AngioDynamics, Inc. (ANGO) Income Statement

The progression from negative growth through 2025 into consistent mid-single-digit gains indicates the top-line contraction that depressed 2024 and early-2025 comparisons has largely burned off. Growth has held above 6% for six consecutive quarters, which argues for improved durability over the -22% and -14% declines seen in 2024Q4 and 2025Q1. However, the 6.9% pace in 2027Q1 is modestly below the 8-9% posted through 2026, so whether the trajectory is stabilizing or decelerating warrants monitoring over the next two prints.

The 2027Q1 gross profit of $48.0M on $80.9M of revenue is the strongest level in the ten-quarter series, and the stability of COGS around $33M against rising sales suggests operating efficiency or favorable product mix rather than one-time inventory effects. Compared with peers, ANGO's 59% gross margin now sits above CONMED (52.8%) and Merit (48.7%) but still trails AtriCure and Novocure (~74%), implying further margin expansion is possible but not guaranteed if mix shifts back toward lower-margin lines.

SG&A consumes over 52% of revenue in 2027Q1, an exceptionally heavy ratio that explains why a 59% gross margin still yields a -3.0% operating margin. That said, the operating loss narrowed to just -$2.4M in 2027Q1 from -$13.1M in 2025Q1, suggesting some genuine operating leverage is emerging as revenue scales against a more fixed cost base. Investors should monitor whether SG&A growth re-accelerates, as the 2027Q1 step-up to $42.5M (from $39M in 2026Q3) shows spending remains capable of outrunning sales.

R&D has grown modestly from $6.3M to $8.0M per quarter, a disciplined pace that supports the product pipeline without materially pressuring margins. SG&A, by contrast, has been volatile — ranging from $35.0M to $42.5M — and appears to be the swing factor in quarterly operating results, as seen in 2026Q4 when a -$20.4M operating loss coincided with elevated spending despite solid revenue. The concentration of cost in the selling organization suggests that incremental sales productivity, rather than further R&D cuts, is the more credible lever for margin expansion.

The swing from a -23.5% to a -3.0% operating margin in a single quarter is unusually large and likely reflects some period-specific expense timing, given that SG&A actually fell only $1.1M sequentially. If the underlying gross-margin gains prove durable rather than mix- or timing-driven, the company appears within reach of operating breakeven at current revenue levels, which would be a meaningful re-rating catalyst. The 34.6% improvement in diluted EPS to -$0.17 reflects the same dynamic but remains negative, underscoring that the inflection is not yet complete.