AngioDynamics Q1 FY2027 Earnings: Med Tech Growth Lifts Margins

AngioDynamics (NASDAQ: ANGO) reported fiscal Q1 2027 revenue of $80.9 million, up 6.9% from $75.7 million, while its GAAP diluted loss per share narrowed to $0.17 from $0.26. Med Tech growth, favorable pricing, and a higher-margin sales mix lifted profitability, although operating cash outflow remained $15.3 million.

Core Financial Results

Med Tech accounted for most of the revenue increase, while gross profit grew faster than operating expenses. That narrowed the GAAP operating loss to $7.3 million and the adjusted net loss to $1.8 million from $4.2 million.

The following table separates GAAP results from the company’s adjusted measures.

Adjusted results exclude intangible amortization, acquisition and restructuring costs, other unusual items, and related tax effects.

Business and Segment Performance

Med Tech generated $39.9 million of sales and delivered its eighth consecutive quarter of double-digit growth. Med Device remained the larger segment by revenue but grew only 1.4%, creating a clear difference in momentum between the two businesses.

Within Mechanical Thrombectomy, AlphaVac sales increased 37.4% year over year and 6.4% sequentially. AngioVac declined 5.9% year over year but improved 9.1% from the preceding quarter.

NanoKnife was the fastest-growing disclosed product line. Probe sales increased 24.1%, while capital sales rose 53.5%, with the company attributing the performance primarily to prostate procedure demand.

Geographic growth was balanced: U.S. revenue increased 6.9% to $71.1 million, while international revenue rose 6.4% to $9.8 million.

Profitability, Cash Flow, and the Balance Sheet

GAAP gross margin expanded to 59.4% from 55.3%, supported by favorable pricing and the shift toward Med Tech. Med Tech margin increased to 66.2% from 62.2%, while Med Device margin rose to 52.7% from 49.3%.

Part of the consolidated margin improvement was temporary. AngioDynamics received $1.2 million of tariff refunds, and gross margin would have been 57.8% without that benefit. Tariff expenses declined to $0.9 million from $1.7 million, resulting in a company-reported net tariff benefit of $0.4 million. Manufacturing transition costs and global inflation remained partial offsets.

Operating expenses increased to $55.3 million from $52.5 million. Research and development expense rose to $8.0 million from $6.4 million, and sales and marketing expense increased to $30.0 million from $28.1 million. The increase prevented the higher gross profit from producing GAAP operating profitability, but the operating loss still narrowed materially.

Cash conversion remained weaker than the adjusted earnings trend. The company used $15.3 million in operating cash, largely reflecting a $17.4 million use from accounts payable, accrued expenses, and other liabilities, along with a $2.7 million inventory increase. Cash declined from $53.9 million at the start of the fiscal year to $34.0 million on August 31, 2026. AngioDynamics remained debt-free.

FY2027 Guidance

AngioDynamics reiterated all previously issued fiscal 2027 guidance as of October 8, 2026. The unchanged outlook calls for continued double-digit Med Tech growth, flat Med Device sales, and positive adjusted EBITDA for the year.

The 54%–55% full-year gross margin range is below the first quarter’s 59.4%. Management expects margins to be lower in the second half than in the first half and assumes tariff effects will be broadly similar to fiscal 2026, excluding refunds.

Leadership Transition and NanoKnife Pipeline

Eric Honroth is scheduled to become president and CEO on November 2, 2026, succeeding Jim Clemmer. Clemmer will remain an executive adviser during the transition. AngioDynamics recorded $0.8 million of CEO retirement and transition expenses during the quarter.

The FDA also approved an investigational device exemption for the RELIEF feasibility study of NanoKnife irreversible electroporation in benign prostatic hyperplasia. The study is designed to enroll 40 subjects at up to five U.S. sites, with the primary endpoint measuring the change in symptom scores after six months. The program could extend NanoKnife beyond oncology, but the company did not provide a financial forecast for this potential market.

Recent Insider Transactions

The supplied six-month insider summary reports 17 purchase-category transactions totaling 300,522 shares and one sale of 23,370 shares, resulting in net purchases of 277,152 shares. Because the recent records include zero-price stock awards, the purchase category should not automatically be interpreted as open-market buying.

The only recent transaction with a clearly disclosed direction, share count, and value was the following sale.

This transaction is presented as reported and does not by itself establish the insider’s view of the company’s outlook.

Risks Investors Need to Watch

• Cash consumption: Operating cash outflow remained $15.3 million, and cash declined by $19.9 million during the quarter. The debt-free balance sheet provides support, but continued working-capital outflows would reduce liquidity.
• Gross margin normalization: The first-quarter margin benefited from tariff refunds, while full-year guidance remains at 54%–55%. Management also expects second-half margin to be lower than first-half margin.
• Dependence on Med Tech: Med Tech grew 13.2%, while Med Device increased only 1.4% and is expected to be flat for the full year. AngioVac’s 5.9% decline also shows that growth is not uniform across Med Tech products.
• Continued GAAP losses: Despite improving gross profit and adjusted EBITDA, AngioDynamics recorded a $7.1 million net loss as operating expenses remained above gross profit.
• Clinical execution: The RELIEF program is still a feasibility study. Expansion of NanoKnife into benign prostatic hyperplasia depends on clinical results and further regulatory progress.

Summary

AngioDynamics’ fiscal Q1 2027 results showed that Med Tech growth and a more favorable sales mix are narrowing losses and improving adjusted EBITDA. NanoKnife, Auryon, and AlphaVac were the main operating drivers, while Med Device and AngioVac were comparatively weaker. Investors’ next focus points are whether Med Tech can sustain double-digit growth, how far gross margin declines after the first-half benefits, and whether improved profitability begins to translate into lower cash consumption.