Sign in
AI

AtriCure, Inc. (ATRC)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 delivered strong growth and profitability improvements: revenue $134.3M (+15.8% y/y) with gross margin 75.5% (+59 bps y/y); adjusted EBITDA $17.8M; adjusted and GAAP loss per share both $(0.01) .
  • Results beat Wall Street consensus: revenue $134.3M vs $131.3M*, EPS $(0.01) vs $(0.12)*; management raised FY2025 guidance for revenue to $532–$534M and adjusted EBITDA to $55–$57M .
  • Growth was broad-based: U.S. $109.3M (+14.5% y/y) and International $25.0M (+22.0% y/y), led by AtriClip FLEX Mini, EnCompass clamp, and cryoSPHERE MAX/PLUS launches .
  • Catalysts ahead: LEAPS trial fully enrolled (6,500 patients), BoxX-NoAF first patient treated, Japan approvals for AtriClip FLEX V/PRO V/FLEX Mini, and cryoXT launch targeting post-amputation pain .

What Went Well and What Went Wrong

What Went Well

  • Record product momentum: “continued positive traction” from AtriClip and cryoSPHERE, and “durable momentum” from EnCompass adoption; company generated $30.1M cash in Q3 and $25.1M YTD .
  • Broad-based revenue growth: U.S. $109.3M (+14.5% y/y); International $25.0M (+22.0% y/y), with European open ablation growth >30% in the quarter due to EnCompass launch .
  • Profitability inflection: adjusted EBITDA $17.8M (~$10M y/y increase); CFO noted adjusted EBITDA margin of 13.3% and leveraged SG&A below revenue growth .

Quote: “We are seeing continued positive traction with our most recent product launches… coupled with durable momentum from expanding adoption of our EnCompass clamp.” — Michael Carrel, CEO .

What Went Wrong

  • Minimally invasive ablation softness: U.S. minimally invasive ablation declined to $7.4M, impacted by adoption of catheter-based PFA; hybrid segment remains pressured .
  • Sequential seasonality: revenue declined ~1.4% q/q (normal procedure seasonality), and Q4 adjusted EBITDA guide implies a step-down as R&D ramps (BoxX) .
  • Gross margin variability: while up y/y, CFO cautioned full-year gross margin “slightly higher than 2024” with potential mix impacts by geography/product .

Financial Results

Core P&L vs Prior Quarters (actuals)

MetricQ1 2025Q2 2025Q3 2025
Revenue ($USD Millions)$123.6 $136.1 $134.3
Gross Margin %74.9% 74.5% 75.5%
Net Loss per Share (GAAP) ($)$(0.14) $(0.13) $(0.01)
Adjusted EBITDA ($USD Millions)$8.8 $15.4 $17.8
Adjusted Loss per Share ($)$(0.14) $(0.02) $(0.01)

Year-over-Year and Consensus Comparison (Q3 2025)

MetricQ3 2024Q3 2025 ActualQ3 2025 Consensus*Delta vs Consensus
Revenue ($USD Millions)$115.9 $134.3 $131.3*+$3.0M (≈+2.3%)*
GAAP EPS ($)$(0.17) $(0.01) $(0.12)*+$0.11*
Gross Margin %y/y +59 bps 75.5% n/an/a

Values with asterisks retrieved from S&P Global.

Segment Revenue Breakdown

Segment ($USD Millions)Q3 2024Q3 2025
United States – Open Ablation$30.6 $35.6
United States – Minimally Invasive Ablation$11.1 $7.4
United States – Pain Management$16.3 $20.8
United States – Appendage Management$37.4 $45.5
Total United States$95.5 $109.3
International – Open Ablation$8.6 $10.9
International – Minimally Invasive Ablation$1.7 $1.9
International – Pain Management$1.6 $2.1
International – Appendage Management$8.6 $10.2
Total International$20.5 $25.0
Total Revenue$115.9 $134.3

KPIs and Balance Sheet

KPIQ3 2025
Cash Generated in Quarter ($USD Millions)$30.1
Cash & Equivalents ($USD Millions)$147.9
EnCompass Accounts Purchasing (YTD)740
International Revenue Growth (Reported/CC)+22.0% / +17.9%
Adjusted EBITDA (Q3) ($USD Millions)$17.8

Guidance Changes

MetricPeriodPrevious Guidance (Q2 2025)Current Guidance (Q3 2025)Change
Revenue ($USD Millions)FY 2025$527–$533 $532–$534 Raised
Adjusted EBITDA ($USD Millions)FY 2025$49–$52 $55–$57 Raised
Adjusted Loss per Share ($)FY 2025$(0.34)–$(0.39) $(0.23)–$(0.26) Raised (less loss)
Gross MarginFY 2025Not quantified; mix headwinds cited Slightly higher than 2024; mix may vary Slight improvement
Cash FlowFY 2025Modest generation Continues to expect generation Maintained

Context: Guidance was initially $517–$527M revenue, $44–$46M adjusted EBITDA, $(0.50)–$(0.55) adjusted LPS at Q1 2025, then raised at Q2 and raised again at Q3 .

Earnings Call Themes & Trends

TopicQ1 2025 (prior)Q2 2025 (prior)Q3 2025 (current)Trend
Product launches & adoptionEnCompass, cryoSPHERE MAX, AtriClip FLEX Mini highlighted Continued momentum; LEAPS enrollment completed Strong traction across AtriClip, EnCompass, cryoSPHERE; cryoXT launched Strengthening
Open ablation growthRobust growth with EnCompass Sustained mid/high-teens; Europe launch >18% worldwide; Europe >30%; CABG penetration opportunity Accelerating
Minimally invasive/hybridStable but impacted by PFA trends Increasing pressure from PFA adoption Softness persists; pathway via PFA non-responders Challenged
Clinical catalystsAnalyst Day roadmap; LEAPS ongoing LEAPS fully enrolled (6,500) BoxX-NoAF first patient; Japan AtriClip approvals Building
Margin trajectoryGM +27 bps y/y; operating leverage GM down 15 bps y/y on mix GM +59 bps y/y; adjusted EBITDA margin 13.3% Improving
International growth+20.8%/+23.9% CC; broad growth +23.3%/+19.9% CC +22.0%/+17.9% CC; Europe leads Sustained strength

Management Commentary

  • “We are determined to drive exceptional financial performance, underscored by continued growth and increasing profitability.” — Michael Carrel, CEO .
  • “Open ablation… accelerated to over 18% for the quarter… we expect to further advance concomitant ablation procedures with… Encompass clamp enabled with PFA… first-in-human use over the coming months.” — CEO .
  • “We recognized $17.8 million in adjusted EBITDA… expanded our adjusted EBITDA margin to 13.3%… continued leverage within SG&A.” — CFO .
  • “We now expect… $532M to $534M… adjusted EBITDA $55M to $57M… adjusted loss per share approximately $0.23 to $0.26.” — CFO .

Q&A Highlights

  • Sustainability of open ablation growth: penetration in CABG patients is still low (~approaching 10% treated), EnCompass ease-of-use/speed cutting ~30 minutes drives adoption; Europe open growth >30% .
  • Hybrid/PFA dynamic: growth pressure from PFA; strategy is capturing PFA non-responders after one or two failed catheter ablations; signs of referrals re-emerging .
  • Profitability cadence: Q4 step-down in adjusted EBITDA due to ramping R&D (BoxX); gross margin expansion from product mix and EnCompass manufacturing efficiencies .
  • Japan approvals: AtriClip FLEX V/PRO V/FLEX Mini approved; revenue contribution expected to start next year after market preparation period .
  • Pain management: cryoXT launch is focused initially; expected to be a meaningful contributor in 2026; cryoSPHERE adoption expanding in thoracic and sternotomy procedures .

Estimates Context

  • Q3 2025 vs consensus: Revenue $134.3M actual vs $131.3M estimate*; GAAP EPS $(0.01) actual vs $(0.12) estimate*.
  • Forward consensus: Q4 2025 revenue $139.3M*; Q4 2025 EPS $(0.05); Q1 2026 revenue $138.7M; EPS $(0.11)*.

Values with asterisks retrieved from S&P Global.

MetricQ3 2025 ActualQ3 2025 Consensus*Q4 2025 Consensus*
Revenue ($USD Millions)$134.3 $131.3*$139.3*
GAAP EPS ($)$(0.01) $(0.12)*$(0.05)*

Key Takeaways for Investors

  • Broad-based growth and margin expansion, coupled with strong cash generation ($30.1M), support a more durable profitability trajectory into 2026 .
  • Guidance raised again for FY2025 (revenue and adjusted EBITDA), signaling confidence in product momentum and operational leverage; watch for continued beats vs conservative philosophy .
  • EnCompass and AtriClip FLEX Mini are key growth engines; European open ablation adoption suggests international runway, while CABG penetration in the U.S. remains underpenetrated .
  • Hybrid segment headwinds from PFA likely persist near term; strategy pivots to PFA non-responders and long-standing persistent patients—monitor referral trends and case volumes .
  • Clinical catalysts (LEAPS, BoxX-NoAF) and regulatory milestones (Japan AtriClip approvals, cryoXT 510(k) launch) expand TAM and could be narrative drivers as data/rollouts progress .
  • Mix-driven gross margin tailwinds and EnCompass manufacturing efficiencies provide incremental support to margin trajectory; near-term R&D ramp in Q4 tempers EBITDA cadence .
  • Near-term trading lens: emphasize raised guidance and consensus beats; medium-term thesis: innovation + clinical evidence expanding addressable markets in appendage management, open ablation, and non-opioid pain management .