Sign in

You're signed outSign in or to get full access.

AI

ANGIODYNAMICS INC (ANGO)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 FY25 net sales were $72.0M (pro forma), up 9.2% YoY; Med Tech revenue grew 22.2% and Med Device rose 0.9%, with gross margin expanding to 54.0% .
  • The company raised FY25 guidance across net sales, Med Tech growth, gross margin, adjusted EBITDA, and adjusted EPS; all other guidance components were maintained or increased .
  • Results beat Wall Street consensus: revenue $72.0M vs $70.3M estimate*, Primary EPS $0.03 vs -$0.13 estimate*; gross margin 54.0% vs 51.3% estimate*; management cited strong mechanical thrombectomy adoption and Auryon momentum as drivers .
  • Strategic catalysts: FDA 510(k) for NanoKnife prostate ablation, APEX-AV publication validating AlphaVac efficacy, and initiation of Auryon AMBITION BTK RCT; management added a $25M revolver as prudent flexibility during manufacturing transfer .

What Went Well and What Went Wrong

What Went Well

  • Med Tech momentum: Med Tech net sales $31.3M (+22.2% YoY), with Auryon $13.9M (+17.3%), AngioVac $6.8M (+23.1%), AlphaVac $3.0M (+161.4%), NanoKnife disposables $4.9M (+16.2%) .
  • Gross margin expansion: Company gross margin reached 54.0% (+290bps YoY), driven by higher Med Tech mix; Med Tech GM 62.5% (+100bps), Med Device GM 47.4% (+300bps) .
  • CEO tone on transformation: “We’re seeing impressive momentum across our MedTech franchise…we continue to improve gross margins and operational efficiency, which allowed us to deliver yet another quarter of positive adjusted EBITDA” .

What Went Wrong

  • GAAP loss persists: GAAP net loss of $4.4M (loss per share $0.11) despite improved pro forma profitability trajectory .
  • Operating cash usage: Used $13.2M in operating cash; management expects positive operating cash flow in Q4 and FY26 full-year neutrality/positivity .
  • Manufacturing transition headwinds: CFO flagged under-absorbed/double overhead during transfer, which may pressure margins near term despite long-term $15M savings target by FY27 .

Financial Results

Consolidated Financials vs Prior Periods and Estimates

MetricQ1 2025Q2 2025Q3 2025
Net Sales (Pro Forma, $USD Millions)$67.5 $73.0 $72.0
Gross Margin % (Pro Forma)54.4% 54.7% 54.0%
GAAP Diluted EPS ($)-$0.31 -$0.26 -$0.11
Adjusted EPS (Pro Forma, $)-$0.11 -$0.04 -$0.08
Adjusted EBITDA (Pro Forma, $USD Millions)-$0.152 $3.059 $1.339

Notes: “Adjusted” and “Pro Forma” exclude divested/discontinued businesses per Company definitions .

Segment and Product Breakdown (Pro Forma)

Metric ($USD Millions)Q1 2025Q2 2025Q3 2025
Med Tech Net Sales$28.0 $31.5 $31.3
Auryon$13.7 $13.7 $13.9
AngioVac$5.8 $8.1 $6.8
AlphaVac$2.2 $2.5 $3.0
NanoKnife (Total)$5.1 $6.0 $6.3
— Disposables$4.1 $5.0 $4.9
— Capital$1.0 $1.0 $1.3
Med Device Net Sales$39.5 $41.5 $40.7

KPIs: Geography and Margins

KPIQ1 2025Q2 2025Q3 2025
U.S. Net Sales ($USD Millions)$59.5 $62.7 $61.3
International Net Sales ($USD Millions)$8.0 $10.3 $10.7
Med Tech Gross Margin %63.3% 63.7% 62.5%
Med Device Gross Margin %48.2% 47.8% 47.4%

Estimates vs Actual (S&P Global consensus)

MetricConsensus*Actual
Revenue ($USD Millions, Q3 2025)$70.3*$72.0
Primary EPS ($, Q3 2025)-$0.13*$0.03*
Gross Margin % (Q3 2025)51.3%*54.0%

Disclaimer: Values marked with * retrieved from S&P Global. Company also reported pro forma adjusted EPS of -$0.08 and GAAP EPS of -$0.11 for Q3 .

Guidance Changes

MetricPeriodPrevious Guidance (Jan 8, 2025)Current Guidance (Apr 2, 2025)Change
Net Sales ($USD Millions)FY 2025$282–$288 $285–$288 Raised
Med Tech Net Sales GrowthFY 202512%–15% 14%–16% Raised
Med Device Net Sales GrowthFY 2025Flat (updated from 1%–3%) Flat Maintained
Gross MarginFY 202552%–53% 53%–54% Raised
Adjusted EBITDA ($USD Millions)FY 2025$1–$3 $4–$5 Raised
Adjusted EPS ($)FY 2025-$0.34 to -$0.38 -$0.31 to -$0.34 Raised

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 & Q2)Current Period (Q3)Trend
Mechanical Thrombectomy (AlphaVac/AngioVac)AlphaVac FDA/CE launch; APEX-AV trial showed 35.5% clot reduction; portfolio synergies; AngioVac $5.8M in Q1, $8.1M in Q2 AlphaVac $3.0M (+161% YoY), AngioVac $6.8M (+23% YoY); management expects continued adoption; potential sales team expansion Strengthening adoption; expanding coverage
Auryon (PAD laser)CE Mark in Europe; shift to hospitals; product extensions (1.7mm catheter, Auryon XL); $13.7M in Q1 & Q2 $13.9M (+17.3% YoY); initiated AMBITION BTK RCT & registry to evidence below-the-knee outcomes Sustained growth; clinical evidence build
NanoKnife (Prostate)PRESERVE met endpoints; FDA submission; CPT Category I codes for IRE (prostate, liver) effective Jan 1, 2026; capital sales down; disposables up FDA 510(k) clearance for prostate; growing urologist adoption; disposables $4.9M; CPT permanent code timing July update; code effective Jan 2026 Regulatory secured; reimbursement path progressing
Gross Margin & OpExGM stabilization mid-50s; Med Tech GM >63%; R&D declining post studies; SG&A ~50% of sales GM 54.0%; Med Tech 62.5%; R&D $6.9M (9.6% of sales), SG&A $36M (50% of sales) Margin expansion with Med Tech mix; disciplined spend
Tariffs/Supply ChainOutsourced manufacturing transition; target $15M savings by FY27; under-absorption/overhead expected CFO: limited tariff exposure; mostly U.S. mfg; revolver to manage working capital during transfer Risk managed; financial flexibility added
Regional TrendsQ2: U.S. +12.3%, Int’l -6.6%; Q1: U.S. +6.2%, Int’l -25.4% (timing) Q3: U.S. $61.3M (+9.9% YoY), Int’l $10.7M (+5.1% YoY) International improving; U.S. strong

Management Commentary

  • CEO on Med Tech momentum: “Our MedTech franchise… grew over 20% for the second quarter in a row… In lock-step with this growth, we continue to improve gross margins and operational efficiency… Based on the quality of performance… we are increasing our fiscal full year guidance” .
  • CFO on tariffs and manufacturing: “We… do not believe today that tariffs will materially impact our business… we’ve historically manufactured the vast majority of our products in the U.S.… executing on our manufacturing transition plan… never included moves to areas such as Mexico or China” .
  • CFO on cash/credit facility: “We expect to generate cash and end the year with approximately $55 million… secured a commitment… revolving line of credit… $25 million… prudent financial housekeeping… zero dilution” .
  • CEO on NanoKnife adoption: “Increasing percentages… with prostates being treated at a higher and higher rate… now more than half of our treatments… [urology] community… excited by the response” .

Q&A Highlights

  • AngioVac trajectory: Management views ~$6.8M as a sustainable base with growth; portfolio synergies with AlphaVac drive awareness and adoption .
  • NanoKnife reimbursement timeline: First CPT readout expected in July; permanent CPT Category I code effective Jan 1, 2026; ongoing payer engagement to broaden coverage .
  • Mechanical thrombectomy commercialization: Initial targeted salesforce footprint; expansion planned through CY2025 to support AlphaVac and AngioVac growth .
  • Auryon EU rollout: Education and distributor network in place; contribution expected to begin in Q4; EU market smaller than U.S. initially .
  • AMBITION BTK trial: Enrollment expected to begin within a quarter; designed to show Auryon + angioplasty superiority vs angioplasty alone below-the-knee; aims to expand atherectomy market .

Estimates Context

  • Revenue beat: $72.0M vs $70.3M consensus*, driven by strong mechanical thrombectomy and Auryon growth .
  • EPS beat: Primary EPS $0.03 vs -$0.13 consensus*; Company pro forma adjusted EPS was -$0.08 and GAAP EPS -$0.11 .
  • Margin beat: Gross margin 54.0% vs 51.3% consensus*, supported by Med Tech mix and AngioVac performance .
  • Implications: Consensus likely to lift FY25 profitability metrics given guidance raises across net sales, GM, adjusted EBITDA, and adjusted EPS .
    Disclaimer: Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

  • Mechanical thrombectomy is becoming a growth engine; AlphaVac PE indication and AngioVac synergy are building durable adoption and margin mix tailwinds .
  • Auryon’s hospital penetration and BTK evidence generation (AMBITION) support sustained double-digit growth and expand the PAD addressable market .
  • NanoKnife prostate has secured FDA clearance, with permanent CPT code expected Jan 2026; expect increasing disposable mix ahead of broader reimbursement adoption .
  • Near-term margin/headwinds from manufacturing transfer are transitory; long-term plan targets ~$15M overhead savings by FY27 .
  • Raised FY25 guidance signals confidence; watch Q4’s expected strongest quarter for operating cash flow inflection and delivery vs updated ranges .
  • Financial flexibility improved with a $25M revolver amid working capital variability; zero dilution and prudent balance sheet management .
  • Estimate revisions likely skew positive on revenue, gross margin, and adjusted profitability following beats and guidance raise; monitor July CPT readout and Q4 thrombectomy trajectory for further catalysts .
All data points and quotes are sourced from the company’s Q3 FY25 8-K, press release, and earnings call, and prior two quarters’ filings/calls as cited above.