Q4 2025 AngioDynamics Inc Earnings Call
Harold Wilhelm Cárdenas: The news release detailing AngioDynamics' fiscal 2025 fourth quarter and full year 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.
Harold Wilhelm Cárdenas: 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 margins 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 limitation, 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 statement. The company will also discuss certain non-GAAP and pro-forma financial measures during this call.
Harold Wilhelm Cárdenas: 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 as a substitute for, or as superior to financial reporting measures prepared in accordance with GAAP.
Harold Wilhelm Cárdenas: A slide package offering insight into the company's financial results is also available in the Investor Relations 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.
James Clemmer: Now, I'd 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 2025 fourth quarter and full year earnings call.
James Clemmer: Joining me today is Steve Trowbridge, AngioDynamics Executive Vice President and Chief Financial Officer. Unless otherwise noted, all financial metrics and growth rates provided during the call today are on a pro forma basis, which excludes the impact of our divested dialysis, biocentury, PIC, and midline businesses. and our discontinued radiofrequency and Syntrax support capacitor product.
James Clemmer: We capped off a tremendous 2025 with a very strong fourth quarter. Total revenue was $80.2 million, representing growth of over 12% year-over-year, led by medtech growth of over 20%, and meddevice growth of more than 6%. Beyond the top-line performance, we drove solid gross margins, positive adjusted EBITDA, and strong free cash flow, all as expected. As we've talked about in the past, we have been navigating a long-term strategic transformation over the past several years to simplify our business and move into large, high-growth, high-margin med-tech markets. Our performance in the quarter and throughout fiscal 2025 validates that strategy and reflects our ability to drive execution.
James Clemmer: As this is our fiscal year-end call, I wanted to take the opportunity to highlight the progress we have made operationally this year. as we have achieved great things here at AngioDynamics over the past 12 to 24 months. including key regulatory approvals, international market expansion, new product introductions, Clinical Data Development, and Critical Reimbursement Wins, among others. all of which have set us up to deliver profitable growth moving forward.
James Clemmer: Starting with our MedTech portfolio. Ariane has continued to be our largest medtech product line. Since its launch in 2020, we've driven over $185 million in cumulative sales. and we are now the third largest product in this space. In the fourth quarter, the platform delivered its 16th consecutive quarter of double-digit increases, and for good reason. We believe Ariane is the best-in-class peripheral arthrectomy platform because of its demonstrated safety profile and versatility.
James Clemmer: A big focus of our commercial efforts in 2025 was the hospital setting, a customer base that for us represented a really compelling growth opportunity. As of the end of this year, our hospital customers represented approximately 36 percent.