Apyx Medical Corporation

Ladies and gentlemen, good morning, and welcome to APEX Medical First Quarter 2026 Earnings Conference Call. At this time, all participants are in listen-only mode. A brief question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star and zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jeremy Pepper from Lifestyle Advisors. Please, go ahead.

Thank you, and welcome everyone to our first quarter 2026 earnings call. Representing the company on the call are Charlie Goodwin, Chief Executive Officer, and Matt Hill, Chief Financial Officer of Apex. Before we begin, I would like to remind everyone that our remarks and responses to your questions today may contain forward-looking statements that are based on the current expectations of management and involve inherent risks and uncertainties that could cause actual results to differ materially from those indicated, including, without limitation, those identified in the risk factor section of our most recent annual report on Form 10-K, our most recent 10-Q filing, and the company's other filings with the Securities and Exchange Commission. Such factors may be updated from time to time in our filings with the SEC, which are available on our website. We undertake no obligation to publicly update or revise our forward-looking statements as a result of new information, future events, or otherwise. This call will also include references to certain financial measures that are not calculated in accordance with generally accepted accounting principles or GAAP. We generally refer to these as non-GAAP financial measures. Reconciliations of those non-GAAP financial measures to the most comparable measures calculated and presented in accordance with GAAP are available in the earnings press release on the investor relations portion of our website. I would now like to turn the call over to Mr. Charlie Goodwin, Apex Medical's President and Chief Executive Officer. Please go ahead.

Thank you, Jeremy, and thank you all for joining us today. Per our usual format on these quarterly calls, I will begin with a review of our performance over the past several months, and then turn the call over to Matt for a review of our first quarter 2026 financial results, along with our updated guidance for full year 2026. We will then open the call for your questions. Let me begin with a review of a few key highlights from our first quarter 2026 performance. we reported total quarterly revenue of $12.5 million compared to $9.4 million in the same period last year. This growth was driven by a 36% increase in sales of our surgical aesthetics products to $10.7 million for the first quarter, which was primarily attributable to the continued strong sales ramp of our Aon body contouring system in the U.S., demand for single-use handpieces worldwide, and increase in Renuvion generator sales internationally. This represents our second full quarter of Aon sales following its full commercial launch in September 2025. Notably, while demand from our existing generator and Renuvion customer base continues to be strong, we are also generating a steady increase in engagement from new accounts, reflecting growing market awareness of Aon and increasing confidence in the breadth of its capabilities. Importantly, we continue to believe adoption remains in the early stages. Over these past several months, I have been very pleased by how the commercial program for Aon has quickly ramped up activity. Our team has risen to the occasion and executed a disciplined, high-quality launch focused on training and workflow integration to achieve customer success. We are also pleased the release of Aon has coincided so well with the continued rapid adoption of GLP-1s. As of early 2026, roughly one in eight U.S. adults report have taken a GLP-1, according to KFF health tracking polls and RAND reports. While approximately 6% of adults are currently using them, projections indicate that demand will continue to grow, with estimates suggesting around 30 million Americans could be using GLP-1 treatments by 2030. the rapid weight loss that occurs using these drugs can lead to significant loose and lax skin that can only be effectively managed using a surgical intervention, and we believe Renuvion and Aon are the most advanced and effective method for treating loose and lax skin through body contouring. In addition to our revenue growth, we remain proud of the lean operating structure we implemented just over a year ago, which has materially reduced our operating expenses and cash burn. Those changes have strengthened our financial position and given us the flexibility to selectively reinvest in high return growth initiatives, including the continued rollout of Aon and our broader surgical aesthetic strategy. Through the launch of Aon, we have expanded our customer relationships beyond individual technologies to a more comprehensive presence in the surgical suite, supporting a wider range of procedures and workflows. As I have mentioned previously, this is a groundbreaking body contouring offering designed by leading surgeons to address many of the challenges and limitations of existing systems. Aon is differentiated by its ability to integrate multiple core body contouring modalities on a single platform, allowing surgeons to streamline procedures, reduce equipment complexity, and support optimal patient outcomes. As a result, we are seeing strong market receptivity, reinforcing our view that Aon is addressing a meaningful unmet need and adoption remains in the early stages. Building on this success and expanding upon the AON suite of offerings even further, we anticipate FDA 510 clearance for the AON platform to include power liposuction sometime this quarter. This is a core modality in modern body contouring procedures, and this clearance meaningfully expands AON's functionality so that it now supports multiple advanced fat removal modalities on one platform. Importantly, we believe this further differentiates Aon in the market and broadens its addressable customer base. When cleared, our strategy for bringing the power liposuction functionality live, our team is implementing a limited commercial launch of power liposuction with highly targeted early adopters. Over the coming months, this program will serve as a critical proving ground to refine training, optimize utilization, and evaluate the end-to-end customer experience. As we did with our Aon system in advance of its full launch, we will take a disciplined approach before scaling commercial implementation. We look forward to sharing further updates on this program as this program progresses. Looking beyond the U.S., we have tremendous opportunities following key regulatory approvals over just the past few quarters, including Renuvion in Asia. In South Korea, we experienced solid interest around the Apix-1 console and single-use handpieces immediately following our regulatory approval in December of 2025. As a reminder, South Korea represents an attractive market for surgical aesthetics and early customer interest and initial purchase activity reinforce our confidence and the long-term opportunity there. While it is still in the early stages, the initial customer demand for our generators and handpieces exceeded expectations, and we look forward to building on this initial momentum. To summarize, our long-term vision is simple. to walk into every surgical center and see an aeon at the center of the operating room, I believe we are off to an excellent start. I will now turn the call over to Matt for a review of our first quarter 2026 financial results in more detail, along with our updated financial guidance for 2026. Thank you, Charlie.