AngioDynamics, Inc. — Form 10-Q Summary
Reporting period: First quarter of fiscal 2027, the three months ended August 31, 2026, compared with the three months ended August 31, 2025. Amounts are in U.S. dollars.
Business context and results
AngioDynamics develops and sells medical technology and devices for vascular care and oncology, primarily for minimally invasive procedures. Its operating segments are Med Tech and Med Device.
| Metric | Q1 FY2027 | Q1 FY2026 |
|---|---|---|
| Net sales | $80.9 million | $75.7 million |
| Gross margin | $48.0 million; 59.4% | $41.9 million; 55.3% |
| Operating loss | $7.3 million | $10.7 million |
| Net loss | $7.1 million | $10.9 million |
| Diluted loss per share | $0.17 | $0.26 |
| Cash used in operating activities | $15.3 million | $15.9 million |
Revenue grew 6.9%. Med Tech sales increased 13.2% to $39.9 million, while Med Device sales increased 1.4% to $41.0 million. U.S. sales were $71.1 million and international sales were $9.8 million; international sales were 12.2% of total revenue.
Financial position and liquidity
Cash was $34.0 million at August 31, 2026, down from $53.9 million at May 31, 2026. Current assets were $143.0 million and current liabilities were $59.7 million. Total liabilities were $78.0 million and stockholders’ equity was $164.0 million. The company reported no outstanding borrowings under its revolving facility and no outstanding debt in its liquidity discussion. It has a secured revolving facility of up to $25.0 million, subject to borrowing-base and availability conditions. A separate financing arrangement had a carrying value of $5.7 million.
Net cash decreased $19.9 million during the quarter. Investing activities used $3.1 million, including $2.8 million for placement and evaluation units. Operating cash outflow was driven in part by a $17.4 million decrease in accounts payable, accrued liabilities and other liabilities. Management believes available cash, operating cash generation and the revolving facility are sufficient for anticipated needs for at least 12 months.
Material changes and management commentary
- Gross margin increased 4.1 percentage points. Management attributed the improvement to sales, price and mix; benefits from products transitioned to third-party manufacturing; and tariff refunds. These benefits were partly offset by production volume and inflation pressures.
- Med Tech growth was led by Auryon, NanoKnife and thrombus management products. Med Device growth in Core and Microwave products was partly offset by softness in Venous, Ports and other Oncology products.
- R&D expense rose $1.6 million, primarily due to clinical projects and compensation; sales and marketing expense rose $1.9 million. Acquisition, restructuring and other items declined to $2.2 million, including $0.8 million of CEO transition costs.
- Backlog was $2.7 million at quarter-end, primarily affecting Core and Port products.
Outlook, risks, contingencies and unusual items
- The filing gives no quantified revenue or earnings guidance. Management expects growth through geographic expansion, market penetration, new products and international growth, while noting that execution and macroeconomic conditions may affect results.
- Risks cited include supply-chain and labor constraints, inflation, tariffs, competition, regulatory and clinical outcomes, foreign exchange, litigation, product liability claims and the ability to develop and commercialize products. The filing reports no material changes to previously disclosed risk factors.
- The company is completing a manufacturing-footprint restructuring, expected to finish in Q2 FY2027. Estimated total plan costs are $33.4 million to $38.4 million; $37.0 million had been recorded through August 31, 2026.
- Approximately 430 port-product liability claims are being defended. The company also filed a patent-infringement lawsuit against Endovascular Engineering in April 2026. Under its BD settlement, it paid $2.5 million of annual minimum payments during the quarter and had $6.9 million payable at quarter-end across current and long-term liabilities.
- A full valuation allowance remains on U.S. deferred tax assets because management concluded the company has not established sustained profitability. A future release could materially affect results.
- After quarter-end, AngioDynamics announced Eric Honroth’s appointment as CEO effective November 2, 2026, succeeding Jim Clemmer, who will provide consulting services for up to one year.
Important facts for investors to verify
- Whether the improved gross margin and reduced net loss are sustainable, given tariff refunds and manufacturing transition benefits.
- Cash usage, working-capital movements, the $2.7 million backlog and the company’s liquidity outlook.
- Progress and remaining costs for the restructuring, and the effects of port-product claims and the BD settlement payments.
- The status of CEO succession and any related transition costs.
- Share-count disclosures: the balance sheet reports 42,424,450 shares outstanding at August 31, while the cover reports 42,054,450 as of October 7, 2026. The filing also reports 149,135 employee shares withheld for taxes in July; these were not purchases under the public repurchase program.