Good morning, and welcome to the AngioDynamics Fiscal Year 2026 First Quarter Earnings Call. As a reminder, this conference call is being recorded. The news release detailing AngioDynamics' fiscal 2026 first 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. 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 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 as a substitute for or as superior to financial reporting with 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 a pro forma basis, which excludes the results of the dialysis and BioSentry business that were divested in June 2023, the PICC and midline products that were divested in February 2024 and the radio frequency and Syntrax support catheter products that we discontinued in February 2024.

Thank you, operator. Good morning, everyone, and thank you for joining us for AngioDynamics' Fiscal 2026 First Quarter Earnings Call. Joining me today is Steve Trowbridge, AngioDynamics' Executive Vice President and Chief Financial Officer. We had a great first quarter. We continue to grow across all areas of our business and performed especially well in the med tech markets that are critical to our future. Not only did we deliver excellent top line results, we demonstrated how that revenue translates into profitability. Our teams have struck the right balance between increasing profit and investing in our future, which includes developing and launching new products as well as regulatory expansion opportunities planned for the future. This combination of solid revenue growth with increasing profitability is the most important outcome of our strategic transformation. As many of you know, we have evolved our product portfolio from what AngioDynamics was historically known for to one that now competes in large, fast-growing markets. We have proven that our unique technologies can win and drive accelerated growth. In Q1, we grew our revenue by 12%, led by the continued strength of our Med Tech segment, which grew 26%, marking our fourth consecutive quarter with over 20% growth. We also achieved strong gross margins because of our revenue mix and our operations team driving solid performance even while managing the impact of tariffs that raised some costs during the quarter. Our Auryon business has delivered another exceptional quarter, which continues to grow well above market rates as we believe we have the best technology to deliver better outcomes for patients with peripheral arterial disease. We are growing by taking share from all competitors in this space. And we are seeing our move into the hospital market continue to excel, allowing us to drive both top line growth and higher margins. We are bullish on Auryon as a long-term growth driver for our company, and we'll continue to invest to unlock new opportunities as demonstrated by our AMBITION BTK study and our plans for Auryon to compete in the coronary market in the future. We intend to continue proving why we believe our device is the most effective solution in the market. We want to expand access to new opportunities that broaden the TAM that we compete in. These studies will help achieve both goals. Auryon exemplifies how our company can take an innovative product, build a great team around it and execute with focus, which leads to strong growth and a great business. Our Mechanical Thrombectomy business grew by over 40% versus the previous year. Both AlphaVac and AngioVac saw strong customer growth, and we are pleased with the number of new users choosing our products. We are continuing to see new hospitals approve our products through their value analysis committees, and bring us into inventory as approved devices, which will drive increased utilization moving forward. The feedback we continue to hear from customers consistently highlights how a few of the unique design elements that we built into AlphaVac provide substantial advantages and make it both safe and effective. The fact that a physician can use AlphaVac to treat PE without the need to reinsert a guidewire to safely navigate to the desired location is viewed as an innovative design feature that saves time and simplifies use even in complex interventional procedures. We will continue to add new features and expand the potential users for AlphaVac as the interventional treatment of PE patients will be a growth driver for our company for many years. Our NanoKnife team is delivering great results as we experienced growth of over 25%. Our expanded prostate indication allows us to educate and train urologists on our device and has an increased interest from doctors who are seeking an effective focal treatment option for their patients. We are working towards the January 1 date when our CPT I code becomes effective, which will help get our patients treated and our customers paid for the treatment. Physicians are excited to use NanoKnife because of its highly compelling patient outcome benefits as well as the assigned payment aligning well with their expectations. The fact that our device can treat a patient in less than 1 hour makes it both a clinically and economically effective solution to offer their patients. As part of our effort to increase awareness with men who may be seeking treatment options, we are launching a new AARP ad campaign this month to educate men and their families about how our device works and why the patient outcomes are terrific. We are excited to drive increased awareness and education for patients and physicians as we believe that NanoKnife can become the market-leading product to treat intermediate-risk prostate cancer, and we'll do everything possible to support that opportunity. Our Medical Device segment reported very strong results. We grew revenue over 2% year-over-year, led by strength in most of our categories. This business not only has excellent products that offer us attractive financial returns, but is also managed and run by a great team of people who know how to compete in more than one market at the same time. Overall, Q1 was a great start to our year. We're hitting on all cylinders. Our Med Tech business is accelerating. We're taking share with our superior technology, and we're driving sustained profitability. With our strong pipeline of clinical catalysts, expanding market opportunities and the operational leverage we're building, we're positioned to deliver significant value creation for our shareholders.

Thanks, Jim, and good morning, everybody. And 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. Top line revenue performance was strong in the quarter. Revenue increased 12.2% to $75.7 million, driven by growth across both our Med Tech and Med Device segments. Med Tech revenue was $35.3 million, a 26.1% increase, and our Med Device revenue was $40.4 million, an increase of 2.3%. Now that being said, we are really pleased with the revenue growth we achieved during our first quarter. For the first fiscal quarter, our Med Tech platforms comprised 47% of our total revenue compared to 41% of total revenue a year ago, illustrating the sustained execution of our strategy to increase the percentage of our overall revenue base coming from our Med Tech segment. In addition, in the slides accompanying our earnings release this morning, we illustrate the sustained growth of our Med Tech segment over the past 5 years. During this time, the annual revenue of our Med Tech segment has grown from $41 million in 2020 to $127 million in 2025, representing a compound annual growth rate of 25%. Digging into our Med Tech segment, our Auryon platform contributed $16.5 million in revenue, growing 20.1% compared to last year. Auryon has now delivered double-digit year-over-year growth for 17 consecutive quarters. As Jim mentioned, this growth is supported by our strategy to increase the percentage of our atherectomy business in the hospital side of care. In addition to this mix shift, we continue to grow our customer base in both the hospital and outpatient settings. We also benefited from continued adoption internationally following CE Mark approval in September of last year, which drove approximately $500,000 of revenue in the quarter. Mechanical thrombectomy revenue, which includes AngioVac and AlphaVac sales, increased 41.2% year-over-year with revenue of $11.3 million. Total NanoKnife revenue was $6.4 million, an increase of 26.7% with growth of 31.3%. We view each of our Mechanical Thrombectomy and NanoKnife businesses as strategically important, both in the near and long term and are very happy with their recent performance. We expect both to continue to deliver strong year-over-year growth and contribute meaningfully to our margin profile and profitability moving forward. As I previously mentioned, in the first quarter, our Med Device segment grew 2.3% year-over-year. We've stated that we believe that our Med Device segment will grow in the low single digits throughout the coming years, and we're pleased with the sustained performance. Now moving down the income statement. Our gross margin for the first quarter of FY '26 was 55.3%, a 90-basis-point increase from the first quarter of FY '25. Primary drivers of the gross margin improvement are pricing initiatives in both our Med Tech and Med Device segments, the sales mix shift to our higher-margin Med Tech products and operating efficiencies. Our operations team has done a fantastic job executing on our strategy and has accelerated some of the gross margin initiatives driving gross margin improvement in the first half of our fiscal year, ahead of the scheduled completion date of January 2026. Additionally, gross margin in Q1 included $1.7 million of tariff expense or roughly a 220-basis-point impact. Touching briefly on tariffs. The expense in Q1 was in line with our expectations. We continue to expect to incur between $4 million and $6 million of tariff expenses for the full fiscal year 2026. Total operating expenses in the quarter were $52.5 million, down to just 69.4% of sales compared to $50 million or 74% of sales last year, as we continue to drive operating leverage in the business. Turning to R&D. Our research and development expense was $6.4 million or 8.5% of sales compared to $6.3 million or 9.3% of sales a year ago. As we previously stated, we remain committed to investing in R&D initiatives to support the long-term growth of our Med Tech segment. SG&A expense for the first quarter of FY '26 was $40.7 million, representing 53.7% of sales compared to $36.6 million or 54.2% of sales a year ago. This increase in spend is largely driven by the investments we've highlighted in an expanded Mechanical Thrombectomy sales force to support the growth of our Med Tech segment. Our adjusted net loss for the first quarter of FY '26 was $4.2 million or an adjusted loss per share of $0.10 compared to an adjusted net loss of $4.4 million or an adjusted loss per share of $0.11 in the first quarter of last year. This year-over-year improvement is largely attributable to our Med Tech revenue growth and the success of our expense management initiatives. Adjusted EBITDA in the first quarter of FY '26 was $2.2 million compared to an adjusted EBITDA loss of $152,000 in the first quarter of 2025. We maintained zero debt and have the flexibility to tap into our revolving credit facility, if needed. Turning now to guidance for fiscal '26. Based on our first quarter performance and our expectations for the balance of the year, we now expect net sales to be in the range of $308 million to $313 million, raised from our previously issued range of $305 million to $310 million. This increased range now represents growth of between 5% and 7% over fiscal '25 revenue of $292.7 million. On a segment basis, we now expect Med Tech net sales to grow 14% to 16%, an increase from prior guidance of 12% to 15%, and we continue to expect Med Device sales to be roughly flat. For fiscal 2026, we continue to expect gross margin to be in the range of 53.5% to 55.5%. This is inclusive of our reiterated estimate of $4 million to $6 million of tariff impact for the full fiscal year. We now expect adjusted EBITDA to be in the range of $6 million to $10 million, up from prior guidance of $3 million to $8 million, again, inclusive of our estimated tariff impact. Lastly, we now expect adjusted loss per share in the range of $0.33 to $0.23, improving from our prior guidance of a loss of $0.35 to $0.25.

Jim, Steve, it's John. Congratulations on the nice progress we're seeing here. I first wanted to start on just guidance, if I can. If I'm reading between the lines, right, from your comments, Steve, it sounds like the raise in Med Tech and the go-forward would mostly be predicated on the Mechanical Thrombectomy and NanoKnife segments. Am I right on that?

Thanks for the question. Yes, you're correct. If you think about the raising guidance going forward, it is primarily being driven by what we're seeing in the Mechanical Thrombectomy and NanoKnife spaces. We expect that to continue. It's one of the things that we pointed to at the end of Q4. We really like the portfolio that we have here in Mechanical Thrombectomy and the performance that we're getting out of that team. On NanoKnife, as we've said, we expect NanoKnife to be a grower for us and in the short, medium and long term. That's going to be one of the primary drivers of our growth.

Great. Congrats on the quarter. I was hoping I could start in Mechanical Thrombectomy. Maybe an update around kind of hospital penetration would be helpful. And then how we should think about that trending going forward?

Frank, it's Jim. So we've seen really good uptake in interest at the hospital and that translates into our sales team then converting accounts into the value analysis committee approvals that we seek. It's really important to us. We measure it every month. We watch the adoption. We watch our procedures grow every month. So it gives us more confidence in the device. We've added new sales reps into this fiscal year based upon our confidence. And we'll keep measuring it for you.

Yes, and Frank, just to add to what Jim said, I mean we are bringing on new customers in both the AngioVac and AlphaVac side of the house every quarter. We're really pleased with the trajectory that we're seeing there. We're still in the very early stages here.

This is Eduardo on for Yi. Just to follow up a little bit on the mix of growth and penetration versus utilization.

Yes, it's a great question. We are seeing the ability to take some price in Mechanical Thrombectomy but we're also bringing on new customers and we're seeing growth in terms of unit sales as well as utilization at our customer base. So it's a combination of all three. Yes, as we've said, we think this is a very important clinical trial both to our product line, but also to the market in general for atherectomy. We're very pleased with the pace that we're seeing, the uptick, the interest in getting into this study with the clinical and scientific rigor that it has. And we think it will be a very big part of our Auryon business going forward.

Thank you, Rob. Thank you guys for joining us today on the call. What you'll see from us is what you've seen this quarter. In the future, we believe that we have a company set up to win in the markets that we know are strong. We're also really encouraged by new people joining our company, who are thrilled to join us based upon the direction we've changed this company towards, and they want to be a part of our journey. So folks, we're really excited with the results we just delivered, and we're really bullish on our future.

This will conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation.