Good morning. Welcome to the AngioDynamics Fiscal Year 2025 Second Quarter Earnings Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone requires operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. The news release detailing AngioDynamics' Fiscal 2025 Second Quarter results crossed the wire earlier this morning and is available on the company's website. This conference call is also being broadcast live over the Internet at the Investors section of the company's website at www.angiodynamics.com. A webcast replay of the call will be available at the same site approximately one hour after the end of today's call. Before we begin, I would like to caution listeners that during the course of this conference call, the company will make projections or forward-looking statements regarding future events, including statements about expected revenue, adjusted earnings, and gross margins for Fiscal Year 2025, as well as trends that may continue. Management encourages you to review the company's past and future filings with the SEC, including, without limitation, the company's Forms 10-Q and 10-K, which identify specific factors that may cause the actual results or events to differ materially from those described in the forward-looking statements. The company will also include certain non-GAAP and pro forma financial measures during this call. Management uses these measures to establish operational goals and review operational performance and believes that these measures may assist investors in analyzing the underlying trends in the company's business over time. Investors should consider these non-GAAP and pro forma measures in addition to, not as a substitute for, or superior to, financial reporting measures prepared in accordance with GAAP. A slide package offering insight into the company's financial results is also available on the Investors section of the company's website under the Events and Presentations. This presentation should be read in conjunction with the press release discussing the company's operating results and financial performance during this morning's conference call. I would now like to turn the call over to Jim Clemmer, AngioDynamics' President and Chief Executive Officer.

Thank you, Operator. Good morning, everyone, and thank you for joining us for AngioDynamics' Fiscal 2025 Second Quarter Earnings Call. Joining me on today's call is Steve Trowbridge, AngioDynamics' Executive Vice President and Chief Financial Officer. I will begin today's call by providing an overview of our recent performance. Steve will then provide a detailed analysis of our second-quarter financial performance, and I will conclude with our outlook for the balance of the year before opening the line for questions. Unless otherwise noted, all financial results and growth rates mentioned during today's call are on a pro forma basis, which exclude the results of the dialysis and BioCentury businesses that we divested in June 2023, and the PICC and midline products that we divested in February 2024, and the radiofrequency and Syntrax support catheter products that we discontinued in February 2024. We had a very strong second quarter. Total worldwide revenue was $73 million, representing growth of approximately 9% year-over-year. Our MedTech segment had yet another excellent quarter, growing 25%, led by growth across all of our platforms. Beyond the top line, we continued to show strong results with respect to profitability, reporting adjusted EBITDA of $3.1 million and generating $2.5 million in operating cash flow. Based on our first-half performance and the momentum we expect to deliver in the back half of the year, we now expect to deliver positive adjusted EBITDA for the full year, illustrating continued execution on our goal of delivering sustained profitability. Starting with an update on our MedTech business, Aireon continued on its sustained delivery, growing approximately 22% over the prior year. We have continued to execute on our strategy by taking share with a better product, allowing us to increase penetration and drive a higher mix of revenue from hospital customers. Turning to…

Thanks, Jim. Good morning, everybody. Before I begin, I would like to direct everyone to the presentation on our Investor Relations website summarizing the key items from our quarterly results. As Jim mentioned, unless otherwise noted, all metrics and growth rates mentioned during today's call are on a pro forma basis, which exclude the results of the Dialysis and BioCentury businesses that we divested in June 2023, the PICC and Midline products that we divested in February 2024, and the radiofrequency and Syntrax Support catheter products we discontinued in February 2024. Our revenue for the second quarter of FY 2025 increased 9.2% year-over-year to $73 million, driven by growth in both our MedTech and US med device platforms. MedTech revenue was $31.6 million, a 25% year-over-year increase. Med device revenue was $41.5 million, flat compared to the second quarter of FY 2024. But as Jim mentioned, our US med device business was up 1.6% over the prior year. For the second fiscal quarter, our MedTech platforms comprised 43.2% of our total revenue, compared to 37.7% of total revenue a year ago, illustrating sustained execution on our strategy of increasing the percentage of our overall revenue base coming from our MedTech segment. Our Aireon platform contributed $13.7 million in revenue during the second quarter, growing 21.8% compared to last year. Aireon has now delivered double-digit year-over-year growth in each of the fourteen consecutive quarters following the anniversary of its launch. Mechanical thrombectomy revenue, which includes AlphaVac and AngioVac sales, increased 46.2% over the second quarter of FY 2024. AlphaVac revenue for the second quarter was $2.5 million, an increase of 33.3% year-over-year and a 14% sequential increase over the first quarter of 2025, resulting from the continued adoption of AlphaVac for PE. We are pleased to see the strong performance of…

Thanks, Steve. Looking to the balance of the year, we will remain focused on a number of key strategic areas of our business aimed at driving growth. Starting with Aireon, in the US, we will leverage the momentum built during the first half of the year to continue to drive increased penetration, with a particular focus on the hospital setting. Having received a CE mark in late Q1, we have now shifted to a full market release in Europe, which we expect to make a positive impact on revenues during the back half of the year. We will continue to develop supporting clinical data and launch new product line extensions as we move forward. With AlphaVac, we continue to push ahead commercially as we focus on driving increased adoption for the treatment of PE. To support that, we will continue to invest in high-quality clinical data highlighting the differentiation of our products to help support long-term adoption. In addition, we continue to expect to launch new product enhancements over the course of the year to refine and improve usability. Lastly, with NanoKnife, with the prostate indication in hand, as well as the clarity around the reimbursement pathway in the US, we expect to leverage our well-established commercial infrastructure and high-quality clinical data to drive increased long-term adoption in the US for prostate. To that end, I would like to remind everyone that we will be hosting a virtual NanoKnife-specific event at 9:30 AM Eastern Time to provide an in-depth overview of our market opportunity, NanoKnife technology, and our go-to-market strategy. We continue to be very excited about the future of AngioDynamics. With the tremendous work done across our organization to transform our portfolio, to focus on large high-growth markets, and overhaul our financial profile, supported by the strength of our balance sheet, we are on the precipice of being able to deliver sustainable, profitable growth for years to come. With that, Operator, we will now open the line for questions.

Thank you. We will now be conducting a question and answer session. Press star two if you would like to withdraw your question from the queue. Just consider using speaker equipment. It may be necessary to pick up your handset before pressing the star keys. Thank you. Our first question today comes from the line of John Young with Canaccord Genuity. Please proceed with your questions.

Hey, Jim and Steve. Thanks for taking questions this morning and congrats on a great quarter. I think I will hold my prostate questions until the event later. So maybe I could just start on the thrombectomy progress that you guys made. It is really encouraging to see it. First, what drove that acceleration in AngioVac? And how sustainable do you think the acceleration could be? And then two, for AlphaVac, really, it is just a matter of effective commercial execution here to be successful. What are the plans of what is working, what is not, and how do you think about that back pipeline that you guys mentioned on the call? And then, maybe just sneaking a third question here too. Just in light of the M&A in this sector that we saw this week, what changes in your commercial plans because of that? And then also, how do you think about monetizing and value creation here in terms of getting the best return for technology in your hands or is this someone else's hands? Thanks.

Hi, John. Thanks for the question. A few things we learned. It is going really well now with our selling and marketing team, and our clinical support teams are fully trained on both AngioVac and AlphaVac. We really found from the customer pointing synergies back to us. So our teams are sometimes, I will give you an example, making a sales presentation on the PE device. Without the fact why we think it is so safe and effective to use. Along the way, we get a lot of agreement. And then the doctors are saying, wait a minute. You guys also have the AngioVac device. I have seen it before. I am not sure of that. Can you walk me through it? So we are getting a lot of synergistic selling opportunities that did not occur before. Either one is opening a door for the other, which is terrific. Mechanical thrombectomy side products, and that is really with the pipeline that we have built up around both products, which are both unique, both very, very different, and solve different needs in the market. So we are going to continue to do that, John. We have learned a lot. And we are adding new selling and marketing resources as we go. And we are getting more people who join our company that come already from the space, that are skilled, knowledgeable, and have relationships. They want to join our team and represent our products. So that has been helpful, John. We think that will keep the momentum going in both AngioVac and AlphaVac.

Yeah. I think that is exactly right. Just to build a little bit on what Jim said, we are learning that there is a very identifiable benefit to the comprehensive portfolio offer that we have with both AngioVac and AlphaVac. I think it is something that we are finding some that we are pleasantly surprised about, how well they are working together as we go to market now. We talked a little bit last year about some of the changes in the AngioVac, some of the new training with our sales force. As Jim said, I think the training of the full sales force has allowed us to really leverage this comprehensive portfolio. And so when you look at our results, the overall mechanical thrombectomy combined with AngioVac and AlphaVac is something that has us really excited. We are pleased with AlphaVac. We are pleased with the progress that we are seeing. The feedback we are getting is universally positive from physicians who have had their chance to get their hands on the device. We think our device in AlphaVac can do things that no other device on the market can do. As a reminder, we are still in our first generation. So we have got some line extensions that Jim talked about coming out this year. We will continue to innovate on that. But we are going to continue to really leverage the combined portfolio that we have because we are seeing that that gives us a little bit of a different story than some other folks in the market. With your question on the back pipeline, absolutely getting the data published, we think is going to be important. You know that this is a little bit of a crowded space. There have been kind of top-heavy market leaders,…

Great. Thanks. And then maybe just a follow-up on Aireon. Just, you know, quarter over quarter seeing a little bit of slowing here. I know you guys are really focused on the hospital health patient opportunity. You know, when it comes to OBLs, do you think that opportunity essentially has reached its ceiling? And then on the OUS opportunity for the second half of this year, can you talk about the reimbursement dynamics in Europe and maybe impacts ASP that we should expect? Again, thanks for taking our questions.

Yeah. Thanks, John. I think the Aireon team's off to a great start. The first six months of this year, quarter-to-quarter dynamics, you know, we do not measure that closely. There are always a couple of little things, but they are off to a great start. There is great momentum there. And it is really built upon the actual product itself, which is a really amazing product. It has been proven already how safe and effective it is. Then our shift, our teams really did a great job. About eighteen months ago, we talked about it publicly. With that shift in our focus going from the OBL initial focus over to the hospital, it has gone really well. I think we are now a little over thirty-five percent of our revenues coming from the hospital customer. Shows that well what we receive now. And, again, when we win share there, we are winning from really companies that are entrenched in those spaces. That have the ability to bundle other products that we do not have. So we are winning those shares based upon the ability of our product to outperform the other products. So we are bullish that we will continue to do so, John, and grow that space. But we are not abandoning the OBL. Those are still good customers. We are getting new opportunities all the time there. But for us, we talked about it publicly. We stand by it. The shift to the hospital customer is really important for us, and we will continue there. Back to your point on the European reimbursement, that is probably very top complicated. I do not know if I have all the knowledge here, John, to give you that country by country. The people who lead our business are very well knowledgeable in the space. They plan for this. They have been fully trained. Our distributed partners are fully trained, ready to go, and they are establishing ourselves in the European market based on opportunity first. As you know, the company our size cannot approach all markets. We have a targeted approach platform ready to go, and we are doing that as we speak. So maybe over time, we can give you more details on that.

And specifically to your question on reimbursement here in the US and the dynamics in the OBL versus the ASC or urine hospital, as you know, there have been some reimbursement pressures in this business over the last few years. As we said from the beginning, it is something we expected. It is something we expected when we did the due diligence in looking to buy this product. So if we took it from zero revenue when we bought it to a run rate that exceeds over fifty million now, we are pretty pleased with the process. And we have said that we did not think any of those changes would be derailing, and they have not been. And in terms of what you have seen recently over the last quarter, not surprising to us, and fits right within our strategy.

Thank you.

Our next questions are from the line of Steve Lichtman with Oppenheimer. Please proceed with your questions.

Thank you. Good morning, guys, and congrats on the continued progress. I wanted to start on mechanical thrombectomy. Great to see the cross-selling opportunities beginning here. As you look at the portfolio across the two products, what is your outlook for growth here in the back half of the year? Obviously, AngioVac came in well ahead of expectations in the second quarter. So trying to get a sense of how you are thinking about the combined as we look out here over the next couple of quarters.

Yeah. So we have not given specific guidance on what we expect, Steve. We did say that we expect mechanical thrombectomy as a portfolio to be a meaningful contributor to our growth for this year, and we feel we are clearly on track to show that. We are very pleased with the performance that we saw in the first half. We expect to continue to see sequential growth as well as significant growth year-over-year as we proceed through the full year. As we continue to assess and have learnings around the portfolio opportunity that we have, we will refine those expectations a little bit. But your expectation should be you.

Okay. Great. You already spoke to some of the near-term potential drivers for Aireon. Longer term, I know you had been looking at potential indication expansion to ileofemoral DVT and coronary. Can you update us on where you are relative to those?

Yep. So a couple of things going on. We believe this unique product could actually perform really well in the two areas that you just mentioned. We believe it could be a DVT product the way it works. That will take a little more work from us, not just on the R&D work, but the regulatory clearances that are in front of us. So we have not talked about a pathway there yet to open up a program there. We have also talked about, we believe it could be really effective in the coronary space. We understand the pathway process there. It is complicated. We are looking at it internally. Does that make sense for us? It is a really great market opportunity. We think our product will perform really well in that space. Really, we have to decide if that is the right place to put our energy and our resources. Also, the study came out last year that showed that we can crack needle calcification. Some of the IVL product can do, and we are really effective at cracking that calcification from what this study showed. That interests us as well as we know there are a lot of people interested in that space. So what we have got, Steve, is our product that is really performing well, taking share in the VAD market, where we are focused on today. But there are at least these three runways for us to pursue over time. As you know, a company our size only has so many resources. We want to make sure we apply them to the right area for us to give our shareholders the growth opportunity they deserve, and we will give you more detail on that when we have those decisions.

Thanks, Jim. And then just lastly, Steve, on gross margins, your first half coming in north of 54%, obviously, you know, came in ahead of expectations in the second quarter and maintained the full-year guidance. Any conservatism in that full year, or have we been getting back half mix with either the delta that would bring the full year down? How should we think about that?

Yeah. So the main driver for the performance that we saw is the mix that you mentioned. And so the continued growth in MedTech and the uptick in the MedTech guidance will be a tailwind to gross margin in the back half. The other thing that is happening, though, with the dynamic we talked about is we are working through our manufacturing transfer. As we get products out of Queensbury and get them to Costa Rica, it kind of accelerates us double paying overhead and having some additional unabsorbed overhead in the structure until we are able to take those costs out as part of the manufacturing transfer. So as we mentioned, we are right on track with the manufacturing transfer. We are going to get the benefit of our program for the full year 2027, but it does have a structural impact where it may create some absorption here in the back half. So you are going to see those two dynamics happening. Benefit coming from the mix shift, which is really our overall gross margin long-term strategy for AngioDynamics. If you remember when we first started reporting, in our two segments, MedTech was less than 17% of our overall revenue base. Jim mentioned it is 43% of our revenue base this quarter. So you are seeing that mix shift, and then as we can get through the manufacturing transfer and take up some of those overhead costs, right-size that overall structure, you are not going to see the full benefit of that drop to gross margin as well at the bottom line.

Got it. Thanks, guys.

Our next questions are from the line of Yi Chen with H.C. Wainwright. Please proceed with your questions.

Hi. Thank you for taking my questions. Could you comment on the feedback from the limited market release of Aireon in EU countries? And when do you plan to transition to a full launch?

Hi, Yi. Good question. So really good feedback. You know, we have been able to participate. Steve and I have both been able to attend. You know, our European team has done a really good job setting up a series of scientific symposiums on a semiannual basis. So over the last eighteen to twenty-four months, we have really developed a good understanding of the global market. A lot of the thought leaders have attended our symposium. Some have tried our device. They are reporting some of the results of their studies and their findings. So it has kind of generated a lot of organic interest overseas, which has been helpful for our teams and to target where the best spot for us to put our energy is. So our team is really focused. We got through the regulatory clearances that we needed to get the CE mark. Now we have access to that market. We have mentioned that this year, we do not expect a lot this year. It will be a small single-digit contributor to our revenue. You will see that come in in the back half here, Yi, and then we will see more revenue performance into next fiscal year. But our team is well prepared. They are going to do a great job with this amazing product. But, again, a company our size with limited resources, we are very selective as to where we are going to target, how we get there, and we know there is a lot of demand and interest in the product.

Got it. Thank you. And could you talk about the status of the RECOVER AV trial in the EU of AlphaVac for PE? And do you expect the sales of AlphaVac for the RECOVER AV trial to be limited compared to the US until the readout from the work?

So starting with the last question, I do not expect the sales in the US to be limited until the readout of RECOVER. I think Apex, as we talked about the publication there and how that helps us with some of the back committees here in the US and just continued commercial execution around our combined portfolio in the US, is what we are focusing on for AlphaVac here. In the European question around RECOVER, it is ongoing. It is part of our continued commitment to providing data generation in this space. We think that data is very important for our own products, to support the physicians who are moving from medical interventions to adopting mechanical interventions for thrombectomy. We are going to continue to invest in that area. You know, again, as we really continue to cement ourselves as a primary player in thrombectomy globally. So we are excited about where we are going with RECOVER.

Got it. Thank you very much.

Thank you. At this time, I will turn the floor back to Mr. Clemmer for closing remarks.

Thank you, Operator. Again, I would like to thank everybody for participating today in the call. We will invite you to join us at 9:30 this morning Eastern Time for our special presentation on why we believe our NanoKnife product is a really effective opportunity for people with intermediate-risk prostate cancer to be treated. I also want to thank our employees for their hard work and dedication to our customers and the patients that they serve. And I want to also mention too that we are thinking of our employees and the other folks on the West Coast affected by their terrible wildfires today. We hope they could all be safe in this terrible tragedy. Thank you, Operator. Thanks for joining us today.

Thank you. We will conclude today's conference. You may disconnect your lines at this time.