AngioDynamics, Inc. (NASDAQ:ANGO) posted stronger-than-expected first-quarter results across its Med-Tech businesses and lifted its fiscal 2026 guidance. Canaccord Genuity analysts, led by John Young, reiterated their Buy rating on AngioDynamics and increased their price forecast to $18 from $17, citing growth across its portfolio and expectations for positive cash flow in fiscal 2026. First-quarter revenue rose 12.1% to $75.7 million, above consensus, led by a 26.2% jump in Med-Tech sales. Gross margin re ...

Financial Data and Key Metrics Changes - Revenue increased by 12.2% to $75.7 million, driven by growth across both med-tech and med-device segments [12][21] - Gross margin for Q1 FY26 was 55.3%, a 90 basis point increase from the previous year [16] - Adjusted net loss for Q1 FY26 was $4.2 million, an improvement from a loss of $4.4 million in the same quarter last year [18] Business Line Data and Key Metrics Changes - Med-tech revenue was $35.3 million, a 26.1% increase, while med-device revenue was $40.4 million, an increase of 2.3% [13] - Auryon platform contributed $16.5 million in revenue, growing 20.1% year-over-year [14] - Mechanical thrombectomy revenue increased by 41.2% year-over-year, with AngioVac revenue at $8 million (37.1% increase) and AlphaVac revenue at $3.3 million (52.3% increase) [15] Market Data and Key Metrics Changes - Med-tech platforms comprised 47% of total revenue, up from 41% a year ago, illustrating the strategic shift towards med-tech [13] - International adoption of Auryon following CE mark approval contributed approximately $500,000 in revenue during the quarter [14] Company Strategy and Development Direction - The company is focused on expanding its product portfolio to compete in large, fast-growing markets, particularly in med-tech [5] - Continued investment in Auryon and plans to enter the coronary market are part of the long-term growth strategy [6] - The company aims to increase its market share in the hospital segment, driving both top-line growth and higher margins [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of the med-tech segment, particularly in mechanical thrombectomy and NanoKnife [26] - The company expects to be cash flow positive for the current fiscal year, with significant cash generation anticipated in Q4 [20] - Guidance for FY26 was raised, expecting net sales in the range of $308 to $313 million, reflecting growth of 5% to 7% over the previous year [21] Other Important Information - The company continues to face tariff expenses, with an estimated impact of $4 to $6 million for the full fiscal year [17] - R&D expenses were $6.4 million, or 8.5% of sales, as the company remains committed to investing in long-term growth initiatives [18] Q&A Session Summary Question: Guidance on growth drivers - The increase in guidance is primarily driven by mechanical thrombectomy and NanoKnife segments, with expectations for continued solid contributions from Auryon [26] Question: NanoKnife disposable revenue specifics - The growth in NanoKnife disposable revenue is largely driven by prostate initiatives, with no significant one-time stocking effects noted [30] Question: Update on mechanical thrombectomy hospital penetration - There has been good uptake in hospitals, with ongoing efforts to convert accounts into value analysis committee approvals [33] Question: Sales force updates in mechanical thrombectomy - The sales force for mechanical thrombectomy has increased to 50 dedicated reps, with plans for further investments in the NanoKnife urology sales force [38] Question: Revenue growth attribution to price increases - Revenue growth in mechanical thrombectomy is attributed to a combination of price increases, new customer acquisitions, and increased utilization [42] Question: Update on ongoing clinical trials - The Ambition BTK study is progressing well, with positive expectations for Auryon's role in atherectomy treatments [44]

Financial Data and Key Metrics Changes - Revenue increased by 12.2% to $75.7 million, driven by growth across both med-tech and med-device segments [12][21] - Gross margin for Q1 FY26 was 55.3%, a 90 basis point increase from the previous year [16] - Adjusted net loss for Q1 FY26 was $4.2 million, improving from a loss of $4.4 million in the same quarter last year [18] Business Line Data and Key Metrics Changes - Med-tech revenue was $35.3 million, a 26.1% increase, while med-device revenue was $40.4 million, an increase of 2.3% [13] - Auryon platform contributed $16.5 million in revenue, growing 20.1% year-over-year [14] - Mechanical thrombectomy revenue increased by 41.2% year-over-year, with AngioVac revenue at $8 million (37.1% increase) and AlphaVac revenue at $3.3 million (52.3% increase) [15] Market Data and Key Metrics Changes - Med-tech platforms comprised 47% of total revenue, up from 41% a year ago, illustrating the strategic shift towards med-tech [13] - International adoption of Auryon following CE mark approval contributed approximately $500,000 in revenue [14] Company Strategy and Development Direction - The company is focused on expanding its product portfolio into large, fast-growing markets, particularly in med-tech [5] - Continued investment in Auryon and mechanical thrombectomy products is expected to drive long-term growth [6][10] - The company aims to increase its market share and expand access to new opportunities, particularly in the hospital market [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of the med-tech segment, particularly Auryon and NanoKnife, as key drivers for future revenue [21][27] - The company anticipates continued strong performance in mechanical thrombectomy and NanoKnife, with expectations for growth in the urology market [27][28] Other Important Information - The company expects to incur between $4 million and $6 million in tariff expenses for the full fiscal year 2026 [17] - Cash utilization was better than expected, with a cash balance of $38.8 million at the end of Q1 FY26 [20] Q&A Session Summary Question: Guidance on growth drivers - The increase in guidance is primarily driven by mechanical thrombectomy and NanoKnife segments, with expectations for continued solid contributions from Auryon [25][26] Question: NanoKnife disposable revenue specifics - The strong growth in NanoKnife disposable revenue is largely driven by prostate initiatives, with no significant one-time stocking effects noted [29][30] Question: Update on mechanical thrombectomy hospital penetration - There has been good uptake in hospitals, with ongoing efforts to convert interest into approvals for product usage [32][33] Question: Sales force updates - The company has increased its sales force for mechanical thrombectomy by 25%, now totaling 50 dedicated sales reps [37][38] Question: Revenue growth attribution - Revenue growth in mechanical thrombectomy is attributed to a combination of price increases, new customer acquisitions, and increased utilization [41][42] Question: Clinical trials update - The Ambition BTK study is progressing well, with positive expectations for its impact on the Auryon business [43][44]

Financial Data and Key Metrics Changes - Revenue increased by 12.2% to $75.7 million, driven by growth across both med-tech and med-device segments [12][21] - Gross margin for Q1 FY26 was 55.3%, a 90 basis point increase from the previous year [17] - Adjusted net loss for Q1 FY26 was $4.2 million, improving from a loss of $4.4 million in the same quarter last year [19] Business Line Data and Key Metrics Changes - Med-tech revenue was $35.3 million, a 26.1% increase, while med-device revenue was $40.4 million, an increase of 2.3% [13] - Auryon platform contributed $16.5 million in revenue, growing 20.1% year-over-year [15] - Mechanical thrombectomy revenue increased by 41.2% year-over-year, with AngioVac revenue at $8 million (37.1% increase) and AlphaVac revenue at $3.3 million (52.3% increase) [16] Market Data and Key Metrics Changes - Med-tech platforms comprised 47% of total revenue, up from 41% a year ago, illustrating the strategy to increase revenue from this segment [14] - The annual revenue of the med-tech segment grew from $41 million in 2020 to $127 million in 2025, representing a compound annual growth rate of 25% [15] Company Strategy and Development Direction - The company is focused on growing its med-tech segment, particularly through innovative products like Auryon and NanoKnife, which are expected to drive future growth [5][7] - Continued investment in R&D initiatives is planned to support long-term growth, targeting approximately 10% of sales [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of the med-tech segment, particularly in mechanical thrombectomy and NanoKnife, with expectations for continued strong performance [26][27] - The company anticipates being cash flow positive for the current fiscal year, with significant cash generation expected in Q4 [20] Other Important Information - The company expects net sales for FY26 to be in the range of $308 to $313 million, an increase from previous guidance [21] - Tariff expenses for FY26 are estimated to be between $4 and $6 million [18] Q&A Session Summary Question: Guidance on growth drivers - The increase in guidance is primarily driven by mechanical thrombectomy and NanoKnife segments, with expectations for continued growth in these areas [25][26] Question: Update on mechanical thrombectomy hospital penetration - There has been good uptake in hospitals, with ongoing efforts to convert accounts into value analysis committee approvals [31][32] Question: Revenue growth attributable to price increases - Revenue growth is driven by a combination of price increases, new customer acquisitions, and increased utilization [38][39] Question: Update on clinical trials for Ambition BTK - The Ambition BTK study is progressing well, with enrollment in both RCT and registry segments, expected to significantly impact the Auryon business [40][41]

First Quarter FY 2026 Earnings Results October 2, 2025 Forward looking statements Notice Regarding Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements regarding AngioDynamics' expected future financial position, results of operations, cash flows, business strategy, budgets, projected costs, capital expenditures, products, competitive positions, growth opportunities, plans and objectives of ...

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 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]

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]

Financial Performance - AngioDynamics reported pro forma adjusted EBITDA of $1.3 million, improving from a loss of $3.6 million in Q3 FY24[6] - The company achieved 9% year-over-year pro forma total revenue growth[8] - MedTech segment pro forma revenue grew by 22% year-over-year[8] - For Q3 2025, MedTech net sales were $31.341 million, compared to $25.844 million in Q3 2024[38] - For YTD 2025, MedTech net sales were $90.863 million, compared to $77.068 million in YTD 2024[40] - AngioDynamics increased full-year 2025 guidance for revenue, MedTech growth, gross margin, adjusted EBITDA, and adjusted EPS[7] Product Performance - Auryon sales reached $13.9 million, representing a 17% year-over-year growth[8] - AngioVac sales were $6.8 million, with a 23% year-over-year increase[8] - AlphaVac sales amounted to $3.0 million, demonstrating a 161% year-over-year growth[8] - NanoKnife probe sales totaled $4.9 million, showing a 16% year-over-year growth[8] Strategic & Regulatory Milestones - AngioDynamics received FDA clearance for NanoKnife for prostate tissue ablation[5]