AngioDynamics Q2 Earnings Call Highlights

AngioDynamics (NASDAQ:ANGO) reported fiscal 2026 second-quarter results that management said reflected “strong” execution across the portfolio, with revenue growth and improved profitability. On the company’s earnings call, President and CEO Jim Clemmer said the quarter demonstrated AngioDynamics’ ability to “drive both revenue growth and profitability simultaneously,” and Chief Financial Officer Steve Trowbridge detailed a higher full-year outlook for revenue and adjusted EBITDA.

Second-quarter growth led by Med Tech platforms

Trowbridge said total revenue increased 8.8% year over year to $79.4 million, driven by growth in both the Med Tech and Med Device segments. Med Tech revenue rose 13% to $35.7 million, while Med Device revenue increased 5.6% to $43.8 million. Med Tech platforms represented 45% of total revenue in the quarter, up from 43% a year earlier.

Within Med Tech, the Auryon atherectomy platform generated $16.3 million, up 18.6% year over year, marking the 18th consecutive quarter of double-digit growth. Management attributed Auryon’s results to increasing penetration in hospitals, an expanding customer base in both hospital and office-based lab settings, and early international contribution following CE Mark approval in September of last year.

Mechanical thrombectomy milestones and mixed quarterly comparisons

AngioDynamics’ combined mechanical thrombectomy portfolio, which includes AngioVac and AlphaVac, grew 3.9% year over year to $11.0 million in revenue. The quarter included divergent results between the two products: AngioVac revenue declined 7.5% to $7.5 million, while AlphaVac revenue increased 40.2% to $3.5 million.

Clemmer and Trowbridge both pointed to a difficult comparison for AngioVac, noting that the year-ago second quarter was particularly strong. Trowbridge added that AngioVac delivered year-to-date growth of 11.2% and said the company remained “bullish” on the product, citing sustained procedure volumes.

Management highlighted three regulatory milestones for the thrombectomy portfolio announced alongside the quarterly results:

• IDE approval for the APEX Return study, a pivotal trial evaluating the AlphaReturn blood management system used with AlphaVac for treating acute pulmonary embolism. Management said AlphaReturn addresses customer concerns about collecting, filtering, and reinfusing aspirated blood.
• IDE approval for the PAVE study, a pilot trial evaluating AngioVac for percutaneous removal of right heart vegetation in patients with right-sided infective endocarditis.
• 510(k) clearance for a modified AlphaVac F1885 system with expanded indications, including aspiration and injection of contrast media and other fluids, and the use of the sheath as an alternative introducer to help minimize blood loss.

In the Q&A portion of the call, management said the AlphaReturn product is intended to remove an “objection” that can arise in some adoption scenarios, and they expect it to act as a catalyst for growth once studied and deployed commercially.

NanoKnife growth driven by prostate procedures and international channel change

NanoKnife revenue increased 22.2% year over year to $7.3 million, with probe growth of 14.4%. Trowbridge said probe growth continued to be driven by rising utilization for prostate cancer treatment, and he described the quarter as a record quarter for prostate procedure cases.

Clemmer said NanoKnife is positioned to capitalize on the prostate opportunity with a CPT code that became effective on January 1. However, he reiterated the company’s view that adoption will build over time rather than create an immediate “step change,” adding that physician interest is high and procedure volumes are growing.

Trowbridge also discussed a transaction in France in which AngioDynamics moved from a direct sales model to a distribution model. As part of that transaction, the new distribution partner purchased NanoKnife systems that had previously been placed at customer sites and carried on AngioDynamics’ balance sheet. Trowbridge said the transaction included approximately $1 million of NanoKnife capital sales, plus about $250,000 each of Arion Microwave and EVLT capital sales. He characterized it as a strategic move to support growth in an international market.

Clemmer noted that the NanoKnife system was named to Time’s 2025 Best Innovations List in October, which he said the company believes will help accelerate patient awareness.

Margins, cash flow, and raised guidance

Gross margin for the quarter was 56.4%, up 170 basis points year over year. Trowbridge attributed the improvement to product mix shift toward Med Tech, benefits from manufacturing transfer initiatives, and the France distribution transaction. He said the company has accelerated a portion of its manufacturing optimization cost savings ahead of schedule.

Operating expenses were $50.9 million, down slightly from $51.0 million a year ago and lower as a percentage of sales (64.1% versus 69.9%). R&D expense increased to $7.8 million, or 9.8% of sales, and Trowbridge said the company is targeting approximately 10% of sales going forward as it invests in long-term Med Tech growth initiatives, including clinical programs. SG&A expense was $36.9 million, or 46.4% of sales, compared to 49.3% a year ago.

Adjusted net loss narrowed to $0.1 million, or an adjusted loss per share of $0.001, compared to an adjusted net loss of $1.7 million, or $0.04 per share, in the year-ago quarter. Adjusted EBITDA was $5.9 million, up from $3.1 million a year earlier; Trowbridge said the France distribution transaction contributed approximately $1.4 million of adjusted EBITDA in the quarter.

AngioDynamics ended the quarter with $41.6 million in cash and cash equivalents, up from $38.8 million at August 31, 2025. The company generated $4.7 million of cash in the quarter, ahead of expectations, and Trowbridge reiterated the expectation to be cash flow positive for fiscal 2026, while noting typical seasonal dynamics: cash usage of $3 million to $5 million is expected in the third quarter, followed by substantial generation in the fourth quarter.

Based on the second-quarter performance, management raised several elements of fiscal 2026 guidance:

• Net sales expected at $312 million to $314 million, up from $308 million to $313 million.
• Med Tech sales growth reiterated at 14% to 16%.
• Med Device sales growth now expected at 0% to 1%, raised from prior guidance calling for flat performance.
• Adjusted EBITDA expected at $8 million to $10 million, up from $6 million to $10 million.
• Gross margin guidance maintained at 53.5% to 55.5%, inclusive of a reiterated $4 million to $6 million estimate for tariff impact in fiscal 2026.
• Adjusted loss per share guidance unchanged at -$0.33 to -$0.23.

On gross margin, Trowbridge said the company expects some structural underabsorption in the second half tied to the ongoing manufacturing transfer from Queensbury to a third-party partner in Costa Rica, and he noted that cost reductions originally expected later have been accelerated into the first half. He added that adjusted EBITDA should be lower in the second half than in the first half as planned clinical data development investments hit the P&L, though he said the company does not expect adjusted EBITDA to be negative in the third quarter.

Trowbridge also said the company received notice after the quarter that the U.S. Court of Appeals for the Federal Circuit affirmed a district court judgment in AngioDynamics’ previously settled port patent litigation with C.R. Bard invalidating Bard’s patents. Trowbridge said the decision concludes Bard’s appeal and eliminates the potential for AngioDynamics to make a $3 million payment under the settlement agreement.

CEO retirement plan announced

Clemmer told investors he has informed the board of his intention to retire after a decade with the company. He said the board has formed a search committee, with assistance from an executive search firm, and expects to appoint a successor during fiscal 2027. Until then, Clemmer said he will continue to oversee the company’s strategic and financial initiatives and remain with the company to support a seamless transition.

About AngioDynamics (NASDAQ:ANGO)

AngioDynamics, Inc is a medical technology company headquartered in Latham, New York, that develops, manufactures and markets a broad range of minimally invasive medical devices. The company’s products focus on three core areas: vascular access, peripheral vascular intervention and interventional oncology. Its solutions are designed to improve procedural outcomes, reduce complications and enhance patient comfort in hospital and outpatient settings.

In the vascular access segment, AngioDynamics offers a portfolio of devices including implanted ports, peripherally inserted central catheters (PICCs), hemodialysis catheters and specialty blood management products.