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01/10 17:05
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call highlights strong financial performance with revenue growth across multiple segments, improved gross margins, and positive cash flow. The raised guidance for fiscal 2026 and increased adjusted EBITDA outlook further support a positive sentiment. Although some risks were noted, such as competitive pressures and international expansion challenges, the overall outlook and strategic initiatives like the Auryon platform's international traction and positive CPT code changes suggest a favorable stock price movement.
Revenue Revenue increased 8.8% to $79.4 million compared to the second fiscal quarter of 2025. This growth was driven by both Med Tech and Med Device segments.
Med Tech Revenue Med Tech revenue was $35.7 million, a 13% increase year-over-year. This growth reflects the sustained execution of the strategy to increase the percentage of revenue from higher-margin Med Tech products.
Med Device Revenue Med Device revenue was $43.8 million, an increase of 5.6% year-over-year. This growth was attributed to consistent execution by the team managing this segment.
Auryon Platform Revenue Auryon platform contributed $16.3 million in revenue, growing 18.6% year-over-year. This growth was supported by increased penetration in hospitals, a growing customer base, and international adoption following CE Mark approval.
Mechanical Thrombectomy Revenue Mechanical thrombectomy revenue, including AngioVac and AlphaVac, increased 3.9% year-over-year to $11 million. AngioVac revenue decreased 7.5% year-over-year due to a tough comparison with a strong prior year, while AlphaVac revenue increased 40.2% year-over-year.
NanoKnife Revenue NanoKnife revenue was $7.3 million, an increase of 22.2% year-over-year. This growth was driven by increased demand for prostate cancer procedures and a strategic transaction in France.
Gross Margin Gross margin for the quarter was 56.4%, a 170 basis point increase from the prior year. This improvement was driven by a product mix shift towards Med Tech sales, manufacturing cost savings, and a sales channel transaction in France.
Adjusted EBITDA Adjusted EBITDA nearly doubled year-over-year to $5.9 million, compared to $3.1 million in the second quarter of 2025. This improvement was driven by Med Tech revenue growth and gross margin initiatives.
Cash and Cash Equivalents Cash and cash equivalents were $41.6 million as of November 30, 2025, compared to $38.8 million as of August 31, 2025. The company generated $4.7 million in cash during the quarter, ahead of expectations.
Auryon: Achieved 18 consecutive quarters of double-digit growth, driven by increased hospital penetration and international contributions post-CE Mark approval. Progressing on expanding addressable market with AMBITION BTK study and coronary applications.
Mechanical Thrombectomy: Reported 3.9% growth year-over-year, with AlphaVac showing strong growth (40.2%) and AngioVac facing a slight decline (-7.5%). Achieved three regulatory milestones, including IDE approvals for APEX-Return and PAVE studies, and 510(k) clearance for AlphaVac F18 85 system.
NanoKnife: Strong growth driven by prostate procedures, supported by a new CPT code effective January 1. Named to TIME's 2025 Best Innovations list, enhancing market visibility.
International Expansion: Auryon gained traction internationally following CE Mark approval. NanoKnife expanded in France through a distribution model, enabling growth in a strategic market.
Revenue Growth: Achieved 8.8% revenue growth year-over-year, with Med Tech up 13% and Med Device up 5.6%. Adjusted EBITDA nearly doubled year-over-year.
Profitability: Improved gross margin to 56.4%, driven by product mix shift and manufacturing optimization. Generated $4.7 million in cash during the quarter.
Leadership Transition: CEO announced retirement, with a search committee established to find a successor by fiscal 2027.
Revenue Growth: While revenue grew 8.8% overall, the Med Device segment's growth is not expected to sustain at the current level for the full year, indicating potential challenges in maintaining consistent growth.
Mechanical Thrombectomy: AngioVac revenue decreased by 7.5% year-over-year, attributed to a tough comparison against a strong prior year quarter. This decline could indicate challenges in sustaining growth in this segment.
Tariff Expenses: The company expects to incur $4 million to $6 million in tariff expenses for fiscal year 2026, which could impact profitability.
Leadership Transition: The CEO's announced retirement and the ongoing search for a successor could create uncertainty and potential disruption in strategic execution during the transition period.
Regulatory and Clinical Investments: Increased R&D expenses and planned investments in clinical data development may strain short-term financials, even though they are aimed at long-term growth.
Market Competition: The company faces competitive pressures in the atherectomy and thrombectomy markets, requiring continuous innovation and regulatory approvals to maintain its position.
International Expansion: While international markets are contributing to growth, the transition to a distribution model in France and other international strategies may pose operational and financial risks.
Revenue Expectations: The company has raised its full-year fiscal 2026 revenue guidance to a range of $312 million to $314 million, up from the previous range of $308 million to $313 million. This represents growth of 6.6% to 7.3% over fiscal 2025 revenue of $292.7 million.
Segment Growth Projections: Med Tech net sales are expected to grow 14% to 16%, while Med Device sales are now expected to grow 0% to 1%, an increase from prior guidance of flat growth.
Gross Margin: Gross margin for fiscal 2026 is expected to be in the range of 53.5% to 55.5%, inclusive of $4 million to $6 million in tariff expenses.
Adjusted EBITDA: Adjusted EBITDA guidance has been raised to a range of $8 million to $10 million, up from the prior range of $6 million to $10 million.
Adjusted Loss Per Share: The company continues to expect an adjusted loss per share in the range of negative $0.33 to negative $0.23.
Cash Flow: The company expects to be cash flow positive for the full fiscal year 2026, with substantial cash generation anticipated in the fourth fiscal quarter.
Clinical and Regulatory Milestones: The company achieved three regulatory milestones for its mechanical thrombectomy portfolio, including IDE approvals for the APEX-Return and PAVE studies and 510(k) clearance for a modified AlphaVac F18 85 system. These milestones are expected to strengthen the competitive position and expand clinical applications.
NanoKnife Adoption: The CPT code for NanoKnife prostate procedures became effective on January 1, 2026, which is expected to drive gradual adoption and growth in procedure volumes over time.
The selected topic was not discussed during the call.
The earnings call highlights strong financial performance with revenue growth across multiple segments, improved gross margins, and positive cash flow. The raised guidance for fiscal 2026 and increased adjusted EBITDA outlook further support a positive sentiment. Although some risks were noted, such as competitive pressures and international expansion challenges, the overall outlook and strategic initiatives like the Auryon platform's international traction and positive CPT code changes suggest a favorable stock price movement.
The earnings call revealed strong financial performance, especially in Med Tech, with a 26.1% revenue increase. The company raised guidance for Med Tech, driven by Mechanical Thrombectomy and NanoKnife, indicating confidence in future growth. Despite increased R&D and SG&A expenses, improved operating leverage and profitability were noted. Positive Q&A insights on sales force expansion and clinical trials further support optimism. However, management's reluctance to provide specific metrics for NanoKnife and trial timelines tempers enthusiasm slightly, leading to a positive but not strong positive sentiment.
The earnings call indicates strong financial performance with revenue growth driven by Med Tech and Med Device segments. Positive developments include improved EBITDA and free cash flow, alongside optimistic guidance for Med Tech growth. Although tariffs impacted gross margin, the company is managing these effects. The Q&A reveals confidence in product approvals and growth, particularly for AlphaVac and AngioVac. Despite some ambiguity in management's responses, the overall sentiment is positive with expectations of continued growth, leading to a likely stock price increase of 2% to 8% over the next two weeks.
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