ANGO — AngioDynamics, Inc.

Summary of AngioDynamics Q3 2026 Earnings Call

1. Key Financial Results and Metrics:

• Revenue: Increased by 8.9% to $78.4 million, driven by growth in both Med Tech (up 19% to $37.3 million) and Med Device segments (up 1.1%).
• Adjusted EBITDA: Improved to $1.8 million from $1.3 million year-over-year.
• Gross Margin: Decreased to 52.9%, down 110 basis points due to tariffs, inflation, and manufacturing transition costs.
• Adjusted Net Loss: Reported at $3 million, or $0.07 per share, compared to a loss of $3.1 million or $0.08 per share in Q3 2025.
• Cash Position: $37.8 million in cash, down from $41.6 million at the end of Q2 2026.

2. Strategic Updates and Business Highlights:

• Continued strong performance in the Med Tech segment, particularly with the Auryon platform, which has achieved 19 consecutive quarters of double-digit growth.
• Mechanical Thrombectomy portfolio (AlphaVac and AngioVac) grew approximately 18%, with AlphaVac showing a 47.4% increase year-over-year.
• NanoKnife reported strong growth, with total revenue up 21% driven by increased demand in prostate care and expanded European indications.
• The company is focusing on transitioning its manufacturing to Costa Rica to mitigate risks and improve efficiency.

3. Forward Guidance and Outlook:

• Net Sales Guidance: Raised to $313.5 million to $315.5 million, reflecting a growth of 7.1% to 7.8% over FY 2025.
• Adjusted EBITDA Guidance: Increased to $10 million to $12 million from a previous range of $8 million to $10 million.
• Adjusted Loss Per Share: Expected to improve to a range of $0.30 to $0.23.
• Anticipates cash flow to be slightly negative due to inventory buildup in response to sterilization vendor shutdowns, but remains confident in long-term cash generation.

4. Bad News, Challenges, or Points of Concern:

• Gross Margin Pressure: Continued decline attributed to tariffs and inflationary costs, which are expected to persist.
• Tariff Expenses: Forecasted to incur $4 million to $6 million in tariff expenses for FY 2026, impacting profitability.
• Manufacturing Transition Risks: Ongoing transition to Costa Rica may pose operational challenges, although management is proactively addressing potential disruptions.

5. Notable Q&A Insights:

• Management expressed confidence in AlphaVac's growth trajectory, attributing success to increasing physician adoption and positive clinical outcomes.
• Concerns regarding rising energy costs and inflation were acknowledged, with management indicating that these factors have been incorporated into guidance.
• The company does not see significant risk from sourcing components from China, having mitigated potential exposure.
• Sterilization shutdowns are expected to be managed effectively, with no anticipated long-term disruptions to supply chains.

Overall, AngioDynamics demonstrated strong growth in key segments and raised its guidance, but faces challenges related to margin pressures and operational transitions.