AngioDynamics Inc (ANGO) reported its fiscal Q2 2025 results with total revenue of $73 million, marking a 9.2% growth year-over-year, primarily driven by strong performance within its MedTech segment, which saw a 25% increase in revenue. Despite posting a net income loss of $10.7 million for the quarter, management has expressed optimism regarding the company’s trajectory towards profitability with positive adjusted EBITDA of $3.1 million and expectations of sustained profitability moving forward. Improved performance metrics reinforce the company’s strategic pivot towards high-growth MedTech markets, whereby adjusted EBITDA is projected to be positive for the full year, showcasing effective cost management and revenue growth strategies.
Key Performance Indicators
Revenue
72.85M
QoQ: 7.93% | YoY:-7.88%
Gross Profit
39.91M
54.78% margin
QoQ: 8.66% | YoY:-0.88%
Operating Income
-2.51M
QoQ: 80.85% | YoY:80.88%
Net Income
-10.74M
QoQ: 16.10% | YoY:63.03%
EPS
-0.26
QoQ: 16.13% | YoY:63.89%
Revenue Trend
Margin Analysis
Key Insights
**Total Revenue**: $73 million (YoY +9.2%)
**Gross Profit**: $39.9 million (YoY -0.9%)
**Operating Income**: -$2.5 million (YoY Improve +80.8%)
**Net Income**: -$10.7 million (YoY Improve +63.0% from losses)
**Adjusted EBITDA**: $3.1 million
Financial Highlights
##### Key Financial Metrics:
- Total Revenue: $73 million (YoY +9.2%)
- Gross Profit: $39.9 million (YoY -0.9%)
- Operating Income: -$2.5 million (YoY Improve +80.8%)
- Net Income: -$10.7 million (YoY Improve +63.0% from losses)
- Adjusted EBITDA: $3.1 million
- Cash Position: $54.1 million at period end
Overall, the revenue performance depicts a solid momentum in recovery primarily attributed to the MedTech segment's diversification and market expansion initiatives.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
72.85M
-7.88%
7.93%
Gross Profit
39.91M
-0.88%
8.66%
Operating Income
-2.51M
80.88%
80.85%
Net Income
-10.74M
63.03%
16.10%
EPS
-0.26
63.89%
16.13%
Key Financial Ratios
currentRatio
1.98
grossProfitMargin
54.8%
operatingProfitMargin
-3.44%
netProfitMargin
-14.7%
returnOnAssets
-3.68%
returnOnEquity
-5.75%
debtEquityRatio
0.03
operatingCashFlowPerShare
$0.06
freeCashFlowPerShare
$0.04
priceToBookRatio
1.52
priceEarningsRatio
-6.6
Net Income vs. Revenue
Expense Breakdown
Management Commentary
##### Key Insights from Management:
1. MedTech Revenue Growth: CEO Jim Clemmer stated, "Our MedTech segment had yet another excellent quarter, growing 25%, led by growth across all of our platforms."
2. Operational Efficiency: Clemmer noted, "We continue to show strong results with respect to profitability, reporting adjusted EBITDA of $3.1 million."
3. Future Outlook: CFO Steve Trowbridge mentioned, "We now expect to deliver positive adjusted EBITDA for the full year, illustrating continued execution on our goal of delivering sustained profitability."
4. Market Positioning: "We remain very encouraged by the universally positive feedback we are receiving regarding AlphaVac, as well as the increased adoption of AngioVac," emphasized Clemmer during the call.
"Total worldwide revenue was $73 million, representing growth of approximately 9% year-over-year." - Jim Clemmer, CEO
— Jim Clemmer
"Our strategy to drive towards profitability is tracking ahead of plan, and we now expect to deliver positive adjusted EBITDA for the full year." - Steve Trowbridge, CFO
— Steve Trowbridge
Forward Guidance
Management has upgraded its guidance for fiscal year 2025, now projecting revenue between $282 million and $288 million (representing a growth of 4.2% to 6.4% YoY), and expects MedTech net sales to grow between 12% to 15%. With anticipated gross margins in the range of 52% to 53%, alongside an improved adjusted EBITDA target of $1 million to $3 million, AngioDynamics is positioned for a strong finish to the fiscal year. The ongoing shift towards outsourced manufacturing is projected to generate $15 million in annualized savings by FY 2027, further solidifying margin enhancement prospects.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
ANGO Focus
54.78%
-3.44%
-5.75%
-6.60%
NSTG
32.60%
-97.10%
2.03%
-1.10%
ATRI
32.50%
1.09%
0.17%
495.14%
ATR
30.50%
14.50%
3.77%
25.39%
KRMD
65.00%
-14.10%
-5.29%
-27.22%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
AngioDynamics Inc's strategic pivot towards its MedTech segment reveals strong growth potential, substantiated by improving financial metrics and operational efficiencies. The transition to a debt-free status enhances creditworthiness, paving the way for future investments. With numerous product launches on the horizon, particularly in mechanical thrombectomy, stakeholders can expect continued revenue growth. Market dynamics and competitive positioning will require vigilant monitoring, particularly in how effectively AngioDynamics can convert its pipeline and regulatory approvals into revenue streams. Overall, the company presents a promising investment opportunity, particularly with an eye towards its evolving market strategies and profitability roadmap.
Key Investment Factors
Growth Potential
The MedTech segment's strong revenue growth (25% increase) illustrates AngioDynamics' commitment to capturing high-growth markets. New product launches and regulatory approvals are expected to fuel future revenue streams, especially in the mechanical thrombectomy market.
Profitability Risk
The company faces risks related to ongoing patent litigation and market competition. The rising costs of product development, alongside regulatory hurdles, could adversely affect financial positions if not managed efficiently.
Financial Position
AngioDynamics retains a robust financial position with zero debt and cash reserves of $54.1 million, ensuring operational flexibility. The transition to outsourced manufacturing could improve profitability in the medium term.
SWOT Analysis
Strengths
Strong revenue growth driven by MedTech segment, growing 25% YoY.
Solid cash position with zero debt enhances financial stability.
Diverse portfolio with innovative products addressing significant healthcare needs.
Weaknesses
Ongoing net income losses highlight the need for operational efficiency.
Dependency on successful product launches and market adoption for future growth.
Opportunities
Potential growth from successful market execution of AlphaVac and AngioVac products.
Expansion into new markets (internationally in EU) with newly obtained regulatory approvals.
Threats
Competitive pressures in the MedTech space, particularly from established market players.
Potential disruptions from ongoing patent litigation and regulatory scrutiny.