AngioDynamics, Inc. Q3 FY2026 earnings call

Good morning, everyone, and thank you for joining us for Angiodynamics, fiscal 2026 third quarter earnings call. Our third quarter was strong across the board, with top line growth led by MedTech segment. We maintained our trend of driving top line growth and delivered strong profitability by expanding adjusted EBITDA. We are raising full-year guidance for net sales and adjusted EBITDA. Arion continued strong momentum with 19 consecutive quarters of double-digit year-over-year growth. Mechanical thrombectomy portfolio grew approximately 18% over prior year, with AlphaVac having outstanding quarter. NanoKnife had strong quarter for disposables and capital, with expanded European indications. We have built the company around cardiovascular and oncology markets with three product portfolios. We've had to work through manufacturing transition, tariffs, and macro uncertainty. The board has formed a search committee for leadership transition.

Company top-line revenue was strong in the quarter, increasing 8.9% to $78.4 million. MedTech segment revenue was $37.3 million, a 19% increase, with year-to-date up 19.1%. MedTech platforms comprised 48% of total revenue in Q3 2026 vs 44% a year ago. Arion platform contributed $16.3 million in revenue, growing 17.9% year-over-year, with 19 consecutive quarters of double-digit growth. Mechanical thrombectomy revenue, including AngioVac and AlphaVac sales, increased 17.9% year-over-year to $11.5 million. AlphaVac revenue was $4.4 million, a 47.4% year-over-year increase and over 24% sequential increase. AngioVac revenue was $7.2 million, a 5% year-over-year increase. Total nanoknife revenue was $7.6 million, an increase of 21%, with probes growing 20% and capital sales growing 24.9%. MedDevice segment increased 1.1% year over year in Q3 2026, with year-to-date up 3%.

We are raising full-year guidance for net sales to $313.5 to $315.5 million, up from prior range of $312 to $314 million. MedTech net sales growth raised to 15% to 17%, med device sales expected to grow at approximately 1%. Gross margin expected to be in range of 53.5% to 55.5%. Adjusted EBITDA expected to be in range of $10 million to $12 million, up from prior $8 million to $10 million. Adjusted loss per share expected in range of 30 cents to 23 cents. In fourth quarter, planning to increase inventory levels for certain products, accelerating use of approximately $3 to $5 million of cash.

Tariff landscape remains dynamic, with tariff expense expected to be between $4 and $6 million for full fiscal year 2026. Macro uncertainty. Sterilization vendors plan two temporary shutdowns in fourth quarter, which may cause potential commercial disruptions if not managed properly.

Q: Hi, Jim and Steve. Thanks for taking the question and congratulations on the quarter. I first want to start on AlphaVac that the sequential growth there was really impressive. Any additional color on the drivers? I know it was a bit subsequent to the quarter, but are you seeing any benefit today from the PE guidelines that were released in February? And maybe just how do you expect that to benefit the company in fiscal Q4 and in the following fiscal year?

A: Thanks, John. It's really going to according to what we expected. Each quarter, we're able to get our product into new hands. We expect the product to grow sequentially going forward because it's a great design and a really good market.

Q: Steve, just on the guidance, given the climate we're in, I think investors are probably also curious, have you baked in any impact from higher energy costs? Are you seeing any impact yet in terms of rising supplier costs, and are you getting any specific buffer for that for the fiscal fourth quarter? And if costs do rise, what's the ability for Angio to pass on those costs to customers?

A: Yeah, thanks, John. We have built into our guidance our expectations of how we're going to manage different dynamic elements. We are seeing a benefit from our ability to raise prices in certain areas, but it's more our natural course of commercial dealing.

Q: Great. Thank you for taking the questions. I was hoping to also follow up on Alphavac, just given how strong the number was there. As we think about future quarters and any gyrations and ordering patterns, should we view this $4.4 million as a new baseline to grow off of, or was there potentially some pull ahead into the quarter that could have that number step back as we go forward. I know historically we've seen it pretty consistently grow sequentially. Just curious if that is expected to continue to be the trend going forward for the last quarter as well as into 27.

A: Hi, Frank. We expect AlphaVac to continue to grow sequentially. We're very excited about the product and the market, and expect it to continue growing.

Q: And then just for my second one, I was hoping to follow up on Arion a little bit more. Any color you can provide on volume versus price and in progress hospital versus OBL would be really helpful.

A: Yeah, as we've mentioned, moving into the hospital site of care has been a strategic imperative. Our team has done a great job changing the dynamic from OBL-centric to hospital side of care, and Arion's results are driven by both elements.

Q: Hi. Good morning. This is Katie on for Yi Chen. I had two quick follow-on questions for supply chain things that have come up. Could you give us a sense of what proportion of MedTech cost of goods are still exposed to China sourcing of components and how much of that is kind of addressed by the Costa Rica transition? And then if you could also provide a little color on how continuous the sterilization shutdowns might be. Is that something that will happen annually? Just something, how we can think about that in terms of the supply chain.

A: Hi, Katie. We haven't historically had significant risk to component sourcing from China. The sterilization shutdowns happen but not all the time, and we're managing the business to mitigate potential disruptions.