AngioDynamics, Inc. Q2 FY2026 earnings call

• Auryon had 18th consecutive quarter of double-digit growth, expanding in hospitals and internationally with CE Mark approval. The AMBITION BTK study is enrolling for coronary applications.
• Mechanical thrombectomy had 3 regulatory milestones: IDE for APEX-Return study (catalyst for AlphaVac growth), IDE for PAVE study (addressing right-sided infective endocarditis), and 510(k) clearance for AlphaVac F18 85 with expanded indications.
• NanoKnife grew 22.2% driven by prostate procedures, CPT code effective Jan 1, and inclusion in TIME's 2025 Best Innovations list.
• Med Device grew over 5%, contributing to profitability, with cash flow positive in Q2 and expected for full year.

Revenue increased 8.8% to $79.4 million. Med Tech revenue was $35.7 million, a 13% increase, comprising 45% of total revenue (up from 43% year ago). Auryon contributed $16.3 million, growing 18.6%. Mechanical thrombectomy revenue was $11 million, up 3.9%: AlphaVac revenue $3.5 million (+40.2%), AngioVac revenue $7.5 million (-7.5%, but YTD up 11.2%). NanoKnife revenue was $7.3 million, up 22.2%. Med Device revenue was $43.8 million, a 5.6% increase, 55% of total revenue.

• Raised full-year net sales to $312 million to $314 million (previously $308 million to $313 million).
• Med Tech net sales expected to grow 14% to 16%, Med Device sales expected to grow 0% to 1% (up from flat).
• Gross margin expected 53.5% to 55.5%.
• Adjusted EBITDA expected 8 million to 10 million (up from 6 million to 10 million).
• Adjusted loss per share unchanged in range of negative $0.33 to negative $0.23.

• Tariff expenses预计 between $4 million and $6 million for full fiscal year 2026.
• Structural underabsorption in production as products move to Costa Rica in the second half, offset by cost cuts already implemented in first half.

Q: Good morning. Welcome to the AngioDynamics Fiscal Year 2026 Second Quarter Earnings Call. [Operator Instructions] As a reminder, this conference call is being recorded. The news release detailing AngioDynamics' fiscal 2026 second quarter results crossed the wire earlier this morning and is available on the company's website. This conference call is also being broadcast live over the Internet at the Investors section of the company's website at www.angiodynamics.com. A webcast replay of the call will be available at the same site approximately 1 hour after the end of today's call. Before we begin, I'd like to caution listeners that during the course of this conference call, the company will make projections or forward-looking statements regarding future events, including statements about expected revenue, adjusted earnings and gross margins for fiscal year 2026 as well as trends that may continue. Management encourages you to review the company's past and future filings with the SEC, including, without limitation, the company's Forms 10-Q and 10-K, which identify specific factors that may cause the actual results or events to differ materially from those described in the forward-looking statements. The company will also discuss certain non-GAAP and pro forma financial measures during this call. Management uses these measures to establish operational goals and review operational performance and believes that these measures may assist investors in analyzing the underlying trends in the company's business over time. Investors should consider these non-GAAP and pro forma measures in addition to, not as a substitute for or as superior to financial reporting measures prepared in accordance with GAAP. A slide package offering insight into the company's financial results is also available in the Investors section of the company's website under Events and Presentations. This presentation should be read in conjunction with the press release discussing the company's operating results and financial performance during this morning's conference call. Unless otherwise noted, all metrics and growth rates mentioned during today's call are on a pro forma basis, which exclude the results of the Dialysis and BioSentry businesses that were divested in June 2023, the PICC and Midline products that were divested in February 2024 and the Radiofrequency and Syntrax support catheter products that we discontinued in February 2024. Also, unless otherwise noted, all comparisons will be the second fiscal quarter of 2026 versus the second fiscal quarter of 2025. Now I'd like to turn the call over to Jim Clemmer, AndioDynamics' President and Chief Executive Officer. Mr. Clemmer?

A: Thank you, operator. Good morning, everyone, and thank you for joining us for AngioDynamics' Fiscal 2026 Second Quarter Earnings Call. Joining me today is Steve Trowbridge, AngioDynamics' Executive Vice President and Chief Financial Officer. We delivered strong results in the second quarter. Revenue grew 8.8% with Med Tech up 13%, and we translated that top line performance into improved profitability. Adjusted EBITDA nearly doubled year-over-year, and we generated positive cash flow. These results prove that we can drive both revenue growth and profitability simultaneously. Based on our strong performance, we are raising our full year guidance for both revenue and adjusted EBITDA, which Steve will detail later in the call. What's particularly encouraging is the breadth of our execution across our portfolio. Auryon delivered another quarter of double-digit year-over-year growth. Our Mechanical Thrombectomy platforms continue to gain traction, both commercially and from a regulatory product development standpoint. NanoKnife is well positioned to capitalize on the prostate opportunity with the CPT code becoming effective a few days ago, and our Med Device business delivered solid results. Now let me walk you through each of our businesses. Auryon continues to perform exceptionally well. We delivered our 18th consecutive quarter of double-digit growth, and we continue to take share in the atherectomy market. Our strategy to increase penetration in hospitals is working, driving both higher volumes and better economics. International is starting to contribute following our CE Mark approval. We're also making progress on expanding the addressable market. The AMBITION BTK study is enrolling well, and we're advancing our work towards coronary applications. These initiatives will take time, but they represent opportunities to broaden where Auryon can compete. Moving to mechanical thrombectomy. We are pleased with the continued trajectory of our mechanical thrombectomy platform and we are thrilled with the 3 regulatory milestones that we announced today in this portfolio. Our combined mechanical thrombectomy portfolio grew 3.9% over the prior year, driven by continued growth in AlphaVac. In addition, we are pleased with the continued performance of AngioVac. AlphaVac maintained its momentum, delivering sequential quarterly growth and strong year-over-year growth this quarter. We continue to win new accounts, move through the hospital value analysis committees and see strong physician feedback on the unique design advantages of our platform. AngioVac was down year-over-year this quarter, impacted by a tough comparison against a particularly strong second quarter in 2025. We will continue to be excited about the trajectory of the business, and we remain confident in the long-term opportunity ahead. From a regulatory standpoint, we made significant progress this quarter with 3 important milestones for our mechanical thrombectomy portfolio, that strengthen our competitive position and expand our clinical applications. First, we received IDE approval for our APEX-Return study, a pivotal trial evaluating the AlphaReturn Blood Management System when used with AlphaVac for treating acute pulmonary embolism. AlphaReturn addresses a hurdle to initial adoption that a number of prospective new customers have raised, which is the ability to collect, filter and reinfuse aspirated blood during thrombectomy procedures. We believe that this additional offering will be a catalyst to accelerating the already impressive growth profile of AlphaVac. Second, we received IDE approval for our PAVE study, a pilot trial evaluating AngioVac for the percutaneous removal of right heart vegetation in patients with right-sided infective endocarditis. This addresses an underserved patient population with limited treatment options, particularly when surgical risk is high. Third, we received 510(k) clearance for a modified AlphaVac F18 85 system with expanded indications. The clearance expands the cannula indication to allow aspiration and injection of contrast media and other fluids and includes the sheath as an alternative introducer that minimizes blood loss. These enhancements give physicians greater flexibility in how they use the device across a broader range of cases. Together, these regulatory wins demonstrate the versatility and innovation of our mechanical thrombectomy platform. They represent meaningful opportunities to expand clinical applications, address unmet patient needs and strengthen our competitive position in the thrombectomy market by delivering improved treatment options that physicians are seeking to improve patient outcomes. NanoKnife delivered strong growth this quarter, driven by prostate procedures. The CPT code went live on January 1, which should provide a tailwind for adoption. We've been consistent in our messaging that this adoption will build over time rather than be an immediate step change, and that's what we're seeing. Physician interest is high. Procedure volumes are growing and we are executing on our commercial and awareness building initiatives. We believe we're well positioned as this market continues to develop. Finally, in October, we were excited that the NanoKnife system was named to TIME's 2025 Best Innovations list, which we believe will accelerate patient awareness in this growing market. Med Device grew over 5% this quarter, ahead of our expectations. The team running this business executes consistently, and it provides profitable cash flow that supports our Med Tech investments. Looking at the quarter overall, we're executing on multiple fronts. We grew revenue, expanded margins, we advanced important clinical programs, and we generated cash. Our first half performance gives us confidence in our ability to operate efficiently while investing in the initiatives that position us for sustained growth. That balance between delivering today and investing for tomorrow is what will drive long-term value creation. Now let me turn the call to Steve for the financial details.

Q: Frank Takkinen with Lake Street Capital asks about gross margin.

A: Steve Trowbridge says gross margin was strong due to mix shift to Med Tech, price, and production move to Costa Rica; structural underabsorption in second half as products finalize move.

Q: Frank Takkinen asks about mechanical thrombectomy.

A: James Clemmer says AlphaVac growing, AngioVac had tough comp but YTD up, ApexReturn and PAVE study will drive growth.

Q: William Plovanic with Canaccord Genuity asks about prostate and capital sales.

A: Steve Trowbridge says prostate CPT code new, monitoring insurer changes; capital sales strong due to France distribution and prostate demand.

Q: William Plovanic asks about EBITDA in back half.

A: Steve Trowbridge says back half EBITDA lower due to investments but not negative in Q3.

Q: Eduardo Martinez-Montes with H.C. Wainwright asks about Auryon international and coronary expansion.

A: James Clemmer says Auryon expanding internationally with CE Mark, coronary expansion is longer-term; Steve Trowbridge says R&D spend not significant this year for coronary.