AngioDynamics (ANGO) Q1 2027 earnings review
AngioDynamics earned more per sale, but its plan stayed unchanged
AngioDynamics, which makes devices for blocked blood vessels and tumours, kept far more of each dollar it sold. Sales grew 7%, and by our math the unchanged full-year plan has growth slowing to about 5% afterwards. Gross margin, the share of sales left after production costs, jumped to 59%, helped by tariff refunds.
| Sales | $80.9M +6.9% from a year ago |
|---|---|
| Gross margin (share of sales left after production costs) | 59.4% 55.3% a year ago; 57.8% without tariff refunds |
| Loss per share, excluding one-offs | $0.04 $0.10 a year ago |
| Full-year outlook | Unchanged middle of the sales range: 5.7% growth |
⚖️ Verdict: 🟢 Bullish
The story got better because both businesses earned more on each sale. A falling margin in the slower business was a worry three months ago. Clot-removal devices returned to growth, and the board named a new chief executive. One caution: the company did not raise its plan, and it still expects a lower gross margin in the second half.
The question now is why such a profitable quarter did not lift the plan. Either the outlook is cautious before a new chief executive arrives, or costs will take back the gain. Gross margin in the next quarter, due in January, will tell.
🐂 Bull Case
Both Businesses Earned More on Each Sale
Gross margin is the share of sales left after the cost of making the products. AngioDynamics said it rose because of "favorable pricing and the ongoing revenue mix shift toward Med Tech", its group of faster-growing devices. Tariff refunds helped too, and the release gave the figure without them.
- Gross margin: 59.4%, up from 55.3% a year ago
- Without tariff refunds: 57.8%
- Med Tech margin: 66.2%, up from 62.2%
- Med Device margin: 52.7%, up from 49.3%
- Med Device margin last quarter: 44.4%
- Cost of making the products: 40.6% of sales, down 4.1 percentage points
The mix explanation covers little of the gain. By our math, the shift toward Med Tech added about 0.4 percentage points, so prices and costs inside each business did most of the work. That matters because Med Device, the rest of the product range, had lost margin for two quarters. One quarter does not settle that.
What to watch: gross margin in the second quarter, which AngioDynamics reports in January. The company expects a figure "lower in the second half of fiscal 2027 than in the first half". A reading near this quarter's would mean the full-year range of 54% to 55% is too low.
Clot-Removal Sales Grew Again After a Decline
AngioDynamics sells two devices that remove blood clots, AlphaVac and AngioVac. Their combined sales fell 1.1% last quarter, which raised doubt about one of the three growth products. This quarter they grew 6.7% to $12.0 million.
- AlphaVac: up 37.4% from a year ago, and up 6.4% from last quarter
- AngioVac: down 5.9% from a year ago, but up 9.1% from last quarter
- Year-ago quarter: clot-removal sales had grown 41.2%
The result matters because the comparison was the hardest of the year. AngioVac "faced a tough comparison", the release said, yet its sales have now fallen for two quarters running. So AlphaVac carries the recovery alone.
What to watch: clot-removal growth next quarter, when the comparison becomes much easier. A year ago these sales grew only 3.9%, so another single-digit rate would say the recovery is weak.
NanoKnife Sales Grew 29% After Medicare Coverage Began
NanoKnife treats prostate cancer with a technique called irreversible electroporation. A Medicare contractor began covering the procedure on July 5, inside this quarter. Sales rose 29.0% to $8.3 million, and AngioDynamics credited "continued demand for prostate procedures".
- Probes, the single-use part: up 24.1% from a year ago
- Capital sales, the systems themselves: up 53.5%
- Probe sales: about $6.7 million by our math, against $8.4 million last quarter
Probe sales matter most because doctors use them in procedures, while system sales swing from quarter to quarter. They fell from the spring quarter, the seasonal peak, but stayed above each of the four quarters before it. The US regulator also approved a study of NanoKnife for benign prostatic hyperplasia, a common prostate condition that is not cancer. AngioDynamics called the study "an important step in expanding the long-term addressable market for its IRE technology".
What to watch: probe growth next quarter, against a year-ago rate of 14.4%. Growth below this quarter's 24.1% would suggest that Medicare coverage adds patients slowly.
🐻 Bear Case
AngioDynamics Did Not Raise Its Plan This Time
Chief executive Jim Clemmer said "we're confident in our ability to deliver on the outlook we've laid out for fiscal 2027". The outlook itself did not move. A year ago, after a weaker first quarter, the company raised its plans for sales and profit. The profit measure in the plan is adjusted EBITDA: profit before interest, tax, depreciation, share-based pay and one-offs.
- First-quarter adjusted EBITDA: $5.0 million, against $2.2 million a year ago
- Share of the full-year plan already earned: 34% of the middle of the range
- Same share a year ago: 16% of the final result
- Rest of the year, by our math: about $9.5 million
- Same nine months last year: $11.0 million
So the unchanged plan now asks for less profit in the next nine months than AngioDynamics earned a year ago. That contradicts a quarter in which this profit more than doubled. The release does not say why. A cautious plan and rising costs would both fit the numbers. Eric Honroth takes over on November 2, and Clemmer stays "as an executive advisor to support a smooth transition".
What to watch: the outlook in January, the first one under Honroth. If the plan stays unchanged again after a second strong quarter, the arithmetic will point to a weak second half.
Growth Keeps Slowing in the Fastest Business
Med Tech is the group of three product lines that AngioDynamics relies on for growth: Auryon, the clot-removal devices and NanoKnife. The release counts an "eighth consecutive quarter of double-digit Med Tech segment growth". That is true, but the rate has halved in a year.
- Med Tech growth: 13.2%, against 26.1% a year ago
- Previous quarter: Med Tech grew 16.7%
- Auryon, a device for treating blocked leg arteries: up 14.7%, against 20.1% a year ago
The slowdown matters because Med Device, the other half of sales, grew only 1.4%. So total growth depends almost entirely on Med Tech. The full-year plan asks for 12% to 15% from it, and this quarter landed in the lower half of that range.
What to watch: Med Tech growth next quarter, when the year-ago rate drops to 13.0%. A result below the plan's range against that easier comparison would show the slowdown is not only about comparisons.
Cash Fell by $20 Million in Three Months
AngioDynamics has no debt, so its cash balance is its only reserve. The balance fell to $34.0 million from $53.9 million in the quarter. The first quarter always uses the most cash, management said a year ago, but this drop was larger than last year's.
- Cash used in operations: $15.3 million, against $15.9 million a year ago
- Bills and accrued costs paid down: $17.4 million, against $10.7 million
- Devices placed with customers for use or evaluation: $2.8 million, against $0.8 million
- Inventory: up $2.5 million, the first rise in three quarters
The inventory change matters because falling stock supplied cash last year, and that source has now reversed. Placing more devices with customers also costs cash before it brings sales.
What to watch: operating cash flow next quarter, which brought in $4.7 million a year ago. A second quarter of cash use would leave less money to fund the clinical studies.
Risks this quarter didn't answer
Seven standing concerns got no clear answer in the press release, and the quarterly filing or the next results will have to supply it.
- Factory savings: AngioDynamics has promised $15 million a year from moving production, and the release does not say how much arrived. The filing's restructuring note will show whether the move is complete.
- Med Device margin: one strong quarter after two weak ones. The next quarter's table of margins by business will show whether it holds.
- AngioVac: sales fell from a year ago for a second quarter. Growth next quarter, against a year-ago decline, would ease the concern.
- NanoKnife coverage: no news on Medicare contractors beyond the first one. Each added contractor widens the pool of covered patients.
- Share-based pay: $4.5 million, almost as large as the $5.0 million profit measure that excludes it. The ratio needs to fall.
- Tariffs: the plan assumes a cost "broadly similar to fiscal 2026" and counts no refunds. A new tariff action would change it.
- Product-liability claims over ports: no update. The quarterly filing's legal note carries the count.
👓 Other Themes
Tariff Refunds Added to Profit This Quarter
AngioDynamics paid $0.9 million in tariffs this quarter, about half of last year's bill. It also received $1.2 million in refunds, which lifted gross margin by about 1.6 percentage points. The full-year plan leaves refunds out, so any further refund would come on top of the plan.
💲 Other KPIs
Research spending rose 24% from a year ago, more than three times as fast as sales. It took 9.9% of sales, up from 8.5%. AngioDynamics is running clinical studies of Auryon, AlphaVac, AngioVac and NanoKnife. Management said three months ago that it targets about 10% of sales.
Selling and administrative costs grew more slowly than sales, so they took a smaller share: 52.5%, down from 53.7%. Sales and marketing rose 6.6%, and general overhead fell slightly. One-off costs for the plant closure dropped to $0.6 million from $2.3 million.
The share count rose 2.1% from a year ago, after 1.3% the year before. AngioDynamics pays staff partly in shares, and the cash flow statement shows no buybacks this quarter.
Receivables, the invoices customers have not yet paid, rose 5.3% from a year ago, a little slower than sales. They fell $3.4 million from May, which added cash in the quarter.
🔮 Guidance
Unchanged. The plan still has sales growing 5.0% to 6.5% this year. By our math, that leaves about 5.4% growth for the rest of the year, against 6.9% in the first quarter. AngioDynamics ended each of the last two years above its first sales plan, by 2.6% and then 4.1%.
Unchanged. The plan asks for 12% to 15% growth from the faster-growing devices. The first quarter delivered 13.2% against the hardest comparison of the year. By our math, the rest of the year needs about 13.6% at the middle of the range. Year-ago growth for those quarters ran between 13.0% and 19.0%.
Unchanged. The plan has Med Device sales flat for the year. The first quarter grew 1.4%, so by our math the plan implies a decline of about 0.4% for the rest of the year. Last year the same plan of flat sales ended with 2.6% growth.
Unchanged. The plan keeps full-year gross margin at 54% to 55%, though the first quarter reached 59.4%. By our math, that leaves about 53.0% for the rest of the year. The same nine months came in at 54.4% last year. The company said again that the second half will come in below the first.
Unchanged. The middle of the range sits 10% above last year's $13.2 million. The first quarter already supplied $5.0 million. By our math, that leaves about $9.5 million for the rest of the year, 13% less than a year ago. Last year AngioDynamics raised this range three times and still ended above it.
Unchanged. The plan has the full-year loss equal to or wider than last year's $0.24. The first-quarter loss narrowed to $0.04 from $0.10. By our math, that leaves a loss of $0.20 to $0.25 for the rest of the year. The same nine months lost $0.14 last year.
❓ Key Questions
Why did the plan stay unchanged after this quarter?
The first quarter earned 34% of the full-year profit target at the middle of the range. A year ago a weaker first quarter came with higher plans for sales and profit. The release gives no reason for the difference.
How much of the $15 million factory savings has arrived?
AngioDynamics has said the move of production will save $15 million a year starting this fiscal year. Plant closure costs fell to $0.6 million, but the release does not say whether the move is complete.
Which business received the tariff refunds, and will more come?
Refunds of $1.2 million lifted gross margin by about 1.6 percentage points. The release does not split them between Med Tech and Med Device, so the size of the Med Device recovery is unclear.
Does the company still expect positive operating cash flow this year?
That expectation was part of the outlook three months ago, but the table in this release does not list it. Operations used $15.3 million in the quarter, and cash stands at $34.0 million.
How many prostate procedures has NanoKnife done since Medicare coverage began?
Probe sales grew 24.1%, slower than the 47% of the prior quarter. A count of procedures or active hospitals would show whether coverage is adding patients or the spring quarter was a one-time jump.