AngioDynamics (NASDAQ:ANGO) reported fiscal 2027 first-quarter revenue growth of 6.9% to $80.9 million, led by continued expansion in its Med Tech segment, while the company maintained its full-year outlook and announced that Eric Honroth will become president and chief executive officer effective Nov. 2.
Jim Clemmer, the company’s current president and CEO, said Honroth will succeed him following a board-led search process. Honroth most recently served as Global President of Life Science at Getinge and previously led Getinge’s $1.2 billion North American business. Clemmer said he will remain involved to support a smooth transition.
Med Tech Growth Drives Revenue Mix Shift
Med Tech revenue increased 13.2% to $39.9 million during the quarter, accounting for 49% of company revenue, compared with 47% a year earlier. Chief Financial Officer Steve Trowbridge said AngioDynamics remains on track for Med Tech to become a majority of its overall revenue base during fiscal 2027.
Auryon revenue rose 14.7% to $18.9 million, marking the platform’s 21st consecutive quarter of double-digit year-over-year growth. Management attributed the performance to growth in both hospital and office-based laboratory settings, as well as international adoption following CE mark approval.
Clemmer said the company is gaining share in both care settings and cited Auryon’s ability to treat in-stent restenosis as well as disease above and below the knee. The company is also continuing enrollment in its AMBITION BTK study, which is intended to support the long-term clinical case for Auryon use below the knee.
Combined revenue from the AngioVac and AlphaVac mechanical thrombectomy platforms rose 6.7% to $12 million. AlphaVac sales increased 37.4% year over year to $4.5 million and rose 6.4% sequentially. AngioVac revenue totaled $7.5 million, down 5.9% from the prior-year period but up 9.1% sequentially.
Trowbridge said AngioDynamics expects AlphaVac to be the primary growth driver for the combined mechanical thrombectomy business, while AngioVac is expected to post single-digit growth. The company said commercial additions are now trained and contributing, while more physicians and hospitals are adopting its products.
Management also highlighted progress in enrollment for the AlphaReturn blood-management system investigational device exemption trial and the AngioVac right-sided infective endocarditis IDE study. The company expects AlphaReturn to add another option to the product line if it reaches its milestones.
NanoKnife Procedure Volumes Reach Record
NanoKnife revenue increased 29% to $8.3 million. Probe sales grew 24.1%, while capital sales rose 53.5%. Trowbridge said the company recorded its highest quarterly procedure volume for NanoKnife in prostate care, adding that disposable sales remain the more important indicator of the platform’s underlying performance than capital-system sales.
Management said capital sales can vary significantly by quarter and should not be expected to continue growing at the first-quarter rate. The company expects systems placed with physicians and providers to support future probe utilization, though ramp timing can differ by site and reimbursement conditions.
AngioDynamics continues to pursue broader reimbursement coverage for NanoKnife. The company cited a positive Medicare Administrative Contractor coverage decision received in the prior quarter and said it is working with additional regions toward more consistent nationwide coverage.
The company also received FDA approval for its RELIEF study evaluating NanoKnife in benign prostatic hyperplasia, or BPH. Management described BPH as a potential platform expansion opportunity estimated at approximately $1.9 billion. Trowbridge said the early-stage study is intended to help the company understand NanoKnife’s impact on BPH tissue and build a business case for potential future development, including considerations such as treatment durability.
Margins Improve as Loss Narrows
The Med Device segment generated revenue of $41 million, up 1.4% year over year. Management characterized the segment as a source of consistent cash flow and profitability that supports investment in Med Tech platforms.
First-quarter gross margin expanded 410 basis points to 59.4%, aided by favorable pricing, a higher proportion of Med Tech revenue and $1.2 million in tariff refunds. Excluding the tariff-refund benefit, gross margin would have been 57.8%, according to Trowbridge. The company said it expects first-half gross margin to exceed second-half levels and maintained its full-year gross-margin outlook of 54% to 55%.
Research and development expense rose to $8 million, or 9.9% of sales, from $6.4 million a year earlier. AngioDynamics said it is targeting R&D spending of about 10% of sales going forward as it funds Med Tech growth initiatives. SG&A expense was $42.5 million, compared with $40.7 million in the prior-year quarter.
- GAAP net loss narrowed to $7.1 million, or $0.17 per share, from $10.9 million, or $0.26 per share.
- Adjusted net loss narrowed to $1.8 million, or $0.04 per share, from $4.2 million, or $0.10 per share.
- Adjusted EBITDA increased to $5 million from $2.2 million.
Company Reaffirms Fiscal 2027 Outlook
AngioDynamics used $15.3 million in operating cash flow during the first quarter and ended the period with $34 million in cash and no debt. Trowbridge said the first quarter is typically the company’s largest cash-use period, partly due to incentive and sales compensation payments, and that AngioDynamics still expects positive operating cash flow for the full fiscal year.
The company reaffirmed fiscal 2027 guidance for revenue of $336 million to $341 million, representing growth of 5% to 6.5% from fiscal 2026. It continues to expect Med Tech revenue growth of 12% to 15%, roughly flat Med Device revenue, adjusted EBITDA of $13 million to $16 million, and an adjusted loss per share of $0.29 to $0.24.
Management said it expects tariff effects to be broadly similar to fiscal 2026, while noting that the tariff environment remains subject to change.
About AngioDynamics (NASDAQ:ANGO)
AngioDynamics, Inc is a medical device company that develops, manufactures and markets minimally invasive products for use in vascular disease, vascular access and oncology. Its technologies are designed to help physicians treat blood clots, restore blood flow, manage vascular access and ablate targeted tissue.
The company’s portfolio includes the Auryon platform for atherectomy, which uses laser technology to treat peripheral arterial disease; the AngioVac and AlphaVac systems for removing thrombus and other unwanted material from blood vessels; and BioSentry products used to seal biopsy tracts.
