Exchange: NASDAQ | Sector: Healthcare | Industry: Medical Instruments Supplies
Q3 2025
Published: Apr 2, 2025
Earnings Highlights
Revenue of $72.00M down 4.2% year-over-year
EPS of $-0.11 increased by 97.6% from previous year
Gross margin of 54.0%
Net income of -4.41M
""Total worldwide revenue was $72 million, representing growth of over 9% year-over-year."" - Jim Clemmer, CEO
AngioDynamics Inc (ANGO) Third Quarter Financial Results 2025: Strong Growth in MedTech Segment
Executive Summary
AngioDynamics Inc reported a robust performance for the third quarter of fiscal year 2025, achieving a revenue of $72 million, reflecting a 9.2% growth year-over-year. The company's strategic emphasis on its MedTech segment propelled this growth, with a staggering 22% increase in revenue attributed to expanded product offerings. Management highlighted an increase in gross margins and positive adjusted EBITDA, underscoring the effectiveness of its operational strategies. Significant advancements in product adoption for key areas like Mechanical Thrombectomy and NanoKnife further affirm AngioDynamics' growth potential in a burgeoning healthcare market.
The management team expressed confidence in sustaining growth into the next fiscal quarters, with a revised revenue outlook pointing to a total expected revenue of $285 million to $288 million for FY 2025. This report will delve deeper into the key financial metrics, market opportunities, and the challenges that AngioDynamics faces as it navigates this dynamic landscape.
Key Performance Indicators
Revenue
72.00M
QoQ: -1.15% | YoY:-4.23%
Gross Profit
38.86M
53.97% margin
QoQ: -2.63% | YoY:19.29%
Operating Income
-4.05M
QoQ: -61.48% | YoY:65.08%
Net Income
-4.41M
QoQ: 58.96% | YoY:97.65%
EPS
-0.11
QoQ: 57.69% | YoY:97.64%
Revenue Trend
Margin Analysis
Key Insights
Total revenue for Q3 2025 stood at **$72 million**, a **9.2%** increase from Q3 2024.
MedTech revenue surged by **22%**, accounting for **44%** of total revenue, reflecting management's strategic focus on high-margin products.
Gross profit amounted to **$38.9 million**, translating to a gross profit margin of **54%**, an increase from the previous year.
Adjusted EBITDA was **$1.3 million**, marking a notable turnaround from a loss of **$3.6 million** in Q3 2024.
Net income reflected a loss of **$4.4 million**, with adjusted EPS improving to a loss of **$0.08** per share from **$0.16** in the prior year.
Financial Highlights
Revenue Performance:
- Total revenue for Q3 2025 stood at $72 million, a 9.2% increase from Q3 2024.
- MedTech revenue surged by 22%, accounting for 44% of total revenue, reflecting management's strategic focus on high-margin products.
Profitability:
- Gross profit amounted to $38.9 million, translating to a gross profit margin of 54%, an increase from the previous year.
- Adjusted EBITDA was $1.3 million, marking a notable turnaround from a loss of $3.6 million in Q3 2024.
- Net income reflected a loss of $4.4 million, with adjusted EPS improving to a loss of $0.08 per share from $0.16 in the prior year.
Balance Sheet Health:
- The company holds $44.8 million in cash and cash equivalents, supporting its operational endeavors.
- Total assets stand at $285.4 million, with total liabilities of $99.5 million, evidencing a solid capital structure.
- Current ratio at 2.21 indicates sound liquidity.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
72.00M
-4.23%
-1.15%
Gross Profit
38.86M
19.29%
-2.63%
Operating Income
-4.05M
65.08%
-61.48%
Net Income
-4.41M
97.65%
58.96%
EPS
-0.11
97.64%
57.69%
Key Financial Ratios
currentRatio
2.21
grossProfitMargin
54%
operatingProfitMargin
-5.62%
netProfitMargin
-6.12%
returnOnAssets
-1.54%
returnOnEquity
-2.37%
debtEquityRatio
0.03
operatingCashFlowPerShare
$-0.32
freeCashFlowPerShare
$-0.37
priceToBookRatio
2.04
priceEarningsRatio
-21.53
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Strategic Growth: Management noted that total worldwide revenue reached $72 million, primarily driven by the MedTech segment's growth of 22%.
"We are excited to see our MedTech segment's sustained growth, particularly with innovations like the Auryon and Mechanical Thrombectomy products, driving significant market share advances." - Jim Clemmer, CEO.
Market Opportunities: There was strong emphasis on NanoKnife, with revenue growth of 5.3%: "NanoKnife continues to showcase compelling benefits, particularly with the expanded indication for prostate cancer treatment, driving increased patient interest." - Steve Trowbridge, CFO.
Operational Improvements: AngioDynamics showcased enhanced operational efficacy, leading to improved gross margins.
"Our strategy of focusing on profitable growth in high-margin MedTech markets is yielding favorable results, and we are optimistic about the continued momentum going forward." - Jim Clemmer, CEO.
"Total worldwide revenue was $72 million, representing growth of over 9% year-over-year."
— Jim Clemmer, CEO
"Our strategy to drive profitable growth in our high margin, large MedTech markets is tracking ahead of plan."
— Jim Clemmer, CEO
Forward Guidance
Management has increased revenue guidance for FY 2025 to a range of **$285 million to $288 million**, a growth expectation of **5.3% to 6.4%**. Key metrics for future performance include anticipated growth in the MedTech segment between **14% to 16%**, underpinned by significant product innovations and market expansions. Management also forecasts gross margins to improve to between **53% to 54%**. Investors are advised to monitor the adoption of NanoKnife and the upcoming CPT 1 code implementation expected in January 2026, which could be a pivotal turning point for future revenue growth in the oncology segment.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
ANGO Focus
53.97%
-5.62%
-2.37%
-21.53%
NSTG
36.20%
-75.80%
74.00%
-54.80%
ATRI
32.80%
9.70%
1.22%
61.86%
ATR
38.60%
15.20%
3.94%
26.60%
KRMD
63.40%
-20.80%
-8.91%
-19.80%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
The investment outlook for AngioDynamics remains cautiously optimistic, bolstered by its strategic focus on innovation within the MedTech market. The revised guidance for fiscal year 2025, alongside initiatives aimed at enhancing product adoption, positions AngioDynamics favorably against industry competitors. Key factors for investors to monitor include advancements in NanoKnife adoption, successful navigation of reimbursement pathways, and the company’s overall ability to translate growth into sustainable profitability.
Key Investment Factors
Growth Potential
AngioDynamics is well-positioned for growth with a 22% increase in MedTech revenue, reflecting the successful adoption of its innovative product lines. The positive feedback on NanoKnife and Mechanical Thrombectomy segments indicates a strong growth trajectory.
Profitability Risk
Challenges include revenue reliance on the MedTech segment, potential reimbursement issues for new products, and macroeconomic factors impacting operational expenses. The current market dynamics also introduce competition threats that could affect future sales.
Financial Position
Despite a net loss this quarter, AngioDynamics maintains a solid liquidity position with $44.8 million in cash, promoting strategic initiatives and operational flexibility as they seek profitability in the forthcoming quarters.
SWOT Analysis
Strengths
Strong revenue growth in MedTech segment with a 22% rise year-over-year.
High gross margin of 54%, indicating effective cost management and pricing strategies.
Diversified product portfolio with innovative solutions such as NanoKnife and Auryon.
Weaknesses
Persistent net losses indicating ongoing challenges in reaching profitability.
Heavy dependence on the MedTech segment for revenue generation.
Recent divestitures may lead to decreased revenue diversity.
Opportunities
Expansion into international markets post-CE mark approvals for Auryon.
Successful implementation of the CPT coding for NanoKnife, potentially increasing adoption rates.
Growing demand for minimally invasive surgical devices in the healthcare sector.
Threats
Intense competition in the medical device sector could compress margins.
Reimbursement challenges related to new product introductions may hinder revenue growth.
Economic headwinds and regulatory changes impacting operations.