ANGIODYNAMICS INC — Call Transcript 2026

Good morning, and welcome to the AngioDynamics Fiscal Year 2026 third quarter earnings call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. As a reminder, this conference call is being recorded. The news release detailing AngioDynamics's fiscal 2026 third quarter results crossed the wire earlier this morning and is available on the company's website. This conference call is also being broadcast live over the Internet at the Investors section of the company's website at www.angiodynamics.com. A webcast replay of the call will be available at the same site approximately one hour after the end of today's call. Before we begin, I'd like to caution listeners that during the course of this conference call, the company will make projections or forward-looking statements regarding future events, including statements about expected revenue, adjusted earnings, and gross margin for fiscal year 2026, as well as trends that may continue. Management encourages you to review the company's past and future filings with the SEC, including, without limitations, the company's Forms 10-Q and 10-K, which identify specific factors that may cause the actual results or events to differ materially from those described in the forward-looking statements. The company will also discuss certain non-GAAP and pro forma financial measures during this call. Management uses these measures to establish operational goals and review operational performance and believes that these measures may assist investors in analyzing the underlying trends in the company's business over time. Investors should consider these non-GAAP and pro forma measures in addition to, not a substitute for, or as superior to financial reporting measures prepared in accordance with GAAP. A slide package offering insight into the company's financial results is also available in the Investors section of the company's website under Events and Presentations. This presentation should be read in conjunction with the press release discussing the company's operating results and financial performance during this morning's conference call. Unless otherwise noted, all metrics and growth rates mentioned during today's call are on pro forma basis, which exclude the results of the Dialysis and BioSentry businesses that were divested in June 2023, the PICC and Midline products that were divested in February 2024, and the radiofrequency Syntrax support catheter products that we discontinued in February 2024. Also, unless otherwise noted, all comparisons will be the third fiscal quarter of 2026 versus the third fiscal quarter of 2025. Now, I would like to turn the call over to Jim Clemmer, AngioDynamics' President and Chief Executive Officer. Mr. Clemmer? Thank you, operator. Good morning, everyone, and thank you for joining us for AngioDynamics' fiscal 2026 third quarter earnings call. Joining me on today's call is Steve Trowbridge, AngioDynamics' Executive Vice President and Chief Financial Officer. Our third quarter was strong across the Board, and I am proud of how our team continues to execute. We maintained our trend of driving top-line growth led by impressive growth in our MedTech segment. Beyond the top line, we continued to deliver strong profitability by expanding our adjusted EBITDA. Our performance continues to show that our strategy to drive profitable growth in our high-margin, large MedTech markets is working. Based on that, we are once again raising our full-year guidance for net sales and adjusted EBITDA. That is our third consecutive quarter of raised guidance, and Steve will touch upon the details shortly. I am very proud of the resilience we have built into the business. We've developed this company around cardiovascular and oncology markets with three product portfolios that we are really excited about. Along the way, we've had to work through a manufacturing transition, deal with tariffs, and manage through a lot of macro uncertainty. None of that has slowed us down. That is because we have great people who know how to get the job done, and the results we are putting up are not because one thing went right. It is years of work coming together. Within our MedTech business, Auryon continued its strong momentum with the 19th consecutive quarter of double-digit year-over-year growth, which is a track record we are very proud of. We have consistently driven revenue growth by leveraging our superior technology to take share, and our push into the hospital market keeps paying off, driving both top-line growth and better economics. It is not just about taking share. With our AMBITION BTK study, we are not only winning in the current market, we are working to make the market larger. Internationally, we are seeing continued traction following our CE Mark approval. Turning to our Mechanical Thrombectomy business, we loved what we saw this quarter. Our combined portfolio of AlphaVac and AngioVac grew approximately 18% over the prior year, demonstrating the superior clinical performance of this portfolio. AlphaVac in particular had an outstanding quarter, delivering strong year-over-year growth and driving the largest sequential revenue increase we have seen since its launch. New accounts are coming on, more hospitals are bringing us through the VAC process and into inventory, and utilization within existing accounts keeps increasing. The physician feedback on this product is consistently strong. Our training and clinical education programs continue to be well-received, and we are seeing strong demand from physicians who want to learn how to use this technology and bring it into their practice. On the regulatory front, we have enrolled our first patients in the APEX-Return pivotal trial, evaluating the AlphaReturn Blood Management System when used with the AlphaVac for treating acute PE. That is an important milestone and we expect it to be a catalyst for accelerating adoption. We continue to strive to complete the approval process during the first quarter of calendar 2027. AngioVac continues to see strong demand. Together, these two products give us a differentiated position that we believe is unmatched in Mechanical Thrombectomy, and the portfolio selling approach keeps paying off. Our sales teams are doing a great job positioning both products based on clinical need and physician preference, and we expect to see continued strong growth from the combined thrombectomy portfolio going forward. Finally, NanoKnife. We had a very strong quarter for both disposables and capital. As you know, our CPT Category I code became effective on January 1st, and what we have seen thus far has been positive. There is continued opportunity to broaden coverage across both public and private payers, and our market access team remains focused on that. With respect to the patients being treated, what our physicians are seeing in practice lines up with what our PRESERVE study showed. In particular, excellent quality of life outcomes. We continue to see lots of organic interest in NanoKnife, and as a result, more patients are being treated each month. During the quarter, we also announced expanded European indications for NanoKnife to include soft tissue ablation for tumors of the liver, pancreas, kidney, and prostate. This expanded indication supports our broad-based market in Europe and positions NanoKnife as a true multi-organ platform internationally. Our Med Device segment keeps delivering as expected, and the team running this business does a terrific job competing across multiple markets simultaneously. I am really proud of where this company is today. Five years ago, we set out to transform AngioDynamics into a faster-growing, more profitable company by getting into larger markets with better products. We reshaped the portfolio, built the teams to support it, and figured out how to make it all work. That is what you're seeing in our numbers. Three consecutive quarters of raised guidance does not happen by accident. It is the right people doing the right things every day, and we are just getting started. With that, I'll turn the call over to Steve Trowbridge, our Executive Vice President and Chief Financial Officer, to review the quarter. Thanks, Jim, and good morning, everybody. As always, before I begin, I'd like to direct everyone to the presentation on our investor relations website summarizing the key items from our quarterly results. Unless otherwise noted, all metrics and growth rates mentioned during today's call are on a pro forma basis, which exclude the results of the Dialysis and BioSentry businesses that we divested in June 2023, the PICC and Midline products that we divested in February 2024, and the radio frequency and Syntrax support catheter products that we discontinued also in February of 2024. Additionally, unless otherwise noted, all comparisons will be the third fiscal quarter of 2026 versus the third fiscal quarter of 2025. Company top-line revenue performance was strong again in the quarter. Revenue increased 8.9% to $78.4 million, driven by growth across both our MedTech and Med Device segments. MedTech revenue was $37.3 million, a 19% increase. Year-to-date, our MedTech segment is up 19.1%. For the third fiscal quarter, our MedTech platforms comprised 48% of our total revenue compared to 44% of total revenue a year ago, reflecting the ongoing shift in our business mix. Digging into our MedTech segment, our Auryon platform contributed $16.3 million in revenue, growing 17.9% compared to last year. Auryon has now delivered double-digit year-over-year growth for 19 consecutive quarters. Beyond what Jim mentioned, we have continued to invest in product line extensions based on what we are hearing directly from our physicians, including our radial access and 1.7 mm catheters. That focus on listening to our customers and improving the platform is a big part of why Auryon keeps winning. Mechanical Thrombectomy revenue, which includes AngioVac and AlphaVac sales, increased 17.9% year-over-year, with revenue of $11.5 million. In the quarter, AlphaVac revenue was $4.4 million, a 47.4% year-over-year increase and a greater than 24% sequential increase over Q2 of this year. AngioVac revenue was $7.2 million, a 5% year-over-year increase. In Mechanical Thrombectomy, we are seeing strong adoption driven by new accounts, increasing utilization within existing accounts, and the continued expansion of our dedicated sales force. AngioVac revenue returned to growth in the quarter, and we remain pleased with the sustained procedure volumes and demand for this product. Total NanoKnife revenue was $7.6 million, an increase of 21%, with probes growing 20%. Probe sales are primarily driven by demand for NanoKnife in prostate care. NanoKnife capital sales grew 24.9% and were bolstered by strong demand for new systems as new physicians and providers adopt the technology. As these systems are placed and new physicians and providers experience the improved patient outcomes our technology enables, we expect them to drive increased probe utilization going forward. The leading indicators are encouraging. Demand for our training programs is strong, and the procedural trends we track give us confidence in where this business is headed. In the third quarter, our Med Device segment increased 1.1% year-over-year. Year-to-date, our Med Device segment is up 3%. This business generates consistent cash and profitability, allowing us to keep investing in the growth of our MedTech platforms. Now, moving down the income statement, our gross margin for the third quarter of FY 2026 was 52.9%, a 110 basis point decrease from the third quarter of FY 2025. As we discussed during our last earnings call for our Q2 results, the year-over-year decrease was primarily driven by the impact and timing of tariffs, inflation, and certain costs associated with our manufacturing transition. These expected structural elements were partially offset by continued product mix shift towards MedTech sales and pricing initiatives across both MedTech and Med Device. Total operating expenses in the quarter were $54.4 million, representing 69% of sales, compared to $48.8 million or 68% of sales last year. Turning to R&D, our research and development expense was $7.1 million or 9% of sales, compared to $6.9 million or 10% of sales a year ago. We remain committed to investing in R&D initiatives to support the long-term growth of our Med Tech segment and are targeting approximately 10% of sales going forward. SG&A expense for the third quarter of FY 2026 was $38.2 million, representing 49% of sales, compared to $36 million or 50% of sales a year ago. This result illustrates our strategy of simultaneously investing in sales and marketing to support sustained growth while driving operating leverage. Our adjusted net loss for the third quarter of FY 2026 was $3 million or an adjusted loss per share of $0.07 compared to an adjusted net loss of $3.1 million or an adjusted loss per share of $0.08 in the third quarter of last year. Adjusted EBITDA in the third quarter of FY 2026 was $1.8 million compared to adjusted EBITDA of $1.3 million in the third quarter of 2025. This year-over-year improvement is largely attributable to our MedTech revenue growth and the success of our gross margin and operating efficiency initiatives. We've done all this while absorbing tariff costs that were not there a year ago. Touching briefly on tariffs, tariff expense of $1.3 million in Q3 was again in line with our expectations. As we discussed last quarter, while the tariff landscape remains dynamic, we continue to expect to incur between $4 million and $6 million of tariff expenses for the full fiscal year 2026. As a reminder, there were no tariff-related expenses in our fiscal third quarter last year. At February 28th, 2026, we had $37.8 million in cash compared to $41.6 million in cash at November 30th, 2025. In the third quarter of fiscal 2026, the company used $3.1 million of cash, slightly better than our expectations. Turning now to guidance. Based on another strong quarter and our expectations for the balance of the year, we are raising multiple components of our full-year fiscal 2026 guidance. We now expect net sales to be in the range of $313.5 million-$315.5 million, raised from our previously issued range of $312 million-$314 million. This increased range represents growth of between 7.1% and 7.8% over fiscal 2025 revenue of $292.7 million. On a segment basis, we are raising Med Tech net sales growth to 15%-17% and now expect Med Device sales to grow at approximately 1%. For fiscal 2026, we continue to expect gross margin to be in the range of 53.5%-55.5%. This is inclusive of our reiterated estimate of $4 million-$6 million tariff impact for the full-year. We now expect adjusted EBITDA to be in the range of $10 million-$12 million, up from prior guidance of $8 million-$10 million, again, inclusive of our estimated tariff impact. As a reminder, adjusted EBITDA will be lower in the second half of the year than the first as our planned investments in clinical data development hit the P&L as well as the structural gross margin impacts I previously discussed. We now expect adjusted loss per share in the range of $0.30-$0.23, improving from our prior guidance of a loss of $0.33-$0.23. Turning to cash. We remain on course to illustrate that our business model will be cash flow positive as we expect to generate substantial cash in the fourth fiscal quarter in line with historical trends. Now, during the third fiscal quarter, we were advised by our sterilization vendors of their plan to implement two upcoming temporary shutdowns to perform maintenance activities during the fourth quarter. To proactively address this and avoid any potential commercial disruptions, we are planning to increase inventory levels for certain products during the fourth quarter. The net result will be the acceleration of the use of approximately $3 million-$5 million of cash to build inventory in the back half of this fiscal year, which normally would have been used in future periods. Now, this may result in cash flow for FY 2026 being slightly negative, but there is literally no modification to the positive cash generation pathway we have been on and the cash generation profile of our business. We maintain a strong balance sheet with zero debt. With that, I'll turn the call back to Jim. Thanks, Steve. Looking to the fourth quarter, we remain focused on finishing the year strong. We have built this company with a new portfolio aligned with the market and where the market's growing. We have built tremendous technologies. Every day, we bring value to our customers and the patients they serve. We are committed to grow our company in a really important way. We are committed to our shareholders to grow our value along the way. Before turning the call over to Q&A, I want to provide a quick update on the leadership transition. The Board has formed a search committee and has engaged a leading executive search firm. The process is moving forward on the timeline we laid out. Until my successor is appointed, Steve and I will continue leading the team, driving the company's strategic and financial initiatives. I am committed to making sure we have a seamless transition. With that, I'll turn the call back for questions. Thank you. At this time, we'll be conducting a question-and-answer session. If you'd like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our first question comes from the line of John Young with Canaccord Genuity. Please proceed with your question. Hi, Jim and Steve. Thanks for taking the question, and congratulations on the quarter. I first want to start on AlphaVac, that the sequential growth there was really impressive. Any additional color on the drivers? I know it was a bit subsequent to the quarter, but are you seeing any benefit today from the PE guidelines that were released in February? Maybe just how do you expect that to benefit the company in fiscal Q4 and in the following fiscal year? Thanks. Thanks, John. Good question. John, it's really going according to what we expected. You know, each quarter that goes by, we're able to get our product into new hands or hands of a physician who heard from his partner or another KOL how well the product performs. You saw the APEX-AV data that was generated to get our product on label. What we do is remove more clot faster and in a safe, really safe manner. That's becoming more exposed day-to-day, John. This is normal business cycle that we expect to grow our share. The two primary ways we're doing that are more hospitals approving us through their VAC process or VAC for everybody not knowing is value analysis committee or term whatever each hospital uses. That basically means we pass their test to get into inventory, get on the shelf to be utilized, and usually with one or two of the other products in the market, let physicians choose. Then second, John, also, we're getting physicians who've now used it a few times, getting really comfortable in the innovative features we built into the product and getting more comfortable in choosing it over the other competitive products. John, we expect the product to grow sequentially going forward, because it's a great design and it's a really good market. We have two good competitors, as you know, but we'll win more than our share going forward. Great. Thanks, Jim. Steve, just on the guidance, you know, given the climate we're in, I think investors are probably also curious, have you baked in any impact from higher energy costs? Are you seeing any impact yet in terms of rising supplier costs? Are you giving any specific buffer for that for, you know, the fiscal fourth quarter? If costs do rise, what's the ability for AngioDynamics to pass on those costs to customers? Thanks again. Yeah. Thanks, John. Absolutely. We're living in a dynamic environment, as you know that. You talked about inflation. You talked about energy costs. We mentioned tariffs in the prepared remarks. All of those elements definitely have an impact on the business, and they're all very hard to predict. We have built into our guidance our expectations of the best we know today of how we're going to manage all of those different dynamic elements. If you think about the guidance that we have, both in terms of EBITDA profitability as well as gross margin, we're expecting that we're going to have an impact that's embedded in there, both in terms of inflationary costs, which could include the energy increases that you've talked about, as well as tariffs. Again, that remains dynamic, but it's our best guess of where things are going today. In terms of rising prices and passing on to our customers, you know, I did mention in the prepared remarks around gross margin, we are seeing a benefit from our ability to raise prices in certain areas. That is not specifically tied to these dynamics of inflation or tariffs. It's more our ability just within the natural course of the commercial dealing to be able to take price with some of our superior products, both in MedTech as well as in Med Device. We'll continue to take price where we can, but we haven't been able to explicitly take price related to some of those rising costs. It's up to us to continue to manage through the way that we have been. Great, thank you again. Thank you. Our next question comes from the line of Frank Takkinen with Lake Street Capital Markets. Please proceed with your question. Great, thank you for taking the questions. I was hoping also to follow up on AlphaVac, just given how strong the number was there. As we think about future quarters and any gyrations in ordering patterns, should we view this $4.4 million as a new baseline to grow off of? Or was there potentially some pull ahead into the quarter that could have that number step back as we go forward? I know historically we've seen it pretty consistently grow sequentially. Just curious if that is expected to continue to be the trend going forward, for the last quarter as well as into 2027. Hi, Frank. Thanks for the question. We expect AlphaVac to continue to grow sequentially. As we've talked about, we think this is one of the drivers of growth for AngioDynamics this year, as well as heading into future periods. We're very excited about the product that we have. We're very excited about being in this market. It's a huge market that's gonna continue to grow. We're gonna continue to take share as well as grow along with the market. I would expect you would see AlphaVac continue to grow sequentially heading into the future periods. Perfect, very helpful. Just for my second one, was hoping to follow up on Auryon a little bit more. Any color you can provide on volume versus price and inpatient hospital versus OBL would be really helpful. Thanks so much. Yeah. As we've mentioned over the last number of quarters, moving into the hospital site of care has been a strategic imperative of our company. It helps us, as you mentioned, on price. It helps us on the nature of the customers, but it also helps us on setting the stage for the future. We've talked about Auryon as a platform technology moving into areas like coronary, and so it's important for us to be in the hospital setting. Our team has done a great job changing that dynamic of moving from being very OBL-centric, which is where we started due to the timeframe when we launched this product. That was during COVID. We could get into the OBLs. You couldn't get into the hospitals. Now making that shift and focusing on the hospital side of care. They've also done a great job making sure that we continue to grow that OBL business. If you look at the Auryon results, it's being driven by both elements, the price that we're seeing by having a higher percentage of our overall revenue base in the hospital, but also by driving additional procedure volume in the OBL. We expect to continue to do that. Now we expect to continue to do that because of the product that we have, the versatility that the Auryon laser has in treating calcification both above and below the knee. It can do things that no other product can do. We're excited about the continued future, which is why we said we expect Auryon to be a grower as we continue to head into future years, even though we're getting to much larger revenue base than we had when we first started launching the product. Perfect, very helpful. Thanks again. Thanks, Frank. Thank you. Ladies and gentlemen, our final question this morning comes from the line of Yi Chen with H.C. Wainwright. Please proceed with your question. Hi, good morning. This is Katie on for Yi. I had two quick follow-on questions for supply chain things that have come up. Could you give us a sense of what proportion of MedTech cost of goods are still exposed to China sourcing of components, and how much of that is kind of addressed by the Costa Rica transition? If you could also provide a little color on how continuous the sterilization shutdowns might be. Is that something that'll happen annually? Just something how we can think about that in terms of the supply chain. Hi, Katie. Thanks for your questions. On the first one on the supply chain, we haven't historically had a significant risk to component sourcing coming from China. So over the years, you know, we didn't necessarily get some of the benefit that you may have expected in three, four years ago, but we don't have the risk as we sit here today. So we don't identify component sourcing out of China as a big risk for us, either in MedTech or our Med Device products. Inflationary impacts, you know, we have talked about in terms of the supply chain, but it's not necessarily what I would call a China exposure. On your question around the sterilization shutdown, is it continuous? Look, these happen. It's not something that happens all the time. The reason we called it out was more because there was a little bit of a stack tolerance going into our inventory buildups as we were finishing the supply manufacturing agreement with Spectrum, which is who we sold the PICC and Midline business to, while we were continuing to finish our move from the rest of the products that we had out of Queensbury down to Costa Rica. You had a couple things that were stacking on top of this. The reason we bring it up is it is gonna be a little bit of a use of cash ahead of our expectations in the quarter, but we're doing exactly what you expect us to do. We're managing the business. It's why we have a very strong balance sheet to start with really good quick and current ratios. If you go through the assets and the liabilities that we have, we have a significant net cash position. We're going to generate significant cash in the fourth quarter, along with historical trends and along with our current business model updates. It allows us to be able to do what we're talking about doing and mitigate any potential disruption from sterilization shutdowns. They happen. We're gonna stay close to our sterilizers. I wouldn't think of it as something that is gonna be derailing in the future. We're just calling it out because we're managing our business. We're doing what everyone would expect us to do, and we're making sure there's no disruptions because of the strong position that we're in. Perfect, thank you so much. Thank you. Thank you. Ladies and gentlemen, this concludes our question-and-answer session. I'll turn the floor back to Mr. Clemmer for any final comments. Thank you, and thanks for joining us today, and I hope you got insight to what makes AngioDynamics special and shows how we can compete and win in this marketplace, today, tomorrow, and going forward for a long period of time. I'd like to thank our employees for really making this happen. We have a great team of people at work. I also wanna mention here at Angio this week, we lost an important member of our team. We wanna recognize Jim Culhane for his work as a leader and one of our research and development leaders. Jim really lived our culture of patient first. Jim helped to build products like the AlphaVac. His great design work, the team he led, really enables patients today to get better and get healthier due to our products. Jim Culhane was an important leader here, and we express our condolences to his family and friends with his recent passing. Thank you for joining us today. Thank you. This concludes today's conference call. You may disconnect your lines at this time. Thank you for your participation.

Speaker 5: Good morning, and welcome to the AngioDynamics Fiscal Year 2026 third quarter earnings call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. As a reminder, this conference call is being recorded. The news release detailing AngioDynamics's fiscal 2026 third quarter results crossed the wire earlier this morning and is available on the company's website. This conference call is also being broadcast live over the Internet at the Investors section of the company's website at www.angiodynamics.com. A webcast replay of the call will be available at the same site approximately one hour after the end of today's call. Good morning, and welcome to the AngioDynamics Fiscal Year 2026 third quarter earnings call. good morning and welcome to the angiodynamics fiscal year 2026 third quarter earnings call At this time, all participants are in a listen-only mode. at this time all participants are in a listen-only mode A question-and-answer session will follow the formal presentation. a question-and-answer session will follow the formal presentation As a reminder, this conference call is being recorded. as a reminder this conference call is being recorded The news release detailing AngioDynamics's fiscal 2026 third quarter results crossed the wire earlier this morning and is available on the company's website. the news release detailing angiodynamics's fiscal 2026 third quarter results crossed the wire earlier this morning and is available on the company's website This conference call is also being broadcast live over the Internet at the Investors section of the company's website at www.angiodynamics.com. this conference call is also being broadcast live over the internet at the investors section of the company's website at www.angiodynamics.com A webcast replay of the call will be available at the same site approximately one hour after the end of today's call. a webcast replay of the call will be available at the same site approximately one hour after the end of today's call Before we begin, I'd like to caution listeners that during the course of this conference call, the company will make projections or forward-looking statements regarding future events, including statements about expected revenue, adjusted earnings, and gross margin for fiscal year 2026, as well as trends that may continue. Management encourages you to review the company's past and future filings with the SEC, including, without limitations, the company's Forms 10-Q and 10-K, which identify specific factors that may cause the actual results or events to differ materially from those described in the forward-looking statements. The company will also discuss certain non-GAAP and pro forma financial measures during this call. Management uses these measures to establish operational goals and review operational performance and believes that these measures may assist investors in analyzing the underlying trends in the company's business over time. Before we begin, I'd like to caution listeners that during the course of this conference call, the company will make projections or forward-looking statements regarding future events, including statements about expected revenue, adjusted earnings, and gross margin for fiscal year 2026, as well as trends that may continue. before we begin i'd like to caution listeners that during the course of this conference call the company will make projections or forward-looking statements regarding future events including statements about expected revenue adjusted earnings and gross margin for fiscal year 2026 as well as trends that may continue Management encourages you to review the company's past and future filings with the SEC, including, without limitations, the company's Forms 10-Q and 10-K, which identify specific factors that may cause the actual results or events to differ materially from those described in the forward-looking statements. management encourages you to review the company's past and future filings with the sec including without limitations the company's forms 10-q and 10-k which identify specific factors that may cause the actual results or events to differ materially from those described in the forward-looking statements The company will also discuss certain non-GAAP and pro forma financial measures during this call. the company will also discuss certain non-gaap and pro forma financial measures during this call Management uses these measures to establish operational goals and review operational performance and believes that these measures may assist investors in analyzing the underlying trends in the company's business over time. management uses these measures to establish operational goals and review operational performance and believes that these measures may assist investors in analyzing the underlying trends in the company's business over time Investors should consider these non-GAAP and pro forma measures in addition to, not a substitute for, or as superior to financial reporting measures prepared in accordance with GAAP. A slide package offering insight into the company's financial results is also available in the Investors section of the company's website under Events and Presentations. This presentation should be read in conjunction with the press release discussing the company's operating results and financial performance during this morning's conference call. Investors should consider these non-GAAP and pro forma measures in addition to, not a substitute for, or as superior to financial reporting measures prepared in accordance with GAAP. investors should consider these non-gaap and pro forma measures in addition to not a substitute for or as superior to financial reporting measures prepared in accordance with gaap A slide package offering insight into the company's financial results is also available in the Investors section of the company's website under Events and Presentations. a slide package offering insight into the company's financial results is also available in the investors section of the company's website under events and presentations This presentation should be read in conjunction with the press release discussing the company's operating results and financial performance during this morning's conference call. this presentation should be read in conjunction with the press release discussing the company's operating results and financial performance during this morning's conference call Unless otherwise noted, all metrics and growth rates mentioned during today's call are on pro forma basis, which exclude the results of the Dialysis and BioSentry businesses that were divested in June 2023, the PICC and Midline products that were divested in February 2024, and the radiofrequency Syntrax support catheter products that we discontinued in February 2024. Also, unless otherwise noted, all comparisons will be the third fiscal quarter of 2026 versus the third fiscal quarter of 2025. Now, I would like to turn the call over to Jim Clemmer, AngioDynamics' President and Chief Executive Officer. Mr. Clemmer? Unless otherwise noted, all metrics and growth rates mentioned during today's call are on pro forma basis, which exclude the results of the Dialysis and BioSentry businesses that were divested in June 2023, the PICC and Midline products that were divested in February 2024, and the radiofrequency Syntrax support catheter products that we discontinued in February 2024. unless otherwise noted all metrics and growth rates mentioned during today's call are on pro forma basis which exclude the results of the dialysis and biosentry businesses that were divested in june 2023 the picc and midline products that were divested in february 2024 and the radiofrequency syntrax support catheter products that we discontinued in february 2024 Also, unless otherwise noted, all comparisons will be the third fiscal quarter of 2026 versus the third fiscal quarter of 2025. also unless otherwise noted all comparisons will be the third fiscal quarter of 2026 versus the third fiscal quarter of 2025 Now, I would like to turn the call over to Jim Clemmer, AngioDynamics' President and Chief Executive Officer. now i would like to turn the call over to jim clemmer angiodynamics' president and chief executive officer Mr. Clemmer? mr clemmer

Speaker 2: Thank you, operator. Good morning, everyone, and thank you for joining us for AngioDynamics' fiscal 2026 third quarter earnings call. Joining me on today's call is Steve Trowbridge, AngioDynamics' Executive Vice President and Chief Financial Officer. Our third quarter was strong across the Board, and I am proud of how our team continues to execute. We maintained our trend of driving top-line growth led by impressive growth in our MedTech segment. Beyond the top line, we continued to deliver strong profitability by expanding our adjusted EBITDA. Our performance continues to show that our strategy to drive profitable growth in our high-margin, large MedTech markets is working. Based on that, we are once again raising our full-year guidance for net sales and adjusted EBITDA. That is our third consecutive quarter of raised guidance, and Steve will touch upon the details shortly. Thank you, operator. thank you operator Good morning, everyone, and thank you for joining us for AngioDynamics' fiscal 2026 third quarter earnings call. good morning everyone and thank you for joining us for angiodynamics' fiscal 2026 third quarter earnings call Joining me on today's call is Steve Trowbridge, AngioDynamics' Executive Vice President and Chief Financial Officer. joining me on today's call is steve trowbridge angiodynamics' executive vice president and chief financial officer Our third quarter was strong across the Board, and I am proud of how our team continues to execute. our third quarter was strong across the board and i am proud of how our team continues to execute We maintained our trend of driving top-line growth led by impressive growth in our MedTech segment. we maintained our trend of driving top-line growth led by impressive growth in our medtech segment Beyond the top line, we continued to deliver strong profitability by expanding our adjusted EBITDA. beyond the top line we continued to deliver strong profitability by expanding our adjusted ebitda Our performance continues to show that our strategy to drive profitable growth in our high-margin, large MedTech markets is working. our performance continues to show that our strategy to drive profitable growth in our high-margin large medtech markets is working Based on that, we are once again raising our full- year guidance for net sales and adjusted EBITDA. based on that we are once again raising our full- year guidance for net sales and adjusted ebitda That is our third consecutive quarter of raised guidance, and Steve will touch upon the details shortly. that is our third consecutive quarter of raised guidance and steve will touch upon the details shortly I am very proud of the resilience we have built into the business. We've developed this company around cardiovascular and oncology markets with three product portfolios that we are really excited about. Along the way, we've had to work through a manufacturing transition, deal with tariffs, and manage through a lot of macro uncertainty. None of that has slowed us down. That is because we have great people who know how to get the job done, and the results we are putting up are not because one thing went right. It is years of work coming together. Within our MedTech business, Auryon continued its strong momentum with the 19th consecutive quarter of double-digit year-over-year growth, which is a track record we are very proud of. I am very proud of the resilience we have built into the business. i am very proud of the resilience we have built into the business We've developed this company around cardiovascular and oncology markets with three product portfolios that we are really excited about. we've developed this company around cardiovascular and oncology markets with three product portfolios that we are really excited about Along the way, we've had to work through a manufacturing transition, deal with tariffs, and manage through a lot of macro uncertainty. along the way we've had to work through a manufacturing transition deal with tariffs and manage through a lot of macro uncertainty None of that has slowed us down. none of that has slowed us down That is because we have great people who know how to get the job done, and the results we are putting up are not because one thing went right. that is because we have great people who know how to get the job done and the results we are putting up are not because one thing went right It is years of work coming together. it is years of work coming together Within our MedTech business, Auryon continued its strong momentum with the 19th consecutive quarter of double-digit year-over-year growth, which is a track record we are very proud of. within our medtech business auryon continued its strong momentum with the 19th consecutive quarter of double-digit year-over-year growth which is a track record we are very proud of We have consistently driven revenue growth by leveraging our superior technology to take share, and our push into the hospital market keeps paying off, driving both top-line growth and better economics. It is not just about taking share. With our AMBITION BTK study, we are not only winning in the current market, we are working to make the market larger. Internationally, we are seeing continued traction following our CE Mark approval. Turning to our Mechanical Thrombectomy business, we loved what we saw this quarter. Our combined portfolio of AlphaVac and AngioVac grew approximately 18% over the prior year, demonstrating the superior clinical performance of this portfolio. AlphaVac in particular had an outstanding quarter, delivering strong year-over-year growth and driving the largest sequential revenue increase we have seen since its launch. We have consistently driven revenue growth by leveraging our superior technology to take share, and our push into the hospital market keeps paying off, driving both top-line growth and better economics. we have consistently driven revenue growth by leveraging our superior technology to take share and our push into the hospital market keeps paying off driving both top-line growth and better economics It is not just about taking share. it is not just about taking share With our AMBITION BTK study, we are not only winning in the current market, we are working to make the market larger. with our ambition btk study we are not only winning in the current market we are working to make the market larger Internationally, we are seeing continued traction following our CE Mark approval. internationally we are seeing continued traction following our ce mark approval Turning to our Mechanical Thrombectomy business, we loved what we saw this quarter. turning to our mechanical thrombectomy business we loved what we saw this quarter Our combined portfolio of AlphaVac and AngioVac grew approximately 18% over the prior year, demonstrating the superior clinical performance of this portfolio. our combined portfolio of alphavac and angiovac grew approximately 18% over the prior year, demonstrating the superior clinical performance of this portfolio AlphaVac in particular had an outstanding quarter, delivering strong year-over-year growth and driving the largest sequential revenue increase we have seen since its launch. alphavac in particular had an outstanding quarter delivering strong year-over-year growth and driving the largest sequential revenue increase we have seen since its launch New accounts are coming on, more hospitals are bringing us through the VAC process and into inventory, and utilization within existing accounts keeps increasing. The physician feedback on this product is consistently strong. Our training and clinical education programs continue to be well-received, and we are seeing strong demand from physicians who want to learn how to use this technology and bring it into their practice. On the regulatory front, we have enrolled our first patients in the APEX-Return pivotal trial, evaluating the AlphaReturn Blood Management System when used with the AlphaVac for treating acute PE. That is an important milestone and we expect it to be a catalyst for accelerating adoption. We continue to strive to complete the approval process during the first quarter of calendar 2027. AngioVac continues to see strong demand. New accounts are coming on, more hospitals are bringing us through the VAC process and into inventory, and utilization within existing accounts keeps increasing. new accounts are coming on more hospitals are bringing us through the vac process and into inventory and utilization within existing accounts keeps increasing The physician feedback on this product is consistently strong. the physician feedback on this product is consistently strong Our training and clinical education programs continue to be well-received, and we are seeing strong demand from physicians who want to learn how to use this technology and bring it into their practice. our training and clinical education programs continue to be well-received and we are seeing strong demand from physicians who want to learn how to use this technology and bring it into their practice On the regulatory front, we have enrolled our first patients in the APEX-Return pivotal trial, evaluating the AlphaReturn Blood Management System when used with the AlphaVac for treating acute PE. on the regulatory front we have enrolled our first patients in the apex-return pivotal trial evaluating the alphareturn blood management system when used with the alphavac for treating acute pe That is an important milestone and we expect it to be a catalyst for accelerating adoption. that is an important milestone and we expect it to be a catalyst for accelerating adoption We continue to strive to complete the approval process during the first quarter of calendar 2027. we continue to strive to complete the approval process during the first quarter of calendar 2027 AngioVac continues to see strong demand. angiovac continues to see strong demand Together, these two products give us a differentiated position that we believe is unmatched in Mechanical Thrombectomy, and the portfolio selling approach keeps paying off. Our sales teams are doing a great job positioning both products based on clinical need and physician preference, and we expect to see continued strong growth from the combined thrombectomy portfolio going forward. Finally, NanoKnife. We had a very strong quarter for both disposables and capital. As you know, our CPT Category I code became effective on January 1st, and what we have seen thus far has been positive. There is continued opportunity to broaden coverage across both public and private payers, and our market access team remains focused on that. With respect to the patients being treated, what our physicians are seeing in practice lines up with what our PRESERVE study showed. In particular, excellent quality of life outcomes. Together, these two products give us a differentiated position that we believe is unmatched in Mechanical Thrombectomy, and the portfolio selling approach keeps paying off. together these two products give us a differentiated position that we believe is unmatched in mechanical thrombectomy and the portfolio selling approach keeps paying off Our sales teams are doing a great job positioning both products based on clinical need and physician preference, and we expect to see continued strong growth from the combined thrombectomy portfolio going forward. our sales teams are doing a great job positioning both products based on clinical need and physician preference and we expect to see continued strong growth from the combined thrombectomy portfolio going forward Finally, NanoKnife. finally nanoknife We had a very strong quarter for both disposables and capital. we had a very strong quarter for both disposables and capital As you know, our CPT Category I code became effective on January 1st, and what we have seen thus far has been positive. as you know our cpt category i code became effective on january 1st and what we have seen thus far has been positive There is continued opportunity to broaden coverage across both public and private payers, and our market access team remains focused on that. there is continued opportunity to broaden coverage across both public and private payers and our market access team remains focused on that With respect to the patients being treated, what our physicians are seeing in practice lines up with what our PRESERVE study showed. with respect to the patients being treated what our physicians are seeing in practice lines up with what our preserve study showed In particular, excellent quality of life outcomes. in particular excellent quality of life outcomes We continue to see lots of organic interest in NanoKnife, and as a result, more patients are being treated each month. During the quarter, we also announced expanded European indications for NanoKnife to include soft tissue ablation for tumors of the liver, pancreas, kidney, and prostate. This expanded indication supports our broad-based market in Europe and positions NanoKnife as a true multi-organ platform internationally. Our Med Device segment keeps delivering as expected, and the team running this business does a terrific job competing across multiple markets simultaneously. We continue to see lots of organic interest in NanoKnife, and as a result, more patients are being treated each month. we continue to see lots of organic interest in nanoknife and as a result more patients are being treated each month During the quarter, we also announced expanded European indications for NanoKnife to include soft tissue ablation for tumors of the liver, pancreas, kidney, and prostate. during the quarter we also announced expanded european indications for nanoknife to include soft tissue ablation for tumors of the liver pancreas kidney and prostate This expanded indication supports our broad-based market in Europe and positions NanoKnife as a true multi-organ platform internationally. this expanded indication supports our broad-based market in europe and positions nanoknife as a true multi-organ platform internationally Our Med Device segment keeps delivering as expected, and the team running this business does a terrific job competing across multiple markets simultaneously. our med device segment keeps delivering as expected and the team running this business does a terrific job competing across multiple markets simultaneously I am really proud of where this company is today. Five years ago, we set out to transform AngioDynamics into a faster-growing, more profitable company by getting into larger markets with better products. We reshaped the portfolio, built the teams to support it, and figured out how to make it all work. That is what you're seeing in our numbers. Three consecutive quarters of raised guidance does not happen by accident. It is the right people doing the right things every day, and we are just getting started. With that, I'll turn the call over to Steve Trowbridge, our Executive Vice President and Chief Financial Officer, to review the quarter. I am really proud of where this company is today. i am really proud of where this company is today Five years ago, we set out to transform AngioDynamics into a faster-growing, more profitable company by getting into larger markets with better products. five years ago we set out to transform angiodynamics into a faster-growing more profitable company by getting into larger markets with better products We reshaped the portfolio, built the teams to support it, and figured out how to make it all work. we reshaped the portfolio built the teams to support it and figured out how to make it all work That is what you're seeing in our numbers. that is what you're seeing in our numbers Three consecutive quarters of raised guidance does not happen by accident. three consecutive quarters of raised guidance does not happen by accident It is the right people doing the right things every day, and we are just getting started. it is the right people doing the right things every day and we are just getting started With that, I'll turn the call over to Steve Trowbridge, our Executive Vice President and Chief Financial Officer, to review the quarter. with that i'll turn the call over to steve trowbridge our executive vice president and chief financial officer to review the quarter

Speaker 6: Thanks, Jim, and good morning, everybody. As always, before I begin, I'd like to direct everyone to the presentation on our investor relations website summarizing the key items from our quarterly results. Unless otherwise noted, all metrics and growth rates mentioned during today's call are on a pro forma basis, which exclude the results of the Dialysis and BioSentry businesses that we divested in June 2023, the PICC and Midline products that we divested in February 2024, and the radio frequency and Syntrax support catheter products that we discontinued also in February of 2024. Additionally, unless otherwise noted, all comparisons will be the third fiscal quarter of 2026 versus the third fiscal quarter of 2025. Thanks, Jim, and good morning, everybody. thanks jim and good morning everybody As always, before I begin, I'd like to direct everyone to the presentation on our investor relations website summarizing the key items from our quarterly results. as always before i begin i'd like to direct everyone to the presentation on our investor relations website summarizing the key items from our quarterly results Unless otherwise noted, all metrics and growth rates mentioned during today's call are on a pro forma basis, which exclude the results of the Dialysis and BioSentry businesses that we divested in June 2023, the PICC and Midline products that we divested in February 2024, and the radio frequency and Syntrax support catheter products that we discontinued also in February of 2024. unless otherwise noted all metrics and growth rates mentioned during today's call are on a pro forma basis which exclude the results of the dialysis and biosentry businesses that we divested in june 2023 the picc and midline products that we divested in february 2024 and the radio frequency and syntrax support catheter products that we discontinued also in february of 2024 Additionally, unless otherwise noted, all comparisons will be the third fiscal quarter of 2026 versus the third fiscal quarter of 2025. additionally unless otherwise noted all comparisons will be the third fiscal quarter of 2026 versus the third fiscal quarter of 2025 Company top-line revenue performance was strong again in the quarter. Revenue increased 8.9% to $78.4 million, driven by growth across both our MedTech and Med Device segments. MedTech revenue was $37.3 million, a 19% increase. Year-to-date, our MedTech segment is up 19.1%. For the third fiscal quarter, our MedTech platforms comprised 48% of our total revenue compared to 44% of total revenue a year ago, reflecting the ongoing shift in our business mix. Digging into our MedTech segment, our Auryon platform contributed $16.3 million in revenue, growing 17.9% compared to last year. Auryon has now delivered double-digit year-over-year growth for 19 consecutive quarters. Beyond what Jim mentioned, we have continued to invest in product line extensions based on what we are hearing directly from our physicians, including our radial access and 1.7 mm catheters. Company top-line revenue performance was strong again in the quarter. company top-line revenue performance was strong again in the quarter Revenue increased 8.9% to $78.4 million, driven by growth across both our MedTech and Med Device segments. revenue increased 8.9% to $78.4 million driven by growth across both our medtech and med device segments MedTech revenue was $37.3 million, a 19% increase. medtech revenue was $37.3 million a 19% increase Year- to- date, our MedTech segment is up 19.1%. year- to- date our medtech segment is up 19.1% For the third fiscal quarter, our MedTech platforms comprised 48% of our total revenue compared to 44% of total revenue a year ago, reflecting the ongoing shift in our business mix. for the third fiscal quarter our medtech platforms comprised 48% of our total revenue compared to 44% of total revenue a year ago reflecting the ongoing shift in our business mix Digging into our MedTech segment, our Auryon platform contributed $16.3 million in revenue, growing 17.9% compared to last year. digging into our medtech segment our auryon platform contributed $16.3 million in revenue growing 17.9% compared to last year Auryon has now delivered double-digit year-over-year growth for 19 consecutive quarters. Beyond what Jim mentioned, we have continued to invest in product line extensions based on what we are hearing directly from our physicians, including our radial access and 1.7 mm catheters. auryon has now delivered double-digit year-over-year growth for 19 consecutive quarters. beyond what jim mentioned we have continued to invest in product line extensions based on what we are hearing directly from our physicians including our radial access and 1.7 mm catheters That focus on listening to our customers and improving the platform is a big part of why Auryon keeps winning. Mechanical Thrombectomy revenue, which includes AngioVac and AlphaVac sales, increased 17.9% year-over-year, with revenue of $11.5 million. In the quarter, AlphaVac revenue was $4.4 million, a 47.4% year-over-year increase and a greater than 24% sequential increase over Q2 of this year. AngioVac revenue was $7.2 million, a 5% year-over-year increase. In Mechanical Thrombectomy, we are seeing strong adoption driven by new accounts, increasing utilization within existing accounts, and the continued expansion of our dedicated sales force. AngioVac revenue returned to growth in the quarter, and we remain pleased with the sustained procedure volumes and demand for this product. That focus on listening to our customers and improving the platform is a big part of why Auryon keeps winning. that focus on listening to our customers and improving the platform is a big part of why auryon keeps winning Mechanical Thrombectomy revenue, which includes AngioVac and AlphaVac sales, increased 17.9% year-over-year, with revenue of $11.5 million. mechanical thrombectomy revenue which includes angiovac and alphavac sales increased 17.9% year-over-year with revenue of $11.5 million In the quarter, AlphaVac revenue was $4.4 million, a 47.4% year-over-year increase and a greater than 24% sequential increase over Q2 of this year. in the quarter alphavac revenue was $4.4 million a 47.4% year-over-year increase and a greater than 24% sequential increase over q2 of this year AngioVac revenue was $7.2 million, a 5% year-over-year increase. angiovac revenue was $7.2 million a 5% year-over-year increase In Mechanical Thrombectomy, we are seeing strong adoption driven by new accounts, increasing utilization within existing accounts, and the continued expansion of our dedicated sales force. in mechanical thrombectomy we are seeing strong adoption driven by new accounts increasing utilization within existing accounts and the continued expansion of our dedicated sales force AngioVac revenue returned to growth in the quarter, and we remain pleased with the sustained procedure volumes and demand for this product. angiovac revenue returned to growth in the quarter and we remain pleased with the sustained procedure volumes and demand for this product Total NanoKnife revenue was $7.6 million, an increase of 21%, with probes growing 20%. Probe sales are primarily driven by demand for NanoKnife in prostate care. NanoKnife capital sales grew 24.9% and were bolstered by strong demand for new systems as new physicians and providers adopt the technology. As these systems are placed and new physicians and providers experience the improved patient outcomes our technology enables, we expect them to drive increased probe utilization going forward. The leading indicators are encouraging. Demand for our training programs is strong, and the procedural trends we track give us confidence in where this business is headed. In the third quarter, our Med Device segment increased 1.1% year-over-year. Year-to-date, our Med Device segment is up 3%. Total NanoKnife revenue was $7.6 million, an increase of 21%, with probes growing 20%. total nanoknife revenue was $7.6 million an increase of 21% with probes growing 20% Probe sales are primarily driven by demand for NanoKnife in prostate care. probe sales are primarily driven by demand for nanoknife in prostate care NanoKnife capital sales grew 24.9% and were bolstered by strong demand for new systems as new physicians and providers adopt the technology. nanoknife capital sales grew 24.9% and were bolstered by strong demand for new systems as new physicians and providers adopt the technology As these systems are placed and new physicians and providers experience the improved patient outcomes our technology enables, we expect them to drive increased probe utilization going forward. as these systems are placed and new physicians and providers experience the improved patient outcomes our technology enables we expect them to drive increased probe utilization going forward The leading indicators are encouraging. the leading indicators are encouraging Demand for our training programs is strong, and the procedural trends we track give us confidence in where this business is headed. demand for our training programs is strong and the procedural trends we track give us confidence in where this business is headed In the third quarter, our Med Device segment increased 1.1% year-over-year. in the third quarter our med device segment increased 1.1% year-over-year Year- to- date, our Med Device segment is up 3%. year- to- date our med device segment is up 3% This business generates consistent cash and profitability, allowing us to keep investing in the growth of our MedTech platforms. Now, moving down the income statement, our gross margin for the third quarter of FY 2026 was 52.9%, a 110 basis point decrease from the third quarter of FY 2025. As we discussed during our last earnings call for our Q2 results, the year-over-year decrease was primarily driven by the impact and timing of tariffs, inflation, and certain costs associated with our manufacturing transition. These expected structural elements were partially offset by continued product mix shift towards MedTech sales and pricing initiatives across both MedTech and Med Device. Total operating expenses in the quarter were $54.4 million, representing 69% of sales, compared to $48.8 million or 68% of sales last year. This business generates consistent cash and profitability, allowing us to keep investing in the growth of our MedTech platforms. this business generates consistent cash and profitability allowing us to keep investing in the growth of our medtech platforms Now, moving down the income statement, our gross margin for the third quarter of FY 2026 was 52.9%, a 110 basis point decrease from the third quarter of FY 2025. now moving down the income statement our gross margin for the third quarter of fy 2026 was 52.9% a 110 basis point decrease from the third quarter of fy 2025 As we discussed during our last earnings call for our Q2 results, the year-over-year decrease was primarily driven by the impact and timing of tariffs, inflation, and certain costs associated with our manufacturing transition. as we discussed during our last earnings call for our q2 results the year-over-year decrease was primarily driven by the impact and timing of tariffs inflation and certain costs associated with our manufacturing transition These expected structural elements were partially offset by continued product mix shift towards MedTech sales and pricing initiatives across both MedTech and Med Device. these expected structural elements were partially offset by continued product mix shift towards medtech sales and pricing initiatives across both medtech and med device Total operating expenses in the quarter were $54.4 million, representing 69% of sales, compared to $48.8 million or 68% of sales last year. total operating expenses in the quarter were $54.4 million representing 69% of sales compared to $48.8 million or 68% of sales last year Turning to R&D, our research and development expense was $7.1 million or 9% of sales, compared to $6.9 million or 10% of sales a year ago. We remain committed to investing in R&D initiatives to support the long-term growth of our Med Tech segment and are targeting approximately 10% of sales going forward. SG&A expense for the third quarter of FY 2026 was $38.2 million, representing 49% of sales, compared to $36 million or 50% of sales a year ago. This result illustrates our strategy of simultaneously investing in sales and marketing to support sustained growth while driving operating leverage. Turning to R&D, our research and development expense was $7.1 million or 9% of sales, compared to $6.9 million or 10% of sales a year ago. turning to r&d our research and development expense was $7.1 million or 9% of sales compared to $6.9 million or 10% of sales a year ago We remain committed to investing in R&D initiatives to support the long-term growth of our Med Tech segment and are targeting approximately 10% of sales going forward. we remain committed to investing in r&d initiatives to support the long-term growth of our med tech segment and are targeting approximately 10% of sales going forward SG&A expense for the third quarter of FY 2026 was $38.2 million, representing 49% of sales, compared to $36 million or 50% of sales a year ago. sg&a expense for the third quarter of fy 2026 was $38.2 million representing 49% of sales compared to $36 million or 50% of sales a year ago This result illustrates our strategy of simultaneously investing in sales and marketing to support sustained growth while driving operating leverage. this result illustrates our strategy of simultaneously investing in sales and marketing to support sustained growth while driving operating leverage Our adjusted net loss for the third quarter of FY 2026 was $3 million or an adjusted loss per share of $0.07 compared to an adjusted net loss of $3.1 million or an adjusted loss per share of $0.08 in the third quarter of last year. Adjusted EBITDA in the third quarter of FY 2026 was $1.8 million compared to adjusted EBITDA of $1.3 million in the third quarter of 2025. This year-over-year improvement is largely attributable to our MedTech revenue growth and the success of our gross margin and operating efficiency initiatives. We've done all this while absorbing tariff costs that were not there a year ago. Touching briefly on tariffs, tariff expense of $1.3 million in Q3 was again in line with our expectations. Our adjusted net loss for the third quarter of FY 2026 was $3 million or an adjusted loss per share of $0.07 compared to an adjusted net loss of $3.1 million or an adjusted loss per share of $0.08 in the third quarter of last year. our adjusted net loss for the third quarter of fy 2026 was $3 million or an adjusted loss per share of $0.07 compared to an adjusted net loss of $3.1 million or an adjusted loss per share of $0.08 in the third quarter of last year Adjusted EBITDA in the third quarter of FY 2026 was $1.8 million compared to adjusted EBITDA of $1.3 million in the third quarter of 2025. adjusted ebitda in the third quarter of fy 2026 was $1.8 million compared to adjusted ebitda of $1.3 million in the third quarter of 2025 This year-over-year improvement is largely attributable to our MedTech revenue growth and the success of our gross margin and operating efficiency initiatives. this year-over-year improvement is largely attributable to our medtech revenue growth and the success of our gross margin and operating efficiency initiatives We've done all this while absorbing tariff costs that were not there a year ago. we've done all this while absorbing tariff costs that were not there a year ago Touching briefly on tariffs, tariff expense of $1.3 million in Q3 was again in line with our expectations. touching briefly on tariffs tariff expense of $1.3 million in q3 was again in line with our expectations As we discussed last quarter, while the tariff landscape remains dynamic, we continue to expect to incur between $4 million and $6 million of tariff expenses for the full fiscal year 2026. As a reminder, there were no tariff-related expenses in our fiscal third quarter last year. At February 28th, 2026, we had $37.8 million in cash compared to $41.6 million in cash at November 30th, 2025. In the third quarter of fiscal 2026, the company used $3.1 million of cash, slightly better than our expectations. Turning now to guidance. Based on another strong quarter and our expectations for the balance of the year, we are raising multiple components of our full-year fiscal 2026 guidance. As we discussed last quarter, while the tariff landscape remains dynamic, we continue to expect to incur between $4 million and $6 million of tariff expenses for the full fiscal year 2026. as we discussed last quarter while the tariff landscape remains dynamic we continue to expect to incur between $4 million and $6 million of tariff expenses for the full fiscal year 2026 As a reminder, there were no tariff-related expenses in our fiscal third quarter last year. as a reminder there were no tariff-related expenses in our fiscal third quarter last year At February 28th, 2026, we had $37.8 million in cash compared to $41.6 million in cash at November 30th, 2025. at february 28th 2026 we had $37.8 million in cash compared to $41.6 million in cash at november 30th 2025 In the third quarter of fiscal 2026, the company used $3.1 million of cash, slightly better than our expectations. in the third quarter of fiscal 2026 the company used $3.1 million of cash slightly better than our expectations Turning now to guidance. turning now to guidance Based on another strong quarter and our expectations for the balance of the year, we are raising multiple components of our full- year fiscal 2026 guidance. based on another strong quarter and our expectations for the balance of the year we are raising multiple components of our full- year fiscal 2026 guidance We now expect net sales to be in the range of $313.5 million-$315.5 million, raised from our previously issued range of $312 million-$314 million. This increased range represents growth of between 7.1% and 7.8% over fiscal 2025 revenue of $292.7 million. On a segment basis, we are raising Med Tech net sales growth to 15%-17% and now expect Med Device sales to grow at approximately 1%. For fiscal 2026, we continue to expect gross margin to be in the range of 53.5%-55.5%. This is inclusive of our reiterated estimate of $4 million-$6 million tariff impact for the full-year. We now expect net sales to be in the range of $313.5 million-$315.5 million, raised from our previously issued range of $312 million-$314 million. we now expect net sales to be in the range of $313.5 million-$315.5 million raised from our previously issued range of $312 million-$314 million This increased range represents growth of between 7.1% and 7.8% over fiscal 2025 revenue of $292.7 million. this increased range represents growth of between 7.1% and 7.8% over fiscal 2025 revenue of $292.7 million On a segment basis, we are raising Med Tech net sales growth to 15%-17% and now expect Med Device sales to grow at approximately 1%. on a segment basis we are raising med tech net sales growth to 15%-17% and now expect med device sales to grow at approximately 1% For fiscal 2026, we continue to expect gross margin to be in the range of 53.5%-55.5%. for fiscal 2026 we continue to expect gross margin to be in the range of 53.5%-55.5% This is inclusive of our reiterated estimate of $4 million-$6 million tariff impact for the full- year. this is inclusive of our reiterated estimate of $4 million-$6 million tariff impact for the full- year We now expect adjusted EBITDA to be in the range of $10 million-$12 million, up from prior guidance of $8 million-$10 million, again, inclusive of our estimated tariff impact. As a reminder, adjusted EBITDA will be lower in the second half of the year than the first as our planned investments in clinical data development hit the P&L as well as the structural gross margin impacts I previously discussed. We now expect adjusted loss per share in the range of $0.30-$0.23, improving from our prior guidance of a loss of $0.33-$0.23. Turning to cash. We remain on course to illustrate that our business model will be cash flow positive as we expect to generate substantial cash in the fourth fiscal quarter in line with historical trends. We now expect adjusted EBITDA to be in the range of $10 million-$12 million, up from prior guidance of $8 million-$10 million, again, inclusive of our estimated tariff impact. we now expect adjusted ebitda to be in the range of $10 million-$12 million up from prior guidance of $8 million-$10 million again inclusive of our estimated tariff impact As a reminder, adjusted EBITDA will be lower in the second half of the year than the first as our planned investments in clinical data development hit the P&L as well as the structural gross margin impacts I previously discussed. We now expect adjusted loss per share in the range of $0.30-$0.23, improving from our prior guidance of a loss of $0.33-$0.23. as a reminder adjusted ebitda will be lower in the second half of the year than the first as our planned investments in clinical data development hit the p&l as well as the structural gross margin impacts i previously discussed. we now expect adjusted loss per share in the range of $0.30-$0.23 improving from our prior guidance of a loss of $0.33-$0.23 Turning to cash. turning to cash We remain on course to illustrate that our business model will be cash flow positive as we expect to generate substantial cash in the fourth fiscal quarter in line with historical trends. we remain on course to illustrate that our business model will be cash flow positive as we expect to generate substantial cash in the fourth fiscal quarter in line with historical trends Now, during the third fiscal quarter, we were advised by our sterilization vendors of their plan to implement two upcoming temporary shutdowns to perform maintenance activities during the fourth quarter. To proactively address this and avoid any potential commercial disruptions, we are planning to increase inventory levels for certain products during the fourth quarter. The net result will be the acceleration of the use of approximately $3 million-$5 million of cash to build inventory in the back half of this fiscal year, which normally would have been used in future periods. Now, during the third fiscal quarter, we were advised by our sterilization vendors of their plan to implement two upcoming temporary shutdowns to perform maintenance activities during the fourth quarter. now during the third fiscal quarter we were advised by our sterilization vendors of their plan to implement two upcoming temporary shutdowns to perform maintenance activities during the fourth quarter To proactively address this and avoid any potential commercial disruptions, we are planning to increase inventory levels for certain products during the fourth quarter. to proactively address this and avoid any potential commercial disruptions we are planning to increase inventory levels for certain products during the fourth quarter The net result will be the acceleration of the use of approximately $3 million-$5 million of cash to build inventory in the back half of this fiscal year, which normally would have been used in future periods. the net result will be the acceleration of the use of approximately $3 million-$5 million of cash to build inventory in the back half of this fiscal year which normally would have been used in future periods Now, this may result in cash flow for FY 2026 being slightly negative, but there is literally no modification to the positive cash generation pathway we have been on and the cash generation profile of our business. We maintain a strong balance sheet with zero debt. With that, I'll turn the call back to Jim. Now, this may result in cash flow for FY 2026 being slightly negative, but there is literally no modification to the positive cash generation pathway we have been on and the cash generation profile of our business. now this may result in cash flow for fy 2026 being slightly negative but there is literally no modification to the positive cash generation pathway we have been on and the cash generation profile of our business We maintain a strong balance sheet with zero debt. we maintain a strong balance sheet with zero debt With that, I'll turn the call back to Jim. with that i'll turn the call back to jim

Speaker 2: Thanks, Steve. Looking to the fourth quarter, we remain focused on finishing the year strong. We have built this company with a new portfolio aligned with the market and where the market's growing. We have built tremendous technologies. Every day, we bring value to our customers and the patients they serve. We are committed to grow our company in a really important way. We are committed to our shareholders to grow our value along the way. Thanks, Steve. thanks steve Looking to the fourth quarter, we remain focused on finishing the year strong. looking to the fourth quarter we remain focused on finishing the year strong We have built this company with a new portfolio aligned with the market and where the market's growing. we have built this company with a new portfolio aligned with the market and where the market's growing We have built tremendous technologies. we have built tremendous technologies Every day, we bring value to our customers and the patients they serve. every day we bring value to our customers and the patients they serve We are committed to grow our company in a really important way. we are committed to grow our company in a really important way We are committed to our shareholders to grow our value along the way. we are committed to our shareholders to grow our value along the way Before turning the call over to Q&A, I want to provide a quick update on the leadership transition. The Board has formed a search committee and has engaged a leading executive search firm. The process is moving forward on the timeline we laid out. Until my successor is appointed, Steve and I will continue leading the team, driving the company's strategic and financial initiatives. I am committed to making sure we have a seamless transition. With that, I'll turn the call back for questions. Before turning the call over to Q&A, I want to provide a quick update on the leadership transition. before turning the call over to q&a i want to provide a quick update on the leadership transition The Board has formed a search committee and has engaged a leading executive search firm. the board has formed a search committee and has engaged a leading executive search firm The process is moving forward on the timeline we laid out. the process is moving forward on the timeline we laid out Until my successor is appointed, Steve and I will continue leading the team, driving the company's strategic and financial initiatives. until my successor is appointed steve and i will continue leading the team driving the company's strategic and financial initiatives I am committed to making sure we have a seamless transition. i am committed to making sure we have a seamless transition With that, I'll turn the call back for questions. with that i'll turn the call back for questions

Speaker 5: Thank you. At this time, we'll be conducting a question-and-answer session. If you'd like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our first question comes from the line of John Young with Canaccord Genuity. Please proceed with your question. Thank you. thank you At this time, we'll be conducting a question-and-answer session. at this time we'll be conducting a question-and-answer session If you'd like to ask a question, please press star one on your telephone keypad. if you'd like to ask a question please press star one on your telephone keypad A confirmation tone will indicate your line is in the question queue. a confirmation tone will indicate your line is in the question queue You may press star two if you'd like to remove your question from the queue. you may press star two if you'd like to remove your question from the queue For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. for participants using speaker equipment it may be necessary to pick up your handset before pressing the star keys Our first question comes from the line of John Young with Canaccord Genuity. our first question comes from the line of john young with canaccord genuity Please proceed with your question. please proceed with your question

Speaker 3: Hi, Jim and Steve. Thanks for taking the question, and congratulations on the quarter. I first want to start on AlphaVac, that the sequential growth there was really impressive. Any additional color on the drivers? I know it was a bit subsequent to the quarter, but are you seeing any benefit today from the PE guidelines that were released in February? Maybe just how do you expect that to benefit the company in fiscal Q4 and in the following fiscal year? Thanks. Hi, Jim and Steve. hi jim and steve Thanks for taking the question, and congratulations on the quarter. thanks for taking the question and congratulations on the quarter I first want to start on AlphaVac, that the sequential growth there was really impressive. i first want to start on alphavac that the sequential growth there was really impressive Any additional color on the drivers? any additional color on the drivers I know it was a bit subsequent to the quarter, but are you seeing any benefit today from the PE guidelines that were released in February? i know it was a bit subsequent to the quarter but are you seeing any benefit today from the pe guidelines that were released in february Maybe just how do you expect that to benefit the company in fiscal Q4 and in the following fiscal year? maybe just how do you expect that to benefit the company in fiscal q4 and in the following fiscal year Thanks. thanks

Speaker 2: Thanks, John. Good question. John, it's really going according to what we expected. You know, each quarter that goes by, we're able to get our product into new hands or hands of a physician who heard from his partner or another KOL how well the product performs. You saw the APEX-AV data that was generated to get our product on label. What we do is remove more clot faster and in a safe, really safe manner. That's becoming more exposed day-to-day, John. This is normal business cycle that we expect to grow our share. The two primary ways we're doing that are more hospitals approving us through their VAC process or VAC for everybody not knowing is value analysis committee or term whatever each hospital uses. Thanks, John. thanks john Good question. good question John, it's really going according to what we expected. john it's really going according to what we expected You know, each quarter that goes by, we're able to get our product into new hands or hands of a physician who heard from his partner or another KOL how well the product performs. you know each quarter that goes by we're able to get our product into new hands or hands of a physician who heard from his partner or another kol how well the product performs You saw the APEX-AV data that was generated to get our product on label. you saw the apex-av data that was generated to get our product on label What we do is remove more clot faster and in a safe, really safe manner. what we do is remove more clot faster and in a safe really safe manner That's becoming more exposed day- to- day, John. that's becoming more exposed day- to- day john This is normal business cycle that we expect to grow our share. this is normal business cycle that we expect to grow our share The two primary ways we're doing that are more hospitals approving us through their VAC process or VAC for everybody not knowing is value analysis committee or term whatever each hospital uses. the two primary ways we're doing that are more hospitals approving us through their vac process or vac for everybody not knowing is value analysis committee or term whatever each hospital uses That basically means we pass their test to get into inventory, get on the shelf to be utilized, and usually with one or two of the other products in the market, let physicians choose. Then second, John, also, we're getting physicians who've now used it a few times, getting really comfortable in the innovative features we built into the product and getting more comfortable in choosing it over the other competitive products. John, we expect the product to grow sequentially going forward, because it's a great design and it's a really good market. We have two good competitors, as you know, but we'll win more than our share going forward. That basically means we pass their test to get into inventory, get on the shelf to be utilized, and usually with one or two of the other products in the market, let physicians choose. that basically means we pass their test to get into inventory get on the shelf to be utilized and usually with one or two of the other products in the market let physicians choose Then second, John, also, we're getting physicians who've now used it a few times, getting really comfortable in the innovative features we built into the product and getting more comfortable in choosing it over the other competitive products. then second john also we're getting physicians who've now used it a few times getting really comfortable in the innovative features we built into the product and getting more comfortable in choosing it over the other competitive products John, we expect the product to grow sequentially going forward, because it's a great design and it's a really good market. john we expect the product to grow sequentially going forward because it's a great design and it's a really good market We have two good competitors, as you know, but we'll win more than our share going forward. we have two good competitors as you know but we'll win more than our share going forward

Speaker 3: Great. Thanks, Jim. Steve, just on the guidance, you know, given the climate we're in, I think investors are probably also curious, have you baked in any impact from higher energy costs? Are you seeing any impact yet in terms of rising supplier costs? Are you giving any specific buffer for that for, you know, the fiscal fourth quarter? If costs do rise, what's the ability for AngioDynamics to pass on those costs to customers? Thanks again. Great. great Thanks, Jim. thanks jim Steve, just on the guidance, you know, given the climate we're in, I think investors are probably also curious, have you baked in any impact from higher energy costs? steve just on the guidance you know given the climate we're in i think investors are probably also curious have you baked in any impact from higher energy costs Are you seeing any impact yet in terms of rising supplier costs? are you seeing any impact yet in terms of rising supplier costs Are you giving any specific buffer for that for, you know, the fiscal fourth quarter? are you giving any specific buffer for that for you know the fiscal fourth quarter If costs do rise, what's the ability for AngioDynamics to pass on those costs to customers? if costs do rise what's the ability for angiodynamics to pass on those costs to customers Thanks again. thanks again

Speaker 6: Yeah. Thanks, John. Absolutely. We're living in a dynamic environment, as you know that. You talked about inflation. You talked about energy costs. We mentioned tariffs in the prepared remarks. All of those elements definitely have an impact on the business, and they're all very hard to predict. We have built into our guidance our expectations of the best we know today of how we're going to manage all of those different dynamic elements. If you think about the guidance that we have, both in terms of EBITDA profitability as well as gross margin, we're expecting that we're going to have an impact that's embedded in there, both in terms of inflationary costs, which could include the energy increases that you've talked about, as well as tariffs. Yeah. yeah Thanks, John. thanks john Absolutely. absolutely We're living in a dynamic environment, as you know that. we're living in a dynamic environment as you know that You talked about inflation. you talked about inflation You talked about energy costs. you talked about energy costs We mentioned tariffs in the prepared remarks. we mentioned tariffs in the prepared remarks All of those elements definitely have an impact on the business, and they're all very hard to predict. all of those elements definitely have an impact on the business and they're all very hard to predict We have built into our guidance our expectations of the best we know today of how we're going to manage all of those different dynamic elements. we have built into our guidance our expectations of the best we know today of how we're going to manage all of those different dynamic elements If you think about the guidance that we have, both in terms of EBITDA profitability as well as gross margin, we're expecting that we're going to have an impact that's embedded in there, both in terms of inflationary costs, which could include the energy increases that you've talked about, as well as tariffs. if you think about the guidance that we have both in terms of ebitda profitability as well as gross margin we're expecting that we're going to have an impact that's embedded in there both in terms of inflationary costs which could include the energy increases that you've talked about as well as tariffs Again, that remains dynamic, but it's our best guess of where things are going today. In terms of rising prices and passing on to our customers, you know, I did mention in the prepared remarks around gross margin, we are seeing a benefit from our ability to raise prices in certain areas. That is not specifically tied to these dynamics of inflation or tariffs. It's more our ability just within the natural course of the commercial dealing to be able to take price with some of our superior products, both in MedTech as well as in Med Device. We'll continue to take price where we can, but we haven't been able to explicitly take price related to some of those rising costs. It's up to us to continue to manage through the way that we have been. Again, that remains dynamic, but it's our best guess of where things are going today. again that remains dynamic but it's our best guess of where things are going today In terms of rising prices and passing on to our customers, you know, I did mention in the prepared remarks around gross margin, we are seeing a benefit from our ability to raise prices in certain areas. in terms of rising prices and passing on to our customers you know i did mention in the prepared remarks around gross margin we are seeing a benefit from our ability to raise prices in certain areas That is not specifically tied to these dynamics of inflation or tariffs. that is not specifically tied to these dynamics of inflation or tariffs It's more our ability just within the natural course of the commercial dealing to be able to take price with some of our superior products, both in MedTech as well as in Med Device. it's more our ability just within the natural course of the commercial dealing to be able to take price with some of our superior products both in medtech as well as in med device We'll continue to take price where we can, but we haven't been able to explicitly take price related to some of those rising costs. we'll continue to take price where we can but we haven't been able to explicitly take price related to some of those rising costs It's up to us to continue to manage through the way that we have been. it's up to us to continue to manage through the way that we have been

Speaker 3: Great, thank you again. Great, thank you again. great thank you again

Speaker 5: Thank you. Our next question comes from the line of Frank Takkinen with Lake Street Capital Markets. Please proceed with your question. Thank you. thank you Our next question comes from the line of Frank Takkinen with Lake Street Capital Markets. our next question comes from the line of frank takkinen with lake street capital markets Please proceed with your question. please proceed with your question

Speaker 1: Great, thank you for taking the questions. I was hoping also to follow up on AlphaVac, just given how strong the number was there. As we think about future quarters and any gyrations in ordering patterns, should we view this $4.4 million as a new baseline to grow off of? Or was there potentially some pull ahead into the quarter that could have that number step back as we go forward? I know historically we've seen it pretty consistently grow sequentially. Just curious if that is expected to continue to be the trend going forward, for the last quarter as well as into 2027. Great, thank you for taking the questions. great thank you for taking the questions I was hoping also to follow up on AlphaVac, just given how strong the number was there. i was hoping also to follow up on alphavac just given how strong the number was there As we think about future quarters and any gyrations in ordering patterns, should we view this $4.4 million as a new baseline to grow off of? as we think about future quarters and any gyrations in ordering patterns should we view this $4.4 million as a new baseline to grow off of Or was there potentially some pull ahead into the quarter that could have that number step back as we go forward? or was there potentially some pull ahead into the quarter that could have that number step back as we go forward I know historically we've seen it pretty consistently grow sequentially. i know historically we've seen it pretty consistently grow sequentially Just curious if that is expected to continue to be the trend going forward, for the last quarter as well as into 2027. just curious if that is expected to continue to be the trend going forward for the last quarter as well as into 2027

Speaker 6: Hi, Frank. Thanks for the question. We expect AlphaVac to continue to grow sequentially. As we've talked about, we think this is one of the drivers of growth for AngioDynamics this year, as well as heading into future periods. We're very excited about the product that we have. We're very excited about being in this market. It's a huge market that's gonna continue to grow. We're gonna continue to take share as well as grow along with the market. I would expect you would see AlphaVac continue to grow sequentially heading into the future periods. Hi, Frank. hi frank Thanks for the question. thanks for the question We expect AlphaVac to continue to grow sequentially. we expect alphavac to continue to grow sequentially As we've talked about, we think this is one of the drivers of growth for AngioDynamics this year, as well as heading into future periods. as we've talked about we think this is one of the drivers of growth for angiodynamics this year as well as heading into future periods We're very excited about the product that we have. we're very excited about the product that we have We're very excited about being in this market. we're very excited about being in this market It's a huge market that's gonna continue to grow. it's a huge market that's gonna continue to grow We're gonna continue to take share as well as grow along with the market. we're gonna continue to take share as well as grow along with the market I would expect you would see AlphaVac continue to grow sequentially heading into the future periods. i would expect you would see alphavac continue to grow sequentially heading into the future periods

Speaker 1: Perfect, very helpful. Just for my second one, was hoping to follow up on Auryon a little bit more. Any color you can provide on volume versus price and inpatient hospital versus OBL would be really helpful. Thanks so much. Perfect, very helpful. perfect very helpful Just for my second one, was hoping to follow up on Auryon a little bit more. just for my second one was hoping to follow up on auryon a little bit more Any color you can provide on volume versus price and inpatient hospital versus OBL would be really helpful. any color you can provide on volume versus price and inpatient hospital versus obl would be really helpful Thanks so much. thanks so much

Speaker 6: Yeah. As we've mentioned over the last number of quarters, moving into the hospital site of care has been a strategic imperative of our company. It helps us, as you mentioned, on price. It helps us on the nature of the customers, but it also helps us on setting the stage for the future. We've talked about Auryon as a platform technology moving into areas like coronary, and so it's important for us to be in the hospital setting. Our team has done a great job changing that dynamic of moving from being very OBL-centric, which is where we started due to the timeframe when we launched this product. That was during COVID. We could get into the OBLs. You couldn't get into the hospitals. Now making that shift and focusing on the hospital side of care. Yeah. yeah As we've mentioned over the last number of quarters, moving into the hospital site of care has been a strategic imperative of our company. as we've mentioned over the last number of quarters moving into the hospital site of care has been a strategic imperative of our company It helps us, as you mentioned, on price. it helps us as you mentioned on price It helps us on the nature of the customers, but it also helps us on setting the stage for the future. it helps us on the nature of the customers but it also helps us on setting the stage for the future We've talked about Auryon as a platform technology moving into areas like coronary, and so it's important for us to be in the hospital setting. we've talked about auryon as a platform technology moving into areas like coronary and so it's important for us to be in the hospital setting Our team has done a great job changing that dynamic of moving from being very OBL-centric, which is where we started due to the timeframe when we launched this product. our team has done a great job changing that dynamic of moving from being very obl-centric which is where we started due to the timeframe when we launched this product That was during COVID. that was during covid We could get into the OBLs. we could get into the obls You couldn't get into the hospitals. you couldn't get into the hospitals Now making that shift and focusing on the hospital side of care. now making that shift and focusing on the hospital side of care They've also done a great job making sure that we continue to grow that OBL business. If you look at the Auryon results, it's being driven by both elements, the price that we're seeing by having a higher percentage of our overall revenue base in the hospital, but also by driving additional procedure volume in the OBL. We expect to continue to do that. Now we expect to continue to do that because of the product that we have, the versatility that the Auryon laser has in treating calcification both above and below the knee. It can do things that no other product can do. They've also done a great job making sure that we continue to grow that OBL business. they've also done a great job making sure that we continue to grow that obl business If you look at the Auryon results, it's being driven by both elements, the price that we're seeing by having a higher percentage of our overall revenue base in the hospital, but also by driving additional procedure volume in the OBL. if you look at the auryon results it's being driven by both elements the price that we're seeing by having a higher percentage of our overall revenue base in the hospital but also by driving additional procedure volume in the obl We expect to continue to do that. we expect to continue to do that Now we expect to continue to do that because of the product that we have, the versatility that the Auryon laser has in treating calcification both above and below the knee. now we expect to continue to do that because of the product that we have the versatility that the auryon laser has in treating calcification both above and below the knee It can do things that no other product can do. it can do things that no other product can do We're excited about the continued future, which is why we said we expect Auryon to be a grower as we continue to head into future years, even though we're getting to much larger revenue base than we had when we first started launching the product. We're excited about the continued future, which is why we said we expect Auryon to be a grower as we continue to head into future years, even though we're getting to much larger revenue base than we had when we first started launching the product. we're excited about the continued future which is why we said we expect auryon to be a grower as we continue to head into future years even though we're getting to much larger revenue base than we had when we first started launching the product

Speaker 1: Perfect, very helpful. Thanks again. Perfect, very helpful. perfect very helpful Thanks again. thanks again

Speaker 6: Thanks, Frank. Thanks, Frank. thanks frank

Speaker 5: Thank you. Ladies and gentlemen, our final question this morning comes from the line of Yi Chen with H.C. Wainwright. Please proceed with your question. Thank you. thank you Ladies and gentlemen, our final question this morning comes from the line of Yi Chen with H.C. ladies and gentlemen our final question this morning comes from the line of yi chen with h.c Wainwright. wainwright Please proceed with your question. please proceed with your question

Speaker 4: Hi, good morning. This is Katie on for Yi. I had two quick follow-on questions for supply chain things that have come up. Could you give us a sense of what proportion of MedTech cost of goods are still exposed to China sourcing of components, and how much of that is kind of addressed by the Costa Rica transition? If you could also provide a little color on how continuous the sterilization shutdowns might be. Is that something that'll happen annually? Just something how we can think about that in terms of the supply chain. Hi, good morning. hi good morning This is Katie on for Yi. this is katie on for yi I had two quick follow-on questions for supply chain things that have come up. i had two quick follow-on questions for supply chain things that have come up Could you give us a sense of what proportion of MedTech cost of goods are still exposed to China sourcing of components, and how much of that is kind of addressed by the Costa Rica transition? could you give us a sense of what proportion of medtech cost of goods are still exposed to china sourcing of components and how much of that is kind of addressed by the costa rica transition If you could also provide a little color on how continuous the sterilization shutdowns might be. if you could also provide a little color on how continuous the sterilization shutdowns might be Is that something that'll happen annually? is that something that'll happen annually Just something how we can think about that in terms of the supply chain. just something how we can think about that in terms of the supply chain

Speaker 6: Hi, Katie. Thanks for your questions. On the first one on the supply chain, we haven't historically had a significant risk to component sourcing coming from China. So over the years, you know, we didn't necessarily get some of the benefit that you may have expected in three, four years ago, but we don't have the risk as we sit here today. So we don't identify component sourcing out of China as a big risk for us, either in MedTech or our Med Device products. Inflationary impacts, you know, we have talked about in terms of the supply chain, but it's not necessarily what I would call a China exposure. On your question around the sterilization shutdown, is it continuous? Look, these happen. It's not something that happens all the time. Hi, Katie. hi katie Thanks for your questions. thanks for your questions On the first one on the supply chain, we haven't historically had a significant risk to component sourcing coming from China. on the first one on the supply chain we haven't historically had a significant risk to component sourcing coming from china So over the years, you know, we didn't necessarily get some of the benefit that you may have expected in three, four years ago, but we don't have the risk as we sit here today. so over the years you know we didn't necessarily get some of the benefit that you may have expected in three four years ago but we don't have the risk as we sit here today So we don't identify component sourcing out of China as a big risk for us, either in MedTech or our Med Device products. so we don't identify component sourcing out of china as a big risk for us either in medtech or our med device products Inflationary impacts, you know, we have talked about in terms of the supply chain, but it's not necessarily what I would call a China exposure. inflationary impacts you know we have talked about in terms of the supply chain but it's not necessarily what i would call a china exposure On your question around the sterilization shutdown, is it continuous? on your question around the sterilization shutdown is it continuous Look, these happen. look these happen It's not something that happens all the time. it's not something that happens all the time The reason we called it out was more because there was a little bit of a stack tolerance going into our inventory buildups as we were finishing the supply manufacturing agreement with Spectrum, which is who we sold the PICC and Midline business to, while we were continuing to finish our move from the rest of the products that we had out of Queensbury down to Costa Rica. You had a couple things that were stacking on top of this. The reason we bring it up is it is gonna be a little bit of a use of cash ahead of our expectations in the quarter, but we're doing exactly what you expect us to do. We're managing the business. It's why we have a very strong balance sheet to start with really good quick and current ratios. The reason we called it out was more because there was a little bit of a stack tolerance going into our inventory buildups as we were finishing the supply manufacturing agreement with Spectrum, which is who we sold the PICC and Midline business to, while we were continuing to finish our move from the rest of the products that we had out of Queensbury down to Costa Rica. the reason we called it out was more because there was a little bit of a stack tolerance going into our inventory buildups as we were finishing the supply manufacturing agreement with spectrum which is who we sold the picc and midline business to while we were continuing to finish our move from the rest of the products that we had out of queensbury down to costa rica You had a couple things that were stacking on top of this. you had a couple things that were stacking on top of this The reason we bring it up is it is gonna be a little bit of a use of cash ahead of our expectations in the quarter, but we're doing exactly what you expect us to do. the reason we bring it up is it is gonna be a little bit of a use of cash ahead of our expectations in the quarter but we're doing exactly what you expect us to do We're managing the business. we're managing the business It's why we have a very strong balance sheet to start with really good quick and current ratios. it's why we have a very strong balance sheet to start with really good quick and current ratios If you go through the assets and the liabilities that we have, we have a significant net cash position. We're going to generate significant cash in the fourth quarter, along with historical trends and along with our current business model updates. It allows us to be able to do what we're talking about doing and mitigate any potential disruption from sterilization shutdowns. They happen. We're gonna stay close to our sterilizers. I wouldn't think of it as something that is gonna be derailing in the future. We're just calling it out because we're managing our business. We're doing what everyone would expect us to do, and we're making sure there's no disruptions because of the strong position that we're in. If you go through the assets and the liabilities that we have, we have a significant net cash position. if you go through the assets and the liabilities that we have we have a significant net cash position We're going to generate significant cash in the fourth quarter, along with historical trends and along with our current business model updates. we're going to generate significant cash in the fourth quarter along with historical trends and along with our current business model updates It allows us to be able to do what we're talking about doing and mitigate any potential disruption from sterilization shutdowns. it allows us to be able to do what we're talking about doing and mitigate any potential disruption from sterilization shutdowns They happen. they happen We're gonna stay close to our sterilizers. we're gonna stay close to our sterilizers I wouldn't think of it as something that is gonna be derailing in the future. i wouldn't think of it as something that is gonna be derailing in the future We're just calling it out because we're managing our business. we're just calling it out because we're managing our business We're doing what everyone would expect us to do, and we're making sure there's no disruptions because of the strong position that we're in. we're doing what everyone would expect us to do and we're making sure there's no disruptions because of the strong position that we're in

Speaker 4: Perfect, thank you so much. Perfect, thank you so much. perfect thank you so much

Speaker 6: Thank you. Thank you. thank you

Speaker 5: Thank you. Ladies and gentlemen, this concludes our question-and-answer session. I'll turn the floor back to Mr. Clemmer for any final comments. Thank you. thank you Ladies and gentlemen, this concludes our question- and- answer session. ladies and gentlemen this concludes our question- and- answer session I'll turn the floor back to Mr. Clemmer for any final comments. i'll turn the floor back to mr clemmer for any final comments

Speaker 2: Thank you, and thanks for joining us today, and I hope you got insight to what makes AngioDynamics special and shows how we can compete and win in this marketplace, today, tomorrow, and going forward for a long period of time. I'd like to thank our employees for really making this happen. We have a great team of people at work. I also wanna mention here at Angio this week, we lost an important member of our team. Thank you, and thanks for joining us today, and I hope you got insight to what makes AngioDynamics special and shows how we can compete and win in this marketplace, today, tomorrow, and going forward for a long period of time. thank you and thanks for joining us today and i hope you got insight to what makes angiodynamics special and shows how we can compete and win in this marketplace today tomorrow and going forward for a long period of time I'd like to thank our employees for really making this happen. i'd like to thank our employees for really making this happen We have a great team of people at work. we have a great team of people at work I also wanna mention here at Angio this week, we lost an important member of our team. i also wanna mention here at angio this week we lost an important member of our team We wanna recognize Jim Culhane for his work as a leader and one of our research and development leaders. Jim really lived our culture of patient first. Jim helped to build products like the AlphaVac. His great design work, the team he led, really enables patients today to get better and get healthier due to our products. Jim Culhane was an important leader here, and we express our condolences to his family and friends with his recent passing. Thank you for joining us today. We wanna recognize Jim Culhane for his work as a leader and one of our research and development leaders. we wanna recognize jim culhane for his work as a leader and one of our research and development leaders Jim really lived our culture of patient first. jim really lived our culture of patient first Jim helped to build products like the AlphaVac. jim helped to build products like the alphavac His great design work, the team he led, really enables patients today to get better and get healthier due to our products. his great design work the team he led really enables patients today to get better and get healthier due to our products Jim Culhane was an important leader here, and we express our condolences to his family and friends with his recent passing. jim culhane was an important leader here and we express our condolences to his family and friends with his recent passing Thank you for joining us today. thank you for joining us today

Speaker 5: Thank you. This concludes today's conference call. You may disconnect your lines at this time. Thank you for your participation. Thank you. thank you This concludes today's conference call. this concludes today's conference call You may disconnect your lines at this time. you may disconnect your lines at this time Thank you for your participation. thank you for your participation