AngioDynamics, Inc. Q4 FY2025 earnings call

• Strong Q4 Performance: Total revenue in Q4 2025 was $80.2 million, a 12% year-over-year growth, led by MedTech growth over 20% and med device growth over 6%.
• MedTech Strategic Transformation: The MedTech segment has grown significantly, with a 20% full-year growth in 2025. Auryon has been a key driver, with $185 million in cumulative sales since 2020, and hospital customers now represent 36% of Auryon revenue (up from 28% in 2025).
• Auryon Developments: Auryon received CE Mark approval in September 2024, generating over $1 million in European revenue in Q4 2025. The Ambition BTK trial was launched in January 2025.
• Mechanical Thrombectomy Progress: AlphaVac delivered five consecutive quarters of sequential revenue growth, aided by the APEX trial results and RECOVER AV trial in Europe. Work is ongoing to develop a blood return version of AlphaVac. AngioVac grew nearly 40% in Q4 2025.
• NanoKnife Milestones: NanoKnife achieved key clinical reimbursement and regulatory milestones, including a CPT Category I code for prostate and liver treatments (effective Jan 2026) and an expanded indication for prostate tissue ablation.
• Operational Efficiency: Generated positive adjusted EBITDA and over $15 million in free cash flow in Q4 2025. Expect to be cash flow positive in fiscal 2026, with $15 million annualized savings by fiscal 2027 from manufacturing transition.

MedTech Segment: In the fourth quarter of fiscal 2025, MedTech revenue was $35.8 million, representing a 22% increase, and contributed 45% of total revenue. For the full year, MedTech revenue reached $126.7 million, a 19.5% growth. Over five years, the MedTech segment's percentage of total revenue doubled from 22% to 43% with a 25% five-year revenue CAGR.

• Auryon: In Q4 2025, Auryon generated $15.6 million in revenue, a 19.7% year-over-year increase. For the full fiscal year, Auryon contributed $56.9 million in revenue, up 20.8%.

• Mechanical Thrombectomy: In Q4 2025, mechanical thrombectomy revenue (including AngioVac and AlphaVac) grew 44.7% year-over-year. For the full year, AngioVac revenue was $28.9 million, a 25.1% increase, and AlphaVac revenue was $10.8 million, a 59.5% increase.

• NanoKnife: In Q4 2025, total NanoKnife revenue decreased 2.5% year-over-year due to capital sales, but disposable sales grew 5.5%. For the full year, NanoKnife revenue was flat at $24.5 million, with probes up 9.6% and capital sales down 26%.

• Med Device Segment: In Q4 2025, the med device segment increased 6.2% year-over-year. For the full fiscal year, med device revenue was $166 million, a 0.8% increase.

• Net Sales: Anticipates net sales for fiscal 2026 in the range of $305 million to $310 million, representing 4-6% growth over fiscal 2025 revenue of $292.7 million.
• Segment Growth: MedTech net sales expected to grow 12-15% year-over-year; med device sales expected to be roughly flat.
• Gross Margin: Expected to be in the range of 53.5% to 55.5% (inclusive of estimated tariff impact of $4-6 million). Absent tariffs, gross margin would be 55-56%.
• Adjusted EBITDA: Expected to be in the range of $3 million to $8 million (inclusive of tariff impact). Absent tariffs, adjusted EBITDA would be $7.5 million to $10.5 million.
• Cash Flow: Expect to be cash flow positive for the full fiscal 2026, with the first quarter of 2026 expected to utilize approximately $20 million of cash, followed by cash generation in subsequent quarters.

• Tariffs Impact: The tariff environment is unclear and unpredictable. In Q4 2025, incurred $1.6 million in tariff expense, with over half affecting the MedTech segment. Expect tariff impact in fiscal 2026 to be $4-6 million, which could affect gross margins and financial results.

Q: John Young asked about the blood return product for AlphaVac, including regulatory pathway, clinical trial needs, and if it's an ancillary product. Jim Clemmer responded that AlphaVac was designed to limit blood loss, they're in regulatory discussions for a 510(k) process, and expect to get the product approved, with no ceiling on growth for AlphaVac and AngioVac together.

Q: John Young also asked about NanoKnife's growth with reimbursement starting in Jan 2026. Steve Trowbridge replied that reimbursement is a key driver, with increased awareness and urologist adoption, expecting accelerated growth though not immediate like a light switch.

Q: Steve Lichtman inquired about MedTech growth breakdown between Auryon, NanoKnife, and international Auryon contribution. Steve Trowbridge said Auryon expected teens growth, NanoKnife to continue disposable adoption with some capital step back, and mechanical thrombectomy to be strongest growth; international Auryon is a contributor but not at US levels.

Q: Steve Lichtman asked about tariff offsets and outsourcing benefits. Steve Trowbridge stated tariffs are dynamic with ongoing mitigation efforts, and outsourcing initiative benefits started in FY 2025 with full benefit expected by FY 2027, seeing some benefits in fiscal 2026 back half.

Q: Yi Chen asked about acquisition plans for high-growth MedTech products and divestitures in med device. Jim Clemmer responded that the company is focused on executing with current assets, pleased with portfolio development, and sees no immediate need for acquisitions, with focus on driving growth from existing assets.