Executive Summary / Key Takeaways

• AngioDynamics is undergoing a successful strategic transformation, shifting its focus to high-growth, high-margin MedTech platforms like Auryon, AlphaVac, AngioVac, and NanoKnife, which now constitute 45% of total revenue, up from 22% five years ago.
• The company's MedTech segment is demonstrating robust growth, with a 26.1% year-over-year increase in net sales for Q1 FY26, driven by strong adoption and market share gains across its innovative product portfolio.
• Key regulatory and clinical milestones, including CPT Category I codes for NanoKnife in prostate and liver (effective January 2026) and expanded FDA indications, are poised to unlock significant market opportunities and accelerate adoption.
• AngioDynamics is improving its financial profile, achieving positive adjusted EBITDA for the full fiscal year 2025 and projecting cash flow positivity for fiscal year 2026, supported by operational efficiencies from manufacturing restructuring.
• Despite macroeconomic headwinds and an estimated $4 million to $6 million tariff impact in FY26, management's guidance reflects confidence in continued profitable growth, with MedTech sales expected to grow 12% to 15% year-over-year.

A Strategic Pivot Towards High-Growth MedTech

AngioDynamics, Inc. (NASDAQ:ANGO), founded in 1988, has evolved into a focused medical technology company dedicated to enhancing patient outcomes in cardiovascular disease and cancer. The company's core business revolves around designing, manufacturing, and selling minimally invasive, image-guided medical, surgical, and diagnostic devices. This strategic focus positions AngioDynamics within a dynamic industry landscape characterized by the emergence of value-based purchasing, healthcare provider consolidation, and an aging global population.

The company embarked on a significant strategic transformation to simplify its operations and concentrate on large, high-growth, high-margin MedTech markets. This involved divesting non-core assets, such as the Dialysis and BioSentry businesses in June 2023, and the PICC and midline products in February 2024. This deliberate shift has reshaped AngioDynamics, expanding its total addressable market from approximately $3 billion in 2021 to over $10 billion globally. The overarching strategy emphasizes innovative research and development, expansion of clinical and regulatory pathways, and customer-centric sales performance.

Competitive Landscape and Differentiated Technology

AngioDynamics operates in a highly competitive medical device industry, facing established players like Boston Scientific Corporation (BSX), Medtronic plc (MDT), Abbott Laboratories (ABT), and Stryker Corporation (SYK). These larger competitors often boast broader portfolios, greater scale, and more extensive distribution networks. For instance, Boston Scientific, with a P/E ratio of 57.16 and P/B ratio of 6.39, typically demonstrates stronger revenue growth and cash flow generation from its diversified offerings compared to AngioDynamics' more moderate performance. Similarly, Medtronic and Abbott Laboratories exhibit superior financial scale and efficiency.

Despite its smaller scale, AngioDynamics carves out a niche through specialized, differentiated technologies that offer tangible benefits. The company's competitive advantages stem from its proprietary technology in ablation systems and a strong focus on vascular access devices. AngioDynamics aims to take market share from larger competitors by validating superior clinical outcomes, regardless of the site of care. Its direct sales force targets specialists such as interventional radiologists, cardiologists, vascular surgeons, urologists, and oncologists, fostering strong customer relationships in niche areas.

Core Technological Differentiators

AngioDynamics' MedTech segment is built upon three key platforms, each offering distinct advantages:

• Auryon Atherectomy System: This laser atherectomy platform is considered "best-in-class" due to its demonstrated safety profile and versatility in removing lesions while preserving vessel wall endothelium. Since its launch in 2020, Auryon has generated over $185 million in cumulative sales and has delivered sixteen consecutive quarters of double-digit growth. The company's strategic focus on the hospital setting has been successful, with hospital customers contributing approximately 36% of total Auryon revenue by the end of fiscal year 2025, an increase from 28% at the beginning of the year. Following CE Mark approval in September 2024, Auryon generated over $1 million in European revenue in Q4 FY25, highlighting its international potential. AngioDynamics is also investing in R&D and clinical work, including the AMBITION BTK trial, to explore potential applications in coronary interventions, a significant $900 million U.S. market opportunity.

• Thrombus Management Platform (AngioVac and AlphaVac): This portfolio, comprising the AngioVac venous drainage cannula and the AlphaVac mechanical thrombectomy system, is the fastest-growing part of AngioDynamics' MedTech segment. AlphaVac, which received FDA clearance and CE mark in the first half of calendar 2024, has shown five consecutive quarters of sequential revenue growth. Its APEX trial results, published in December 2024, demonstrated a 35.5% reduction in clot burden from baseline, significantly outperforming the 9.3% reduction reported by the current market leader's IDE data. AlphaVac was purpose-built to mitigate blood loss, with the APEX study showing blood loss of less than 250 cc's in over 60% of procedures, a key differentiator against competitors whose products may lead to greater blood loss. The company is also developing a version of AlphaVac with blood return functionality to further enhance its competitive positioning. AngioVac has also benefited from synergistic commercialization efforts, growing nearly 40% in Q4 FY25 and over 25% for the full year.
• NanoKnife IRE Ablation System: NanoKnife offers a unique alternative to traditional thermal ablation for soft tissue, particularly in oncology. The PRESERVE study, which assessed NanoKnife for prostate tissue ablation in intermediate-risk prostate cancer, demonstrated "extremely compelling quality of life outcomes." At 12 months post-procedure, 84% of men were free from clinically significant cancer in the targeted area, and approximately 99% did not suffer increased urinary incontinence. This targeted approach allows patients to effectively treat cancer while maintaining quality of life, a significant advantage over traditional treatments that often involve substantial trade-offs in sexual and urinary function. A CPT Category I code for IRE treatment of prostate and liver lesions, effective January 1, 2026, and an expanded FDA indication for prostate tissue ablation in December 2024, are expected to drive accelerated adoption, particularly within the urology community.

Financial Performance and Operational Momentum

AngioDynamics' strategic transformation is yielding tangible financial improvements. For the first quarter of fiscal year 2026 (ended August 31, 2025), the company reported net sales of $75.71 million, an increase of 12.2% year-over-year. The MedTech segment was the primary growth engine, with net sales increasing by 26.1% to $35.26 million. The Med Device segment also contributed positively, with net sales of $40.45 million, up 2.3% year-over-year.

Gross margin for Q1 FY26 was 55.3%, an improvement from 54.4% in the prior year. This expansion was driven by increased sales volume, favorable product mix, and benefits from product lines transitioned to third-party manufacturing. However, tariffs negatively impacted gross margin by $1.7 million in Q1 FY26. Operating expenses saw a decrease in Q1 FY26 to $52.51 million from $49.82 million in the prior year, reflecting ongoing expense management initiatives. The company reported a net loss of $10.90 million, or $0.26 per diluted share, an improvement from a net loss of $12.80 million, or $0.31 per diluted share, in Q1 FY25.

For the full fiscal year 2025, AngioDynamics achieved adjusted EBITDA of $7.6 million, a significant turnaround from a loss of $3.2 million in fiscal year 2024. This improvement underscores the success of its revenue growth and expense management initiatives. The company's balance sheet remains robust, with $38.76 million in cash and cash equivalents as of August 31, 2025, and no outstanding debt. A $25 million secured revolving credit facility, established in May 2025, provides additional liquidity and flexibility.

Operational efficiency is a key focus, with a manufacturing restructuring plan expected to generate approximately $15 million in annualized savings by fiscal year 2027. This initiative, which includes maintaining a presence in Queensbury, NY for select operations, is fundamentally improving the company's cost structure.

Outlook and Growth Catalysts

AngioDynamics anticipates continued momentum into fiscal year 2026, with net sales projected to be in the range of $305 million to $310 million, representing 4% to 6% growth over fiscal year 2025. The MedTech segment is expected to lead this growth, with net sales increasing by 12% to 15% year-over-year, while the Med Device segment is projected to remain roughly flat.

Gross margin for FY26 is guided between 53.5% and 55.5%, inclusive of an estimated $4 million to $6 million impact from tariffs. Adjusted EBITDA is expected to be in the range of $3 million to $8 million, and adjusted loss per share between negative $0.35 and negative $0.25, both inclusive of tariff impacts. Management explicitly states that tariffs are not expected to materially derail the company's trajectory or its ability to achieve positive adjusted EBITDA and cash flow for the full year.

The company expects to be cash flow positive for the full fiscal year 2026. While the first fiscal quarter typically sees the highest cash utilization (estimated at $20 million for Q1 FY26), cash generation is expected to return in subsequent quarters. Key growth catalysts include the continued adoption of Auryon, which is expected to be a "teens grower" in FY26, and the mechanical thrombectomy portfolio, anticipated to be the "strongest growth" driver. NanoKnife's accelerated growth is expected in the second half of FY26, driven by the new CPT codes and increased market awareness, though management cautions against an "immediate hockey stick" inflection due to the complex nature of reimbursement adoption.

Risks and Considerations

Despite the positive outlook, investors should consider several risks. The macroeconomic environment, including inflation, labor shortages, and supply chain challenges, continues to pose potential headwinds. The tariff environment remains unpredictable, with an estimated $4 million to $6 million impact on FY26 results. Foreign currency exchange rate fluctuations, particularly for sales denominated in Euro, British Pound, and Canadian Dollar (approximately 3.2% of sales in Q1 FY26), could negatively impact sales and gross margin if the U.S. Dollar strengthens.

Furthermore, AngioDynamics is defending approximately 219 product liability claims related to its port products, which could materially impact estimates. The company also carries a valuation allowance on its federal and state net operating loss carryforwards and other deferred tax assets, indicating that a sustained level of profitability has not yet been achieved to fully realize these assets.

Conclusion

AngioDynamics stands at a pivotal juncture, having successfully executed a strategic transformation that has repositioned it as a focused, growth-oriented medical technology company. The core investment thesis hinges on the continued robust performance and market penetration of its innovative MedTech portfolio. With Auryon, AlphaVac, AngioVac, and NanoKnife, AngioDynamics possesses differentiated technologies that address large, expanding markets and offer compelling clinical benefits over existing alternatives.

The company's commitment to R&D, evidenced by ongoing clinical trials and product enhancements, coupled with significant regulatory and reimbursement milestones, provides a clear roadmap for future growth. While competitive pressures and macroeconomic uncertainties persist, AngioDynamics' strengthened financial profile, operational efficiencies, and clear strategic direction position it for sustainable, profitable growth. The projected cash flow positivity for fiscal year 2026, alongside double-digit growth in its MedTech segment, underscores the company's momentum and its potential to deliver increasing value to shareholders.