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, comprising 48% of total revenue compared to 44% a year ago [13] - Auryon platform generated $16.3 million in revenue, growing 17.9% year-over-year, marking 19 consecutive quarters of double-digit growth [13][14] - 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 and capital sales [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 its full-year guidance for net sales and adjusted EBITDA for the third consecutive quarter, reflecting confidence in its growth strategy [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business despite macroeconomic challenges, including tariffs and inflation [5][19] - The company anticipates continued growth in the AlphaVac product line and expects to maintain strong performance in the MedTech segment [30][38] Other Important Information - The company plans to increase inventory levels in anticipation of temporary sterilization shutdowns, which may slightly impact cash flow [23][50] - The leadership transition process is underway, with a search committee formed to find a successor for the current CEO [24] Q&A Session Summary Question: AlphaVac sequential growth drivers and impact of PE guidelines - Management noted that growth is driven by new hospital approvals and physician comfort with the product, expecting continued sequential growth [29][30] Question: Guidance impact from higher energy costs and supplier costs - Management confirmed that guidance accounts for inflationary pressures and tariffs, with some ability to raise prices on superior products [32][33] Question: Future baseline for AlphaVac revenue - Management expects AlphaVac to continue growing sequentially, viewing current revenue as a strong driver for future growth [38] Question: Auryon volume versus price dynamics - Management highlighted the strategic shift towards hospital settings, which supports pricing and volume growth, and expects Auryon to continue growing [40][41] Question: Supply chain exposure to China and sterilization shutdowns - Management indicated minimal risk from China sourcing and noted that sterilization shutdowns are not frequent, with plans in place to mitigate any disruptions [48][50]