Q1 2026 Earnings Call: Contradictions Emerge on NanoKnife Growth Drivers, AlphaVac Strategy, and Thrombectomy Reimbursement Timelines

The above is the analysis of the conflicting points in this earnings call

Date of Call: October 2, 2025

Financials Results

• Revenue: $75.7M, up 12.2% YOY
• EPS: ($0.10) adjusted EPS, improved from ($0.11) in the prior year
• Gross Margin: 55.3%, up 90 bps YOY; includes ~$1.7M tariff expense (~220 bps impact)

Guidance:

• FY26 net sales expected at $308–$313M (raised from $305–$310M), implying 5%–7% growth vs FY25 $292.7M.
• Med Tech net sales +14%–16% (raised from +12%–15%); Med Device roughly flat.
• FY26 gross margin 53.5%–55.5%, inclusive of $4M–$6M tariff impact; no significant step-up expected later in the year.
• FY26 adjusted EBITDA $6M–$10M (raised from $3M–$8M).
• FY26 adjusted EPS loss of ($0.33)–($0.23) (improved from prior ($0.35)–($0.25)).
• Expect to be cash flow positive for FY26; Q2 use ~($3M), Q3 ~0 or slight generation, Q4 significant cash generation.

Business Commentary:

* Revenue Growth and Segment Performance: - AngioDynamics reported a $75.7 million revenue increase of 12.2% for Q1 2026 compared to Q1 2025. - The growth was driven by a strong performance in Med Tech segment, which grew by 26.1%, and Med Device segment, which grew by 2.3%.

• Med Tech Segment Expansion:
• The Med Tech segment comprised 47% of the company's total revenue, up from 41% a year ago.

• This increase is due to sustained execution of the company's strategy to increase the percentage of revenue coming from the Med Tech segment.

• Mechanical Thrombectomy and NanoKnife Growth:

• Mechanical thrombectomy revenue increased by 41.2%, and NanoKnife revenue grew by 26.7% year-over-year.

• Growth in these segments is attributed to the unique design features and benefits of their products, as well as increased adoption and interest from customers.

• Gross Margin Improvement:

• AngioDynamics achieved a gross margin of 55.3%, a 90 basis point increase from the previous year.
• The improvement is due to pricing initiatives, sales mix shift, and operational efficiencies, including the right-sizing of the manufacturing footprint.

Sentiment Analysis:

• Management: “We had a fantastic quarter.” Revenue rose 12.2% to $75.7M; Med Tech +26.1% to $35.3M. Gross margin was 55.3%, up 90 bps YOY despite $1.7M in tariffs (~220 bps impact). They raised FY26 guidance for net sales ($308–$313M), Med Tech growth (14%–16%), adjusted EBITDA ($6M–$10M), and narrowed adjusted EPS loss to ($0.33)–($0.23). Company expects to be cash flow positive for the full year.

Q&A:

• Question from John Young (Canaccord Genuity): Is the Med Tech guidance raise mainly driven by Mechanical Thrombectomy and NanoKnife, and how should growth cadence evolve, especially with prostate reimbursement in fiscal Q3?
  Response: Yes; strength is led by Mechanical Thrombectomy and NanoKnife, with steady Auryon contribution; NanoKnife growth should continue, with CPT I code from Jan 1 aiding adoption but not an immediate surge.

• Question from John Young (Canaccord Genuity): What drove the strong NanoKnife disposable revenue—how much from prostate, any stocking, and KPIs?
  Response: Growth is largely prostate-driven; customers buy probes to stock for treatments, but no unusual one-time stocking; adoption is broadening and expected to continue.

• Question from Frank Takkinen (Lake Street Capital Markets): Update on Mechanical Thrombectomy hospital penetration and how it should trend?
  Response: Hospital interest and VAC approvals are increasing; procedures and new users are growing, but overall penetration remains early with significant runway.

• Question from Frank Takkinen (Lake Street Capital Markets): Status of Mechanical Thrombectomy salesforce buildout and broader Med Tech commercial investments?
  Response: Dedicated thrombectomy reps expanded to ~50 territories (from ~40), with plans to scale similarly to Auryon; expect future investment in a NanoKnife urology salesforce post-CPT I code.

• Question from Eduardo Martinez-Montes (H.C. Wainwright): For thrombectomy, how much growth is due to pricing vs volume/utilization?
  Response: Growth reflects all three: selective price increases, new customer adds, and higher unit volumes/utilization.

• Question from Eduardo Martinez-Montes (H.C. Wainwright): Update on AMBITION BTK trial timelines and anticipated impact?
  Response: RCT and Registry arms are enrolling well; expect data to demonstrate effective below-the-knee outcomes with Auryon; it’s comprehensive, so not near-term, but strategically significant.