AngioDynamics Q1 2027 Earnings Call: Complete Transcript

AngioDynamics (NASDAQ: ANGO ) reported first-quarter financial results on Thursday. The transcript from the company's first-quarter earnings call has been provided below. This transcript is brought to you APIs. For real-time access to our entire catalog, please visit for a consultation.

2% growth in the MedTech segment. The company announced a leadership transition with Eric Honroth set to take over as President and CEO, effective November 2nd, bringing extensive experience in medical devices and life sciences. Key products such as Auryon and AlphaVac continued to demonstrate strong growth, with Auryon achieving its 21st consecutive quarter of double-digit year-over-year growth. The NanoKnife segment saw a 29% increase in revenue, driven by strong demand in prostate care, while reimbursement progress and FDA approval for new studies indicate future growth potential.

4%, helped by favorable pricing and a shift in revenue mix towards higher-margin MedTech products, although tariff refunds also contributed. AngioDynamics provided fiscal year 2027 guidance, expecting net sales of $336 to $341 million and gross margin between 54% and 55%, with continued investment in R&D at approximately 10% of sales. Full Transcript OPERATOR Good morning and welcome to the AngioDynamics fiscal year 2027 first quarter earnings call. At this time, all participants are in a listen-only mode.

A question-and-answer session will follow the formal presentation. As a reminder, this conference is being recorded. The news release detailing AngioDynamics fiscal 2027 first quarter results was issued 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 A webcast replay of the call will be available at the same site approximately one 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 the future, including statements about expected revenue, adjusted earnings, and gross margin for the fiscal year 2027, 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 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 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 to 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 a press release discussing the company's operating results and financial performance during this morning's conference call. Unless otherwise noted, all comparisons will be the first fiscal quarter of 2027 versus the first fiscal quarter of 2026. Now I would like to turn the call over to Jim Clemmer, AngioDynamics President and Chief Executive Officer. Mr.

Clemmer, Jim Clemmer, President and Chief Executive Officer Thank you, operator. Good morning, everyone, and thank you for joining us for AngioDynamics fiscal 2027 first quarter earnings call. Joining me today is Steve Trowbridge, AngioDynamics Executive Vice President and Chief Financial Officer. Before I get into our results, I want to start with an important update.

Our Board has completed a comprehensive search for my successor. I am pleased to share that Eric Honroth will be joining us as President and Chief Executive Officer effective November 2nd. Eric brings more than 20 years of leadership experience in medical devices and life sciences. 2 billion North American business where he accelerated growth, delivered sustained revenue gains, and strengthened operational performance.

His career spans the cardiovascular, endovascular, urology, and oncology markets with senior leadership roles at Abbott Vascular, Becton, Dickinson, CareFusion, and Boston Scientific. That combination is exactly what our board was looking for—someone who's driven real growth and profitability in large, complex organizations and who knows our markets firsthand. I am confident that he's the right person to build upon the foundation that we've put in place, and I'll remain closely involved to make sure that we have a smooth transition. I want to thank our board, our search committee, and everyone across this organization who helped make this happen.

Now moving on to results, we grew total revenue by approximately 7%, led by strength in our MedTech segment which grew more than 13%. That's clear evidence that the strategy guiding our transformation over the past several years keeps paying off. As a result, MedTech now represents approximately 49% of our total revenue and that mix shift is only gaining momentum as we move through the year. Starting with Auryon, which remains one of the most consistent growth engines in this business.

This quarter marked our 21st consecutive quarter of double-digit year-over-year growth. We're taking share across both the hospital and office-based laboratory settings with international adoption building as well. We're also advancing enrollment in our Ambition BTK study, which we believe will support the long-term clinical case for Auryon below the knee. Turning to Mechanical Thrombectomy, we're also growing above market in this business, and the reason is simple.

We have the most versatile product on the market and a commercial team that is executing at a high level, and we're taking share from our competitors. AlphaVac is building real momentum as more hospitals continue to adopt it. In addition, we're really pleased with the progression of our Alpha Return Blood Management System IDE trial to further strengthen our position. AngioVac is working through a tougher comp right now, but the underlying demand for the product remains strong and we expect it to return to more normal growth as the year progresses.

Finally, NanoKnife continues to fundamentally change the landscape of men's healthcare by improving outcomes and preserving quality of life through an innovative procedure for men with intermediate-risk prostate cancer. Reimbursement progress remains a key driver, including the positive MAC coverage decision that we received last quarter, and we're now working with additional regions with the goal of building towards consistent nationwide coverage. Physician interest and procedure volumes in prostate care remain strong. 9 billion—an important step in expanding where this technology can help patients.

Our Med Device segment grew approximately 1%. This business remains a steady, reliable performer, providing the consistent cash flow that funds our investment in MedTech platforms. Before I turn things over to Steve, I really want to thank our team. The work happening across the company is reflected in this quarter's results and is driving future growth ahead.

We compete in large, fast-growing markets, and we are positioned to win. Looking ahead, we have real catalysts in front of us: continued progress in Alpha Return, expanding reimbursement coverage for NanoKnife, and ongoing enrollment in our Ambition BTK study, each of which will create new opportunities. This all comes back to patients first. We believe people living with some of society's most challenging diseases deserve trusted solutions that deliver real care and better outcomes.

When we deliver on that, we deliver value for everyone we serve, from patients and physicians to our shareholders. Now I'll turn it over to Steve to review the financials for the quarter. Stephen Trowbridge, Executive Vice President and CFO Thanks, Jim, and good morning, everybody. As always, before I begin, I'd like to direct everyone to the presentation on our investor relations website summarizing the key items from our quarterly results.

Unless otherwise noted, all comparisons will be the first fiscal quarter of 2027 versus the first fiscal quarter of 2026. Company top line revenue performance was strong again in the quarter. 9 million driven by growth across our MedTech segments. 2% increase.

For the first fiscal quarter, our MedTech platforms comprised 49% of our total revenue compared to 47% a year ago. Reflecting the ongoing shift in our business mix, we remain on track for our MedTech segment to comprise a majority of our overall revenue base during this fiscal year. 7% compared to last year. Auryon has now delivered double-digit year-over-year growth for 21 consecutive quarters.

This above-market growth continues to be supported by our strategy to shift more of our atherectomy business toward the hospital site of care, while we keep growing our customer base across both the hospital and OBL settings, along with ongoing international adoption. Following our CE Mark approval, we're confident in the long-term opportunity for our mechanical thrombectomy portfolio. 7% year over year. 4% sequentially.

1% sequentially. On the clinical front, we are encouraged by the ongoing progress in our Alpha Return and AngioVac right-sided Infective Endocarditis IDE studies, both of which are seeing strong enrollment. 5%. Probe sales are primarily driven by demand for NanoKnife in prostate care and we hit record procedure volumes during the quarter.

Additionally, as systems are placed and new physicians and providers experience the improved patient outcomes our technology enables, we expect them to drive continued increases in probe utilization going forward. I will note that capital sales are always lumpy quarter to quarter, so we would not expect capital to grow at this rate going forward. We continue to view disposables as the bellwether for this business. 4% year over year with revenue of 41 million.

This business generates consistent cash and profitability, allowing us to continue to invest in the growth of our MedTech platforms. 4%, a 410-basis-point increase from the first quarter of FY26, driven primarily by favorable pricing and the ongoing revenue mix shift toward MedTech, which is partially offset by the manufacturing transition and global inflation, all of which were in line with the company's expectations. Gross margin also benefited from tariff refunds received during the quarter. 8%.

We expect gross margin to be higher in the first half of fiscal 2027 than in the second half, and we remain on track for full-year gross margins to be within our guided range of 54 to 55%. 4% of sales last year. 5% of sales a year ago. We remain committed to investing in R&D initiatives to support the long—term growth of our MedTech segment, and we're targeting approximately 10% of sales going forward.

7% of sales a year ago. 26 a year ago. 10 in the first quarter of last year. 2 million in 1Q26.

7 million for the prior-year quarter. This is in line with our expectations. 2 million of tariff refunds during the quarter, resulting in a net tariff benefit of about 400,000. 3 million of cash from operations, in line with our expectations.

We ended the quarter with 34 million in cash, and we maintain a strong, debt—free balance sheet. We also remain on track to generate positive cash flow from operations for the full fiscal year. 2 million. Within each of our businesses, we expect MedTech net sales to grow 12% to 15% year over year, and we expect Med Device sales to be roughly flat.

For fiscal '27, we expect gross margin to be in the range of 54% to 55%. We expect adjusted EBITDA to be in the range of 13 million to 16 million. And finally, we expect adjusted loss per share in the range of 29 to 24 cents. We expect the impact from tariffs to be broadly similar to fiscal '26 based on our current view of the tariff situation, but this remains dynamic and clearly subject to change.

So with that, I'll turn it back to Jim. Jim Clemmer, President and Chief Executive Officer Thanks, Steve. Before we close, I'd like to say a word about our leadership transition. Leading AngioDynamics has been the privilege of my career, and I'm incredibly proud of what our team has built together over the past 10 years.

Together we set a clear direction, built a strategy to transform this company, and created a robust product portfolio that competes and wins in large, important markets. It has not been easy, but this team has done it, and I'm very confident that our strength will carry forward. I have full confidence in Eric and in our organization's ability to keep executing at a high level through this transition. With that, Operator, let's open the line for questions.

OPERATOR Thank you. If you'd like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you'd like to remove your question from the queue.

For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our first question comes from the line of Frank Takanen with Lake Street Capital Markets. Please proceed with your question. Frank Takanen, Analyst at Lake Street Capital Markets Great.

Thank you for taking the questions, and congrats on the progress and the new CEO appointment. On NanoKnife, I'd like to follow up on how you guys think about once the equipment is placed and the timeline to really scaling to a higher utilization rate. Obviously fiscal Q4 had a really nice placement quarter, and then you had a nice placement quarter in fiscal Q1 again. How should we think about when these systems might start to really contribute to the disposables business and that ramp-up expectation?

Stephen Trowbridge, Executive Vice President and CFO Good morning, Frank. This is Steve. Thanks for the question. So I think capital placement is a good way to think about driving NanoKnife, but we think that the better way to think about it is disposable growth.

As we've talked about before, we've got a number of different placement models with NanoKnife, particularly in the prostate space. We're continuing to sell systems. We're also placing systems during the quarter, getting them in the hands of urologists. As we've said in the past, we don't want access to capital to be a governor on whether or not a urologist chooses NanoKnife for their practice.

So we've been very pleased with the pace of capital sales that we've seen over the course of the last six to eight quarters. As we've talked about, you're right, Q4 was a very strong capital quarter. Q1 was another strong capital sales quarter. But we think that the right way to look at this business is the disposable sales.

And we've been really pleased with the trajectory of the disposable sale growth that we've seen sequentially as well as year over year.