Good morning, and welcome to the AngioDynamics Fiscal Year 2025 Fourth Quarter Earnings Call. At this time, all participants are in listen-only mode. A question and answer session will follow the formal presentation. As a reminder, this conference call is being recorded. The news release detailing AngioDynamics' fiscal 2025 fourth quarter and full year 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'd 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 2026, 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 discuss 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 as superior to financial reporting measures prepared in accordance with GAAP. A slide package offering insight into the company's financial results is also available in the investor relations section of the company's website under 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. Now, I'd like to turn the call over to Jim Clemmer, AngioDynamics' President and Chief Executive Officer. Mr. Clemmer?

Thank you, operator. Good morning, everyone, and thank you for joining us for AngioDynamics' fiscal 2025 fourth quarter and full year earnings call. Joining me today is Steve Trowbridge, AngioDynamics' Executive Vice President and Chief Financial Officer. Unless otherwise noted, all financial metrics and growth rates provided during the call today are on a pro forma basis, which excludes the impact of our divested dialysis, BioSentry, PICC, and midline businesses, and our discontinued radio frequency and Syntrax Support catheter products. We capped off a tremendous 2025 with a very strong fourth quarter. Total revenue was $80.2 million, representing growth of over 12% year-over-year, led by MedTech growth of over 20% and med device growth of more than 6%. Beyond the top-line performance, we drove solid gross margins, positive adjusted EBITDA, and strong free cash flow, all as expected. As we've talked about in the past, we have been navigating a long-term strategic transformation over the past several years to simplify our business and move into large, high-growth, high-margin MedTech markets. Our performance in the quarter and throughout fiscal 2025 validates that strategy and reflects our ability to drive execution. As this is our fiscal year-end call, I wanted to take the opportunity to highlight the progress we have made operationally this year as we have achieved great things here at AngioDynamics over the past 12 to 24 months, including key regulatory approvals, international market expansion, new product introductions, clinical data development, and critical reimbursement wins, among others. All of which have set us up to deliver profitable growth moving forward. Starting with our MedTech portfolio, Auryon has continued to be our largest MedTech product line. Since its launch in 2020, we've driven over $185 million in cumulative sales, and we are now the third largest product in this space. In…

Thanks, Jim. Good morning, everybody. As always, before I begin, I'd 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 BioSentry businesses we divested in June 2023, the PICC and midline products that we divested in February 2024, and the radio frequency and Syntrax support catheter products that we discontinued in February 2024. Additionally, unless otherwise noted, all comparisons will be the fourth fiscal quarter of 2025 versus the fourth fiscal quarter of 2024. Revenue increased 12.7% to $80.2 million, driven by growth across both our MedTech and med device segments. MedTech revenue was $35.8 million, a 22% increase, while our med device revenue was $44.4 million, an increase of 6.2%. In the fourth fiscal quarter, our MedTech platforms comprised 45% of our total revenue, compared to 41% of total revenue a year ago, further illustrating the sustained execution of our strategy to increase the percentage of our overall revenue base coming from our MedTech segment. Our Auryon platform contributed $15.6 million in revenue, growing 19.7% compared to last year. Auryon has now delivered double-digit year-over-year growth in each of the sixteen quarters following the anniversary of its launch in September of 2021. Mechanical thrombectomy revenue, which includes AngioVac and AlphaVac sales, increased 44.7% year-over-year. As Jim mentioned earlier, we continue to be very pleased with our ability to take share in an increasingly competitive mechanical thrombectomy market, coming as a result of the efforts of our skilled commercial team, the innovative differentiation of these products, and the synergies in commercialization efforts. In the quarter, AngioVac revenue was $8.2 million,…

As we look forward to fiscal 2026, we are exceptionally well-positioned to build on the strong foundation established during fiscal 2025. We entered the new year with multiple regulatory clearances achieved, expanded market access, proven commercial momentum, and sustained profitability. Our strategic transformation over the past several years has positioned us exceptionally well for the future. We've successfully built a portfolio of innovative MedTech platforms addressing large, growing markets. We've optimized our med device business to provide steady cash generation. And we've strengthened our balance sheet and operational efficiency to support sustainable growth. Looking ahead, our priorities remain clear: continue to drive adoption and market share gains across our MedTech platforms, maintain operational discipline while investing for growth, and deliver increasing value to our shareholders through sustainable, profitable growth. We remain very excited about the future of AngioDynamics. We have built a fantastic portfolio focused on large, high-growth markets. We have strengthened our financial profile and operational capabilities. With our strong balance sheet and positive trajectory towards sustained profitability, we're well-positioned to deliver long-term value creation. Before opening the line for questions, I would like to thank every member of the AngioDynamics team for their tireless work to bring innovative technologies to our customers and the patients they serve. With that, let's open the line for questions.

Thank you. And the first question today is from the line of John Young with Canaccord Genuity. Please proceed with your questions.

Hey, Jim and Steve. It's John. Congrats on the quarter. And, you know, it's really great to see the progress here. I wanted to start on the VTE business. I know you guys mentioned this blood return product. I was wondering if you could get some more incremental detail on the pathway forward for it. I know you're in regulatory discussions with it. Will this be a 510(k) product that's just bench-top testing for hemolysis? Will this need a clinical trial? And is this an ancillary product to the existing AlphaVac business? And then, you know, as a follow-up to that question too, looking at the AlphaVac revenue from, you know, this quarter, are you guys hitting a ceiling without having this blood return product? Because it's interesting seeing the growth in AngioVac versus AlphaVac in this quarter. And thanks for taking our question.

Hi, John. It's Jim. Thanks for the question. So let me take a step backwards. AlphaVac was designed and developed with the blood loss aspect in mind. We knew during our initial design and development course, of physicians who use other products, that one of the issues with the leading product in the market was that it drew a lot of blood out, lost a lot of blood. They had to have a system to deal with that. So I'll leave that alone. We purposely built in, as you know, a blood loss feature into our product. It really limits the loss of blood during the pull. As the APEX study showed, we pull more clot out than the market leader, and we lose less blood. The APEX study showed our blood loss was less than 250 cc's in over 60% of the procedures done. So we're very confident in how the product works and how safe and effective it is. That being said, now, the market's been conditioned a bit by the market leader to have a blood return feature available because they lose a lot more than that. So we knew that coming into it. We devised the product now to be kind of an ancillary add-on, and it needs to go through a 510(k) process. There's been a process there, as you know, how predicates work, so we tried to follow what was established. And in conversations with the FDA, they're watching the space. We haven't come to an agreement yet as to how to get the product approved and on the market. But we're confident we'll get there. As far as the ceiling, no, we've had more and more products getting into doctors' hands, more kind of hospitals approve us in the VAC committee process. And we've added new sales reps, as you know, in the past quarter because we're bullish about where AlphaVac can go. So this product has a high ceiling. And combined with AngioVac, which, as you said, we had a terrific year in AngioVac, the fact we can sell both together, and now we're getting multi-meaning interventional cardiologists that maybe didn't know about AngioVac eighteen months ago and are now seeing it, seeing the applications it could be used for. So John, we have a great suite of products. These two will be leading products in thrombectomy for years to come. And we have a great business. We'll keep you up to date, but we expect sequential growth of both products from here on out.

Okay. That's great to hear. And then I know this is a quick follow-up to NanoKnife, especially with the approval we'll see and, or I should say, the reimbursement we'll see beginning in calendar 2026. As we think of the MedTech guidance, are you guys thinking of an inflection essentially around that January approval timeline? Thank you for taking our questions.

Yeah. John, this is Steve. Thanks for the question. So with NanoKnife, we've always said that there's three things that lead to the growth that we expect to see in NanoKnife. It's going to be the indication, which is table stakes. We were able to get that. Reimbursement was probably the most important. That is coming into effect in January of 2026. Then the third is continued increase in the adoption and awareness of the urology community. We're absolutely seeing that increase in awareness. We're very pleased with the trajectory that we're seeing with new urologists coming on board and choosing NanoKnife as one of their options for treatments. We do expect that the reimbursement is going to be something that's going to drive growth. I don't know if you're going to see an immediate hockey stick. We've always said that the reimbursement landscape is a patchwork growth. It's pretty complex. There's a lot of things that go into that. Just last night, CMS put out their proposed rules for the RVUs in this space. That ended up pretty much where we expected. A lot that we're still unpacking, and our team is still going through that. But it was right where we wanted it to be in terms of that piece. Then on top of that, there's the private payers making sure that they're putting in their coverage decisions. We're doing all that work as we've always said. We do expect you're going to see accelerated growth for NanoKnife. And we're going to continue to drive to try to shorten that hockey stick. It may not be immediate. It's not like a light switch. But it is absolutely something that's going to continue to drive NanoKnife growth and adoption in the second half of our fiscal year here.

Great. Fantastic, guys.

Thanks, John. The next questions are from the line of Steve Lichtman with Oppenheimer. Proceed with your question.

Thank you. Good morning, Jim and Steve, and congratulations on the quarter. On FY 2026 sales, can you give us any color on the major product growth between MT Auryon and NanoKnife within MedTech? And separately, what level of contribution do you think you can achieve from Auryon outside of the US? Sounds like you're off to a nice start there.

Yeah. Steve, I think that's absolutely true. We're very pleased with the uptick in some of the international markets that we're seeing with Auryon. As we've always said, the US is going to be the biggest market. International will be a contributor, but it's not going to be at the same level that we've seen here in the US. So when you think about FY 2026, if you look at what we did last year, Auryon grew just about 20% for the full year. We said that we expected Auryon kind of in this time frame of its life cycle now to be about a teens grower. That's a good way to think about it for FY 2026. And then for NanoKnife, you know, we expected to see continued disposable adoption, probably a little bit of a step back in capital. We didn't see the level of step back that we said we expected to see at the beginning of the year last year. Still bringing on some new capital, but it may be a little bit of a step back. So, you know, very similar progress with, you know, coming into the back half as we talked about reimbursement coming online in NanoKnife. And then thrombectomy, mechanical thrombectomy in particular, AngioVac and AlphaVac, expect that to continue to be a very strong growth for us, probably the strongest growth that you see in the business there. So when you put that all together, that's how you get to that MedTech guide that we gave you.

Got it. Appreciate that. And then technically on gross margin, Steve, appreciate the tariff details. Does the potential impact you laid out in FY 2026 include offsets? And then separately, the ex-tariffs gross margin is ahead of our thinking. I was wondering how much of the outsourcing initiative you'll think you'll accrue benefits from in FY 2026? Thanks.

Yeah. It's a great question. So, you know, there are a lot of moving parts when it goes into tariffs. So there's a lot that we put into our guide there. There's the current thinking that we know today, as we've all said, that changes daily. Right? Even just a couple of days ago, there were some changes or some potential changes there in the EU community. So there's puts and takes when it comes to our expectations around tariffs. We're also doing a lot of the things that you'd expect us to do to try to mitigate potential tariff impacts. So we'll continue to be as transparent as possible with tariffs as we move forward into this fiscal year. I think the point about our manufacturing transfer plan, we've absolutely started to see the benefits coming from that manufacturer transfer plan even in FY 2025. So as we said, we expected to complete the program by the end of this calendar year, and that's when you're going to start to see the full benefit of that manufacturing transfer plan with our FY 2027, which starts June 1 of 2026. When you're going to see the full year impact. We do expect that we're going to see some of that benefit in the back half of this fiscal 2026 that we just started. As we started to see some of that benefit in FY 2025. So some of the expense management initiatives that we talked about, as well as gross margin and the results that we've seen in gross margin, particularly the results of gross margin ex-tariff. We're starting to see some of the benefits of our operations team bringing in some of those cost benefits a little earlier, and we expect that to continue.

Okay. Great. Thanks, guys.

Thanks, Steve. The next question is from the line of Yi Chen with H.C. Wainwright. Please proceed with your question.

Thank you for taking my question. Do you have any plan to acquire new MedTech products with high growth potential in fiscal year 2026? And do you plan to divest any additional products within the med device segment in the next fiscal? Thank you.

Hi, Yi. Thanks for the question this morning. This is Jim. We really like the portfolio we have, Yi. We've talked to you and to others about the development of this portfolio, getting to where it's at today. We think we have a healthy balance between our medical device products, which are kind of four different little classes within med device, but they're really good. They're market-leading products. We have a great selling and marketing and clinical team supporting them. And then now with MedTech, you've seen, as I said in my remarks earlier, we've had a five-year CAGR of 25% growth in our MedTech product. That's really important to us. Now that we've actually entered these markets, we're trying to get through with market development access, like our APEX and Preserve study, our CE Marks, other things opening up access. We're really, really busy the next couple of years on just kind of doing the execution mode here. And supporting some other clinical studies. We think that'll expand opportunities to develop these markets. So we're really pleased with the development of the products themselves. Now we're pleased with the market access, reimbursement, awareness, clinical regulatory hurdles we've cleared. I think we're pretty busy here. So we don't see the need to add definitely another platform to what we have. And even adding pieces to it, maybe we'll come across an item or something that looks interesting. But as a company strategy, we want to focus on these assets that we own and make sure we can drive the opportunity because the TAMs are large. We want to drive the opportunity we can to give our shareholders the best, fastest return on growth here. I think that's what you'll see from us going forward. Thank you.

Thank you.

At this time, we've reached the end of the question and answer session. I'll hand the floor back to Mr. Clemmer for closing remarks.

Thank you for joining us today. AngioDynamics is really proud of our transformation. We've really changed our company, become now a leading MedTech provider of really, really counted on products to treat patients with severe disease. Along this journey, it's been hard to do, but we know what our outcome could be, and now we're getting close. We'll be a company that'll be well-managed and will really give great results to our shareholders for years to come. We're a really good company. Thank you for your interest today. We'll talk to you soon.

This will conclude today's conference. You may disconnect your lines at this time. We thank you for your participation. Have a wonderful day.