AngioDynamics (ANGO) Q1 2026: MedTech Mix Reaches 47% as Mechanical Thrombectomy Grows 41%

2025-10-02 | By EarningsIQ Research

AngioDynamics’ Q1 2026 results reveal a pivotal shift toward higher-margin MedTech, as mechanical thrombectomy and NanoKnife platforms accelerate share gains and profitability. Strategic investments in clinical expansion, salesforce buildout, and product launches underpin management’s confidence, reflected in a raised full-year outlook. Investors should focus on the company’s ability to sustain MedTech momentum and deliver operational leverage amid tariff and mix headwinds.

Summary

• MedTech Share Rises: MedTech now comprises nearly half of total revenue, marking a structural shift in business mix.
• Growth Engines Deliver: Mechanical thrombectomy and NanoKnife drive segment outperformance and margin expansion.
• Guidance Lift Signals Confidence: Upwardly revised outlook highlights management’s conviction in sustained top-line and profitability gains.

Performance Analysis

AngioDynamics delivered 12% year-over-year revenue growth in Q1 2026, driven by a 26% surge in its MedTech segment, which now accounts for 47% of total revenue, up from 41% a year ago. This rapid segment expansion reflects the company’s deliberate pivot toward higher-growth, higher-margin markets. Within MedTech, the Ariane platform, peripheral arterial disease treatment, posted its 17th consecutive quarter of double-digit growth, while mechanical thrombectomy revenue (AngioVac and AlphaVac, devices for blood clot removal) jumped 41%, and NanoKnife, minimally invasive cancer therapy, climbed 27%.

Gross margin improved by 90 basis points to 55.3%, fueled by favorable product mix, pricing, and operational efficiency, despite a $1.7 million tariff expense. Operating expenses as a percentage of sales declined, reflecting operating leverage from scale and ongoing cost discipline. The company reported an improved adjusted net loss and positive adjusted EBITDA, underscoring the profit potential as MedTech mix rises. Cash utilization was seasonally high but better than expected, with management reiterating full-year cash flow positivity and maintaining zero debt.

• MedTech Segment Outpaces Legacy: MedDevice, the company’s legacy business, grew 2%, reinforcing the strategic importance of MedTech’s outperformance.
• Margin Expansion from Mix: Higher MedTech contribution and pricing initiatives offset tariff headwinds, supporting long-term profitability.
• R&D and SG&A Investments: Spending is focused on commercial expansion, particularly in thrombectomy and NanoKnife, with R&D held near 10% of sales to drive pipeline innovation.

Management’s raised guidance for both revenue and adjusted EBITDA, alongside commentary on accelerating clinical and commercial catalysts, signals a robust outlook for the balance of the year.

Executive Commentary

Strategic Positioning

1. MedTech Mix Shift Accelerates

AngioDynamics’ business model transformation is anchored in shifting revenue toward MedTech, which offers higher growth and margin potential than legacy MedDevice. The MedTech segment’s rise to 47% of total sales reflects not only organic growth but also the impact of recent divestitures and product discontinuations, allowing the company to focus resources on scalable, differentiated platforms. This mix shift is structurally lifting gross margin, creating operating leverage, and positioning the company for sustainable profit expansion.

2. Growth Engines: Mechanical Thrombectomy and NanoKnife

Mechanical thrombectomy (AngioVac and AlphaVac) and NanoKnife are the primary growth engines, both showing robust volume and new account adoption. AlphaVac’s unique clinical design is resonating with physicians and hospital value committees, enabling deeper penetration and recurring utilization. NanoKnife’s momentum is driven by the expanded prostate indication, with upcoming CPT1 reimbursement set to further catalyze adoption. These platforms are expected to drive both top-line and margin expansion over multiple years.

3. Commercial and Clinical Investment Cycle

AngioDynamics is scaling its commercial infrastructure, notably expanding its thrombectomy sales force by 25% to 50 dedicated reps and planning a similar build-out for NanoKnife as reimbursement and demand ramp. Clinical trial activity, such as the Ambition BTK study for Arion, aims to unlock new indications and expand the total addressable market, reinforcing the company’s commitment to evidence-based growth.

4. Operational Efficiency and Supply Chain Strategy

Gross margin improvement is also a function of operational initiatives, including manufacturing footprint optimization and third-party partnerships to address labor constraints. Management has accelerated some efficiency programs, realizing margin gains ahead of schedule and mitigating tariff impacts. This operational rigor is key to sustaining profitability as the business scales.

Key Considerations

This quarter marks a clear inflection point for AngioDynamics, as MedTech’s rise is now the dominant driver of both growth and profitability. The company’s execution in commercial expansion and clinical development sets the stage for continued outperformance, but also introduces new complexity in scaling and sustaining momentum.

Key Considerations:

• Salesforce Expansion Pace: The ability to scale and train dedicated reps for thrombectomy and NanoKnife will be critical to sustaining share gains and clinical adoption.
• Clinical Evidence Pipeline: Ongoing trials, especially for Arion below-the-knee, will shape regulatory expansion and market opportunity for years to come.
• Tariff and Cost Headwinds: Tariff expenses remain a drag, though operational initiatives are partially offsetting the impact; continued vigilance is required as global supply chains evolve.
• MedDevice Stability: While MedDevice growth is low single digits, it provides a cash flow and margin base, but its relative share will continue to shrink as MedTech outpaces.

Risks

Key risks include execution challenges in scaling sales and clinical operations, particularly as new reps are onboarded and reimbursement codes are implemented. Tariff volatility and supply chain disruptions could pressure margins despite ongoing efficiency efforts. Market adoption of new indications, especially for NanoKnife in prostate cancer, may be slower than anticipated if clinical or economic value is not clearly established. Competitive dynamics in thrombectomy and atherectomy remain intense, with larger players also investing heavily in innovation and commercial reach.

Forward Outlook

For Q2, AngioDynamics guided to:

• Continued double-digit MedTech revenue growth, led by mechanical thrombectomy and NanoKnife
• Gross margin stability within the 53.5% to 55.5% range despite tariff costs

For full-year 2026, management raised guidance:

• Net sales of $308–$313 million (5%–7% YoY growth)
• MedTech net sales growth of 14%–16%
• Adjusted EBITDA of $6–$10 million, up from prior $3–$8 million
• Adjusted loss per share improved to $0.33–$0.23

Management highlighted several factors that will drive results:

• Commercial investments in thrombectomy and NanoKnife to accelerate adoption
• Clinical trial milestones and regulatory expansion, especially for Arion and NanoKnife

Takeaways

AngioDynamics’ Q1 2026 results confirm a successful transformation toward MedTech, with mechanical thrombectomy and NanoKnife emerging as durable growth drivers. The company’s ability to execute on salesforce expansion, clinical validation, and operational efficiency will determine the sustainability of margin and top-line gains amid ongoing cost and competitive pressures.

• MedTech Outperformance: Segment mix shift and strong adoption in key platforms are structurally lifting growth and profitability, validating the company’s transformation strategy.
• Operational Discipline: Margin gains from mix and efficiency are offsetting external headwinds, but continued vigilance is needed as scale and complexity rise.
• Future Watchpoint: Monitor salesforce productivity and clinical trial progress, as well as the ramp of NanoKnife’s prostate indication post-reimbursement, for evidence of sustained leadership in high-growth categories.

Conclusion

AngioDynamics’ Q1 2026 marks a decisive step in its MedTech-led transformation, with robust growth, margin expansion, and a raised outlook underscoring management’s confidence. Investors should track execution on commercial and clinical fronts as the company navigates a more complex, but higher-value, growth trajectory.

Industry Read-Through

AngioDynamics’ results highlight a broader industry pivot toward higher-growth, higher-margin MedTech platforms, with product innovation, clinical validation, and commercial scale as key competitive levers. The company’s success in thrombectomy and focal cancer therapy underscores the importance of differentiated technology and focused sales execution, a trend likely to intensify across the medical device sector. Tariff and supply chain challenges remain industry-wide headwinds, but operational agility and pricing power can provide partial offsets. Competitors and investors should watch for similar mix shifts and investment cycles as peers seek to replicate AngioDynamics’ margin and growth profile.

ANGO Healthcare Medical Devices MedTech Thrombectomy Margin Clinical Trials Salesforce