Investment Thesis
Apyx Medical is a financially distressed company with deteriorating fundamentals, burning cash while unable to generate operating profitability. Despite holding a strong cash position of $31.7M, the company faces a critical solvency issue with $37.5M in long-term debt and negative free cash flow of -$9.1M, which will deplete reserves rapidly at current burn rates. The combination of flat revenue growth, -21.2% net margins, negative ROE of -77.1%, and persistent operating losses indicates fundamental business model challenges that require immediate restructuring.
APYX Strengths
- Strong gross margins at 62.5% indicate healthy product economics and pricing power
- Adequate current ratio of 5.00x and quick ratio of 4.26x provide near-term liquidity cushion
- Modest asset base of $66.8M limits downside exposure compared to larger medtech peers
APYX Risks
- Critical cash burn: -$9.1M free cash flow will exhaust $31.7M cash position in ~3.5 years at current rate
- Unsustainable leverage: $37.5M long-term debt against $14.5M equity (2.58x debt-to-equity) with negative interest coverage of -2.3x
- Revenue stagnation and severe operating losses: 0% YoY revenue growth with -$6.4M operating income indicates inability to scale profitably
- Deteriorating equity position: -77.1% ROE and -16.8% ROA demonstrate value destruction for shareholders
- Structural unprofitability: -21.2% net margin unsustainable for long-term viability
Key Metrics to Watch
- Operating cash flow trajectory - must turn positive within 12-18 months
- Gross margin sustainability - any decline below 60% indicates competitive pressure
- Debt reduction progress - refinancing or debt restructuring required before cash depletion
- Revenue growth acceleration - must achieve 15%+ growth to reach operating profitability
- Operating margin path to breakeven - critical inflection point for viability
APYX Financial Metrics
APYX Profitability Ratios
APYX Balance Sheet & Liquidity
APYX 5-Year Financial Trend
5-Year Trend Summary: Apyx Medical Corp's revenue has shown modest growth of 9% over the 5-year period. The most recent EPS of $-0.67 indicates the company is currently unprofitable.
APYX Growth Metrics (YoY)
APYX Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $11.5M | -$2.0M | N/A |
| Q2 2025 | $11.4M | -$3.8M | N/A |
| Q1 2025 | $9.4M | -$4.2M | N/A |
| Q3 2024 | $11.5M | -$4.6M | N/A |
| Q2 2024 | $12.1M | -$994.0K | $-0.03 |
| Q1 2024 | $10.2M | -$3.5M | $-0.10 |
| Q3 2023 | $9.1M | -$4.6M | $-0.13 |
| Q2 2023 | $10.3M | -$994.0K | $-0.03 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
APYX Capital Allocation
APYX SEC Filings
Access official SEC EDGAR filings for Apyx Medical Corp (CIK: 0000719135)