AngioDynamics Q4 2025 Earnings Call Transcript

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Provided by Quartr
July 15, 2025

Key Takeaways

  • Positive Sentiment: Strong fiscal Q4 results with total revenue of $80.2 million (+12.7% y/y), led by medtech growth of >20% and med device growth of >6%, driving positive adjusted EBITDA and $16.2 million in free cash flow.
  • Positive Sentiment: The AURYON peripheral atherectomy platform achieved its 16th consecutive quarter of double-digit growth, generated over $185 million in cumulative sales and expanded hospital share from 28% to 36%, while initial European sales exceeded $1 million post-CE mark.
  • Positive Sentiment: Mechanical thrombectomy portfolio (AngioVac and AlphaVac) surged ~45% y/y in Q4, with AngioVac +39.5% and AlphaVac +60.8%, backed by APeX trial data showing superior clot reduction and a planned 510(k) variant adding blood-return functionality.
  • Positive Sentiment: NanoKnife hit key milestones—PRESERVE study met primary endpoints, received new CPT 1 codes for prostate and liver (effective 2026) plus expanded prostate indication—driving disposable sales +5.5% and prostate cases to 81% of mix.
  • Neutral Sentiment: FY 2026 guidance projects revenue of $305–310 million (medtech +12–15%, med device flat), gross margin of 53.5–55.5% (inclusive of $4–6 million in tariffs) and positive adjusted EBITDA and cash flow, reflecting both growth initiatives and tariff headwinds.
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Earnings Conference Call
AngioDynamics Q4 2025
00:00 / 00:00

Transcript Sections

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Operator

Morning, and welcome to the AngioDynamics Fiscal Year twenty twenty five Fourth Quarter Earnings Call. At this time, all participants are in listen only mode. A question and answer session will follow the formal presentation. As a reminder, this conference call is being recorded. The news release detailing AngioDynamics' fiscal twenty twenty five fourth quarter and full year results crossed the wire earlier this morning and is available on the company's website.

Operator

This conference call is also being broadcast live over the Internet at the Investors section of the company's website at www.angiodynamics.com. A webcast replay of the call will be available at the same site approximately one hour after the end of today's call. Before we begin, I'd like to caution listeners that during the course of this conference call, the company will make projections or forward looking statements regarding future events, including statements about expected revenue, adjusted earnings and gross margins for fiscal year twenty twenty six, as well as trends that may continue. Management encourages you to review the company's past and future filings with the SEC, including, without limitation, the company's Forms 10 Q and 10 ks, which identify specific factors that may cause the actual results or events to differ materially from those described in the forward looking statements. The company will also discuss certain non GAAP and pro form a financial measures during this call.

Operator

Management uses these measures to establish operational goals and review operational performance and believes that these measures may assist investors in analyzing the underlying trends in the company's business over time. Investors should consider these non GAAP and pro form a measures in addition to, not as a substitute for, or as superior to financial reporting measures prepared in accordance with GAAP. A slide package offering insight into the company's financial results is also available in the Investor Relations section of the company's website under Events and Presentations. This presentation should be read in conjunction with the press release discussing the company's operating results and financial performance during this morning's conference call. Now I'd like to turn the call over to Jim Clemmer, AngioDynamics' President and Chief Executive Officer. Mr. Clemmer?

Jim Clemmer
Jim Clemmer
President, CEO & Director at AngioDynamics

Thank you, operator. Good morning, everyone, and thank you for joining us for AngioDynamics' fiscal twenty twenty five fourth quarter and full year earnings call. Joining me today is Steve Trowbridge, AngioDynamics' Executive Vice President and Chief Financial Officer. Unless otherwise noted, all financial metrics and growth rates provided during the call today are on a pro form a basis, which excludes the impact of our divested Dialysis, BioSentry, PICC and midline businesses and our discontinued Radiofrequency and Cintrax support catheter products. We capped off a tremendous 2025 with a very strong fourth quarter.

Jim Clemmer
Jim Clemmer
President, CEO & Director at AngioDynamics

Total revenue was $80,200,000 representing growth of over 12% year over year, led by medtech growth of over 20% and med device growth of more than 6%. Beyond the top line performance, we drove solid gross margins, positive adjusted EBITDA and strong free cash flow, all as expected. As we've talked about in the past, we have been navigating a long term strategic transformation over the past several years to simplify our business and move into large, high growth, high margin medtech markets. Our performance in the quarter and throughout fiscal twenty twenty five validates that strategy and reflects our ability to drive execution. As this is our fiscal year end call, I wanted to take the opportunity to highlight the progress we have made operationally this year, as we have achieved great things here at AngioDynamics over the past twelve to twenty four months, including key regulatory approvals, international market expansion, new product introductions, clinical data development and critical reimbursement wins, among others, all of which have set us up to deliver profitable growth moving forward.

Jim Clemmer
Jim Clemmer
President, CEO & Director at AngioDynamics

Starting with our medtech portfolio. AURYON has continued to be our largest medtech product line. Since its launch in 2020, we've driven over $185,000,000 in cumulative sales, and we are now the third largest product in the space. In the fourth quarter, the platform delivered its sixteenth consecutive quarter of double digit increases, and for good reason. We believe Aureon is the best in class peripheral atherectomy platform because of its demonstrated safety profile and versatility.

Jim Clemmer
Jim Clemmer
President, CEO & Director at AngioDynamics

A big focus of our commercial efforts in 2025 was the hospital setting, a customer base that for us represented a really compelling growth opportunity. As of the end of this year, our hospital customers represented approximately 36% of total AURYON revenue, up from 28% at the beginning of twenty twenty five, validating that with a better technology that provides superior clinical outcomes, we can take meaningful market share from larger competitors, regardless of the site of care. Outside of The U. S, we have started to see solid traction. Following Aurion receiving a CE Mark approval in September of twenty twenty four, which opened up the European PAD market, we began the process of commercializing in that region.

Jim Clemmer
Jim Clemmer
President, CEO & Director at AngioDynamics

In the fourth quarter, we generated over $1,000,000 in revenue from Europe, highlighting the great work done by our commercial team to increase awareness of the platform, which has driven demand from clinicians within the geography. We also have continued to work to develop compelling clinical data in support of its adoption. In January, we launched the Ambition BTK trial and registry, with the BTK standing for below the knee. This trial will evaluate clinical outcomes in treating patients suffering from critical limb ischemia below their knee using AURYON in combination with standard balloon angioplasty. We believe this rigorous trial, which builds upon our earlier AURYON study, could demonstrate an important advancement in the evidence supporting the benefits of AURYON's laser atherectomy in achieving acute and long term procedural success in a U.

Jim Clemmer
Jim Clemmer
President, CEO & Director at AngioDynamics

S. Market where there is an unmet need, potentially driving increased adoption of AURYON. Beyond PAD, we believe AURYON's unique mechanism of action can lead to great outcomes in coronary interventions. While not currently indicated for use in coronary applications, we are investing in the R and D and clinical work necessary to potentially unlock this $900,000,000 U. S.

Jim Clemmer
Jim Clemmer
President, CEO & Director at AngioDynamics

Market. We believe the AURYON platform technology, with its current market leadership and future opportunities, will continue to be a growth driver for AngioDynamics in the short, medium and long term. Aurion is a prime example of how we have been able to take a novel solution and drive it to become one of the leading technologies in a competitive, difficult to penetrate market. We know what it takes to win, a great product, high quality clinical data, highly effective market access programs and a well established sales and marketing infrastructure. We are running that playbook with our mechanical thrombectomy portfolio, and we are in the early stages of replicating the success we have achieved with Arianne.

Jim Clemmer
Jim Clemmer
President, CEO & Director at AngioDynamics

To that end, our mechanical thrombectomy portfolio, made up of AngioVac and AlphaVac, has become the fastest growing part of our MedTech segment. In the quarter, we delivered approximately 45 year over year growth. These two technologies are clearly differentiated and much of the work done over the last eighteen months has helped spur a solid adoption trajectory. Following Alphavac's FDA clearance and CE marking during the first half of calendar twenty twenty four, This product has delivered five consecutive quarters of sequential revenue growth. This was aided by the strength of our clinical data, in particular, the publication of our APeX trial results in December of twenty twenty four, which demonstrated Alphavac's strong performance in The U.

Jim Clemmer
Jim Clemmer
President, CEO & Director at AngioDynamics

S, showing a 35.5% reduction in clot burden from the baseline compared to a 9.3% reduction for the current market leader's IDE data. We also initiated the RECOVER AV trial in Europe in September of twenty twenty four, aimed at further strengthening our clinical evidence base in the European market. While Alphavac is a fantastic product that was purpose built to mitigate the need for blood return, we continue to believe that its rate of adoption would have been even more rapid if we also offered a version that offers blood return functionality. We now have a fully developed product, and we are working with the FDA to establish a regulatory pathway for a version of AlphaVac that includes blood return, and we believe that by offering two versions of the technology, with and without blood return, it will further enhance our competitive positioning and offer a better suite of solutions for all customers. We continue to be very encouraged about the performance of our other mechanical thrombectomy platform technology and GeoVac, which grew nearly 40% during the quarter and just over 25% for the full year.

Jim Clemmer
Jim Clemmer
President, CEO & Director at AngioDynamics

We attribute much of this success to the ongoing synergistic benefits that we have seen as a result of our concerted joint commercialization efforts within the mechanical thrombectomy portfolio. AngioVac and Alphavac together provide AngioDynamics with an unparalleled product portfolio option and with a fully trained and optimized sales force, we continue to realize commercial adoption synergies between these two product lines. To support the demand we are seeing in the market for these products, we plan to add additional dedicated reps to this sales force during fiscal twenty twenty six. We also believe we have other tailwinds influencing the adoption of this portfolio, particularly within Structural Heart. As this sector continues to grow, AngioVac has a role to play, giving our team an accelerated opportunity to engage with interventional cardiologists and cardiothoracic surgeons.

Jim Clemmer
Jim Clemmer
President, CEO & Director at AngioDynamics

As the overall structural heart market continues to progress, we believe we will benefit from incremental synergies within our portfolio. And lastly, NanoKnife. Although NanoKnife has been commercially available for a number of years, we achieved multiple key clinical, reimbursement and regulatory milestones during the year that has positioned it for accelerated adoption moving forward. PRESERVE met its primary effectiveness endpoint, demonstrating the performance of a NanoKnife system for the ablation of prostate tissue in patients with intermediate risk prostate cancer. And just as importantly, the study demonstrated extremely compelling quality of life outcomes, validating what we already knew about the technology and its ability to provide better care for prostate cancer patients.

Jim Clemmer
Jim Clemmer
President, CEO & Director at AngioDynamics

Next, in October of twenty twenty four, a CPT Category one code was granted for the treatment of lesions in the prostate and in liver using IRE. The new codes will be effective on 01/01/2026 and have put us in a fantastic position to ensure that reimbursement will be widely available across both the commercial and private payers as we move into calendar 2026. And lastly, in December, we received an expanded indication for the NanoKnife system for prostate tissue ablation. With this clearance in hand, we have been able to more proactively market, educate, and train for the procedure in ways that we've been previously unable to do. With these three milestones achieved, we have established the three pillars necessary for long term growth: regulatory clearance, reimbursement pathway and market awareness.

Jim Clemmer
Jim Clemmer
President, CEO & Director at AngioDynamics

Coming as a result of these efforts, we are very encouraged by the trends we have seen in NanoLife business. In particular with its adoption and utilization within prostate cancer care. We are seeing significant organic interest from the urology community and are seeing solid increases in the number of surgeons trained, the inbound interest in our technology has been strong. Importantly, we continue to receive exceptional feedback from physicians using NanoKnife in real world settings. While we are very excited about the demand for NanoKnife in prostate, we have continued to push to broaden its applicability within other disease states.

Jim Clemmer
Jim Clemmer
President, CEO & Director at AngioDynamics

In fact, a CPT level one code was granted for IRE in its use in pancreatic cancer care. Admittedly, this is a smaller market than prostate, but it highlights the ability of this technology to change the way patients are cared for across a variety of oncology applications. The CPT one code for IRE and pancreatic applications will become effective in January 2027. As you've just heard, we've made significant progress across our medtech portfolio during 2025. We have systematically executed on our strategy to drive growth in large, fast growing markets.

Jim Clemmer
Jim Clemmer
President, CEO & Director at AngioDynamics

This execution has already paid off. For the full year, our MedTech segment generated nearly $127,000,000 in revenue, representing growth of approximately 20%. Over the last five years, since we initiated our strategic transformation, our MedTech segment as a percentage of total revenue has doubled from 22% to 43% and delivered a five year revenue CAGR of approximately 25%. Beyond our commercial achievements, we've successfully executed on our operational efficiency initiatives, while maintaining our commitment to innovation and growth. During the quarter, we yet again generated positive adjusted EBITDA and over $15,000,000 of free cash flow.

Jim Clemmer
Jim Clemmer
President, CEO & Director at AngioDynamics

And as Steve will go into in more detail, we expect to be cash flow positive during fiscal twenty twenty six. As we continue to work to deliver consistent, profitable growth, we remain on track to deliver incremental cost optimization through our manufacturing transition process. We continue to expect to deliver approximately $15,000,000 in annualized savings by fiscal twenty twenty seven, fundamentally improving our cost structure. This year's results demonstrate the successful transformation of AngioDynamics into a profitable, growth oriented medical technology company. We've systematically built a portfolio of innovative products while achieving sustained profitability.

Jim Clemmer
Jim Clemmer
President, CEO & Director at AngioDynamics

The combination of regulatory achievements, clinical validation, commercial momentum and operational excellence provides strong momentum as we enter fiscal twenty twenty six. With our strong balance sheet, expanded market opportunities and proven ability to execute, we expect to continue to deliver for our shareholders. With that overview, I'll turn the call over to Steve to review our financial performance in more detail.

Steve Trowbridge
Steve Trowbridge
EVP & CFO at AngioDynamics

Thanks, Jim. Good morning, everybody. As always, before I begin, I'd like to direct everyone to the presentation on our Investor Relations website, summarizing the key items from our quarterly results. As Jim mentioned, unless otherwise noted, all metrics and growth rates mentioned during today's call are on a pro form a basis, which exclude the results of the Dialysis and BioSentry businesses that we divested in June 2023, the PICC and midline products that we divested in February 2024, and the radiofrequency and Cintrax support catheter products that we discontinued in February 2024.

Steve Trowbridge
Steve Trowbridge
EVP & CFO at AngioDynamics

Additionally, unless otherwise noted, all comparisons will be the fourth fiscal quarter of twenty twenty five versus the fourth fiscal quarter of twenty twenty four. Revenue increased 12.7% to $80,200,000 driven by growth across both our medtech and med device segments. Medtech revenue was $35,800,000 a 22% increase, while our med device revenue was $44,400,000 an increase of 6.2%. For the fourth fiscal quarter, our medtech platforms comprised 45% of our total revenue compared to 41% of total revenue a year ago, further illustrating the sustained execution of our strategy to increase percentage of our overall revenue base coming from our MedTech segment. Our AURYON platform contributed $15,600,000 in revenue, growing 19.7% compared to last year.

Steve Trowbridge
Steve Trowbridge
EVP & CFO at AngioDynamics

AURYON has now delivered double digit year over year growth in each sixteen quarters following the anniversary of its launch in September of twenty twenty one. Mechanical thrombectomy revenue, which includes AngioVac and Alphavac sales increased 44.7% year over year. As Jim mentioned earlier, we continue to be very pleased with our ability to take share in an increasingly competitive mechanical thrombectomy market, coming as a result of the efforts of our skilled commercial team, the innovative differentiation of these products, and the synergistic benefits we are seeing as a result of our joint commercialization efforts. In the quarter, AngioVac revenue was $8,200,000 a 39.5% year over year increase and Alphavac revenue was $3,100,000 a 60.8% year over year increase. Total NanoKnife revenue was $7,200,000 a decrease of 2.5%.

Steve Trowbridge
Steve Trowbridge
EVP & CFO at AngioDynamics

Now this decrease is due to the year over year comparison of capital sales. Throughout our fiscal twenty twenty five, we consistently discussed that we expect capital sales during the year to be approximately half of what they were in 2024. Our capital sales were less than they were a year ago. We have continued to see strong demand for new systems with fourth quarter capital sales down just 24.926% for the full year, ahead of our initial expectations. Disposable sales, the more consistent barometer of our NanoKnife business remained strong, growing 5.5% in the quarter and we continue to be encouraged by the sustained utilization of NanoKnife within prostate cases, which hit our projections for the full year.

Steve Trowbridge
Steve Trowbridge
EVP & CFO at AngioDynamics

NanoKnife prostate procedures in the quarter were 81% of all NanoKnife procedures, a record to date. In the fourth quarter, our Med Device segment increased 6.2% year over year. Now before turning to the rest of the income statement, I wanted to provide an update on the impact tariffs had on our business during the quarter. We announced our third quarter results on the morning of April 2, which was just hours before the administration unveiled its tariff program. During our call, we had indicated that we believe we were positioned to not be derailed by tariffs.

Steve Trowbridge
Steve Trowbridge
EVP & CFO at AngioDynamics

Even though the tariff program that was ultimately announced clearly was more extensive than we were anticipating at the time, we've continued to execute on our strategy and illustrate that we will indeed not be derailed by tariffs. That being said, there obviously was an impact on our business stemming from tariffs in the fourth quarter and there will be an impact on our business during the new fiscal year. As you are all well aware, the tariff environment remains unclear and unpredictable. However, we will provide an estimate of tariff impacts in connection with our fiscal year twenty twenty six guidance that incorporates our best estimate of the impacts as of today. Now, projected tariffs changed over the weekend, so the situation remains fluid.

Steve Trowbridge
Steve Trowbridge
EVP & CFO at AngioDynamics

As the situation evolves, we will continue to be transparent regarding any changes in expected impacts. In the fourth quarter of FY twenty five, we incurred $1,600,000 of tariff expense, with more than half of that cost associated with our MedTech segment. This 1,600,000 is included in our cost of goods sold and does impact gross margins and ultimately our EBITDA and EPS results. Given this dynamic, we're particularly pleased with our results and our ability to drive accelerated profitability despite this headwind. So I'll discuss further towards the end of my remarks, we currently expect the full year impact of tariffs in FY twenty six to be approximately $4,000,000 to $6,000,000 And we continue to expect that tariffs will not materially alter our trajectory or our ability to execute on our strategic plan for fiscal twenty six.

Steve Trowbridge
Steve Trowbridge
EVP & CFO at AngioDynamics

We do not expect it to alter our stated goals of continuing to generate positive adjusted EBITDA for the full year and we continue to expect to be cash flow positive for the full year of FY 'twenty six, inclusive of paying all associated tariffs. Now, moving down the income statement, our gross margin for the fourth quarter of FY twenty five was 52.7%. For the quarter, MedTech gross margin was 59% and MedDevice gross margin was 47.6%. In this quarter, total gross margin saw an approximately two zero four basis point negative impact from tariffs. Absent the 1,600,000.0 paid in tariffs, full company gross margin would have been 54.7%, med tech gross margin would have been 62.1%, and med device gross margin would have been 48.8 percent.

Steve Trowbridge
Steve Trowbridge
EVP & CFO at AngioDynamics

Total operating expenses in the quarter were 48,000,000 or 60% of sales, compared to $52,900,000 or 74% of sales last year. As a reminder, during the fourth quarter of fiscal twenty twenty four last year, we incurred a number of one time expenses, including amounts related to the settlement with C. Transfer program. Turning now to R and D, our research and development expense was $6,600,000 or 8.2% of sales compared to $6,700,000 or 9.5 percent of sales a year ago. We remain committed to investing in R and D initiatives to support the long term growth of our MedTech segment and are targeting approximately 10% of sales going forward.

Steve Trowbridge
Steve Trowbridge
EVP & CFO at AngioDynamics

SG and A expense for the fourth quarter of FY twenty twenty five was $36,700,000 representing 45.8% of sales, compared to $35,000,000 or 49.2% of sales a year ago. Our adjusted net loss for the fourth quarter of FY 'twenty five was $1,100,000 or an adjusted loss per share of $03 compared to an adjusted net loss of $2,300,000 or an adjusted loss per share of $06 in the fourth quarter of last year. This year over year improvement is largely attributable to our revenue growth and the success of our expense management initiatives. Adjusted EBITDA in the fourth quarter of FY twenty twenty five was $3,400,000 compared to an adjusted EBITDA of $1,500,000 in the fourth quarter of twenty twenty four. As noted previously, during the fourth quarter, we entered into a revolving line of credit agreement with JPMorgan, which allows us to draw down up to $25,000,000 at our discretion.

Steve Trowbridge
Steve Trowbridge
EVP & CFO at AngioDynamics

Now while we are very comfortable with the amount of cash we have on the balance sheet, we view the addition of a revolver as a matter of prudent financial housekeeping and a good safety net to ensure that any short term working capital fluctuations associated with the Spectrum transition manufacturing agreement doesn't impact our execution on our strategy. At this point, we have not drawn down any of the available capital as part of the revolver agreement. At 05/31/2025, we had $55,900,000 in cash and cash equivalents, compared to $44,800,000 in cash and cash equivalents at 02/28/2025, which is inclusive of the payment of the final revenue performance based milestone payment of $5,000,000 made as part of the company's acquisition of Aureon in 2019 and the $1,600,000 in tariff driven COGS impacts and fees associated with our revolving credit facility. In the quarter, we generated $18,800,000 in operating cash, had capital expenditures of $800,000 and additions to AURYON placement and evaluation units of $1,800,000 As expected, we generated $16,200,000 in free cash flow. Now turning to a quick review of the fiscal full year results.

Steve Trowbridge
Steve Trowbridge
EVP & CFO at AngioDynamics

Revenue increased 8.1% to $292,700,000 primarily driven by growth across our MedTech segment. MedTech revenue was $126,700,000 a 19.5% increase. Our AURYON platform contributed $56,900,000 in revenue, growing 20.8% compared to last year. Mechanical thrombectomy revenue, which includes AngioVac and Alphavac sales, increased 32.9% year over year. In the fiscal full year, AngioVac revenue was $28,900,000 a 25.1% year over year increase and AlphaVac revenue was $10,800,000 a 59.5% year over year increase.

Steve Trowbridge
Steve Trowbridge
EVP & CFO at AngioDynamics

Total NanoKnife revenue was $24,500,000 flat compared to the prior fiscal year. NanoKnife probes grew 9.6% for the year and capital sales were down 26%. In fiscal year twenty twenty five, our med device revenue was $166,000,000 an increase of 0.8%. In the fiscal full year 2025, the company incurred limited revenue impacts because of tariffs. Our gross margin for FY '25 was 53.9%.

Steve Trowbridge
Steve Trowbridge
EVP & CFO at AngioDynamics

For the year, medtech gross margin was 62% and med device gross margin was 47.7%. In the year, total gross margin saw an approximate 56 basis point negative impact from tariffs. Absent the 1,600,000.0 paid in tariffs, full company gross margin would have been 54.5%. MedTech gross margin would have been 62.9% and MedDevice gross margin would have been 48. Turning to R and D, our research and development expense during FY 2025 was $26,200,000 or 9% of sales compared to $30,900,000 or 11.4% of sales a year ago.

Steve Trowbridge
Steve Trowbridge
EVP & CFO at AngioDynamics

SG and A expense for FY 2025 was $145,200,000 representing 49.6% of sales compared to $139,200,000 or 51.4% of sales a year ago. Our adjusted net loss for FY 'twenty five was $10,200,000 or an adjusted loss per share of $0.25 compared to an adjusted net loss of $18,200,000 or an adjusted loss per share of $0.45 last year. This year over year improvement is largely attributable to our revenue growth and the success of our expense management initiatives, very similar to the story for the quarter. Adjusted EBITDA in the full fiscal year 2025 was $7,600,000 compared to an adjusted EBITDA loss of $3,200,000 in fiscal year twenty twenty four. Turning now to guidance.

Steve Trowbridge
Steve Trowbridge
EVP & CFO at AngioDynamics

For the fiscal year twenty twenty six, we anticipate net sales to be in the range of $3.00 5,000,000 to $310,000,000 representing growth of between 46% over fiscal 'twenty five revenue of $292,700,000 Within each of our businesses, we expect MedTech net sales to grow 12% to 15% year over year, and we expect Med Device sales to be roughly flat. For fiscal 'twenty six, we expect gross margin to be in the range of 53.5% to 55.5%. Now this is inclusive of our estimated tariff impact of 4,000,000 to $6,000,000 Absent this impact, gross margin guidance would have been 55% to 56%. We expect adjusted EBITDA to be in the range of $3,000,000 to $8,000,000 again, inclusive of our estimated tariff impact. Absent this impact, adjusted EBITDA guidance would have been 7,500,000.0 to $10,500,000 And finally, we expect adjusted loss per share in the range of negative $0.35 to negative $0.25 Absent the tariff impact, adjusted loss per share guidance would have been negative $0.30 to negative $0.25 Beyond our P and L guidance, we continue to expect to be cash flow positive for the full fiscal year 2026.

Steve Trowbridge
Steve Trowbridge
EVP & CFO at AngioDynamics

As is the case with all companies, our first fiscal quarter will exhibit the highest use of cash. This is typical for AngioDynamics and the first quarter of fiscal 'twenty six will be no different. In the first quarter 'twenty six, we expect to utilize approximately $20,000,000 of cash. We will return to cash generation in subsequent quarters and we will finish FY '26 having generated positive cash for the full year. Our guidance on cash is inclusive of any tariffs that we expect to pay during the year. With that, I'll turn it back to Jim.

Jim Clemmer
Jim Clemmer
President, CEO & Director at AngioDynamics

As we look forward toward fiscal twenty twenty six, we are exceptionally well positioned to build on the strong foundation established during fiscal twenty twenty five. We entered the New Year with multiple regulatory clearances achieved, expanded market access, proven commercial momentum and sustained profitability. Our strategic transformation over the past several years has positioned us exceptionally well for the future. We've successfully built a portfolio of innovative medtech platforms, addressing large growing markets.

Jim Clemmer
Jim Clemmer
President, CEO & Director at AngioDynamics

We've optimized our med device business to provide steady cash generation. And we've strengthened our balance sheet and operational efficiency to support sustainable growth. Looking ahead, our priorities remain clear, continue to drive adoption and market share gains across our medtech platforms, maintain operational discipline while investing for growth, and deliver increasing value to our shareholders through sustainable, profitable growth. We remain very excited about the future of AngioDynamics. We have built a fantastic portfolio focused on large high growth markets.

Jim Clemmer
Jim Clemmer
President, CEO & Director at AngioDynamics

We have strengthened our financial profile and operational capabilities. And with our strong balance sheet and positive trajectory towards sustained profitability, we're well positioned to deliver long term value creation. Before opening the line for questions, I would like to thank every member of the AngioDynamics team for their tireless work to bring innovative technologies to our customers and the patients they serve. With that, let's open the line for questions.

Operator

Thank you. We'll now be conducting a question and answer session. Thank

Operator

Thank you. You. And the first question today is from the line of John Young with Canaccord Genuity. Please proceed with your questions.

Jon Young
Jon Young
Director, Wealth Management at Canaccord Genuity Group

Hey, Jim and Steve. It's John. Congrats on the quarter. And it's really great to see the progress here. I want to start on the VTE business.

Jon Young
Jon Young
Director, Wealth Management at Canaccord Genuity Group

I know you guys mentioned this blood return product. I was wondering if you get some more incremental detail on the pathway forward for it. I know you're in regulatory discussions with it. Will this be a five ten product that just benchtop testing for hemolysis? Will this need a clinical trial?

Jon Young
Jon Young
Director, Wealth Management at Canaccord Genuity Group

And is this an ancillary product to the existing Alphovac business? And then as a follow-up to that question too, looking at the Alphovac revenue from this quarter, are you guys hitting a ceiling without having this blood return product? Because it's interesting seeing the growth in AngioVac versus Alphavac in this quarter. And thanks again for taking our question.

Jim Clemmer
Jim Clemmer
President, CEO & Director at AngioDynamics

Hi John, it's Jim. Thanks for the question. So let me take a step backwards. Alphabac was designed and developed with the blood loss aspect in mind. We knew during our initial design and development work with a lot of conversations with our advisory board of physicians who used other products, that one of the issues with the leading product in the market was that it drew a lot of blood out, lost a lot of blood.

Jim Clemmer
Jim Clemmer
President, CEO & Director at AngioDynamics

They had to have a system to deal with that. So I'll leave that alone. We purposely built in, as you know, a blood loss feature into our product that really limits the loss of blood during the pull. As the APeX study showed, we pull more clot out than the market leader and we lose less blood. APeX study showed our blood loss was less than two fifty cc's in over sixty percent of the procedures done.

Jim Clemmer
Jim Clemmer
President, CEO & Director at AngioDynamics

So we're very confident in how the product works, how safe and effective it is. That being said now, the market has been conditioned a bit by the market leader to have a blood return feature available, because they lose a lot more than us. So we knew that coming into it, we devised a product now to be kind of an ancillary add on and it needs to go through a five ten ks process. There's been a process there as you know how predicates work. So we tried to follow what was established and in conversations with the FDA, they're watching the space.

Jim Clemmer
Jim Clemmer
President, CEO & Director at AngioDynamics

We haven't come to agreement yet as to how to get the product approved and on the market. But we're confident we'll get there. As far as the ceiling, no, we've had more and more products get into doctors' hands, more kind of hospitals approve us in the VAC committee process. And we've added new sales reps, as you know, in the past quarter, because we're bullish about where AlphaVac can go. So this product has a high ceiling.

Jim Clemmer
Jim Clemmer
President, CEO & Director at AngioDynamics

And combined with AngioVac, which as you said, we had a terrific year in AngioVac, the fact that we can sell both together and now we're getting multi disciplines involved in these conversations, meaning interventional cardiologists that maybe didn't know about AngioVac eighteen months ago are now seeing it, seeing the applications it could be used for. So John, we have a great suite of products. These two will be leading products in thrombectomy for years to come. And we have a great business. We'll keep you up to date, but we expect sequential growth of both products from here on in.

Jon Young
Jon Young
Director, Wealth Management at Canaccord Genuity Group

Okay. That's great to hear. And then I know this is a quick follow-up to NanoKnife, especially with the approval we'll see in or I should say the reimbursement we'll see beginning in 2026, calendar twenty twenty six. As we think of the med tech guidance, are you guys thinking of an inflection essentially around that January approval timeline? Thanks again for taking our questions.

Steve Trowbridge
Steve Trowbridge
EVP & CFO at AngioDynamics

Yeah, John, this is Steve. Thanks for the question. So with NanoKnife, we've always said that there's three things that lead to the growth that we expect to see in NanoKnife. It's going to be the indication which is table stakes, we were able to get that. Reimbursement was probably the most important that is coming into effect in January of twenty twenty six.

Steve Trowbridge
Steve Trowbridge
EVP & CFO at AngioDynamics

And then the third is continued increase in the adoption awareness of the urology community. We're absolutely seeing that increase in awareness. We're very pleased with the trajectory that we're seeing with new urologists coming on board and choosing NanoKnife as one of their options for treatments. We do expect that the reimbursement is going to be something that's going to drive growth. I don't know that you're going to see an immediate hockey stick.

Steve Trowbridge
Steve Trowbridge
EVP & CFO at AngioDynamics

We've always said that the reimbursement landscape is a patchwork quilt. It's pretty complex. There's a lot of things that go into that. Just last night, CMS put out their proposed rules for the RVUs in this space. That ended up pretty much where we expected.

Steve Trowbridge
Steve Trowbridge
EVP & CFO at AngioDynamics

There's a lot that we're still unpacking and our team is still going through that. But it was right where we wanted it to be in terms of that piece. Then on top of that, there's the private payers making sure that they're putting in their coverage decisions. We're doing all that work as we've always said. We do expect you're going to see accelerated growth for NanoKnife and we're going to continue to drive to try to shorten that hockey stick.

Steve Trowbridge
Steve Trowbridge
EVP & CFO at AngioDynamics

It may not be immediate, it's not like a light switch, but it is absolutely something that's going to continue to drive NanoKnife growth and adoption in the second half of our fiscal year here.

Jon Young
Jon Young
Director, Wealth Management at Canaccord Genuity Group

Great, congrats again guys.

Steve Trowbridge
Steve Trowbridge
EVP & CFO at AngioDynamics

Thanks, The

Operator

next questions are from the line of Steve Lichtman with Oppenheimer. Please proceed with your question.

Steve Lichtman
Managing Director, Senior Equity Research Analyst at Oppenheimer & Co. Inc.

Thank you. Good morning, Jim and Steve and congratulations on the quarter. On FY 2026 sales, can you give us any color on the major product growth between MT, Orion and NanoKnife within medtech? And separately, what level of contribution do you think you can achieve from AURYON outside of The US? Sounds like you're off to a nice start there.

Steve Trowbridge
Steve Trowbridge
EVP & CFO at AngioDynamics

Yes, Steve, think that's absolutely true. We're very pleased with the uptick in some of the international markets that we're seeing with AURYON. As we've always said, The US is going be the biggest market. International will be a contributor, but it's not going to be at the same level that we've seen here in The US. So when you think about FY '26, if you look at what we did last year, AURYON grew just about 20% for the full year.

Steve Trowbridge
Steve Trowbridge
EVP & CFO at AngioDynamics

We said that we expected AURYON kind of in this timeframe of its life cycle now to be about a mid teens grower. That's a good way to think about it for FY '26. And then for NanoKnife, we expected to see continued disposable adoption, probably a little bit of a step back in capital. We didn't see the level of step that we said we expected to see at the beginning of the year last year. We'll still bring on some new capital, but it may be a little bit of a step back.

Steve Trowbridge
Steve Trowbridge
EVP & CFO at AngioDynamics

So very similar progress coming into the back half as we talked about reimbursement coming online and NanoKnife. And then thrombectomy, mechanical thrombectomy in particular, AngioVac and AlphaVac, expect that to continue to be a very strong grower for us, probably the strongest growth that you see in the business there. So when you put that all together, that's how you get to that med tech guide that we gave you.

Steve Lichtman
Managing Director, Senior Equity Research Analyst at Oppenheimer & Co. Inc.

Got it. Appreciate that. And then just secondly on gross margin, Steve, appreciate the tariff details. Does the potential impact you laid out in FY 2026 include offsets? And then separately, the ex tariffs gross margin is ahead of our thinking.

Steve Lichtman
Managing Director, Senior Equity Research Analyst at Oppenheimer & Co. Inc.

I was wondering how much of the outsourcing initiative you'll think you'll accrue benefits from in FY 2026? Thanks.

Steve Trowbridge
Steve Trowbridge
EVP & CFO at AngioDynamics

Yes, it's a great question. So there is a lot of moving parts when it goes into tariffs. So there's a lot that we put into our guide there. The current thinking that we know today, as we've all said, that changes daily, right? Even just a couple days ago, were potential changes there in the EU community.

Steve Trowbridge
Steve Trowbridge
EVP & CFO at AngioDynamics

So there's puts and takes when it comes to our expectations around tariffs. We're also doing a lot of the things that you'd expect us to do to try to mitigate any potential tariff impacts. So we'll continue to be transparent as possible with tariffs as we move forward into the fiscal year. I think the point about our manufacturing transfer plan, we've absolutely started to see the benefits coming from that manufacturing transfer plan even in FY 2025. So as we said, we expected to complete the program by the end of this calendar year and that's when you're going to start to see the full benefit of that manufacturing transfer plan.

Steve Trowbridge
Steve Trowbridge
EVP & CFO at AngioDynamics

With our FY '27, which starts June one of twenty six, when you're going to see the full year impact. Do expect that we're going to see some of that benefit in the back half of this fiscal twenty six that we just started, as we started to see some of that benefit in FY twenty five. So some of the expense management initiatives that we talked about as well as gross margin and the results that we've seen in gross margin, particularly that the results of gross margin ex tariff. We're starting to see some of the benefits of our operations team bringing in some of those cost benefits a little earlier, and we expect that to continue.

Steve Lichtman
Managing Director, Senior Equity Research Analyst at Oppenheimer & Co. Inc.

Okay, great. Thanks guys.

Steve Trowbridge
Steve Trowbridge
EVP & CFO at AngioDynamics

Thanks, Steve.

Operator

The next question is from the line of Yi Chen with H. C. Wainwright. Please proceed with your question.

Yi Chen
Managing Director, Equity Research at H.C. Wainwright & Co., LLC

Thank you for taking my question.

Yi Chen
Managing Director, Equity Research at H.C. Wainwright & Co., LLC

Do you have any plan to acquire new MedTech products with high growth potential in fiscal year 'twenty twenty six? And do you plan to divest any additional products within Med Device segment in the next fiscal year? Thank you.

Jim Clemmer
Jim Clemmer
President, CEO & Director at AngioDynamics

Hi, Yi. Thanks for the question this morning. This is Jim. We really like the portfolio we have, Yi. We've talked to you and to others about the development of this portfolio, getting to where it's at today.

Jim Clemmer
Jim Clemmer
President, CEO & Director at AngioDynamics

We think we have a healthy balance between our medical device products, which are kind of four different little classes within med device, but they're really good. They're market leading products. We have a great selling and marketing and clinical team supporting them. And then now with medtech, you've seen, as I said in my remarks earlier, we've had a five year CAGR of 25% growth in our medtech products. That's really important to us.

Jim Clemmer
Jim Clemmer
President, CEO & Director at AngioDynamics

And now that we've actually entered some of these markets we were trying to get through with market development access like our APeX and PRESERVE study, our CE marks, other things opening up access, we're really, really busy the next couple of years on just kind of doing the execution mode here and supporting some other clinical studies. We think that will expand opportunities to develop these markets. So we're really pleased with the development of the products themselves. Now we're pleased with the market access, reimbursement, awareness, clinical regulatory hurdles we've cleared. I think we're pretty busy here.

Jim Clemmer
Jim Clemmer
President, CEO & Director at AngioDynamics

So we don't see the need to add a definitely another platform to what we have. And even adding pieces to it, maybe we'll come across an item or something that looks interesting. But as a company strategy, we want to focus on these assets that we own and make sure we can drive the opportunity because the TAMs are large and we want to drive the opportunity we can to give our shareholders the best, fastest return on growth here. I think that's what you'll see from us going forward.

Yi Chen
Managing Director, Equity Research at H.C. Wainwright & Co., LLC

Thank you.

Operator

Thank you. At this time, we've reached the end of the question and answer session. I'll hand the floor back to Mr. Klemmer for closing remarks.

Jim Clemmer
Jim Clemmer
President, CEO & Director at AngioDynamics

Thank you for joining us today. AngioDynamics is really proud of our transformation. We've really changed our company, become now a leading med tech provider of really, really counted on products to treat patients with severe disease. Along this journey, it's been hard to do, but we know what our outcome could be and now we're getting close. We'll be a company that'll be well managed and will really give great results to our shareholders for years to come.

Jim Clemmer
Jim Clemmer
President, CEO & Director at AngioDynamics

We're a really good company. Thank you for your interest today. We'll talk to you soon.

Operator

This will conclude today's conference. You may disconnect your lines at this time. We thank you for your participation. Have a wonderful day.

Executives
    • Jim Clemmer
      Jim Clemmer
      President, CEO & Director
    • Steve Trowbridge
      Steve Trowbridge
      EVP & CFO
Analysts
    • Jon Young
      Director, Wealth Management at Canaccord Genuity Group
    • Steve Lichtman
      Managing Director, Senior Equity Research Analyst at Oppenheimer & Co. Inc.
    • Yi Chen
      Managing Director, Equity Research at H.C. Wainwright & Co., LLC
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