Corporation has secured key FDA 510(k) clearances for Renuvion and the AYON Body Contouring System™. The AYON Body Contouring System™ itself is a groundbreaking, surgeon-designed system that combines fat removal, closed-loop contouring, tissue contraction, and electrosurgical capabilities. Apyx Medical Corporation initiated the nationwide commercial launch of AYON in September 2025, and they are actively working to expand its capabilities, having submitted a new 510(k) premarket notification to the FDA for the label expansion of AYON to include power liposuction.

Financially speaking, liquidity is always a key resource. As of September 30, 2025, Apyx Medical Corporation reported cash and cash equivalents of $25.1 million. This cash position supports ongoing operations and commercial expansion efforts, like the AYON launch. To give you a sense of the business performance supporting this cash level, the company reported a gross profit of $8.3 million for the third quarter of 2025, achieving a gross margin of 64.4%.

The company also heavily relies on its Global intellectual property portfolio protecting core technology. Protecting these inventions is critical for maintaining a competitive edge. Here's a snapshot of the intellectual property assets mentioned in recent filings, though you should note the specific dates of these filings:

Apyx Medical Corporation also leverages its deep expertise through OEM agreements. These arrangements allow them to use their experience in unique waveforms with other medical device manufacturers. This diversification of revenue is an important, albeit less tangible, resource.

The operational and commercial focus areas that utilize these resources include:

• The Surgical Aesthetics segment, which includes Renuvion and AYON.
• The AYON Body Contouring System™ commercial rollout across the U.S..
• The OEM agreements leveraging waveform expertise.
• The global medical affairs team supporting users to ensure optimal outcomes.

The company also has collaborative arrangements with three key foreign suppliers for component development, though purchase order commitments are never more than one year in duration.

Apyx Medical Corporation (APYX) - Canvas Business Model: Value Propositions

Renuvion: Minimally invasive tissue contraction for loose and lax skin.

The effectiveness of Renuvion and J-Plasma is supported by more than 90 clinical publications.

One analysis evaluating Renuvion for subcutaneous soft tissue contraction following liposuction involved data from 483 patients across a total of 1,184 body areas treated.

Renuvion won the 2025 NewBeauty Award for "Best Minimally Invasive Skin Tightener".

U.S. single use handpiece revenue grew 14% in the first quarter of 2025 compared with the same period last year.

AYON: First FDA-cleared all-in-one platform integrating fat removal and tissue contraction.

The AYON Body Contouring System received 510(k) clearance from the U.S. Food and Drug Administration in the second quarter of 2025.

Surgeon-designed system streamlining multiple aesthetic procedures.

The AYON system integrates advanced modalities to perform multiple functions seamlessly, removing unwanted fat and enhancing tissue contraction.

Clinical efficacy supported by over 90 peer-reviewed publications.

The Surgical Aesthetics segment, driven by Renuvion and AYON, reported revenue of $11.1 million in the third quarter of 2025, an increase of 19% year-over-year.

Domestic Surgical Aesthetics revenue increased over 30% in the third quarter of 2025.

The company leverages its deep expertise and experience in unique waveforms through OEM agreements with other medical device manufacturers.

Here's the quick math on the recent product performance:

The core value propositions translate into these operational highlights:

• AYON full U.S. launch at end of Q3 2025 with pre-orders exceeding expectations.
• Initiated commercial sales of Renuvion in China in Q2 2025.
• Gross margin improved to 64.4% in Q3 2025 from 60.5% in Q3 2024.
• Adjusted EBITDA loss narrowed by 54% to $2.0 million in Q2 2025 versus Q2 2024.
• Net loss attributable to stockholders decreased by 45% to $4.2 million in Q1 2025 versus Q1 2024.

Finance: review Q3 2025 gross margin of 64.4% against FY25 outlook of ~61% by Monday.

Apyx Medical Corporation (APYX) - Canvas Business Model: Customer Relationships

You're looking at how Apyx Medical Corporation manages its connection with its customers-the surgeons and facilities using their technology. This is defintely a high-touch area, given the nature of their capital equipment and advanced energy products.

The direct sales approach in the U.S. is clearly being reinforced. The company strengthened its management team to drive worldwide sales growth, including the appointments of John Featherstone as Vice President of North American Sales and Simon Davies as Director of International Sales, Europe and Asia-Pacific in Q2 2025. This focus on the direct sales channel seems to be paying off in consumable sales; U.S. single-use handpiece revenue grew 14% in the first quarter of 2025 compared with the first quarter of 2024. For context on consumables, the company shipped approximately 63,000 units of single-use handpieces in the first nine months of 2025, a slight dip from 64,000 units in the same period last year.

Driving adoption through Key Opinion Leaders (KOLs) is a core part of the strategy, especially with the launch of the AYON Body Contouring System™. The company initiated an ambassador program with KOLs during the soft launch phase. To continue this momentum, Apyx Medical hosted a Virtual KOL Event to Discuss the Commercial Launch of The AYON Body Contouring System on October 14, 2025, featuring case studies from world-renowned surgeons.

Investor relations engagement is frequent, ensuring financial stakeholders are kept in the loop. You can track this engagement through their regular cadence of calls and conference appearances:

• Q1 2025 Earnings Call: May 8, 2025, at 8:00 a.m. ET.
• Participation in the Canaccord Genuity 45th Annual Growth Conference: August 12, 2025.
• Q2 2025 Earnings Call: August 7, 2025, at 4:30 p.m. ET.
• Q3 2025 Earnings Call: November 6, 2025, at 8:00 a.m. ET.

The Investor Relations contact for inquiries is listed as Jeremy Feffer, Managing Director, LifeSci Advisors.

For capital equipment, the relationship involves initial sales and ongoing utilization support. The Apyx One Console sees continued activity, as sales of upgrades to the Apyx One Console were cited as a driver for Advanced Energy revenue growth in Q1 2025. Furthermore, the commercial strategy is centered on the new AYON system, which includes an Apyx One Console; the company took preorders for the AYON system in the U.S. during Q2 2025, leading up to a planned nationwide launch in September 2025. The company is managing operating expenses tightly, with a maximum operating expense covenant set at $40.0 million for 2025, which impacts resource allocation for support functions.

Here's a snapshot of the customer-facing financial context for the Advanced Energy segment, which houses the capital equipment and consumables:

Finance: draft 13-week cash view by Friday.

Apyx Medical Corporation (APYX) - Canvas Business Model: Channels

You're looking at how Apyx Medical Corporation gets its products, especially Renuvion® and the new AYON Body Contouring System™, into the hands of surgeons as of late 2025. The company has clearly signaled a pivot, making the direct sales channel for U.S. Surgical Aesthetics the primary focus.

The direct sales channel for the U.S. Surgical Aesthetics market is seeing resource redirection, reflecting management's belief that this segment represents the company's future. For the full year 2025, Surgical Aesthetics revenue guidance is set between $43 million and $45 million, a significant portion of the total projected revenue of $50.5 million to $52.5 million. This focus is paying off in the near term; revenue for the Surgical Aesthetics segment in the third quarter of 2025 hit $11.1 million, marking a 19% increase year-over-year. The U.S. sales specifically drove this, showing a 30% rise in Q3 2025. Single-use handpieces, a key consumable, saw approximately 63,000 units sold in the first nine months of 2025. The full U.S. commercial launch of the AYON Body Contouring System™ commenced at the end of Q3 2025.

Here's a quick look at how the segments stack up based on the latest guidance and reported figures:

International market penetration relies heavily on established distribution partners. Apyx Medical Corporation initiated commercial sales of Renuvion® in China following initial market clearance. The distribution agreement for China is with GlamMoon Medical Technology, which is the equipment distribution division of BeauCare Clinics Investment Co., Ltd. ("BCC"). China is recognized as the third largest market for aesthetic surgery. This international effort builds on a footprint that included marketing and sales in 60 countries as of December 31, 2023. International revenue for the second quarter of 2025 specifically was $3.6 million.

Engagement with the medical community is channeled through promotional activities and industry validation. The company secured the 2025 NewBeauty Award for "Best Minimally Invasive Skin Tightener". Furthermore, clinical validation is being pushed through publications, including articles in Aesthetic Plastic Surgery and Aesthetic Surgery Journal Open Forum.

The OEM sales channel serves non-aesthetic medical device customers, but this stream is being strategically de-emphasized. OEM revenue guidance for the full year 2025 remains around $8.0 million. This segment saw sales decrease by 28.5%, or approximately $0.7 million, in the second quarter of 2025 compared to the prior year. The third quarter of 2025 also reflected this trend with a 17.6% revenue decline in the OEM segment. Management has affirmed a shift in manufacturing resources from OEM toward the Surgical Aesthetics segment.

• The company is actively expanding its global sales leadership team to support the AYON launch.
• The OEM segment revenue for Q1 2025 was approximately $1.5 million, a 45% year-over-year decrease.
• The company is planning for future channel expansion with a power liposuction label expected in Q1 2026.

Apyx Medical Corporation (APYX) - Canvas Business Model: Customer Segments

You're analyzing Apyx Medical Corporation's customer base as of late 2025, focusing on the shift toward their Surgical Aesthetics products like the AYON Body Contouring System™.

The primary professional customer base for Apyx Medical Corporation's aesthetic products includes physicians who perform surgical procedures. The company estimates the total addressable market in the U.S. for these professionals to be approximately ~15,000 total Plastic surgeons, cosmetic surgeons, & dermatologists. The focus has recently shifted heavily toward the domestic market, which is driving growth for the Surgical Aesthetics segment.

The company's revenue breakdown for the third quarter ended September 30, 2025, shows the concentration of their business:

Patients seeking body contouring and treatment for skin laxity are the end-users driving the Surgical Aesthetics segment, which includes the Renuvion and the newly launched AYON Body Contouring System™. The aesthetic body contouring device market is large; GlobalData forecasts it to reach $978 million by 2034, up from $721 million in 2024. The AYON system, which received FDA clearance to support fat removal, contouring, and tissue contraction, had its full U.S. commercial launch in September 2025.

A significant growth driver for this patient segment is the population experiencing loose skin after substantial weight loss. Apyx Medical Corporation estimates over 15 million patients are currently using GLP-1 drugs, many of whom will seek treatment for lax skin. This patient group is seen as a key opportunity for Renuvion and AYON to become the standard-of-care for addressing post-weight loss skin laxity.

The Original Equipment Manufacturers (OEMs) segment serves a different set of customers requiring advanced energy generators, often under long-term supply agreements. This segment has seen a strategic de-emphasis as the company focuses on its direct-to-surgeon aesthetic products. The OEM revenue guidance for the full year ending December 31, 2025, was revised downward to approximately $7.5 million. This compares to a Q3 2025 OEM segment sales decrease of 17.6%. The company's overall FY2025 total revenue guidance was raised to a range of $50.5 million to $52.5 million, reflecting the prioritization of the Surgical Aesthetics segment, which has its own guidance raised to $43 million to $45 million.

The professional customer base can be segmented by product focus:

• Plastic surgeons and cosmetic dermatologists using Renuvion/AYON.
• Surgeons using J-Plasma in the hospital surgical market.
• Existing customers under the 10-year generator manufacturing and supply agreement.
• Distribution partners, such as the one in China for Renuvion sales.

The company is defintely shifting resources to support the AYON launch, which impacts the OEM segment's contribution to the total revenue pie.

Finance: review the impact of the $10 million public offering announced November 18, 2025, on working capital projections by next Tuesday.

Apyx Medical Corporation (APYX) - Canvas Business Model: Cost Structure

You're looking at the cost side of the Apyx Medical Corporation (APYX) business as of late 2025. The focus here is on controlling the outflow of cash while scaling the Surgical Aesthetics segment, especially with the AYON Body Contouring System™ now commercially launched in the U.S. in September 2025.

The company has been aggressive on cost management, which is showing up in the latest quarterly results. For the full fiscal year 2025, Apyx Medical Corporation expects total operating expenses to be less than $40.0 million. This aligns with the cost-cutting measures implemented in late 2024, which were projected to yield annualized savings of approximately $4.3 million.

The structure of costs is heavily influenced by the product mix, which directly impacts the gross margin. The shift toward higher-margin Surgical Aesthetics sales, driven by the AYON launch, has been key to improving profitability on the goods sold.

Here's a look at the key cost metrics, primarily anchored by the third quarter of 2025 performance:

The Selling, General, and Administrative (SG&A) expenses are a significant component, reflecting the investment needed to support the commercial rollout of the AYON Body Contouring System™. While the company achieved a $0.6 million decrease in SG&A for the third quarter compared to the prior year period, this line item remains critical for funding the sales team expansion necessary to drive adoption of the new platform.

Research and Development (R&D) costs show a strategic shift. The investment in R&D expenses dropped to $801,000 for the third quarter of 2025. This reduction, which followed a $0.3 million decrease year-over-year for the quarter, signals that the major development and regulatory filing costs associated with the AYON system are largely behind the company, allowing resources to pivot toward commercialization.

Manufacturing costs are embedded within the Cost of Goods Sold (COGS). The strong Q3 2025 gross margin of 64.4% suggests favorable unit economics for the high-volume single-use handpieces, which are the recurring revenue drivers. The console manufacturing costs are being absorbed as part of the initial system placement, which is a capital-intensive, upfront cost structure element for the company.

You can see the quarterly operating expense discipline in action:

• Total Operating Expenses for Q3 2025 were $9.1 million.
• This represented a $1.5 million decrease from the $10.6 million reported in Q3 2024.
• The decrease was driven by reductions across the board, including salaries and professional services expenses.

Finance: draft 13-week cash view by Friday.

Apyx Medical Corporation (APYX) - Canvas Business Model: Revenue Streams

The revenue streams for Apyx Medical Corporation are primarily derived from two reportable segments: Surgical Aesthetics and OEM, with a strong emphasis on recurring revenue from disposable products.

The guidance for the full fiscal year ending December 31, 2025, reflects increased confidence following the commercial launch of the AYON Body Contouring System™.

The Surgical Aesthetics segment sales are guided to be between $43.0M to $45.0M for FY2025.

A significant portion of this revenue comes from the recurring sales of single-use Renuvion handpieces, which are driven by the volume of procedures performed using the Renuvion technology.

• Increased volume of single-use handpieces contributed to the 19% revenue increase in the Surgical Aesthetics segment for the third quarter of 2025, which totaled $11.1 million.
• The segment's growth is also fueled by initial sales from the commercial launch of the AYON Body Contouring System™, which integrates an Apyx One Console.
• Sales of capital equipment, specifically the AYON Body Contouring System™ and Apyx One Console, are included within the Surgical Aesthetics segment revenue figures.

The OEM segment revenue is guided to be approximately $7.5 million for FY2025, which is a reduction from the approximately $9.5 million reported for the year ended December 31, 2024, reflecting a strategic shift in resource focus toward the Surgical Aesthetics segment.