PEN Q2 2025: Revenue +13.4% to $339.5M, raises FY outlook
- Strong Financial Performance: Q2 2025 revenue increased by 13.4% to $339.5 million with gross margins rising to 66%, and management raised full‐year revenue guidance to a range of $1.355–1.37 billion, indicating robust top-line growth and margin expansion potential.
- Innovative Pipeline & Clinical Advancements: The company’s enrollment completion of the STORM PE trial—the first randomized study comparing anticoagulation alone versus in combination with a mechanical device—along with the successful launch of Ruby XL and progress on Thunderbolt, sets the stage for potential shifts in treatment standards and long‑term market growth.
- Strategic Sales Force Focus: The deliberate reorganization of the sales team into specialized units for thrombectomy and embolization has enhanced market focus, resulting in significant gains (e.g., 22.6% U.S. thrombectomy growth) and positioning the company to capture additional market share in existing and emerging segments.
- Regulatory and Clinical Trial Risks: Uncertainty around the FDA review process for Thunderbolt and reliance on positive results from the STORM PE trial could delay broader market adoption if outcomes do not meet expectations.
- Margin Pressure from Investment Initiatives: Increased expenses from splitting and expanding the sales force and launching new products like Ruby XL have introduced short‑term margin variability, potentially affecting near-term profitability.
- International Headwinds Impacting Growth: Ongoing challenges in international markets, particularly China, and a softer growth profile outside the U.S. may constrain overall revenue expansion despite strong domestic performance.
| Metric | Period | Previous Guidance | Current Guidance | Change |
|---|---|---|---|---|
Revenue growth | FY 2025 | 12% to 14% year-over-year growth | 13% to 15% year-over-year growth | raised |
U.S. Thrombectomy Growth | FY 2025 | 20% to 21% year-over-year | 20% to 21% growth | no change |
Gross Margin | FY 2025 | Reiterated expectations for margin expansion | Maintained guidance for a long-term 70% profile by 2026 | no change |
Operating Margin | FY 2025 | Reiterated expectations for margin expansion | Maintained guidance for operating margin for FY 2025 | no change |
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Margin Guidance
Q: Impact of sales force on margins?
A: Management explained that the new sales team investment had no effect on gross margins while operating margins remain in line with full-year guidance, showing careful cost management without sacrificing profitability. -
Revenue Outlook
Q: How will U.S. thrombectomy growth evolve?
A: Leadership noted that despite some deceleration in the non-venous segment, the focus on thrombectomy should maintain 20–21% growth, underpinned by strong market share gains and evolving referral patterns. -
STORM PE Impact
Q: What makes the STORM PE study significant?
A: They emphasized it is the first randomized trial comparing anticoagulation alone versus with a mechanical device, which, if positive, could transform the standard of care for PE treatment. -
Thunderbolt FDA Process
Q: When might Thunderbolt clear FDA review?
A: Management stressed that the review is proceeding as expected; they are in an active process without confirming a precise timeline, leaving investors to wait for further updates. -
Salesforce Restructure
Q: How will the split sales force deliver ROI?
A: They have already completed hiring and training, ensuring focused teams that should drive better performance and ultimately support stronger growth in both thrombectomy and embolization segments. -
International Performance
Q: What was the international and China contribution?
A: The update highlighted that China orders were minimal this quarter, while other international markets are beginning to show improvement, thanks to new product launches like Ruby XL fueling upward trends. -
Neuro – Medium Vessel Exposure
Q: What’s the exposure to medium vessel occlusions?
A: Management acknowledged it’s challenging to isolate precise figures since devices like the red 62 and red 43 serve multiple functions; however, they continue to gain share through broad usage in various neuro procedures. -
STORM PE Commercialization
Q: How soon will STORM PE data impact practice?
A: Since the product is already cleared for PE, the trial’s positive results are expected to influence clinical practice rather than requiring additional regulatory approval, positioning growth for later periods. -
Distal Aspiration Trial
Q: Is a new distal aspiration study needed?
A: The discussion revealed mixed views: while there’s clear enthusiasm for supporting data on aspiration, trial design is complex and consensus is still forming among experts.
Research analysts covering Penumbra.