[Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) [Q4 Fiscal Year 2025 Performance](index=1&type=section&id=Q4%20Fiscal%20Year%202025%20Performance) The company reported strong Q4 FY2025 results with **12.7% pro forma net sales growth**, driven by a **22.0% increase in the Med Tech franchise**, achieving positive pro forma adjusted EBITDA of **$3.4 million** and generating significant free cash flow of **$16.2 million**, demonstrating successful strategic transformation Q4 Fiscal Year 2025 Financial Highlights (Pro Forma) | Metric | Value | YoY Growth | | :--- | :--- | :--- | | Pro Forma Net Sales | $80.2 million | 12.7% | | Med Tech Net Sales | $35.8 million | 22.0% | | Med Device Net Sales | $44.4 million | 6.2% | | Pro Forma Adjusted EBITDA | $3.4 million | - | | Pro Forma Adjusted EPS | $(0.03) | - | - The company generated **$16.2 million** in free cash flow during the fourth quarter, attributed to strong revenue growth and operational efficiency initiatives[1](index=1&type=chunk) - GAAP gross margin for the quarter was **52.7%**, negatively impacted by **$1.6 million** (**204 basis points**) due to tariffs[2](index=2&type=chunk) [Full Fiscal Year 2025 Performance](index=2&type=section&id=Full%20Fiscal%20Year%202025%20Performance) For the full fiscal year 2025, AngioDynamics achieved **8.1% pro forma net sales growth**, with the Med Tech segment growing **19.5%**, reporting positive pro forma adjusted EBITDA of **$7.6 million** and ending the year with a strong cash position of **$55.9 million**, ahead of expectations Full Fiscal Year 2025 Financial Highlights (Pro Forma) | Metric | Value | YoY Growth | | :--- | :--- | :--- | | Pro Forma Net Sales | $292.7 million | 8.1% | | Med Tech Net Sales | $126.7 million | 19.5% | | Med Device Net Sales | $166.0 million | 0.8% | | Pro Forma Adjusted EBITDA | $7.6 million | - | | Pro Forma Adjusted EPS | $(0.25) | - | - The company ended fiscal 2025 with **$55.9 million** in cash and cash equivalents, which was ahead of expectations[5](index=5&type=chunk) - Adjusted EBITDA for the year was **$13.1 million**, including a **$5.5 million** milestone earnout payment received from Spectrum Vascular in Q3 FY25[5](index=5&type=chunk) [Business Highlights and Strategic Developments](index=2&type=section&id=Business%20Highlights%20and%20Strategic%20Developments) The company highlighted significant strategic progress in FY2025, including achieving key regulatory milestones for NanoKnife and AlphaVac, expanding into European markets with Auryon, and securing a new credit facility, emphasizing its transformation into a growth-oriented MedTech firm addressing a larger market opportunity, now estimated at **over $10 billion** - The company has repositioned itself to address **over $10 billion** in annual global market opportunities, a significant increase from **$3 billion** in 2021[7](index=7&type=chunk) - Key achievements include NanoKnife's FDA prostate indication, a CPT Category I Code for Irreversible Electroporation (IRE), AlphaVac's successful commercial launch, and Auryon's European expansion[5](index=5&type=chunk)[6](index=6&type=chunk) - A new revolving credit facility of up to **$25.0 million** was established to enhance financial flexibility and support working capital at a low cost without dilution[5](index=5&type=chunk) [Detailed Financial Results](index=3&type=section&id=Detailed%20Financial%20Results) [Fourth Quarter Fiscal 2025 Financial Results](index=3&type=section&id=Fourth%20Quarter%20Fiscal%202025%20Financial%20Results) Q4 pro forma net sales reached **$80.2 million**, up **12.7% YoY**, with Med Tech sales growing **22.0%** to **$35.8 million** and Med Device sales up **6.2%** to **$44.4 million**, with strong growth in both U.S. (**11.0%**) and International (**22.8%**) markets, while GAAP gross margin was **52.7%**, impacted by tariffs, and pro forma adjusted EBITDA was **$3.4 million**, more than doubling from **$1.5 million** in the prior-year quarter Q4 FY2025 Sales Performance (Pro Forma) | Category | Net Sales (millions) | YoY Growth | | :--- | :--- | :--- | | **Total Net Sales** | **$80.2** | **12.7%** | | Med Tech | $35.8 | 22.0% | | Med Device | $44.4 | 6.2% | | U.S. Sales | $67.5 | 11.0% | | International Sales | $12.7 | 22.8% | Q4 FY2025 Med Tech Product Sales Growth | Product Line | Sales (millions) | YoY Growth | | :--- | :--- | :--- | | Auryon | $15.6 | 19.7% | | Mechanical Thrombectomy | $11.3 | 44.7% | | NanoKnife Disposables | $5.7 | 5.5% | Q4 FY2025 Profitability | Metric | Value | Note | | :--- | :--- | :--- | | GAAP Gross Margin | 52.7% | Would be 54.7% absent tariff impact | | GAAP Net Loss | $(6.1) million | - | | Adjusted Net Loss | $(1.0) million | - | | Adjusted EBITDA | $3.4 million | Compared to $1.5M in Q4 FY24 | - Tariffs had a significant impact on Q4 gross margin, creating a **$1.6 million** cost of goods sold headwind, equivalent to **204 basis points**[17](index=17&type=chunk) [Full-Year Fiscal 2025 Financial Results](index=4&type=section&id=Full-Year%20Fiscal%202025%20Financial%20Results) For the full fiscal year, pro forma net sales grew **8.1%** to **$292.7 million**, led by a **19.5%** increase in Med Tech sales to **$126.7 million**, with GAAP gross margin at **53.9%**, slightly impacted by tariffs, and pro forma adjusted EBITDA at **$7.6 million**, a significant improvement from a loss of **$3.2 million** in the prior year, reflecting successful strategic shifts and operational efficiencies Full Year FY2025 Sales Performance (Pro Forma) | Category | Net Sales (millions) | YoY Growth | | :--- | :--- | :--- | | **Total Net Sales** | **$292.7** | **8.1%** | | Med Tech | $126.7 | 19.5% | | Med Device | $166.0 | 0.8% | Full Year FY2025 Profitability | Metric | FY2025 Value | FY2024 Value | | :--- | :--- | :--- | | GAAP Gross Margin | 53.9% | 53.8% | | GAAP Net Loss | $(34.0) million | $(184.3) million | | Adjusted Net Loss | $(10.2) million | $(18.2) million | | Pro Forma Adjusted EBITDA | $7.6 million | $(3.2) million | - The company's cash and cash equivalents stood at **$55.9 million** as of May 31, 2025, which was ahead of expectations despite a **$5.0 million** milestone payment for the Auryon acquisition[23](index=23&type=chunk) - For the full fiscal year, tariffs had a **$1.6 million** impact on cost of goods sold, representing a **56 basis point** headwind to gross margin[24](index=24&type=chunk) [Fiscal Year 2026 Outlook](index=6&type=section&id=Fiscal%20Year%202026%20Outlook) [Financial Guidance](index=6&type=section&id=Financial%20Guidance) AngioDynamics provided its financial guidance for fiscal year 2026, projecting net sales between **$305 million** and **$310 million**, anticipating continued strong growth in Med Tech (**12-15%**), flat performance in Med Device, and expecting to generate positive free cash flow for the full year, with profitability guidance, including an adjusted EPS range of **($0.35)** to **($0.25)**, incorporating expected tariff impacts Fiscal Year 2026 Guidance (as of July 15, 2025) | Guidance Metric | Current Guidance | Guidance Absent Tariffs | | :--- | :--- | :--- | | Net Sales | $305 - $310 million | - | | Med Tech Net Sales Growth | 12% - 15% | - | | Med Device Net Sales Growth | Flat | - | | Gross Margin | 53.5% - 55.5% | 55.0% - 56.0% | | Pro Forma Adjusted EBITDA | $3.0 - $8.0 million | $7.5M - $10.5M | | Adjusted EPS | ($0.35) - ($0.25) | ($0.30) – ($0.25) | | Free Cash Flow | Positive for Full Year | Up to +$5M | [Tariff-Related Assumptions](index=6&type=section&id=Tariff-Related%20Assumptions) The company's FY2026 guidance incorporates an expected negative impact from tariffs ranging from **$4.0 million** to **$6.0 million**, with guidance ranges for gross margin, pro forma adjusted EBITDA, and adjusted EPS reflecting this uncertainty, where the low end assumes the highest tariff impact and the high end assumes the lowest - For fiscal year 2026, the company anticipates a **$4.0 to $6.0 million** negative impact from tariffs[26](index=26&type=chunk) - The provided guidance ranges for profitability metrics are structured so that the low end assumes the highest tariff impact, while the high end assumes the lowest[26](index=26&type=chunk) [Financial Statements and Reconciliations](index=8&type=section&id=Financial%20Statements%20and%20Reconciliations) [Consolidated Income Statements](index=8&type=section&id=Consolidated%20Income%20Statements) The consolidated income statements provide a detailed breakdown of revenues, costs, and expenses for Q4 and full fiscal year 2025, compared to the prior year, presented on both US GAAP (Actual) and pro forma bases, with adjustments to exclude operating results from divested and discontinued businesses for a clearer view of ongoing operations - The income statements for both the three-month and twelve-month periods ending May 31, 2025, are presented with columns for Actual (US GAAP), Pro Forma Adjustments, and the resulting Pro Forma figures[33](index=33&type=chunk)[37](index=37&type=chunk) - Pro forma adjustments eliminate revenues and expenses from divested businesses (Dialysis, BioSentry, PICCs, Midlines) and discontinued products (RadioFrequency Ablation, Syntrax) to facilitate like-for-like comparison[34](index=34&type=chunk)[38](index=38&type=chunk) [GAAP to Non-GAAP Reconciliations](index=10&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliations) This section provides detailed reconciliations of GAAP financial measures to non-GAAP measures, including Adjusted Net Loss, Adjusted Diluted Loss Per Share, and Adjusted EBITDA, for both actual and pro forma results, adjusting for items like amortization of intangibles, restructuring costs, and other non-recurring items to offer management's view of underlying operational performance - Reconciliations are provided to bridge GAAP Net Loss to non-GAAP Adjusted Net Loss and Adjusted EBITDA[39](index=39&type=chunk)[42](index=42&type=chunk) - Key adjustments include amortization of intangibles, acquisition/restructuring costs, stock-based compensation, and changes in fair value of contingent consideration[39](index=39&type=chunk)[42](index=42&type=chunk)[44](index=44&type=chunk) - A detailed breakdown of 'Acquisition, restructuring and other items' is provided, showing costs related to legal matters, plant closures, and transition service agreements[50](index=50&type=chunk) [Net Sales and Gross Margin Analysis](index=15&type=section&id=Net%20Sales%20and%20Gross%20Margin%20Analysis) The company provides a detailed breakdown of net sales and gross margin by its two main product categories, Med Tech and Med Device, and by geography (United States and International), with Q4 FY2025 Med Tech pro forma sales growing **22.0%** with a **59.0%** gross margin, and Med Device sales growing **6.2%** with a **47.6%** gross margin Q4 FY2025 Pro Forma Sales & Gross Margin by Category | Category | Net Sales (millions) | YoY Growth | Gross Margin % | | :--- | :--- | :--- | :--- | | Med Tech | $35.8 | 22.0% | 59.0% | | Med Device | $44.4 | 6.2% | 47.6% | Full Year FY2025 Pro Forma Sales & Gross Margin by Category | Category | Net Sales (millions) | YoY Growth | Gross Margin % | | :--- | :--- | :--- | :--- | | Med Tech | $126.7 | 19.5% | 62.0% | | Med Device | $166.0 | 0.8% | 47.7% | [Consolidated Balance Sheet](index=17&type=section&id=Consolidated%20Balance%20Sheet) The consolidated balance sheet as of May 31, 2025, shows total assets of **$280.1 million** and total liabilities of **$97.2 million**, with the company ending the fiscal year with **$55.9 million** in cash and cash equivalents, a decrease from **$76.1 million** in the prior year, reflecting operational investments, debt management, and milestone payments Key Balance Sheet Items (in thousands) | Account | May 31, 2025 | May 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $55,893 | $76,056 | | 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](index=18&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) For the twelve months ended May 31, 2025, the company reported a net cash outflow from operating activities of **$10.1 million** and a net cash outflow from investing activities of **$10.2 million**, with the cash position impacted by operating losses, a **$5.0 million** contingent consideration payment, and capital expenditures, resulting in a net decrease in cash of **$20.2 million** for the year Twelve Months Ended May 31, 2025 Cash Flow Summary (in thousands) | Cash Flow Category | Value | | :--- | :--- | | Net cash used in operating activities | $(10,128) | | Net cash used in investing activities | $(10,178) | | Net cash used in financing activities | $(255) | | **Net decrease in cash and cash equivalents** | **$(20,163)** | - In Q4 2025, the company generated positive net cash from operating activities of **$18.8 million**, a significant improvement from **$5.0 million** in the prior-year quarter[72](index=72&type=chunk)

Core Insights - The Medical Instruments industry is experiencing significant advancements due to artificial intelligence (AI) and predictive analytics, which are driving innovation in diagnostics, patient monitoring, and personalized treatment [2][4] - The global AI in healthcare market is projected to grow at a CAGR of 38.5% from 2024 to 2030, despite facing challenges such as geopolitical tensions and supply chain issues [4][8] - The industry is currently underperforming compared to the S&P 500 but has shown resilience against sector declines [17] Industry Overview - The Zacks Medical - Instruments industry is highly fragmented, involving extensive research and development across various therapeutic areas, regulated by the FDA [5] - Recent trends include the integration of AI in diagnostics, the rise of telemedicine, robotic-assisted surgeries, and advancements in 3D printing and gene editing [6][9] - The ongoing merger and acquisition trend is notable, with 305 M&A transactions in 2024 totaling over $63.1 billion, indicating a competitive landscape [10][11] Company Highlights Integer Holdings - Integer Holdings focuses on portfolio optimization and has divested its Non-Medical business to support long-term growth [20] - The consensus estimate for 2025 sales is $1.87 billion, reflecting a 7.7% increase from 2024, with EPS expected to rise by 19.4% to $6.33 [21] AngioDynamics - AngioDynamics is focusing on cancer treatment markets and has a strong product pipeline, with sales for fiscal 2026 estimated at $305 million, a 6.3% increase from fiscal 2025 [22][23] Penumbra - Penumbra is experiencing consistent revenue growth driven by strong patient outcomes and growth in its vascular and neuro businesses [24] - The consensus estimate for Penumbra's 2025 sales is $1.35 billion, indicating a 13.4% rise from 2024, with EPS expected to improve by 67.6% to $3.72 [25]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: AngioDynamics (ANGO) - AngioDynamics currently holds a Momentum Style Score of B, indicating potential for strong performance based on price changes and earnings estimate revisions [3] - The company has a Zacks Rank of 1 (Strong Buy), suggesting it is expected to outperform the market [4] Performance Metrics - Over the past week, ANGO shares increased by 7.94%, significantly outperforming the Zacks Medical - Instruments industry, which rose by only 0.37% [6] - In a longer timeframe, ANGO's shares have risen by 20.07% over the past quarter and 71.09% over the last year, while the S&P 500 only increased by 2.37% and 14.4%, respectively [7] Trading Volume - The average 20-day trading volume for ANGO is 535,625 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the past two months, two earnings estimates for ANGO have been revised upwards, leading to an increase in the consensus estimate from -$0.36 to -$0.29 [10] - For the next fiscal year, two estimates have also moved upwards with no downward revisions, indicating positive sentiment [10] Conclusion - Given the strong performance metrics and positive earnings outlook, ANGO is positioned as a 1 (Strong Buy) stock with a Momentum Score of B, making it a compelling investment opportunity [12]

Group 1 - AngioDynamics (ANGO) has shown strong year-to-date performance, returning 9.2% compared to the Medical sector's average return of -5.6% [4] - The Zacks Consensus Estimate for AngioDynamics' full-year earnings has increased by 22.5% over the past 90 days, indicating improved analyst sentiment [4] - AngioDynamics holds a Zacks Rank of 1 (Strong Buy), suggesting it has characteristics to outperform the market in the near term [3] Group 2 - AngioDynamics is part of the Medical - Instruments industry, which consists of 85 companies and currently ranks 90 in the Zacks Industry Rank [6] - The Medical - Instruments industry has an average year-to-date loss of 8.9%, highlighting AngioDynamics' relative outperformance [6] - Chugai Pharmaceutical Co., Ltd. Unsponsored ADR has also outperformed its sector with an 18.8% return this year and a Zacks Rank of 2 (Buy) [5][7]

Company Performance - Idexx Laboratories (IDXX) has returned approximately 23.2% since the beginning of the calendar year, significantly outperforming the Medical sector, which has an average return of -6.7% year-to-date [4] - The Zacks Consensus Estimate for IDXX's full-year earnings has increased by 1.9% over the past quarter, indicating improving analyst sentiment and a positive earnings outlook [3] Industry Context - Idexx Laboratories is part of the Medical - Instruments industry, which consists of 85 individual companies and currently ranks 78 in the Zacks Industry Rank. This industry has experienced a loss of about 6.9% so far this year, highlighting IDXX's superior performance within this group [6] - Another stock in the Medical sector, AngioDynamics (ANGO), has also outperformed the sector with a year-to-date return of 2.6% and a consensus EPS estimate increase of 22.5% over the past three months, earning a Zacks Rank of 1 (Strong Buy) [4][5] Sector Ranking - The Medical sector, which includes 1001 individual stocks, ranks 4 in the Zacks Sector Rank, indicating a relatively strong position compared to other sectors [2] - Idexx Laboratories currently holds a Zacks Rank of 2 (Buy), suggesting it is well-positioned for potential growth in the near term [3] Investment Outlook - Investors interested in Medical stocks should continue to monitor Idexx Laboratories and AngioDynamics, as both companies are expected to maintain their solid performance [7]

Core Viewpoint - AngioDynamics (ANGO) shares have seen a 1.1% increase over the past four weeks, closing at $9.60, with analysts suggesting a potential upside of 63.2% based on a mean price target of $15.67 [1] Price Targets - The average price target consists of three estimates ranging from a low of $15 to a high of $16, with a standard deviation of $0.58, indicating a strong consensus among analysts [2] - The lowest estimate suggests a 56.3% increase, while the highest indicates a 66.7% upside [2] Analyst Sentiment - Analysts show strong agreement regarding ANGO's ability to report better earnings than previously predicted, which supports the potential for stock upside [4] - A positive trend in earnings estimate revisions has been correlated with stock price movements, suggesting that this could be a reliable indicator of future performance [11] Earnings Estimates - Over the last 30 days, three earnings estimates for ANGO have been revised upward, with no negative revisions, leading to a 22.5% increase in the Zacks Consensus Estimate [12] - ANGO holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential for near-term upside [13]

Group 1 - AngioDynamics (ANGO) is currently outperforming its peers in the Medical sector, with a year-to-date return of approximately 0.9%, while the average return for the Medical group is a loss of about 7.8% [4] - The Zacks Rank for AngioDynamics is 1 (Strong Buy), indicating a positive earnings outlook, with the consensus estimate for full-year earnings having increased by 26% in the past quarter [3] - AngioDynamics belongs to the Medical - Instruments industry, which has an average loss of 14% year-to-date, further highlighting its strong performance relative to its industry peers [5] Group 2 - ANIXA BIOSCIENCES INC (ANIX) is another Medical stock that has outperformed the sector, with a year-to-date increase of 14.7% [4] - The consensus estimate for ANIX's current year EPS has risen by 10.9% over the past three months, and it holds a Zacks Rank of 2 (Buy) [5] - The Medical - Biomedical and Genetics industry, to which ANIX belongs, has experienced a decline of 11.4% this year, indicating that ANIX is also performing well within its industry [6]

Group 1 - The core viewpoint is that AngioDynamics (ANGO) has significant upside potential, with a mean price target of $15.33 indicating a 68.3% increase from its current price of $9.11 [1] - Analysts have set short-term price targets ranging from $15 to $16, with the lowest estimate suggesting a 64.7% increase and the highest indicating a 75.6% upside, alongside a standard deviation of $0.58, reflecting a consensus among analysts [2] - There is a strong agreement among analysts regarding improved earnings estimates for ANGO, which historically correlates with positive stock price movements [4][10] Group 2 - The Zacks Consensus Estimate for ANGO's current year earnings has increased by 10.8% over the last 30 days, with no negative revisions, indicating positive sentiment [11] - ANGO holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate factors, suggesting strong potential for near-term upside [12]

Core Viewpoint - AngioDynamics, Inc. reported better-than-expected results for the third quarter of fiscal 2025, with adjusted earnings per share (EPS) of 3 cents, compared to a loss of 16 cents in the same quarter last year and a consensus estimate of a loss of 13 cents [1][18]. Financial Performance - Adjusted loss per share on a pro-forma basis was 8 cents, improved from 16 cents year-over-year [2]. - GAAP loss per share was 11 cents, significantly better than the loss of $4.67 reported in the prior year [2][3]. - Total revenues for the fiscal third quarter were $72 million, down 4.2% year-over-year but exceeding the Zacks Consensus Estimate by 2% [4]. - On a pro forma basis, net sales were $72 million, reflecting a 9.2% increase year-over-year [4]. Revenue Breakdown - U.S. net revenues were $61.3 million, down 1.6% year-over-year, but up 9.9% on a pro forma basis [6]. - International revenues totaled $10.7 million, down 16.9% year-over-year on a reported basis, but up 5.1% on a pro forma basis [7]. Segment Analysis - Med Tech revenues were $31.3 million, up 21.3% year-over-year, surpassing projections [8][9]. - Med Device revenues were $40.7 million, down 17.6% from the previous year, but up 0.9% on a pro forma basis [11]. Margin and Expense Analysis - Pro forma gross profit increased by 15.4% year-over-year to $38.9 million, with gross margin expanding by 290 basis points to 54% [12]. - Sales and marketing expenses rose by 7.9% to $25.5 million, while R&D expenses decreased by 14.4% to $6.9 million [13]. Cash Position - The company ended the quarter with cash and cash equivalents of $44.8 million, down from $54.1 million in the previous quarter, and had no debt [15]. Guidance - AngioDynamics revised its fiscal 2025 guidance, expecting net sales between $285 million and $288 million, indicating growth of 5.3-6.4% from the previous year [16]. - Adjusted loss per share is now projected to be between 31 cents and 34 cents, an improvement from earlier estimates [17].

Revenue and Sales Performance - Revenue decreased by 4.2% to $72.0 million for the three months ended February 28, 2025, and by 8.8% to $212.3 million for the nine months ended February 28, 2025[120]. - Med Tech segment grew by 21.3% in the third quarter, while Med Device segment declined by 17.6%[120]. - Med Tech segment net sales increased by $5.5 million and $13.8 million for the three and nine months ended February 28, 2025, respectively[125]. - The company had a sales order backlog of $0.5 million as of February 28, 2025[124]. Profitability and Loss - Gross profit increased by 630 basis points to 54.0% for the three months ended February 28, 2025[120]. - Net loss decreased by $183.3 million to $4.4 million for the three months ended February 28, 2025[120]. - Total company gross profit increased by $3.0 million for the three months ended February 28, 2025, but decreased by $0.7 million for the nine months ended February 28, 2025 compared to the same periods in 2024[129]. - Med Tech segment gross profit increased by $3.7 million and $9.0 million for the three and nine months ended February 28, 2025, respectively[131]. - Med Device segment gross profit decreased by $0.7 million and $9.7 million for the three and nine months ended February 28, 2025, respectively[131]. - The company recorded a net loss of $27.9 million for the nine months ended February 28, 2025, compared to a loss of $170.9 million for the same period in the previous year[148]. Expenses and Cost Management - Research and development expenses decreased by $1.3 million and $5.2 million for the three and nine months ended February 28, 2025, respectively[134]. - Selling and marketing expenses increased by $0.1 million for the three months ended February 28, 2025 but decreased by $1.5 million for the nine months ended February 28, 2025[137]. - General and administrative expenses decreased by $0.1 million for the three months ended February 28, 2025 but increased by $1.1 million for the nine months ended February 28, 2025[138]. - Legal expenses decreased by $23.3 million and $30.0 million, primarily due to a $19.3 million settlement with BD in the prior year[144]. Cash Flow and Financial Position - Cash used in operations decreased by $4.2 million to $28.9 million for the nine months ended February 28, 2025[125]. - Cash used in operating activities was $(28,939) thousand for the nine months ended February 28, 2025, compared to $(33,159) thousand for the nine months ended February 29, 2024[145]. - Cash provided by financing activities was $5,515 thousand for the nine months ended February 28, 2025, compared to $(59,248) thousand for the same period in the previous year[145]. - Cash and cash equivalents totaled $44.8 million as of February 28, 2025, down from $76.1 million as of May 31, 2024[143]. - The company did not have any outstanding debt as of February 28, 2025 and May 31, 2024[143]. - The company has a cash balance sufficient to meet anticipated capital needs for at least the next 12 months[147]. Strategic Initiatives - The restructuring plan is expected to generate $15.0 million in annual cost savings starting in fiscal year 2027[116]. - The company repurchased 72,141 shares for $0.5 million and 171,706 shares for $1.1 million in the first and second quarters of fiscal year 2025, respectively[117]. - The company entered into agreements to sell manufacturing facilities for a total purchase price of $6.7 million[118]. - The company achieved a sales milestone related to divested products, recording a receivable of $5.5 million expected to be paid in the fourth quarter of fiscal year 2025[144]. - The company received $100.0 million from the divestiture of the dialysis and BioSentry businesses in the first quarter of fiscal year 2024[148]. Foreign Currency and Taxation - Approximately 3.5% of the company's sales were denominated in foreign currencies for the nine months ended February 28, 2025[151]. - The effective tax rate for the three months ended February 28, 2025 was 0.0%, compared to 6.0% for the same period in 2024[141]. - Unrealized foreign currency fluctuations increased by $0.1 million and $0.3 million for the three and nine months ended February 28, 2025, respectively[144]. Working Capital - Working capital was negatively impacted by a decrease in accounts payable and accrued liabilities of $18.5 million for the period ended February 28, 2025[148].