AngioDynamics, Inc · Q1 2027 · Reported 8 Oct 2026 · US
Q1 showed that AngioDynamics is getting paid for its Med Tech mix shift: revenue rose 6.9% and gross margin expanded 410 basis points, with both segment margins improving 8-K. But part of the margin lift came from tariff refunds, while operating cash use remained heavy and cash fell to $34.0 million 8-K.
Key figures
Million USD | Q1 2027 | Q1 2026 | Change |
|---|---|---|---|
Revenue | 80.92 | 75.71 | +6.9 % |
Gross profit | 48.04 | 41.86 | +14.8 % |
Operating income | -7.30 | -10.66 | +3.35 |
Net income | -7.10 | -10.90 | +3.81 |
Operating cash flow | -15.33 | -15.91 | +0.58 |
Gross margin | 59.4 % | 55.3 % | +4.1 pp |
Operating margin | -9.0 % | -14.1 % | +5.1 pp |
Net margin | -8.8 % | -14.4 % | +5.6 pp |
Figures in USD, as reported. Margins are computed from the reported lines.
Med Tech is carrying the business, not just the quarter
Revenue rose 6.9% to $80.9 million in Q1, but the more important change was mix: Med Tech sales increased 13.2% to $39.9 million while Med Device grew 1.4% to $41.0 million 8-K. Management tied Med Tech growth to increased sales in Auryon, NanoKnife and thrombus management, with Auryon up $2.4 million and NanoKnife up $1.9 million from the prior-year quarter 7.
That matters because the quarter's growth within the higher-value franchise was not dependent on one product. AlphaVac sales increased $1.2 million, partly offset by declines in AngioVac and thrombolytic sales, while Med Device's modest growth relied on Core and Microwave and was partly held back by softness in Venous, Ports and other Oncology lines 7.
Gross margin improved sharply, but the quality was mixed
Gross margin expanded to 59.4% from 55.3%, with Med Tech gross margin at 66.2% and Med Device at 52.7% 7. Management attributed the total-company improvement primarily to sales volume, price and product mix, tariff effects, and benefits from product lines transitioned to third-party manufacturing, partly offset by production volume and inflation 89.
The margin improvement looks meaningful, but it was not entirely clean. Gross margin benefited from $1.2 million of tariff refunds during the quarter, and management said gross margin would have been 57.8% absent that benefit; tariff-related expenses were still $0.9 million, producing a net tariff benefit of $0.4 million 8-K. That suggests the mix shift toward Med Tech and pricing are helping structurally, but this quarter's reported margin overstates the underlying run rate 8-K89.
Profitability improved even as AngioDynamics spent more to build the platform
Operating loss improved to $7.3 million from $10.7 million and net loss narrowed to $7.1 million from $10.9 million 13. The better result came despite R&D rising to $8.0 million from $6.4 million and selling and marketing increasing to $30.0 million from $28.1 million, driven by project timing and clinical spend, higher compensation and benefits, and higher consulting, travel and other selling costs 9.
That spending pattern fits management's strategy of investing in R&D and clinical pathway expansion rather than simply harvesting margin 410. Reported earnings also got some help below operating income: acquisition, restructuring and other items fell by $0.6 million year over year, although that line included $0.8 million of transition expenses related to the upcoming CEO retirement, partly offset by a $1.7 million decrease in plant closure expense 11.
Cash flow has not caught up with the income statement
Cash used in operations was $15.3 million, only slightly better than $15.9 million a year earlier, even though the net loss narrowed 8-K. The quarter was hit by a $17.4 million decrease in accounts payable, accrued liabilities and other liabilities, plus increases in inventory of $2.7 million and prepaid expenses of $1.0 million, only partly offset by a $3.5 million decrease in accounts receivable 13.
That left cash and cash equivalents at $34.0 million at August 31, 2026, down from $53.9 million at May 31, 2026, with no outstanding debt 12. Management says current cash on hand is sufficient for at least the next 12 months, but the quarter shows that earnings progress has not yet translated into self-funding operations 12.
What to watch next
Whether gross margin trends toward the company's 54% to 55% full-year guidance as tariff refunds roll off and management expects second-half gross margin to be lower than first-half levels 8-K.
Whether Med Tech can sustain its role as the growth engine, with fiscal 2027 guidance reiterated for 12% to 15% Med Tech sales growth and flat Med Device growth 8-K.
Whether operating cash use improves from the Q1 level as working capital normalizes, given management's statement that current liquidity is sufficient for at least the next 12 months 12.
Sources
Produced by Clarifo Research with the Clarifo financial research engine from the company's reported filings. AI was used in parts of the analysis and drafting. Figures come from the reported financial statements, and figures in the text are checked automatically against the cited filing passages. This is not investment advice.