Danny Stauder

Danny Stauder asked about the impact of U.K. budget issues on AtriCure's international sales, identifying specific affected segments (pain management, MIS ablation) and quantifying the impact. He also inquired about the nuanced rollout strategy for cryoXT, specifically regarding training needs for new surgeon types.

Answer

Angie Wirick, CFO of AtriCure, identified pain management (due to reimbursement withdrawal) and standalone AFib treatment (MIS ablation, an elective procedure) as the most impacted segments in the U.K. She noted a significant reduction from a $4 million quarterly run rate to 'a little over $1 million' in Q4 2025, which was the quarter with the biggest impact. Open cardiac procedures were less affected. Mike Carrel, President and CEO, explained that the deliberate cryoXT rollout strategy, similar to EnCompass, involves reps focusing on one account at a time to ensure sticky adoption. This is crucial because it targets new surgeon types (vascular, orthopedic) not typically engaged by AtriCure. The goal is to learn from initial cases (10-15 cases, ~3 months) to refine training and protocols before broader expansion, anticipated by mid-year. Feedback has been positive.

Danny Stauder asked about the impact of UK budget issues on international sales, specifically which segments were most affected and the financial magnitude of the impact in Q4 2025, and how this might trend in 2026. He also inquired about the deliberate rollout strategy for CryoXT, asking if it requires more substantial surgeon training or has unique nuances compared to prior launches.

Answer

CFO Angie Wirick explained that the most significant impact in the UK was on pain management devices (due to NHS reimbursement changes) and standalone AFib treatment (minimally invasive ablation), which are elective procedures. She noted a reduction from a $4 million quarterly run rate to just over $1 million in Q4 2025 for the UK. President and CEO Mike Carrel described the CryoXT rollout as deliberate, similar to the Encompass clamp launch, focusing on one account at a time to ensure proper procedure understanding, training, and feedback from new surgeon types (vascular, orthopedic). He stated that the goal is to get 10-15 cases under a surgeon's belt over about three months before expanding, with positive feedback so far.