Core Insights - AngioDynamics (ANGO) is experiencing growth driven by its NanoKnife product and a focus on cancer treatment markets, supported by a strong fourth-quarter fiscal 2025 performance and ongoing studies [1][6][10] - The company's shares have seen a slight decline of 0.3% year-to-date, contrasting with a 7% decline in the industry and an 8.8% increase in the S&P 500 [1][2] Company Performance - AngioDynamics has a market capitalization of $358.8 million and projects a 50% growth over the next year, with earnings surpassing the Zacks Consensus Estimate in the last four quarters, averaging a surprise of 72.58% [2][3] - The fourth-quarter fiscal 2025 results showed a narrower adjusted loss per share and revenues exceeding expectations, indicating strong execution across both operating segments [11] Product and Market Dynamics - The NanoKnife product, which received FDA clearance and Breakthrough Device Designation, generated total revenues of $24.5 million in fiscal 2025, with fourth-quarter revenues of $7.2 million reflecting growth in disposable sales despite softer capital placements [3][4] - Recurring disposable sales grew by 9.6% for the year, providing a reliable revenue stream to offset variability in system placements [3] Clinical and Product Development - AngioDynamics is advancing a broad pipeline of clinical studies, including the AMBITION trial for Auryon and the RECOVER-AV trial for AlphaVac, aimed at enhancing its market position [7][8] - The NanoKnife's PRESERVE prostate trial has met primary endpoints, paving the way for reimbursement catalysts starting in 2026 [8] Financial Outlook - The company anticipates gross margins in the range of 53.5% to 55.5% for fiscal 2026, with adjusted EBITDA projected between $3.0 million and $8.0 million [13] - However, there has been a negative estimate revision trend for fiscal 2026, with the consensus estimate for loss per share expanding from 6 cents to 30 cents [14]

Core Insights - AngioDynamics (ANGO) is undergoing a multi-year transformation and is nearing an inflection point in its business strategy [1] - The company has divested its legacy assets and resolved litigation issues, allowing it to focus on sales growth [1] Company Developments - AngioDynamics has successfully divested from legacy assets, which is a significant step in its transformation process [1] - The resolution of litigation has cleared obstacles for the company, enabling a more concentrated effort on expanding its sales [1] Growth Potential - With the divestiture and litigation resolved, AngioDynamics is positioned to capitalize on growth opportunities in the market [1]

Summary of AngioDynamics Conference Call Company Overview - AngioDynamics is undergoing a transformation to enhance its value by focusing on high-margin, high-growth areas, specifically targeting cardiovascular disease and cancer treatment [3][4] - The company has shifted its portfolio into two reportable segments: med device and med tech, with the latter being the future growth driver [4][25] Financial Performance - The med tech segment has achieved a 25% compound annual growth rate (CAGR) over the last five years [5][25] - For fiscal year 2025, AngioDynamics reported over 8% overall growth, with the med tech segment growing at 20% [26] - Guidance for fiscal year 2026 includes projected revenue between $300 million to $310 million, with med tech expected to grow 12% to 15% year-over-year [30][31] Market Opportunities - The total addressable market (TAM) for the med tech segment in the U.S. is approximately $7 billion, with a global TAM of about $10 billion [7][8] - The company is focusing on venous thromboembolism (VTE) and peripheral arterial disease (PAD) as key growth areas [10][14] Product Segments Med Tech Segment - **Mechanical Thrombectomy**: Products include AlphaVac and AngioVac, with AlphaVac expected to grow significantly due to its advantages over competitors [10][12][60] - **Peripheral Arterial Disease (PAD)**: The AURYON product has grown from zero revenue to over $50 million, with expectations for continued double-digit growth [33][34] - **NanoKnife**: A unique ablation product for treating solid tumors, particularly prostate cancer, with a CPT code expected to enhance market penetration starting January 1 [20][22][24] Growth Strategies - Expansion of the U.S. sales force from 40 to 50 representatives to support growth in the mechanical thrombectomy market [12] - Focus on educating the urology community about NanoKnife's benefits, particularly for patients with intermediate-risk prostate cancer [68][69] Cash Flow and Financial Guidance - The company anticipates a cash burn of $20 million in Q1 of fiscal year 2026 but expects to generate positive cash flow for the remainder of the year [42][44] - The company aims to avoid using its revolver and maintain a safety net for financial stability [43] Risks and Considerations - The company acknowledges the potential impact of tariffs on its operations but believes it can mitigate these effects [46][47] - The competitive landscape includes established players, but AngioDynamics is confident in its product advantages and market strategies [62][65] Conclusion - AngioDynamics is positioned for growth through strategic focus on high-potential markets, innovative products, and a commitment to improving patient outcomes while maintaining financial discipline [28][25]

Part I [Business](index=5&type=section&id=Item%201.%20Business) AngioDynamics is a diversified medical technology company focusing on cardiovascular and cancer treatments, with products in Med Tech and Med Device segments - The company operates through two segments: **Med Tech** (Auryon, Thrombectomy, NanoKnife) and **Med Device** (peripheral products, ports, venous insufficiency treatments)[21](index=21&type=chunk) - Recent strategic moves include the sale of **dialysis, BioSentry, PICC, and Midline businesses** in June 2023 and February 2024 to focus on higher-growth areas[19](index=19&type=chunk) - Products are sold primarily through a **direct sales force in the U.S.** and a combination of direct sales and distributors internationally[58](index=58&type=chunk) - A manufacturing restructuring plan, announced in January 2024, aims to optimize efficiency by shifting production to **third-party manufacturers**, with completion expected in Q3 fiscal 2026[62](index=62&type=chunk) [Products](index=6&type=section&id=Products) The company's product portfolio spans Med Tech, featuring high-growth platforms like Auryon and NanoKnife, and Med Device, offering a broad range of interventional products - The **Med Tech segment** includes the **Auryon Atherectomy System** for peripheral artery disease, **Thrombectomy systems** (AlphaVac, AngioVac) for thrombi removal, and the **NanoKnife IRE Ablation System** for soft tissue ablation, with recent expanded FDA clearance for prostate tissue[22](index=22&type=chunk)[23](index=23&type=chunk)[31](index=31&type=chunk) - The **Med Device segment** offers a broad portfolio including angiographic catheters, guidewires, drainage products, implantable ports (**SmartPort, BioFlo**), the **VenaCure EVLT laser system** for varicose veins, and the **Solero Microwave Ablation System**[32](index=32&type=chunk)[38](index=38&type=chunk)[43](index=43&type=chunk) [Competition](index=11&type=section&id=Competition) The company faces intense competition from large, well-resourced manufacturers and specialized companies, primarily based on product quality, clinical outcomes, and price - The company faces significant competition from **large, well-resourced manufacturers** and smaller, specialized companies[55](index=55&type=chunk) - Primary competitors include **Boston Scientific, Medtronic, Johnson & Johnson, Cook Medical, and Becton Dickinson**[56](index=56&type=chunk) - Competition is based on **product quality, clinical outcomes, ease of use**, and increasingly on **price** due to healthcare provider consolidation and declining reimbursement rates[57](index=57&type=chunk) [Government Regulation](index=13&type=section&id=Government%20Regulation) The company's products are subject to extensive regulation by the FDA in the U.S. and require CE Mark for sales in the European Union - Products are regulated by the **FDA in the U.S.**, typically requiring **510(k) clearance** before marketing, a process historically used for the company's products[69](index=69&type=chunk)[72](index=72&type=chunk) - Manufacturing facilities are subject to **FDA's Quality System Regulation (QSR)** and periodic inspections to ensure compliance[74](index=74&type=chunk) - For sales in the **European Union**, a **CE Mark** is required, with new products subject to the more stringent **Medical Device Regulation (MDR)** and transition periods for existing products ending in 2027 or 2028[77](index=77&type=chunk) [Risk Factors](index=18&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant business, regulatory, and intellectual property risks, including intense competition, supply chain dependence, and cybersecurity threats - The company faces **intense competition** from larger competitors and increasing pressure to compete on **price** due to the purchasing power of GPOs and IDNs[102](index=102&type=chunk)[104](index=104&type=chunk) - Dependence on **single-source suppliers** and a strategic shift to **third-party manufacturing** in Costa Rica, Israel, and China expose the company to supply chain interruptions, quality control issues, and geopolitical risks[116](index=116&type=chunk)[119](index=119&type=chunk) - The business is subject to extensive government regulation, including **FDA's Quality System Regulation (QSR)** and the **EU's new Medical Device Regulation (MDR)**, requiring significant compliance resources[169](index=169&type=chunk)[173](index=173&type=chunk) - Product liability is an inherent risk, with the company currently defending numerous claims related to its **port products** consolidated into a multidistrict litigation[132](index=132&type=chunk) - Cybersecurity threats to the company's or partners' IT systems could result in **unauthorized data access, intellectual property theft**, and operational disruptions[156](index=156&type=chunk)[157](index=157&type=chunk) [Cyber Security](index=33&type=section&id=Item%201C.%20Cyber%20Security) AngioDynamics implements a cybersecurity risk management program based on NIST Cyber Security Framework 2.0, with oversight from the Board and Audit Committee - The company's cybersecurity program is based on the **NIST Cyber Security Framework 2.0** and integrated into its enterprise risk management (ERM) program[192](index=192&type=chunk) - Governance is led by the **Senior Vice President of Information Technology**, with oversight from the CEO, Board of Directors, and Audit Committee[194](index=194&type=chunk)[195](index=195&type=chunk) [Properties](index=34&type=section&id=Item%202.%20Properties) The company leases all primary facilities, including corporate headquarters, manufacturing sites, and R&D centers across multiple locations | Location | Purpose | Approx. Sq. Ft. | Property Type | | :--- | :--- | :--- | :--- | | Latham, NY | Corporate headquarters | 39,000 | Lease | | Glens Falls, NY | Manufacturing | 21,000 | Lease | | Queensbury, NY | Manufacturing | 135,000 | Lease | | Queensbury, NY | Distribution | 58,000 | Lease | | Marlborough, MA | Research and development | 8,400 | Lease | | Rehovot, IL | Research and development | 4,300 | Lease | [Legal Proceedings](index=34&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in various legal proceedings, including settled patent litigation and ongoing product liability claims related to its port products - Information regarding legal proceedings is included in **Note 17** to the consolidated financial statements[198](index=198&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities](index=35&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) AngioDynamics' common stock trades on NASDAQ under "ANGO", with no cash dividends paid in the last three fiscal years or anticipated in the foreseeable future - The company's common stock trades on the **NASDAQ Global Select Market** under the symbol **"ANGO"**[201](index=201&type=chunk) - No cash dividends were declared in the last three fiscal years, and none are anticipated for the **foreseeable future**[203](index=203&type=chunk) Common Stock Sale Prices (Fiscal Year 2025) | Fiscal Year 2025 | High Sale Price | Low Sale Price | | :--- | :--- | :--- | | Fourth Quarter | $10.86 | $8.37 | | Third Quarter | $12.94 | $7.00 | | Second Quarter | $7.78 | $5.88 | | First Quarter | $7.84 | $5.51 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) FY2025 revenue decreased 3.8% to **$292.5 million** due to divestitures, while Med Tech grew 19.0% and gross margin improved to 53.9% Financial Highlights | Metric | FY 2025 | Change from FY 2024 | | :--- | :--- | :--- | | Revenue | $292.5 million | -3.8% | | Med Tech Revenue Growth | 19.0% | N/A | | Med Device Revenue Decline | -16.0% | N/A | | Gross Margin | 53.9% | +300 bps | | Net Loss | $34.0 million | Decreased by $150.4 million | | Loss per Share | ($0.83) | Decreased by $3.76 | | Cash Flow from Operations | ($10.1 million) | Improved by $18.0 million | - The decrease in total revenue was primarily due to the divestiture of **PICC, Midline, dialysis, and BioSentry businesses**, impacting sales by **$33.4 million** compared to the prior year[219](index=219&type=chunk) - A manufacturing restructuring plan is expected to generate **$15.0 million in annual cost savings** starting in fiscal year 2027[214](index=214&type=chunk) - On July 16, 2024, the Board approved a **$15.0 million share repurchase program**, with **243,847 shares repurchased for $1.7 million** during FY2025[215](index=215&type=chunk) [Results of Operations (FY2025 vs. FY2024)](index=40&type=section&id=Results%20of%20Operations%20%28FY2025%20vs.%20FY2024%29) In FY2025, total net sales decreased to $292.5 million, driven by a 19.0% growth in Med Tech sales offset by a 16.0% decline in Med Device sales due to divestitures Net Sales by Segment (in thousands) | (in thousands) | 2025 | 2024 | $ Change | | :--- | :--- | :--- | :--- | | **Net Sales** | | | | | Med Tech | $126,653 | $106,403 | $20,250 | | Med Device | $165,845 | $197,511 | ($31,666) | | **Total** | **$292,498** | **$303,914** | **($11,416)** | - **Med Tech sales growth** was driven by a **$9.8 million increase in Auryon sales** and a **$10.9 million increase** in the thrombus management platform[241](index=241&type=chunk) - **Med Device sales decrease** was primarily due to the divestiture of **PICCs and Midline products** (**$30.1 million decrease**)[241](index=241&type=chunk) - Total gross margin increased to **53.9% from 50.9%**, driven by favorable sales volume, price, and product mix, positively impacting gross margin by **$19.9 million**, offsetting a **$9.2 million negative impact** from divestitures[242](index=242&type=chunk)[243](index=243&type=chunk) - Operating expenses decreased significantly, primarily due to a **$159.5 million non-cash goodwill impairment charge** in FY2024 not present in FY2025[246](index=246&type=chunk) [Liquidity and Capital Resources](index=45&type=section&id=Liquidity%20and%20Capital%20Resources) The company's cash and cash equivalents decreased to $55.9 million in FY2025, with an improved operating cash flow and a new $25.0 million revolving credit facility Liquidity Highlights (in thousands) | (in thousands) | May 31, 2025 | May 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $55,893 | $76,056 | | Working Capital (Current Assets - Current Liabilities) | $92,127 | $102,098 | - Cash used in operating activities was **$10.1 million** in FY2025, an improvement from **$28.2 million** used in FY2024[255](index=255&type=chunk)[256](index=256&type=chunk) - On May 28, 2025, the company entered into a new **two-year, $25.0 million secured revolving credit facility**, with no outstanding balance as of May 31, 2025[218](index=218&type=chunk)[257](index=257&type=chunk) - Total contractual obligations as of May 31, 2025, are **$41.7 million**, including operating leases, finance leases, and royalties[259](index=259&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=47&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks from foreign currency exchange rates, interest rates, and credit concentration, with foreign currency sales at 3.4% in FY2025 - The company is exposed to **foreign currency exchange rate risk**, with approximately **3.4% of fiscal year 2025 sales** denominated in foreign currencies like the Euro, British pound, and Canadian dollar[263](index=263&type=chunk) - Interest rate risk is limited with **no outstanding debt** as of May 31, 2025, though the new revolving facility carries a **variable interest rate based on SOFR**[264](index=264&type=chunk)[265](index=265&type=chunk) - Concentration of credit risk is limited due to a **large and diverse customer base**, with no single customer representing more than **10% of total sales**[267](index=267&type=chunk) [Controls and Procedures](index=48&type=section&id=Item%209A.%20Controls%20and%20Procedures) As of May 31, 2025, management and independent auditors concluded that the company's disclosure controls and internal control over financial reporting were effective - Management, including the CEO and CFO, concluded that the company's **disclosure controls and procedures were effective** as of May 31, 2025[271](index=271&type=chunk) - Based on the **COSO framework**, management concluded that **internal control over financial reporting was effective** as of May 31, 2025[274](index=274&type=chunk) - The independent auditor, **Deloitte & Touche LLP**, issued an **unqualified opinion** on the effectiveness of the company's internal control over financial reporting as of May 31, 2025[275](index=275&type=chunk)[279](index=279&type=chunk) Part III [Directors, Executive Officers, Corporate Governance, Executive Compensation, and Other Matters](index=51&type=section&id=Items%2010%2C%2011%2C%2012%2C%2013%2C%20and%2014) Information for Part III of the Form 10-K, including directors, executive compensation, and corporate governance, is incorporated by reference from the upcoming proxy statement - Information for **Items 10 through 14** is incorporated by reference from the registrant's Proxy Statement for its 2025 Annual Meeting of Stockholders[7](index=7&type=chunk)[290](index=290&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=52&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section includes the company's consolidated financial statements, the independent auditor's report, financial schedules, and a list of all exhibits filed with the Form 10-K [Report of Independent Registered Public Accounting Firm](index=53&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) Deloitte & Touche LLP issued an unqualified opinion on the financial statements, identifying the reserve for excess and obsolete inventory as a critical audit matter - Auditor **Deloitte & Touche LLP** issued an **unqualified opinion**, stating financial statements are presented fairly in all material respects in conformity with U.S. GAAP[299](index=299&type=chunk) - The audit identified the **reserve for excess quantities and obsolete inventory** as a critical audit matter due to significant management estimates and judgments in determining expected demand[303](index=303&type=chunk)[305](index=305&type=chunk) [Consolidated Financial Statements](index=55&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's consolidated statements of operations, balance sheets, and cash flows for the fiscal years ended May 31, 2025, 2024, and 2023 Consolidated Statement of Operations Highlights (in thousands) | | 2025 | 2024 | 2023 | | :--- | :--- | :--- | :--- | | Net sales | $292,498 | $303,914 | $338,752 | | Gross margin | $157,705 | $154,698 | $174,246 | | Operating loss | ($39,954) | ($192,435) | ($51,181) | | Net loss | ($33,993) | ($184,349) | ($52,442) | | Loss per share (diluted) | ($0.83) | ($4.59) | ($1.33) | Consolidated Balance Sheet Highlights (in thousands) | | May 31, 2025 | May 31, 2024 | | :--- | :--- | :--- | | Total current assets | $168,324 | $193,253 | | Total Assets | $280,144 | $317,671 | | Total current liabilities | $76,197 | $91,155 | | Total Liabilities | $97,174 | $112,085 | | Total Stockholders' Equity | $182,970 | $205,586 | Consolidated Statement of Cash Flows Highlights (in thousands) | | 2025 | 2024 | 2023 | | :--- | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | ($10,128) | ($28,158) | $78 | | Net cash (used in) provided by investing activities | ($10,178) | $123,717 | ($9,746) | | Net cash (used in) provided by financing activities | ($255) | ($64,248) | $25,420 | [Notes to Consolidated Financial Statements](index=61&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed notes to the consolidated financial statements, covering significant accounting policies, divestitures, commitments, contingencies, and restructuring plans - **Note 2 (Divestitures)**: The company completed the sale of its **PICC and Midline businesses for $34.5 million** in cash in Feb 2024, and its **Dialysis and BioSentry businesses for $100 million** in cash in June 2023[352](index=352&type=chunk)[355](index=355&type=chunk) - **Note 17 (Commitments and Contingencies)**: The company settled patent litigation with BD for a **$7.0 million one-time payment**, six minimum annual payments of **$2.5 million**, and potential future royalties, while defending approximately **162 product liability claims** related to its port products[448](index=448&type=chunk)[449](index=449&type=chunk) - **Note 19 (Restructuring)**: A manufacturing restructuring plan announced in Jan 2024 is estimated to cost between **$33.4 million and $38.4 million**, with **$23.2 million in total charges** recorded as of May 31, 2025[459](index=459&type=chunk)[461](index=461&type=chunk)[462](index=462&type=chunk)

Core Insights - AngioDynamics, Inc. (ANGO) reported an adjusted loss per share of 3 cents for the fourth quarter of fiscal 2025, which is an improvement from a loss of 6 cents in the same quarter last year and better than the Zacks Consensus Estimate of a loss of 13 cents [1][2][9] Financial Performance - The pro forma adjusted loss per share for the fourth quarter of fiscal 2025 was also 3 cents, compared to 5 cents in the year-ago quarter [2][3] - The GAAP loss per share was 15 cents, an improvement from 33 cents in the prior year [2][3] - Full-year fiscal 2025 adjusted loss per share was 15 cents, better than the 38 cents reported in fiscal 2024 and the Zacks Consensus Estimate of a loss of 29 cents [3] - Total revenues for the fourth quarter reached $80.2 million, reflecting a year-over-year increase of 12.9% and exceeding the Zacks Consensus Estimate by 7.5% [4][9] - Full-year fiscal 2025 revenues were $292.5 million, a decline of 3.8% from the previous year but still above the Zacks Consensus Estimate by 1.9% [5][6] Revenue Breakdown - U.S. net revenues for the fourth quarter were $67.5 million, up 11.1% year over year [7] - International revenues were $12.7 million, representing a 23.8% increase from the prior year [8] Segment Analysis - Med Tech revenues in the fourth quarter were $35.8 million, a 22% increase year over year [10][11] - Med Device revenues totaled $44.4 million, up 6.5% from the year-ago period [13] Margin and Expense Analysis - Pro forma gross profit increased by 9.4% to $42.2 million, but the gross margin contracted by 161 basis points to 52.7% [14] - Sales and marketing expenses rose by 7.6% to $26.4 million, while research and development expenses decreased by 1.9% to $6.6 million [15] Cash Position - AngioDynamics ended fiscal 2025 with cash and cash equivalents of $55.9 million, down from $76.1 million at the end of fiscal 2024 [17] - The company reported no debt on its balance sheet and a cumulative net cash used in operating activities of $10.1 million, compared to $28.2 million a year ago [17] Future Guidance - For fiscal 2026, AngioDynamics expects net sales to be between $305 million and $310 million, indicating growth of 4-6% from fiscal 2025 [18] - The company anticipates Med Tech revenue growth of 12-15%, while Med Device revenue growth is projected to be flat [18] - The adjusted loss per share is expected to range between 35 cents and 25 cents, with the Zacks Consensus Estimate at a loss of 24 cents per share [19] Market Developments - AngioDynamics received a CPT Category I Code for Irreversible Electroporation (IRE) for treating pancreatic lesions, effective January 1, 2027, which expands the reimbursement pathway for NanoKnife [22]

Core Viewpoint - AngioDynamics reported stronger-than-expected Q4 2025 sales and earnings, but the overall market reaction was negative due to ongoing losses and cautious guidance for the upcoming fiscal year [1][2][4]. Financial Performance - Q4 sales increased by 13% year-over-year, reaching $80.2 million, while gross profit margins declined by 160 basis points to 52.7% [4]. - Adjusted loss per share was $0.03, better than the forecasted loss of $0.12, and GAAP loss per share improved from $0.33 a year ago to $0.15 [4][5]. - For the full fiscal year 2025, AngioDynamics reported a loss of $0.83 per share under GAAP, with sales growth of only 8.1% [5]. Future Guidance - The company expects fiscal 2026 sales to be between $305 million and $310 million, which exceeds Wall Street forecasts [6]. - However, management warned of expected losses ranging from $0.25 to $0.35 per share, adjusted for one-time items, which is worse than the $0.23 per-share loss anticipated by analysts [6][7].

Core Insights - AngioDynamics Inc. reported a fourth-quarter 2025 adjusted loss of 3 cents per share, outperforming the consensus loss of 12 cents per share [1] - The company achieved sales of $80.2 million, reflecting a year-over-year increase of 12.7%, surpassing the consensus estimate of $74.26 million [1] - CEO Jim Clemmer stated that the company is "profitable" and its portfolio addresses approximately $10 billion in annual global market opportunities, up from $3 billion in 2021 [1] Financial Guidance - For fiscal year 2026, AngioDynamics expects net sales between $305 million and $310 million, slightly above the consensus of $304.9 million [2] - The company anticipates an adjusted loss between 35 and 25 cents per share, compared to the consensus loss of 23 cents per share [2] Tariff Impact and Financial Metrics - The company expects a $4 million to $6 million impact from tariffs for the full fiscal year 2026 [3] - The gross margin was reported at 52.7%, down 161 basis points from the fourth quarter of fiscal 2024; without the $1.6 million tariff impact, the gross margin would have been 54.7% [4] - Adjusted EBITDA for the quarter was $3.4 million, an increase from $1.5 million a year ago [4] Sales Performance - Med Tech net sales reached $35.8 million, a 22% increase from $29.3 million in the prior-year period, driven by Auryon sales of $15.6 million, which increased 19.7% [4] - Mechanical Thrombectomy revenue, including AngioVac and AlphaVac, was $11.3 million, marking a 44.7% increase [4] - Med Device net sales were $44.4 million, representing a 6.2% increase from $41.8 million in the prior-year period [4]

Core Insights - AngioDynamics reported a strong performance in Q4 FY2025, with total revenue of $80.2 million, reflecting a year-over-year increase of 12.7% driven by growth in both MedTech and med device segments [4][25][45] - The company emphasized the transformational impact of regulatory approvals and market expansion on future revenue potential, despite facing tariff-related headwinds [12][50][63] Financial Performance - Total revenue for FY2025 reached $292.7 million, up 8.1% from the previous year, with MedTech segment revenue growing 19.5% to $126.7 million [9][57] - Adjusted EBITDA for Q4 FY2025 was $3.4 million, an improvement from $1.5 million in Q4 FY2024, indicating margin improvement despite tariff impacts [8][54] - Gross margin for Q4 FY2025 was 52.7%, negatively impacted by tariffs, which reduced margins by 204 basis points [7][51] Segment Performance - MedTech revenue in Q4 FY2025 was $35.8 million, a 22% increase, while med device revenue was $44.4 million, up 6.2% [4][45] - The Auryon platform generated $15.6 million in revenue, growing 19.7% year-over-year, and has shown consistent double-digit growth since its launch [5][45][57] - Mechanical thrombectomy revenue, including AngioVac and AlphaVac, increased by 44.7% year-over-year, with AlphaVac revenue growing 60.8% [6][46][57] Guidance and Future Outlook - For FY2026, the company expects net sales between $305 million and $310 million, representing 4%-6% growth, with MedTech sales projected to increase by 12%-15% [10][60] - The company anticipates $15 million in annualized savings by FY2027 through manufacturing transitions, which will enhance operational efficiency [10][42] - Regulatory milestones, including a CPT Category I code for NanoKnife, are expected to drive growth and reimbursement access starting January 2026 [11][37][72] Strategic Initiatives - The company is focused on driving adoption and market share gains across its MedTech platforms while maintaining operational discipline [63][64] - Continued investments in clinical trials and evidence generation are planned to support product adoption and market penetration [11][29][38] - Management has indicated no plans for major acquisitions or divestitures in the near term, focusing instead on executing their current strategy [12][16]

Financial Data and Key Metrics Changes - Total revenue for the fourth quarter was $80.2 million, representing a year-over-year growth of over 12% [5][23] - MedTech revenue was $35.8 million, a 22% increase, while Med Device revenue was $44.4 million, an increase of 6.2% [23] - For the full fiscal year, total revenue increased by 8.1% to $292.7 million, primarily driven by growth in the MedTech segment [34][35] - Gross margin for the fourth quarter was 52.7%, with MedTech gross margin at 59% and Med Device gross margin at 47.6% [30][36] Business Line Data and Key Metrics Changes - AURYON platform generated $15.6 million in revenue, growing 19.7% year-over-year [23] - Mechanical thrombectomy revenue, including AngioVac and AlphaVac, increased by 44.7% year-over-year, with AngioVac revenue at $8.2 million (39.5% increase) and AlphaVac revenue at $3.1 million (60.8% increase) [24] - NanoKnife revenue totaled $7.2 million, a decrease of 2.5%, attributed to lower capital sales, while disposable sales grew by 5.5% [25] Market Data and Key Metrics Changes - Hospital customers represented approximately 36% of total AURYON revenue, up from 28% at the beginning of fiscal 2025 [7] - In Europe, over $1 million in revenue was generated from AURYON, indicating successful market entry following CE Mark approval [8] Company Strategy and Development Direction - The company is focused on a long-term strategic transformation to simplify its business and enter high-growth, high-margin MedTech markets [5][20] - Continued investment in R&D is planned, targeting approximately 10% of sales to support long-term growth in the MedTech segment [31] - The company aims to drive adoption and market share gains across its MedTech platforms while maintaining operational discipline [41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate tariff impacts and maintain profitability, expecting to be cash flow positive in fiscal 2026 [20][39] - The company anticipates net sales for fiscal 2026 to be in the range of $305 million to $310 million, representing growth of 46% over fiscal 2025 [38] Other Important Information - The company achieved significant regulatory approvals and reimbursement wins, which are expected to drive future growth [5][15] - The company incurred $1.6 million in tariff expenses during the fourth quarter, impacting gross margins [28] Q&A Session Summary Question: Details on the blood return product for the VTE business - Management confirmed that the blood return product is designed as an ancillary add-on and is undergoing the 510(k) regulatory process, with confidence in its market potential [46][50] Question: Expectations for NanoKnife growth with upcoming reimbursement - Management indicated that reimbursement starting in January 2026 is expected to drive growth, although immediate acceleration may not be seen [52][56] Question: Major product growth expectations for FY 2026 - Management expects AURYON to grow in the mid-teens, while mechanical thrombectomy products are anticipated to show the strongest growth [60][63] Question: Impact of tariffs on gross margin and outsourcing benefits - Management acknowledged the complexity of tariff impacts and indicated that benefits from the manufacturing transfer plan will be seen in FY 2026 [64][66] Question: Plans for acquiring new MedTech products or divesting existing ones - Management expressed satisfaction with the current portfolio and indicated no immediate plans for acquisitions or divestitures, focusing instead on maximizing existing assets [70][74]

Financial Performance - AngioDynamics' total Med Device revenue grew by 62% pro forma in Q4 2025[5,9] - AngioDynamics' total Med Tech revenue grew by 220% pro forma in Q4 2025[5,9] - AngioDynamics reported pro forma Adjusted EBITDA of $34 million in Q4 2025, a $19 million improvement from Q4 FY24[5] - AngioDynamics ended the quarter with $559 million in cash and cash equivalents, up from $448 million at Feb 28, 2025[5] - AngioDynamics' total Med Tech revenue grew by 195% pro forma for FY 2025[12] - AngioDynamics' total Med Device revenue grew by 08% pro forma for FY 2025[12] Product Line Performance - Auryon sales reached $156 million in Q4 2025, a 197% year-over-year growth[16] - Total Mechanical Thrombectomy sales were $113 million in Q4 2025, a 447% year-over-year growth[5,20] - NanoKnife disposables sales grew by 55% in Q4 2025, while total NanoKnife sales decreased by 25%[5,25] Future Outlook - AngioDynamics projects full-year net sales between $305 million and $310 million for Fiscal Year 2026[27]