Anna

Anna inquired about how the new competitive entry in the clip business was factored into AtriCure's 2026 guidance and asked for more color on the dynamics of the clip business, particularly U.S. softness in Q4 2025.

Answer

Angie Wirick, CFO of AtriCure, stated that the 2026 guidance (12%-14% growth) already anticipated competitive entry, expecting very mild pressures in the latter half of the year. She emphasized focusing on FLEX-Mini clip adoption and addressing both AFib and non-AFib patients. Ms. Wirick attributed U.S. clip business softness to the minimally invasive clip, which declined about 6% in Q4, following a stronger Q3 with PRO-Mini adoption. She noted variability in MIS appendage management, linking its growth to the hybrid ablation business's performance. Open appendage management, however, showed high teens growth in Q4 and 24% for the full year 2025, driven by FLEX-Mini.

Anna inquired about the confidence behind the 2026 revenue guidance, which projects an acceleration to 11%-18% top-line growth, and what factors differentiate the low and high ends of this guidance.

Answer

CFO Jared Oasheim attributed the confidence to the sequential growth observed from Q1 through Q4 2025, following a sales organization reset. He noted that new sales representatives hired in 2024 and 2025 are progressing up the productivity curve. While a seasonal dip is expected from Q4 2025 to Q1 2026, a return to sequential growth is anticipated for the remainder of 2026, driven by increased sales rep productivity.

Anna inquired about the confidence behind the 2026 revenue guidance, which projects an acceleration to 11%-18% top-line growth, and what factors are contemplated in the low and high ends of this guidance.

Answer

Jared Oasheim (CFO) attributed the confidence to the sequential growth observed from Q1 through Q4 2025, following a sales organization reset. He highlighted the increasing productivity of newer sales representatives and the expectation of a return to sequential growth after a seasonal dip from Q4 to Q1.

Anna asked about the cadence of cost saving realizations from the $75 million full-year target, specifically how much was realized in Q1 and the expected phasing for the remainder of the year. She also inquired about increasing traction in the unvended market and white space growth trends compared to last year.

Answer

Interim CFO Adam Bowen clarified that $40 million in-year savings are expected for FY26, which becomes $75 million on a full-year run-rate basis. Q1 saw a $5 million increment (1 cent per pound improvement from Q4 2025), with the remaining $35 million phasing in approximately $9 million in Q2, $13 million in Q3, and similar in Q4, primarily from Cost Per Pound savings. He also noted new business is roughly 60% programmers and 40% non-programmers, with no dramatic shift. COO Bill Seward added that Market Development Representatives are being introduced to focus on both non-programmers and existing industry customers.

Anna inquired about the amount of the $75 million in cost savings realized in the first quarter and the expected cadence of these savings throughout the remainder of the year. She also asked about increasing traction in the unvended market (No-Programmers) and how white space growth is trending compared to the previous year.

Answer

Interim CFO Adam Bowen clarified that $75 million is a full-year post-transformation number, with $40 million in-year for FY2026. He detailed that $5 million was realized in Q1 (a $0.01 per pound increment), with the remaining $35 million expected to be realized across Q2, Q3, and Q4, primarily from cost per pound savings. Regarding the unvended market, Adam Bowen noted new business is roughly 60% programmers and 40% non-programmers, with no dramatic shift. COO Bill Seward added that new Market Development Representatives will focus on growth in both segments.

Anna asked about the contribution of AI initiatives to HCA Healthcare's $400 million resiliency benefit in 2026 and the potential for further resiliency opportunities beyond 2026, especially with anticipated Medicaid cuts.

Answer

CFO Mike Marks stated that the resiliency program is a multi-year initiative, with the $400 million target for 2026 based on the assessment of implementation status of various opportunities. He emphasized the program's depth and breadth, providing good support for the company through the back half of the decade, but did not specify the exact AI contribution to the $400 million.

Anna, on behalf of Justin Lake, inquired about the $400 million resiliency benefit in 2026, specifically asking how much of it is attributable to ramping AI initiatives and what further resiliency opportunities are anticipated beyond 2026, especially with future Medicaid cuts.

Answer

CFO Mike Marks explained that the resiliency program is a multi-year initiative, with the $400 million target for 2026 based on the current implementation status of various opportunities. He emphasized that the program continues to mature, leveraging components like internal/external benchmarking, advanced analytics, digital transformation with AI/automation, and shared service platforms, providing ongoing support through the latter half of the decade.