AngioDynamics(ANGO) - 2025 Q4 - Annual Results

Financial Performance Overview Q4 Fiscal Year 2025 Performance 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] - GAAP gross margin for the quarter was 52.7%, negatively impacted by $1.6 million (204 basis points) due to tariffs[2] Full Fiscal Year 2025 Performance 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] - 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] Business Highlights and Strategic Developments 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] - 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][6] - 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] Detailed Financial Results Fourth Quarter Fiscal 2025 Financial Results 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] Full-Year Fiscal 2025 Financial Results 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] - 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] Fiscal Year 2026 Outlook Financial Guidance 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 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] - 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] Financial Statements and Reconciliations Consolidated Income Statements 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][37] - 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][38] GAAP to Non-GAAP Reconciliations 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][42] - Key adjustments include amortization of intangibles, acquisition/restructuring costs, stock-based compensation, and changes in fair value of contingent consideration[39][42][44] - A detailed breakdown of 'Acquisition, restructuring and other items' is provided, showing costs related to legal matters, plant closures, and transition service agreements[50] Net Sales and Gross Margin Analysis 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 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 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]