Good morning, everyone, and thank you for joining us at the Canaccord Genuity MedTech and Diagnostics Conference. My name is Caitlin Roberts, and I am one of the MedTech analysts here at Canaccord Genuity. With us today is Apyx Medical, a medical technology company specializing in helium plasma energy solutions for minimally invasive cosmetic and surgical procedures. With me today is Apyx's CEO, Charlie Goodwin. Before we begin, I want to remind anyone of any relevant disclosures, which can be found on our conference and our firm website. With that, I will turn it over to Charlie.
Thank you, Caitlin. Thank you, everybody, for attending today. I appreciate it. We are Apyx Medical. I am Charlie Goodwin. I am the CEO, and we are and will be the leader in surgical aesthetics, and I will walk you through that market and let you know about what we are doing and why we think it is incredibly important. If you look at aesthetics and you look at the entire market, the market is actually a vast and big market, but we are actually focused on the surgical side of aesthetics. Why did we pick surgery? Because we believe that in aesthetics, that surgery is the only thing that provides durable and transformational results when you are looking at the thing. We believe that we are uniquely positioned for this market because of the disruption that has happened because of the GLP-1 drugs.
The GLP-1 drugs obviously have massive weight loss implications, and the skin sags, and most of those patients are going to require some form of surgical procedure. Historically, we have been a one-technology company, and that technology is Renuvion. Renuvion has been a technology that has over 100 clinical papers that talk about the safety and efficacy of the device for tightening skin after liposuction in a body contouring procedure. We believe that it should be used in every liposuction that is on the marketplace today. But Renuvion also has a lot more utility. In fact, just this September, we came out with a brand-new paper that talks about the cold atmospheric plasma portions of Renuvion and the benefits of forming elastin after use underneath the skin.
We saw patients that had elastin formation of more than 30% and also a reduction of inflammation, and that speaks to the regenerative effects of Renuvion and actually begs the question that if any of these procedures are going on, a patient should have Renuvion use, and that was a brand-new paper that just came out in September of this year. We also just launched last year, we launched AYON, which is, we will talk more about AYON here in a bit, but AYON is the ultimate body contouring device on the marketplace today. It has the two best forms of liposuction, and we launched that in May of last year, and then in May of this year, we just finished it, if you will, because we launched the power-assisted hand piece that just came out in May of 2026.
That definitely rounds out AYON for us, and we are incredibly happy to have the entire system now available in the marketplace. In our last earnings report that we just had last week, we are very proud, too, that the company, over the last 12 months, is actually EBITDA positive, and it has been a tremendous job by the team to get us there. We, over the first three quarters of this year, have still grown the business at 26%. It has been a nice job from the entire team. When you look at this market, I mentioned before how much this market has changed and been disrupted by the GLP-1 drugs, and you can see the study from McKinsey. It talks about those drugs being a $100 billion market by 2030.
I do not know that anybody is really questioning that now as these drugs become more and more prevalent. The big thing about the people on these drugs is that 63% of the patients that are on these drugs are going to be new to aesthetics. You are going to see a massive inflow of people over the next decade that are going to be coming to surgeons to look for solutions on how to take care of their body after the weight loss that they have had. Because of that, you are seeing that med spa revenue in the marketplace has been down, and that makes a lot of sense to us because a lot of those technologies are not going to be suitable for the GLP-1 patients.
You are seeing that for market trends. You are also seeing a huge, huge shift in procedures. We just got brand-new ISAPS data. It is actually not in here yet, but if you look last year, breast lifts were up 48% to over 1 million done annually in the U.S. It is not off a small number. It is off a very large number. Breast lifts being up 48% makes a lot of sense to us because women typically on GLP-1 drugs, the two areas that they lose weight first are their breasts and their butts, and they are usually the two areas that they would not like to lose weight.
You are starting to see this procedural shift, and with that procedural shift, you are actually seeing a lot of combination now procedures to where they are doing incisional work, and then they are combining it with liposuction and Renuvion to contour the entire body because these patients on these drugs are providing more challenge to the surgeons to be able to do that, and that is where surgeons need state-of-the-art technologies, and they need the best things that they can do to do that. Not a surprise to anybody, but if you look at Google Trends and you look at all of the things, the most searched item now around aesthetics is skin tightening. Everybody wants to know how they can tighten their skin and how they can make their appearance look better.
That is where, as I mentioned earlier, the study that we just put about the formation of elastin is incredibly important. We have got to do a good job now as a company, making sure that consumers understand that, because if I can grow more elastin, I can have tighter skin. So, there is all of this stuff that is going on in the marketplace. It has been a big disruption in the marketplace from the patient side, from the provider side, and even from the company side. But we believe that we are incredibly well-positioned to take advantage of this for many years to come. Excuse me. This is the Google Trends data that I talked about, and if you just look at it, you can see in aesthetics what people are searching for.
They are searching for skin tightening, loose skin, liposuction, and body contouring, and you can see all of that is high, and it continues to keep going up from a consumer point of view. The market that we are playing in is massive. It is even almost ridiculous for me to put this slide up here to talk about a $10 billion marketplace, and we are going to do basically $60 million in revenue this year as a small company. But it is a massive market, and it is going to continue to keep growing. As I mentioned before, we were a single-technology company in Renuvion, and the picture that you see up there right now is the generator, which is obviously a piece of capital, and then the wand over on the right side of the photo is a single-use disposable.
About 50% of our revenue as a company comes from that single-use disposable, and that is still the case today. So, it has got a very durable business, and it is nice to, as an aesthetics company, to have such a high portion of our revenue to come from the consumable side of things. Just going to show you a little bit here quickly of how Renuvion works. The probe that you see there is a 3 mm probe, and it goes right into the same defect that they have typically done when they have done the liposuction, and it usually is used after liposuction. And if you look at the middle picture there, those white bands are collagen bands, and the yellow balls are fat.
And so typically, they have taken the fat out via liposuction, and then they go in with the probe, and they heat the collagen to 85 degrees C. That heating of the collagen causes maximum contraction. It is like taking a rubber band that has been stretched out and heating it and having it contract. That contraction is what you see and what you notice when you look at the skin, and you can see the tighter skin. And then the body keeps improving on that. It goes through a neocollagenesis process that takes about six to nine months after that. So, you see initial contraction right after the procedure, right on the table, but it is the gift that keeps on giving because your body keeps forming more collagen, and you see it get better and better over time.
And what aesthetic presentation would not be without some before and after pictures? But you can see how the results of using liposuction and Renuvion are transformational to this patient. This gentleman obviously did not have much of a jawline. Obviously, they took some liposuction, and they did that. They only removed 100 ml of fat, so it wasn't a ton of fat in there. But more importantly, they came in with the Renuvion and tightened the skin after, and obviously, he looks a lot younger. He has a jawline and looks great.
Quick question. Do you have a before and after, excluding Renuvion, if a person just did lipo and then didn't do the skin tightening? What is the [inaudible] ?
Yeah. I don't have that here with me today. When we went to get approval for Renuvion with the FDA, we actually had to do it the opposite way around. We actually had to just use Renuvion only and no liposuction. All the IDE study we did at that time was Renuvion only, and so you saw the baseline without anything, and then you saw what it looked like just having the Renuvion. We've done it the opposite way, and there's doctors that have obviously done it, lipo without Renuvion, and will get the benefit, but you just don't get it as, quote, unquote, "snatched" as it looks when you use the Renuvion after. Okay?
The next one is an area that women have historically hated and an area that has been tough for surgeons to actually treat in the past without doing incisional work, and that is the back and bra rolls. You can see here, they did a significant amount of liposuction on the back and then came and obviously tightened with Renuvion after. You can see that the before and afters are incredible, and obviously, she is incredibly happy with that result. As I mentioned, last year in May, we got approval for AYON. Why did we come up with AYON? We came up with AYON because we looked at the marketplace, and we saw where we could add the most value and where the market needed innovation, and that was around body contouring and liposuction.
All the technologies that were out there really had not been improved on in almost two decades. It was very fragmented, where there were a lot of smaller companies that were doing a lot of things, and there were a lot of things that doctors didn't like either about the technologies, about the tools, or about even the workflow that they were doing when they were doing these surgical procedures. What we did is we put together a team of surgeons from all over the world to come up with a list of things that they would like to see made better about the technologies, about the workflow, about the durability of the equipment, everything on there. They made this gigantic list, and they gave it to our engineering team, and our engineering team developed AYON.
Actually, they came up with absolutely everything on that list, except for one thing. I won't go into what that one thing is. It's not incredibly important, but it was one thing that they didn't do. Everything else they accomplished. What is AYON? AYON has two forms of liposuction. It has ultrasonic liposuction. It's got power-assisted liposuction as of May in 2026. It has suction. It has infiltration aspiration. It has an electrosurgical generator for both monopolar and bipolar, so the doctor can do any surgical procedure that they need to do with AYON. It has Renuvion for skin contraction, and it has a closed loop for fat transfer.
Fat transfer becomes incredibly important in body contouring, and especially incredibly important for GLP-1 patients, because most of them need volume in certain areas, and most of these surgeons are taking fat from some area and moving it and putting it in another area. As I mentioned earlier in the talk, when women typically lose weight first, it's the breasts and the butt that they don't want to lose weight. Those are two areas that are very common for doctors to transfer and to put fat in. Two of the significant improvements that we made from a technology point of view are around the ultrasound, are around the liposuction, both from an ultrasound and a power-assisted ability.
On the ultrasound, it is really interesting because the doctors that are using our ultrasonic liposuction are coming back and saying that the patients are having less bruising, they are recovering faster, and the benefits are far exceeding what they thought that they would have with this system. It is not a surprise to us because one of the things that we did around the ultrasound technology is we actually made it a smart instrument. When the previous generation was made 20 years ago, that technology did not exist. Now, because we have made it a smart instrument, as the doctor is moving the probe in and out and doing the liposuction, it is giving him real-time feedback to the tissue and automatically adjusting the power of the probe.
That automatic adjustment of the probe keeps the probe in resonance, and keeping an ultrasonic probe in resonance means it is working at its maximum efficiency, and that maximum efficiency allows it to separate the fat faster and without less heat around the ultrasonic probe. That excess heat could cause a burn or it could damage unintended tissue that you do not want to damage during the procedure. This has been a major technological move forward on the ultrasound side of things. On the power-assisted side of things, there are a lot of improvements we made to this technology, both from an ergonomics perspective, both from a durability perspective of the hand piece itself.
The biggest thing that was made is this is the device that they use both to take the fat out of the body, so to give the contouring effect of the body, and to put the fat back into areas that need volume, as I mentioned before. One of the things that we did that surgeons just love about this is there are actually two buttons on the hand piece there, and so they can actually control the direction of the fat right from the sterile field. Before, they would have to have a circulator go outside the sterile field and to change the pump and the direction of the flow every time that they wanted to do it. Now the surgeon has complete control right on the sterile field, and you cannot believe how excited they are about that feature.
Those are the things that have really changed and really make AYON unique in the marketplace from a liposuction perspective. Part of our job is to make sure that consumers understand what the choices are, not only for skin tightening, but also for body contouring. If you look at it from a consumer point of view, really the two most important things that every consumer cares about when they go to have their body contoured is, "I want a smoking hot body when I am done, and I want it done safely as possible." Those are really the two most important things. It is interesting, if you look at the plastic surgery market on a worldwide basis, it is really the only market where surgeons compete for patients all over the world.
Patients will fly to providers that they think are going to give them the best result and be done as safely as they possibly can. AYON actually delivers on all of those things, and we need to make sure as a company that we are supporting our doctors and helping educate the patient population that when they are researching where they're going to go to get their body contoured, not only are they looking at the doctor and their ability to do the procedure and give them the outcome that they want, but that they're also going to have the state-of-the-art technology that's going to help them achieve that and have it done as safely as possible.
That will be part of the messaging that we have as a company to consumers to provide education to help consumers make the best choices, informed choices that they can make when they're considering to have these procedures. We actually, for a small company, have a global presence. We're headquartered in Clearwater, Florida, where we have R&D and manufacturing, and we also have a facility for R&D and manufacturing in Sofia, Bulgaria, which certainly helps when you've got tariff environments like we've had over the last few years. We've had a long-term relationship with a contract manufacturer in Ningbo, China. This is our revenue guidance that we just reaffirmed last week. Our revenue will be in the range of $59 million-$60 million. That's compared to $52.8 million last year.
The surgical aesthetics will be $54 million-$55 million, and that's compared to $45.3 million in 2025. We expect our margins to be in the range of 63%-65%, and we've done an incredible job of managing our expenses over the years. Our previous guide had said we would be less than $45 million this year in expenses. We were just under $40 million last year, and we've now guided that that will be between $41 million and $42.5 million. We've done a very good job of growing our business this year. After three quarters, our surgical aesthetics business has been up 26%, and we've done that by keeping our costs basically flat. These are our objectives for 2026. Obviously, we've got to continue and execute our commercial launch of AYON.
Right now, we are only selling AYON in the United States, and we are working on getting registration outside of the U.S. That is obviously something that we're working on because doctors all over the world are seeing the benefits of AYON and want to know when it's coming to their country. We got to continue to expand the adoption of Renuvion. Renuvion is the best technology for loose and lax skin, as we just had in a paper in September. It also helps from a rejuvenative point of view to grow more elastin under the body. We need to make sure that all the doctors know this, and especially that the patients know that.
We will continue to expand our library of clinical evidence. We've always run this as a surgical company, and we will keep it that way. And then, obviously, we will keep focusing on driving this company towards profitability and getting to that point as quickly as we possibly can. That brings me to the end of the prepared remarks. I would be happy to answer any questions that anybody might have in the last three minutes and 15 seconds that we have. Yes.
Could you indicate what your percentage of consumables is relative to the $60 million? And then also the gross margin profile on that.
Yeah. So, of the $60 million-ish, remember about five or six of it is OEM, so we are focused on the surgical aesthetics, which is about $54 million-$55 million. About half of that is consumable, okay? About 50% of that. And we have not broken out the gross margin between capital and disposables. We just give a total number for that. Caitlin?
Aside from the GLP-1 trends, what are you seeing from a macro perspective and how it may be impacting providers and patients?
It's a great question, and I actually appreciate that question because I didn't plant that question. You asked it naturally. The market is interesting in aesthetics, and it really got disrupted from the GLP-1 drugs, not just from the patient side, but even on the provider side. There are providers out there that have been talking about the weight loss revolution. They've been prescribing GLP-1 drugs in their practice. If you look at the last three years of their practices, their practices have never been more successful because they're bringing the patients in, they're managing them through their weight loss journey, and then they're there for them for the treatment of their bodies after the patient gets to where they need to be.
I think that has been one of the biggest changes in the industry, is on the provider side of things and how providers have had to change their message and how they talk to patients and how they bring patients into their practice. The ones that have done it incredibly well, their businesses have never been better. The ones that are just kind of getting on board, their businesses are starting to get better, and there's still some that aren't doing as good a job as they need to on that, and that is part of what we're trying to help them with as a company.
Because remember, in the remarks that I had, a lot of the non-invasive therapies, the med spa therapies, that business is actually down. I think the environment is actually good. I think it's going to continue to get better, but it still is one of those things that, from a provider point of view, they need to change their message also. It's a very good question, Caitlin. Yes.
A follow-up. What is the cost per procedure, lipo and skin tightening, and then are the providers offering some [inaudible] ?
Yeah. The answer to that is it depends on who it is and where it is in the U.S., but the best number that we have for that is from AirSculpt. AirSculpt has about 26 locations throughout the U.S., and they do body contouring with skin tightening, and their average price is about $13,000. Yes, most providers will provide financing if the patient wants that in their office. Yep. I think that's it.