AngioDynamics (ANGO) Q3 2025: MedTech Surges 22% as AlphaVac Adoption Accelerates
AngioDynamics’ MedTech segment delivered standout 22% growth, propelled by AlphaVac’s 161% revenue leap and continued AngioVac strength, driving a guidance raise across all key metrics. The company’s strategic focus on high-margin MedTech, operational discipline, and targeted commercial expansion is reshaping its financial profile and market trajectory. Investors now face a business at the threshold of sustainable profitability, with reimbursement and adoption milestones set to define the next phase.
Summary
- AlphaVac and AngioVac Synergy: Combined portfolio is capturing share in mechanical thrombectomy and driving outperformance.
- NanoKnife Prostate Indication: Reimbursement and payer adoption are the next catalysts for broader utilization.
- MedTech Mix Shift: Strategic transition to higher-margin segments is accelerating both growth and margin expansion.
Performance Analysis
AngioDynamics posted 9% year-over-year revenue growth, with total sales reaching $72 million, reflecting the company’s ongoing transformation following recent divestitures and product discontinuations. The MedTech segment delivered 22% growth, now accounting for 44% of total revenue, up from 39% last year, underscoring the company’s pivot toward higher-value, innovation-driven platforms. Mechanical thrombectomy, comprising AlphaVac and AngioVac, saw revenue jump nearly 47%, with AlphaVac up 161% and AngioVac up 23%, as sequential adoption and cross-selling momentum built across hospital customers.
Gross margin expanded to 54%, a 290 basis point increase, as mix shifted toward MedTech, which posted a 62.5% segment margin. MedDevice, the legacy business, returned to modest growth but remains a flat contributor. Adjusted EBITDA swung positive to $1.3 million from a $3.6 million loss, and adjusted loss per share improved to $0.08 from $0.16, with operating leverage and cost discipline evident across the P&L. Cash use during the quarter was driven by litigation settlements and working capital tied to a manufacturing transition, but a new $25 million revolving credit facility adds liquidity flexibility ahead of expected cash generation in Q4.
- AlphaVac Adoption Inflection: Four consecutive quarters of sequential growth, with PE (pulmonary embolism) indication pulling through new customers and cross-selling AngioVac.
- MedTech Revenue Mix Shift: MedTech now 44% of total revenue, supporting both top-line growth and gross margin expansion.
- Operating Leverage Realized: Positive adjusted EBITDA and improved EPS loss reflect cost control and higher-margin business scaling.
With guidance raised across revenue, MedTech growth, gross margin, and EBITDA, the company’s execution against its high-growth MedTech thesis is translating into tangible financial improvement and setting up for cash flow positivity in fiscal 2026.
Executive Commentary
"Our performance continues to highlight that our strategy to drive profitable growth in our high-margin, large MedTech markets is tracking ahead of plan, resulting in our decision to increase guidance for the year for total revenue, MedTech growth, gross margin, adjusted EBITDA, and adjusted EPS."
Jim Clemmer, President and Chief Executive Officer
"We're in a very strong position, driving double-digit growth in our MedTech segment with sufficient net cash position on our balance sheet, a P&L that is delivering positive adjusted EBITDA each quarter, and an overall business model that will generate positive cash for the upcoming year and beyond."
Steve Trowbridge, Executive Vice President and Chief Financial Officer
Strategic Positioning
1. MedTech Portfolio Expansion
AngioDynamics’ MedTech segment, now 44% of revenue, is the company’s primary growth engine, with platforms like Arion, AlphaVac, AngioVac, and NanoKnife targeting large, high-margin cardiovascular and oncology markets. The company is leveraging clinical data and expanded indications (notably NanoKnife for prostate tissue ablation) to drive adoption, while product innovation and commercial expansion support sustained double-digit growth.
2. Mechanical Thrombectomy Leadership
AlphaVac and AngioVac are delivering outsized growth, with AlphaVac’s PE indication accelerating penetration and AngioVac benefiting from portfolio synergies. The commercial team is expanding strategically, mirroring Arion’s buildout, to capture sequential customer wins and deepen hospital relationships. Clinical studies like APEX-AV and Ambition BTK are intended to further validate and differentiate these offerings, supporting future share gains.
3. Reimbursement and Market Access as Catalysts
NanoKnife’s expanded prostate indication unlocks a significant new market, but management is clear that payer adoption and permanent reimbursement codes (CPT-1 effective January 2026) are required for inflection. Direct-to-consumer and physician education campaigns are driving organic interest, with prostate now the largest NanoKnife indication, but broad commercial ramp is gated by reimbursement milestones.
4. Operational Discipline and Financial Flexibility
Cost structure improvements and a new $25 million revolver reinforce balance sheet strength and execution discipline. The company is managing supply chain transformation and manufacturing transitions without exposure to tariff risk, maintaining a U.S.-centric manufacturing base. R&D spend is being optimized post-clinical trial completions, with future investments targeted at MedTech innovation.
5. Global Expansion and Pipeline Development
International growth for Arion is set to begin in Q4, following CE mark and distributor training, though management tempers expectations given U.S. market size dominance. Ongoing clinical studies and pipeline extensions across platforms are designed to sustain growth and broaden addressable markets over the medium term.
Key Considerations
AngioDynamics’ Q3 results reflect a pivotal phase in its transformation, with MedTech momentum, operational leverage, and pipeline catalysts converging. The company’s ability to convert clinical innovation and strategic investment into commercial and financial impact is under close investor scrutiny as reimbursement and adoption milestones approach.
Key Considerations:
- AlphaVac and AngioVac Portfolio Momentum: Sustained high growth and synergistic adoption are redefining competitive positioning in mechanical thrombectomy.
- NanoKnife’s Reimbursement Pathway: Near-term growth is capped until payer coverage and CPT-1 codes take effect in January 2026, despite rising organic demand.
- MedTech Mix and Margin Expansion: Higher MedTech revenue share is structurally lifting gross margin and earnings power, but execution risk remains as the business scales.
- Cash Burn and Working Capital: Q3 cash use was elevated by one-time items, but liquidity is bolstered by a new credit facility and expected Q4 cash generation.
- International Growth Upside: Arion’s global launch is a future lever, but initial contributions will be modest relative to U.S. core markets.
Risks
Reimbursement uncertainty for NanoKnife prostate remains the most material risk, as broad adoption is contingent on payer coverage and permanent CPT-1 code implementation. Mechanical thrombectomy growth rates may normalize, and commercial execution risks persist as the salesforce expands. Supply chain and manufacturing transitions, while well managed, could introduce operational volatility, and any macro or regulatory shocks could disrupt end-market demand or cost structure.
Forward Outlook
For Q4, AngioDynamics guided to:
- Strongest quarter of the fiscal year, driven by MedTech platforms and U.S. plus international Arion launch
- Continued sequential growth in AlphaVac and AngioVac adoption
For full-year 2025, management raised guidance:
- Total revenue of $285 million to $288 million (5.3% to 6.4% YoY growth)
- MedTech net sales growth of 14% to 16%
- Gross margin of 53% to 54%
- Adjusted EBITDA of $4 million to $5 million
- Adjusted loss per share of $0.31 to $0.34
Management highlighted:
- MedTech adoption and reimbursement milestones as key drivers for the next phase
- Cash flow positivity targeted for fiscal 2026, with balance sheet flexibility reinforced by new revolving credit
Takeaways
AngioDynamics is executing a high-conviction shift toward MedTech, with mechanical thrombectomy and NanoKnife platforms driving both growth and margin expansion. The company’s financial profile is improving, but reimbursement and payer adoption remain gating factors for full-scale NanoKnife ramp.
- Mechanical Thrombectomy Outperformance: AlphaVac and AngioVac are establishing a strong competitive moat, with sequential growth and portfolio synergy translating into market share gains and higher margins.
- NanoKnife Inflection Hinges on Payer Adoption: Despite strong organic demand, broad commercial ramp is tethered to reimbursement milestones, with CPT-1 code implementation and payer coverage the key watchpoints for 2026.
- Financial Flexibility and Execution Discipline: Transition to positive adjusted EBITDA and new credit facility position the company for sustainable growth, but investors should monitor cash burn and working capital dynamics through the supply chain transition.
Conclusion
AngioDynamics’ Q3 marks a pivotal period of execution, with MedTech outperformance and operational leverage driving a guidance raise and setting the stage for sustainable profitability. Reimbursement and adoption milestones will determine whether the current momentum translates into durable, long-term value creation.
Industry Read-Through
AngioDynamics’ results reinforce several sector-wide trends: the shift from legacy MedDevice to high-margin MedTech is a proven lever for both growth and profitability in medical technology. Mechanical thrombectomy adoption and portfolio synergy are key competitive differentiators, with clinical data and indication expansion serving as catalysts for market share gains. Reimbursement remains the primary gating factor for innovation adoption, highlighting the importance of payer strategy and market access across the sector. Operational discipline and liquidity flexibility are increasingly critical as companies navigate supply chain transitions and macro uncertainty. Investors should watch for similar mix shifts and reimbursement-driven inflections across the medtech landscape.