AngioDynamics, Inc. (ANGO) Cash Flow Statement

The OCF/NI ratio fluctuates wildly from -3.11 to +2.99, indicating that AngioDynamics' operating cash flow is dominated by working capital timing rather than underlying profitability. Even as gross margins expanded above 59% in 2027Q1, the company still posted -$15.3M of operating cash flow, suggesting the improvement has not yet reached the cash line. The persistent gap between reported losses and near-breakeven OCF appears driven by non-cash add-backs rather than a fundamental shift in cash economics.

The 2026Q4 working capital inflow of +$16.5M produced a positive FCF of $17.0M despite a -$11.4M net loss, demonstrating that the seasonal cash harvest is the primary driver of intermittent cash generation. However, this pattern also means that Q1 and Q3 quarters consistently show large cash outflows (e.g., -$16.3M in 2026Q1 and -$16.1M in 2025Q1), masking the underlying operating trajectory. Investors should evaluate the full-year working capital cycle rather than any single quarter, as the intra-year swings are largely mechanical and may not reflect improving commercial dynamics even as revenue growth accelerates.

The consistent decline in D&A alongside minimal capital spending implies that the company is operating on a depreciating asset base rather than investing in capacity expansion. For a medical device manufacturer, this capital intensity profile is notably low relative to peers like Merit Medical (which typically invests more heavily in manufacturing infrastructure), and may indicate either an efficient outsourced model or underinvestment. Given the reported revenue recovery to the $80M+ quarterly level, the low capex could become a constraint if capacity additions are needed to sustain growth.

This divergence indicates that the economic cash cost of running the business is substantially lower than the reported accounting losses suggest, which has implications for any path to breakeven. However, the cumulative -$25.4M FCF deficit over 2.5 years represents a meaningful drain on the balance sheet, and with SBC growing from $1.9M to $4.5M per quarter, the non-cash add-backs that cushion operating losses are themselves increasing the share count. The divergence narrows the gap between reported and economic performance but does not eliminate the need for the commercial cost base identified in the income statement analysis to moderate.

The FCF margin profile oscillates between +22.5% and -28.7%, reflecting the dominance of working capital timing over operating performance. Even as revenue grew to $80.9M in 2027Q1, FCF remained -$15.7M, indicating that the reported gross margin expansion has not yet translated into structural cash generation. Given the peer set where companies like Merit Medical and CONMED generate 10-13% FCF margins, AngioDynamics' inability to produce positive free cash flow on a run-rate basis suggests that the commercial cost base remains the binding constraint identified in the prior income statement analysis.