AngioDynamics(ANGO) - 2026 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Revenue increased by 8.9% to $78.4 million, driven by growth in both MedTech and Med Device segments [13] - Adjusted EBITDA improved to $1.8 million from $1.3 million year-over-year, attributed to MedTech revenue growth and operational efficiency [18] - Gross margin for Q3 FY 2026 was 52.9%, a decrease of 110 basis points from the previous year, primarily due to tariffs and inflation [16] Business Line Data and Key Metrics Changes - MedTech revenue reached $37.3 million, a 19% increase year-over-year, comprising 48% of total revenue [13] - Auryon platform generated $16.3 million in revenue, growing 17.9% year-over-year, marking 19 consecutive quarters of double-digit growth [13] - Mechanical thrombectomy revenue, including AngioVac and AlphaVac, increased by 17.9% to $11.5 million, with AlphaVac revenue growing 47.4% year-over-year [14] Market Data and Key Metrics Changes - The Med Device segment saw a modest increase of 1.1% year-over-year, with a year-to-date growth of 3% [15] - NanoKnife revenue increased by 21% to $7.6 million, driven by strong demand in prostate care [15] Company Strategy and Development Direction - The company is focused on driving profitable growth in high-margin MedTech markets, with a strategic shift towards hospital settings [5][41] - Continued investment in R&D is planned, targeting approximately 10% of sales to support long-term growth [17] - The company is raising full-year guidance for net sales and adjusted EBITDA for the third consecutive quarter, reflecting confidence in growth strategies [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business despite macroeconomic uncertainties and challenges such as tariffs and inflation [5] - The company anticipates continued growth in the mechanical thrombectomy market and expects to maintain strong performance in the MedTech segment [9][38] Other Important Information - The company plans to increase inventory levels in anticipation of temporary sterilization shutdowns, which may slightly impact cash flow [23] - The leadership transition process is underway, with a search committee formed to find a successor for the CEO [24] Q&A Session Summary Question: What are the drivers behind AlphaVac's sequential growth? - Management noted that the growth is driven by increased hospital approvals and physician comfort with the product, expecting continued sequential growth [28][30] Question: Has the guidance accounted for higher energy costs and supplier costs? - Management confirmed that guidance includes expectations for inflationary costs and tariffs, with some ability to raise prices on superior products [32][33] Question: Should the $4.4 million AlphaVac revenue be viewed as a new baseline? - Management expects AlphaVac to continue growing sequentially, viewing the current revenue as a strong driver for future growth [38] Question: Can you provide insights on Auryon's performance in hospitals versus OBL? - Management highlighted a strategic shift towards hospital settings, which has positively impacted pricing and volume, while still maintaining growth in OBL [41][42] Question: What proportion of MedTech costs are exposed to China sourcing? - Management indicated that there is minimal risk from China sourcing, and inflationary impacts are being managed effectively [48]