AngioDynamics, Inc. (ANGO) Earnings

Management highlights

### Strategic Transformation Progress - The multi-year transformation strategy to shift AngioDynamics to a fast-growing, profitable MedTech company has successfully delivered results in FY26. The MedTech segment has grown at a 24% compound annual growth rate over the past six years, with sustained profitability. - The company now maintains a balanced business model: the stable, profitable MedDevice segment generates consistent cash flow to fund investments in higher-growth MedTech platforms, while the company continues to expand profitability and generate positive cash flow overall. - A leadership transition is ongoing: incumbent CEO Jim Clemmer will retire, with the board conducting a search for a new CEO expected to conclude in the first half of FY27, with a seamless handoff planned. ### MedTech Platform Operational Highlights - Arion: delivered 20 consecutive quarters of double-digit YoY growth, gained share across all care settings, and continues to expand hospital-focused adoption and international penetration following CE mark approval. - Mechanical thrombectomy: the portfolio is early in its lifecycle, with strong physician feedback for AlphaVac and AngioVac. Key upcoming catalysts include the IDE-approved pivotal trial for the AlphaReturn Blood Management System and the AngioVac Right Heart Program, which management expects will drive long-term growth. Commercial leadership and team structure were updated in Q4 to improve execution. - NanoKnife: delivered record procedure volumes in Q4 FY26 driven by prostate care demand. Positive 2-year data from the Preserve study, a new Category 1 CPT code effective January 1, and a positive Palmetto Medicare coverage framework have all supported adoption. Management is also developing a new indication for benign prostatic hyperplasia (BPH), with an ongoing feasibility IDE study. ### Clinical & R&D Investment - The company is committed to investing ~10% of annual revenue in R&D to generate high-quality clinical data that expands indications and market access. - Key ongoing and planned trials include the AlphaReturn and PAVE cardiovascular studies, the international expansion of the Ambition BTK study, and the Relief BPH feasibility study for NanoKnife. Positive preliminary data from an investigator-initiated prostate cancer combination study has led to plans for a follow-on RCT IDE study.

Guidance

- For full fiscal year 2027, management expects total net sales in the range of $336 to $341 million, representing 5% to 6.5% year-over-year growth from FY26's $320.2 million revenue. - MedTech net sales are expected to grow 12% to 15% YoY, while MedDevice sales are expected to be roughly flat year-over-year. - Gross margin is projected to be in the range of 54% to 55%, similar to FY26's 54.6% gross margin. - Adjusted EBITDA is guided to a range of $13 million to $16 million, up from FY26's adjusted EBITDA of $13.2 million. - Adjusted loss per share is expected to be between 29 cents and 24 cents. - The impact of tariffs on FY27 results is expected to be broadly similar to FY26's $4.8 million in tariff expense. - The typical historical seasonal revenue and cash cadence is expected to hold in FY27: Q1 is the lowest revenue quarter and highest cash usage quarter, with sequential growth through Q2 and Q3, and Q4 delivering the highest revenue and cash generation for the year. - For individual MedTech platforms: Arion is expected to continue growing in the mid-teens range; AlphaVac will maintain its strong growth trajectory, and AngioVac will return to year-over-year growth; NanoKnife will maintain growth momentum led by disposable sales for prostate indications, with capital sales remaining lumpy quarter-to-quarter.

Segment performance

### Fourth Quarter FY26: - **MedTech Segment**: Revenue of $41.8 million, a 16.7% year-over-year increase, accounting for 48% of total revenue (up from 45% in Q4 FY25). Breakdown within the segment: Arion platform contributed $17.8 million (14.4% YoY growth); Mechanical thrombectomy (AlphaVac + AngioVac) contributed $11.1 million (-1.1% YoY), with AlphaVac at $4.2 million (38.4% YoY growth) and AngioVac at $6.9 million (-15.8% YoY); NanoKnife contributed $11.8 million (64.5% YoY growth), with probes growing 47% and capital sales growing 132.5%. - **MedDevice Segment**: Revenue of $44.8 million, a 1.1% year-over-year increase, accounting for 52% of total revenue. - Total Q4 revenue: $86.6 million, an 8% YoY increase. ### Full Year FY26: - **MedTech Segment**: Revenue of $150 million, an 18.4% year-over-year increase, accounting for 47% of total revenue (up from 22% at end-FY20). Breakdown within the segment: Arion platform contributed $66.9 million (17.7% YoY growth); Mechanical thrombectomy contributed $45 million (13.4% YoY growth), with AlphaVac at $15.5 million (44.1% YoY growth) and AngioVac at $29.5 million (2.1% YoY growth); NanoKnife contributed $33.1 million (35.2% YoY growth), with disposables up 28.7% and capital up 61.8%. - **MedDevice Segment**: Revenue of $170.2 million, a 2.5% year-over-year increase, accounting for 53% of total revenue. - Total full-year revenue: $320.2 million, a 9.4% YoY increase.

Risks & headwinds

- The mechanical thrombectomy market is highly competitive and growing, with multiple large and small competitors active, leading to potential quarterly lumpiness in results as the market shifts away from traditional lytic-based therapies. - Tariff costs continue to create a headwind for gross margin and profitability, with the tariff environment remaining dynamic and subject to unexpected changes. - NanoKnife national reimbursement expansion is still in progress, with consistent coverage across all regional payers not yet achieved, creating near-term uncertainty for adoption growth. - Capital sales for NanoKnife are inherently lumpy quarter-to-quarter, creating volatility in quarterly segment revenue results.

Analyst Q&A

• Q: What adoption changes have you seen for NanoKnife after the Palmetto Medicare LCD went into effect, and what is the pathway to broader national coverage? What is the size of the BPH opportunity relative to prostate cancer, and when will first study data be available? /

  A: Early results from the new CPT code and Palmetto LCD show consistent positive signs of adoption, but full benefits will take time as the company works to secure consistent reimbursement from other regional Medicare administrators. The BPH market is much larger than the prostate cancer market, but management is proceeding cautiously with an initial feasibility study to understand the opportunity and will share updates once study data is available. The anecdotal clinical feedback from physicians has been very positive to date.

• Q: What caused the Q4 decline in AngioVac revenue, and what commercial changes have you made to the mechanical thrombectomy business? How intense is competitive pricing pressure in mechanical thrombectomy and atherectomy? /

  A: The Q4 decline reflected the highly competitive nature of the fast-growing mechanical thrombectomy market, where the company targeted stronger share gains than it achieved. Management restructured the commercial leadership team, added new experienced sales representatives, and adjusted go-to-market messaging to improve execution. There is no meaningful pricing pressure in either market, as all products deliver clear system cost savings and improved patient outcomes that support current pricing.

• Q: What is the expected phasing of R&D and clinical investment over the next few years, and when will significant operating leverage hit the bottom line? /

  A: The company will maintain R&D investment at ~10% of sales, so FY27 will not be a peak investment year above this planned target. Management will continue balancing reinvestment in MedTech growth with expanding bottom-line profitability, and expects adjusted EBITDA to grow ~20% from the FY26 baseline in FY27. The business model will continue to generate positive operating cash flow while maintaining this balance of growth investment and profitability.

• Q: What shift have you seen in physician conversations about NanoKnife now that Medicare coverage is in place? /

  A: The primary conversation remains clinical, as many urologists are still learning about NanoKnife's unique focal treatment option for prostate cancer that preserves the gland. Reimbursement progress (including the Palmetto LCD) has removed a key barrier to adoption, making it easier to convert clinical interest into active procedures, but clinical education remains the top priority for the commercial team.