Thanks, everyone, for joining. My name is John Young. I'm one of Canaccord's Senior MedTech Analysts, and we're thrilled to host Angiodynamics. With us today is CEO Jim Klemmer and CFO Steve Chowbridge. We saw a very strong close to fiscal 2026 when you guys reported earnings in mid-July, and the fiscal 2027 guide was ahead of expectations, so maybe we could just dive in with this fireside chat. Just setting the stage, you know, Angio's been in the midst of a transformation, moving from a company that mostly made catheters, which is part of the legacy medical device business, but now has embraced higher growth areas of med tech. FY26 was your seventh consecutive quarter of double-digit med tech growth, with full-year med tech up 18% and the segment now 47% of total company revenue. As you step back, what inflected in 2026 and how durable is this makeshift towards the higher-growth, higher-margin, med-tech business?

Thank you for the invitation to the conference. InterDynamics has been on a run where we've decided to change our company purposely to get out of markets that we thought were slow-growth, small, we couldn't win it, and enter markets that were larger, TAMs, faster-growing. And science and technology made a difference. Our product has separated ourselves from others and win the faster-growing high-growth markets.

Yeah, I think you asked two questions. You said what inflected in 26 and then how durable is the growth as it goes forward. And so Jim was describing our transformation, and we started this a handful of years ago, where we really put a marker and we said we're going to be focusing on our med tech products. And it's that focus that's really paying off. So I wouldn't say that any one specific thing inflected for us in 2026. What we saw was continued growth coming from all three of our med tech platforms, particularly Arian, mechanical thrombectomy, and then NanoKnife. We're really pleased with what we saw at Nanonite for the full year. And when you put that growth together with the discipline that we have on the operating side, we were able to drop additional EBITDA to the bottom line, prove that the business model can generate positive cash going forward, and have now the whole P&L working together as we get a little bit more critical mass within MedTech. So the question about, you know, how durable is the growth, if you look at our MedTech growth over the last five years, the CAGR is over 25% in MedTech. And so we were pleased with getting to about 19% last year with much larger numbers in MedTech than when we started. When we started this transformation, about 17% of our overall revenue base was coming from MedTech. This fiscal year, which started on June 1st for us, we're going to cross over that threshold, and it's going to become the majority of our revenue base. So that growth is going to be sustainable. We expect to continue to see double-digit growth within MedTech driving the overall results.

Great, yeah. So maybe just double-clicking on that, you did guide the MedTech growth to 12% to 15% growth for the initial guidance range that you gave. Maybe you could just walk us through how we should think of the contribution to that growth across all three of the platforms that encompasses MedTech today.

So as I mentioned, we hit 19% last year. And I think the way to think about MedTech is in that mid-teens, you know, 15% to 20% is a good way to think about the growth. We guided 12% to 15%. There's a number of moving pieces, right? We talked about the three different contributors within our med tech business with the PAD business for Arian, mechanical thrombectomy with angiobac and alphavac, and then our urology based nanonife oncology business. So all three of those things are somewhat independent. I would say they're not necessarily synergistic to each other, but that's why we think we can see the growth growing forward. So Arian has been a great grower for us. When we bought that company five years ago, there was zero revenue in the US. We did about 68 million at the end of last year. It was growing, you know, kind of high to high double digits around 19%, 20%. We said think of Ariane as about a mid-teens grower, about a 15%. It's been outpacing that a little bit the last couple years, but I think that's a good way to think about it going forward. Mechanical thrombectomy, lower base, but last year Alphabac grew 44%. We expect that to continue to actually accelerate. And so we think as we continue to take procedures within PE, that could be probably our fastest growing product. And then you had NanoKnife last year. We were really excited to see the growth both in terms of capital and well-disposables. We've guided people to not expect capital to be a smooth growth driver. That's a little bit lumpier working with hospital capital budgets. But it's a good harbinger of continued procedure growth and procedure probe growth. And so thinking about probe growth for NanoKnife in that double-digit range, you know, greater than 15% is the right way to think about it.

Okay, great. And then maybe just on margin guidance, too. Initial guidance for gross margin was set to 54% to 55% and $13 to $16 million of adjusted EBITDA. And I know you noted that tariff headwind should be similar to last year, too. How should investors think about this, the pace of margin expansion, especially what the Costa Rica manufacturing transition fully annualizes this year?

Yeah, so there's a number of moving pieces within gross margin, as I'm sure everybody here is familiar with. Tariffs are one of them. Tariff environment changed from the last time we guided when we came out, and that was just a few months ago. So there's some impacts there. The overall gross margin story for angiodynamics is to see gross margin expansion coming from this mix shift that we talked about. So as a larger portion of our revenue base is being made up of that med tech segment, that's going to drive margins. You know, we break out on a segment basis, our margin profile, MedTech is in the mid-60s, our MedDevice is in the mid-40s. So as you continue to see that mixed shift, that's going to drive gross margin accretion. We've seen that over the last five years as we've been on this trajectory. Now, some of that benefit, of course, has been a little bit muted by tariffs, the inflationary environment, right? So I do expect tariffs, as we said when we came out with our guidance, to be roughly the same impact of what we saw last year. it was about a $5 million impact. We got it to around $4 million based upon the regime that was existing at the time. You may see a slight uptick there given the change from the 10% global tariffs to 15% now, maybe another $500,000 or so, but it's not meaningful. So it should be relatively consistent from a tariff impact year over year. And then, as you mentioned, we've got our manufacturing move, which is to get the higher labor content products that were being made in our Queensbury facility, now coming out of our manufacturing partner down in Costa Rica. It was a move we made a few years ago, primarily to drive capacity. We just didn't have, it was a tight labor market. We couldn't get enough people in our Queensbury manufacturing facility. So we're excited and we're pleased with the performance that we're seeing now from that third party. We're just about done with that manufacturing transfer. So gross margin overall, it's a long way to talk about it, but there's a lot of moving pieces here. I do expect gross margin to kind of where we exited FY26 to be a good starting off point. And then you're going to want to see gross margin accretion from there with that mixed shift.

And I know tariff refunds have been a popular topic the past month or so. Have you guys gotten any refunds or is that contemplated into the guidance?

So refunds are not contemplated into the guidance, right? So when we talk about seeing a tariff impact similar to last year, I'm just talking about the new tariff costs. I do expect that we're going to see refunds from what we paid last year. We'll be transparent as those come through. And we have started to see some of that. I saw about a million bucks so far come in in our Q1. It's hard to predict exactly when we're going to get that, but we'll be transparent. And so that from a reported basis, we'll make it a little noisy quarter to quarter in terms of both gross margin and that EBITDA contribution you were talking about. But we definitely will be transparent and let you know what we're seeing.

Great. Maybe we'll just dive into the different parts of the medtech business, starting first with Orion. It's 20th consecutive quarter double-digit growth. It was out 14% in FQ4. What is driving that consistency, and where do you see the shift today in the OBO to hospital mix? And maybe also remind us, what is the ASP benefit as you continue to shift that mix?

Yeah, you know, we think Orion is indicative of the whole, you know, inter-dynamics change and transformation to a growth company. You know, we entered the Orion market when we decided to invest smaller, both slower markets we were in and to invest in the cardiovascular platform as we saw. So we treat cardiovascular disease in the vein of system, veins, and arteries. And BAD is what we treat with Arian. We entered this market. We were the sixth player in the market. And we entered with zero revenue. Today, we did 68 million in the year we just reported, May 31. Zero to 68 million in five years. Taking share from much larger global companies because our product is that much better. He uses energy to break up calcium and plaque in the diseased artery, flushes it out, basically goes home safe. The caregiver has a great platform, the hospital or the OVL is pleased with the results. So really, John, this is indicative of what we can do all of the platforms we've focused on. We're proud of the growth here. But also we see it as an enabler for other things beyond that. We'll see another year of growth here.

Yeah, I think the main driver for Arian's durable growth has been the versatility of the product line. We talked about this a while ago that what really attracted us when we were looking to buy this product five years ago was the fact that it was equally effective both above the knee and below the knee. It's the only product that you can see that is effective above the knee, below the knee, and in instant restenosis. We've seen that play out. So just about half of our procedures are above the knee since we launched it and about half below the knee. So there's still continued market share for us to take as we move forward. So we're not just relegated to an area like just above the knee and then you can kind of hit the wall pretty soon. So we think that there's this going to be continued market share shift in Arian for the next handful of years.

And maybe let's continue on that pathway, too. Just Ambition BTK still enrolling and expanding internationally. What's the timeline to meaningful data for that trial? And then, again, maybe just how you frame the below-the-knee opportunity today relative to the above-the-knee base.

Yeah, in terms of Ambition BTK, that's not a 2027 thing where I would expect to see data coming out of that. It was very important for us to start this trial. It's a comprehensive, scientifically rigorous trial that a lot of our physicians are applauding us for running into because it's a study that competitors hadn't been willing to run before. So what we're doing is we're comparing Ariane with balloon angioplasty to balloon angioplasty alone, particularly below the knee, right? And we feel very comfortable about the results that we're going to get. Now, there's two elements to this trial. There's an RCT as well as a registry. The RCT is going to be important for some of the scientific rigor, but I think there's going to be a lot of really good data coming out of that registry, more of the real-world activity. So we've expanded it internationally. It's something that we're going to continue to focus on both in the domestic markets as well as the international markets. Not going to be an FY27 thing before you're going to get that data, but it's indicative of the data generation foundation that we know is important to continue to drive growth in atherectomy.

Yeah, what's really important for us is, in fact, today we're taking a share, as you know, in the space, it's a $500 to $600 U.S. market for taking share from everybody there. What the ambition we think people do, we believe, expand that TAM to $600 to $900 million. And by the way, we're the only players that can actually do the market expansion to solve that need. So to us, it's really important to keep, as you said earlier, durability, but it will continue for a long time to come. So we think it's a great enable for us, a radiologic TAM that we can serve really well.

You guys have spoken about the application of this technology for the coronaries. Maybe just any update there for investors of how you give that still.

Yeah, I love the question because it really illustrates the platform nature of the technology of Arian. So I'm going to talk about that in a second, but I just want to reiterate that all three of the growth drivers that we have in MedTech have this similar platform element to them, where you can take the existing technology and without a lot of product development, but more with data generation and indication expansion, move into larger total addressable markets. And it gives us that opportunity to extend the growth profile kind of beyond that medium term. So when you talk about Arian and Coronary, we're really excited about the opportunity of taking this unique laser mechanism of action, laser-based technology, into the Coronary. It's a comprehensive trial. It's probably going to be a PMA. We've talked about it as being about a four-year study or so. But it's an opportunity for us to talk to physicians that are in the hospital setting here in the U.S. as well as in the international markets. They're telling us that they've used it. They know it works. It's a good opportunity for us to take that technology, prove it out in a new total addressable market, which the coronary market for atherectomy is actually larger than the PAD market for atherectomy. So we talked about the durability of Arian growth in the short term. So we're really excited about that. We're going to continue to drive that growth. And then you've got the opportunity to drop on this additional indication in the coronary to keep that growth momentum going.

Have you guys started discussions with the FDA to get, like, an IDE or just any?

We're definitely in discussions, and we're doing all the work that you'd expect, you know, given the track record we've had of getting approvals, clearing through the kind of the underbrush and getting through some of the thorny issues. So we'll give you some more information when we've got actual approvals, but we're pleased with the progress of conversations we're having with the FDA to get there.

Great. I think we'll move to mechanical thrombectomy, which was a really strong spot for the company this fiscal year, but did decline sequentially about like a half million in fiscal Q4. What drove that deceleration? Is it timing, competition, execution? I think there's a lot of questions because we've seen Inari also struggling out post-acquisition by a striker. So is this a problem with the actual landscape of mechanical thrombectomy? I think it'd be helpful to hear from you guys.

You know, we think it's still a really good platform to be in, as those of you that may know. You know, the TAM potential is about $3 billion. We agree with the minority number there. And it's only about 15% or so realized at this point. So each of the three of us are working to expand that TAM every day to catheter-based interventions like ours and theirs. So we did a sales and leadership change in February, as you know, in our fourth quarter. We did that on purpose as we get ready to expand the company going forward. We added 20 new reps to the sales division. We're so bullish on the opportunity we have in front of us. The results will have the APEX return study. We believe in APEX return on the market early next calendar year. So the market's great. The PE market is vital. It's large. And we're taking a share from the number one and number two players in the space. So we're pleased with it. We always want to have a better quarter. But you saw it grew 44% last year now.

And maybe we could just touch on the sales force. I know you added to the Salesforce, but there was also some restructuring or changes in Salesforce management there. So maybe you could just tell us what changed, what drove that change. And then also, how do you expect those 20 new reps, the productivity curve? Were they experienced reps from Inari or other places that, you know, quickly could hit their stride? Or is this the usual six to nine months when you think of their productivity, essentially, in MedTech?

Yeah, you know, we were able to take the leading manager we had in our Arian group, and she was hugely successful growing Arian above market rates and bring her in as the leader now for the vein of sales forces. She's terrific. We believe in her. And what she's been able to do now is to track when we have new openings for getting experienced people from the other companies you mentioned. So we think it shrinks our time to efficiency because you've got folks who now understand the market, competitive dynamics, and have relationships with positions. So it typically is a six to nine month window to efficiency and a heat measure. We're going to bring that in. I think we can bring it in. by getting more experienced reps. See, all reps are simple people. They're pretty smart. They go somewhere if they think they can have more fun selling the product and make more money. So I think our product stands on its own and gives them kind of a beacon to be attracted to the joint.

You asked about what really drove that change. I think it's just the typical lifecycle management of a growth product and where you are, right? The leadership that we had before or did a really good job kind of getting us from zero to where we ended up getting to, at times it takes just a different skill set to then drive it beyond that. And so we're always looking at how do we maximize the opportunity in all the products that we have. And at any given point in your life cycle, it may just require a little bit of a different skill set.

And there is a pretty rich pipeline for this platform technology as well. You mentioned Apex Returns, so it sounds like next year we could have that clearance for that product. The other one you have currently is PAVE, so that's the Ride Heart Program for Infective. endocarditis, just any update on PAVE and when we could see an indication from that too.

Yeah, those are two very important trials for us. Now, in and of themselves, those aren't the kind of trials that are going to be the platform expansion, the same way that we talked about taking Arian into coronary. Getting the blood return, which is the apex return, we think it's important to just get over the objection, right, as we're driving our PE cases. We think we got the best product on the market when it comes to PE and AlphaVac, and that product is designed to limit blood loss up front. That being said, the market's been conditioned to look for a blood return solution, so we want to get over that objection. That's what Apex Return is looking to do. With PAVE, that's really supportive of the foundation of Angiovac on the right side, and that's kind of where it's playing today. A little bit more of a niche market than the PE, but it's important for us to continue to drive that foundation, but we see that as the first step to get us into what is a platform TAM expansion opportunity, taking ENGIA back potentially into the left-sided interventions. So there's a difference there that we're keeping our eye on. But happy with the progress we're seeing both in terms of APEX return and PAVE and how they help support foundationally the current uses of those technologies, and then with that eye towards the next platform expansion opportunities and mechanical thrombectomy.

Great. And then maybe we'll turn to NanoKnife, which was the rock star, really, in the last quarter, 64% growth, really riding that tailwind of all the work you've done in prostate data and reimbursement. When we look at the 47% growth in disposables in Q4, how much of that was procedure growth versus end-of-year stocking?

You know, we track our procedure growth every quarter, and we do it every month internally. And we watch. You've seen our cadence the last couple quarters, John, for really great procedural growth. It's driving volume there. These aren't the kind of products people put on the shelf, you know, because they're expensive. So they're not going to stock a lot on the shelves. So we've had increased urologist interest in our product, more urologists being trained by us to use this device to treat men with intermediate risk prostate cancer. And more men. We just got our label, as you know, 18 months ago, the first time we could talk about it. So there's about 150,000 men diagnosed anally just in the U.S. that need a device like this to be treated with intermediate risk prostate cancer. So the device is being well-received by the patients, the men, and you're seeing that uplift end of the year, a little bit of cell drop contest, but there is real, real great growth in the procedures we've been trying to do.

Great. And then Palmetto, you received a pretty favorable LCD from that Medicare administrative contract, recovering now night for prostate and liver, and that one affected July 5th. So maybe just talk to us about what you've seen so far with that effective strategy and how you're going to be going to the other Macs and continuing to just generate positive LCDs to cover this?

Yeah, you know, as you mentioned, it went into effect July 5th, so I don't know that I've seen it in time since it went into effect. But the fact that we were able to get to that positive LCD, I think is a very important illustration of the strategy that we've had with NanoNight, right? We were able to parallel path reimbursement work with the registration work that we were doing. So it was just over two years ago that we got the specific indication for NanoKnife in prostate cancer. This January is when the CPT code became permanent. We had a permanent CPT code go into effect. And then we always said, hey, we don't think that in and of itself is going to be a light switch to get us to, you know, up the growth curve. It's a necessary step. Reimbursement is really kind of the most important piece that we have now. We want it to be predictable. We want it to go across the country. The news around Palmetto, I think, is just a testament to the team that we have in that we were able to go in there, show them the data that we have both in the U.S. and generate it internationally. It's a significant amount of data for nanonife in treating prostate patients. We were able to bring in KOLs. We were able to create the playbook to get to that positive LCD for the intermediate risk patients. You're right. It's going to be a playbook that we're going to use as we go across the country and start to see these dominoes fall. It's not mission accomplished. There's a lot of work left to do to kind of finish this patchwork quilt of going through reimbursement to get coverage everywhere. But everything that we've seen since that code went into effect in January has been positive for us so far. We like the trajectory that we're on. We love the growth that we're seeing both in terms of capital as well as disposables. Capital will be lumpy. We've always said don't expect that to be as smooth. But it's a good indication when you get new systems out there and people are buying it that it's going to drive additional volume going forward.

And then the other recent news on the 99 front was BPH. You guys announced the relief study. So what should investors look for in 2027 in terms of the study, enrollment, timing, any milestones we should think of?

Yes, we talked about a pilot study in BPH, and that's the third example of this platform opportunity of taking the current technology and going into another large total addressable market, right? So you talked about, we had three really important news items around Nanonife come out. We talked about palmetto being one. You hit on the BPH IDE. I just want to mention, too, that we also put out the two-year follow-up data from our preserve study with the patients who were treated with Nanonife for prostate cancer, showing zero additional recurrence within the intended ablation zone after two years. So really good cancer control. What we're hearing from our physicians who are treating patients is, hey, we love what we're getting with Nanonife. You're avoiding the quality of life side effects. We like what we're seeing with cancer control. Oh, by the way, you're also treating their BPH. So what does that mean for a business model? We want to find that out. That's why we're going to run the pilot study. We're going to try to figure that out. So I don't know that I would look again as something that's going to be a meaningful driver in 27. But it's another opportunity to take the current technology, do a study, expand the indication, and see in that kind of medium term beyond perspective the opportunity to continue to drive sustained growth.

Got it. Jim, you announced your intention to retire. I know the company has been actively searching for a replacement, so maybe you could just share any updates on the CEO search.

Sure. I've been lucky to work in this industry for 35 years, almost 10 years here at InterDynamics, so I won't retire by the end of this calendar year. We're working with our board to make sure we do a really great, comprehensive search to find the right leader for our company going forward. So I took the company so far, we're doing really well. We're accomplishing the goals we set out. We're growing faster than the markets in the areas we're in. We're showing the world we can do this while investing our own capital back in the business. Now we're showing we can grow capital, grow EBITDA, in a cash flow positive manner this year. Not to give our shareholders and win and grow in that sort of market. So hopefully growth professionals will look to us. I'm sure we're going to get a really great leader to be the next person to take us here.

And then maybe just to close out the conversation, you know, Now, as we think of fiscal year 2027 for you guys, what should two or three things that investors should look for in terms of important milestones for angiodynamics for this year?

Yeah, continued execution, I think, is number one. Look for continued growth coming from all three of our growth drivers within the tech business, probably driven by Alphavac from a percentage perspective. Watch us continue to balance what Jim said about investing for growth in the top line, continuing to invest in R&D to continuing to add sales resources as we feel appropriate, but then balancing dropping some additional profit to the bottom line. If you look over the last couple of years, we've been really pleased with the EBITDA generation trajectory that we're on. I expect that to continue, and you see some growth in EBITDA. And then doing it while we're generating positive cash flow, currently sitting here with a balance sheet with zero debt in a very dynamic market chewing through things like tariffs that keep changing for us.

Great. Thanks so much, Jim and Steve for being here today. Appreciate it.

Appreciate it, John. Thank you.