Executive Summary

Revenue of $354.7M (+17.8% YoY; +4.5% QoQ) with gross margin at 67.8%; revenue beat consensus by ~$13.9M (4.1%) and non-GAAP diluted EPS of $0.97 beat consensus by ~$0.05; GAAP diluted EPS was $1.17 . Q3 2025 Revenue Consensus Mean*: $340.8M; EPS Consensus Mean*: $0.921. Values retrieved from S&P Global.*
FY 2025 revenue guidance raised to $1.375B–$1.380B (from $1.355B–$1.370B in Q2; $1.340B–$1.360B in Q1); U.S. Thrombectomy growth guidance maintained at 20%–21%; gross and operating margin guidance maintained .
Strong U.S. performance: U.S. revenue $275.0M (+21.5% YoY); U.S. thrombectomy $192.0M (+18.5% YoY); U.S. VTE +34% YoY; U.S. embolization & access $83.0M (+29.2% YoY), aided by the new embo-dedicated sales team and RubyXL launch .
Strategic catalysts: Level 1 STORM-PE data published in Circulation showed CAVT superiority vs anticoagulation alone (clinical and functional endpoints); Thunderbolt 510(k) advancing with thorough responses submitted; management targets >70% gross margin by end of 2026 .

What Went Well and What Went Wrong

What Went Well

Broad-based growth and mix-driven margin expansion: GM 67.8% (+180 bps QoQ) on favorable product/region mix and productivity; adjusted EBITDA margin 18.8% .
Venous leadership and faster adoption: U.S. VTE +34% YoY led corporate growth; “the reaction to [STORM-PE] data within the medical community has been really just incredibly positive,” accelerating shifts to CAVT from older technologies .
Embolization execution: Dedicated 50+ embo sales team delivered 21.2% sequential embolization revenue growth; “rep team fit seamlessly,” supporting RubyXL and Swift Coil momentum (including MMA embolization) .

What Went Wrong

Stroke softness: Macro U.S. stroke market “showed a slight decline,” creating a drag on the neuro thrombectomy growth rate despite share gains .
International still mixed: International revenue +6.6% reported but only +3.0% in constant currency; China headwinds are easing but still present .
Near-term SG&A pressure: SG&A up $8.9M sequentially due to full quarter impact of embo team investment; expected leverage ahead as buildout completes .

Financial Results

Metric	Q3 2024	Q1 2025	Q2 2025	Q3 2025
Revenue ($USD Millions)	$301.039	$324.140	$339.455	$354.685
GAAP Diluted EPS ($)	$0.75	$1.00	$1.15	$1.17
Non-GAAP Diluted EPS ($)	$0.85	$0.83	$0.86	$0.97
Gross Margin %	66.5%	66.6%	66.0%	67.8%
Operating Income ($USD Millions)	$35.364	$40.350	$40.828	$48.838
Net Income Margin %	9.8%	12.1%	13.3%	12.9%
Adjusted EBITDA Margin %	18.8%	18.4%	18.1%	18.8%

Segment Revenue Breakdown

Segment	Q3 2024 ($M)	Q2 2025 ($M)	Q3 2025 ($M)
Thrombectomy	$204.141	$230.256	$236.422
YoY % (reported)	—	—	15.8%
Embolization & Access	$96.898	$109.199	$118.263
YoY % (reported)	—	—	22.0%

Geographic Revenue Breakdown

Geography	Q3 2024 ($M)	Q2 2025 ($M)	Q3 2025 ($M)
United States	$226.326	$260.818	$275.029
YoY % (reported)	—	—	21.5%
International	$74.713	$78.637	$79.656
YoY % (reported / CC)	—	—	6.6% / 3.0%

KPIs

KPI	Value
U.S. VTE YoY growth	+34%
U.S. embolization revenue	$83.0M
Sequential embolization revenue growth	+21.2%
Gross Profit ($M)	$240.416
Cash + Marketable Investments ($M)	$470.3
Sequential GM expansion (bps)	+180 bps QoQ

Non-GAAP context: Adjustments include stock-based compensation, depreciation/amortization, tax impacts, litigation expenses, and immersive business wind-down/impairment; full reconciliations provided in exhibits .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenue ($B)	FY 2025	$1.355–$1.370	$1.375–$1.380	Raised
U.S. Thrombectomy Growth	FY 2025	20%–21%	20%–21%	Maintained
Gross Margin	FY 2025	≥67%	Maintained (≥67%)	Maintained
Operating Margin	FY 2025	13%–14%	Maintained	Maintained

Long-term target: Management remains on track to achieve >70% gross margin by end of 2026 .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q3)	Trend
Gross Margin Trajectory	Q2: Expect sequential GM expansion in H2; GM 66.0% . Q1: FY GM ≥67% guidance .	GM 67.8%; +180 bps QoQ on mix/productivity; reaffirm long-term >70% by 2026 .	Improving
U.S. Venous (PE/DVT) Adoption	Q1 U.S. thrombectomy +25% YoY . Q2 U.S. thrombectomy +22.6% YoY .	STORM-PE Level 1 evidence; strong clinician reaction; shifts to CAVT; VTE +34% YoY .	Accelerating
Embolization Franchise	Q1 embo & access +7.3% YoY . Q2 embo & access +13.9% YoY .	New embo sales team; RubyXL launch; +21.2% sequential growth; Swift Coil MMA momentum .	Strong uptrend
Stroke Thrombectomy	Prior growth, but macro variability.	Macro stroke market “slight decline”; Penumbra gained share; Thunderbolt poised as catalyst .	Soft near-term; potential catalyst ahead
International/China	Q1 International -2.5% reported ; Q2 International -3.2% reported .	International +6.6% reported (+3% CC); China headwind easing; expect minimal headwind early next year .	Improving ex-China
Tariffs/Macro	—	Tariff impact not material; trends already absorbed .	Managed headwind

Management Commentary

“We generated total revenue of $354.7 million…gross margin of 67.8%…operating income of $48.8 million, or 13.8% of revenue.”
“STORM-PE…we are highly optimistic [it] will act as a major catalyst…significantly increasing the number of patients receiving intervention with CAVT.”
“Our new embo-dedicated 50-plus member sales team delivered strong 21.2% sequential growth in embolization revenue in the quarter.”
“We are now in the stage [with Thunderbolt] where we address any final questions or provide any required clarifications.”
“Sequentially, our SG&A expenses increased by $8.9 million…With this buildout now complete, we are positioned to capture sales and operation leverage.”

Q&A Highlights

Thunderbolt FDA timeline: New product 510(k) review can take time; thorough responses submitted; team “ready to launch” upon clearance; no observed shutdown delays so far .
Margin drivers: Favorable regional/product mix, RubyXL yield stabilization/productivity; tariffs not material; expect sequential improvement to continue .
Thrombectomy growth mix: Venous and arterial strong; stroke softness is cyclical; expect ebbs/flows with innovation as catalyst .
International outlook: China headwinds waning; ex-China double-digit growth; minimal headwind expected early next year .
Market development: PERT consortium effort to expand membership; hospitals updating protocols post STORM-PE; potential expansion into smaller hospitals, DVT opportunities alongside PE .

Estimates Context

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue Consensus Mean* ($M)	315.734*	327.368*	340.784*
Revenue Actual ($M)	324.140	339.455	354.685
Revenue Surprise* ($M)	+8.407*	+12.087*	+13.901*
Non-GAAP EPS Consensus Mean* ($)	0.6667*	0.8214*	0.9214*
Non-GAAP EPS Actual ($)	0.83	0.86	0.97
EPS Surprise* ($)	+0.1633*	+0.0386*	+0.0486*

Values retrieved from S&P Global.*

Where estimates may adjust: upward revisions to FY revenue and embolization growth assumptions; improved GM trajectory toward ≥67% FY and into 2026; potential neuro catalyst (Thunderbolt) and faster venous adoption post STORM-PE may lift out-year growth/margin forecasts .

Key Takeaways for Investors

Clear top-line and EPS beats with mix-driven margin expansion; Q3 revenue +17.8% YoY, GM 67.8%, adjusted EBITDA margin 18.8% .
FY 2025 revenue guidance raised to $1.375B–$1.380B; thrombectomy growth, GM and OM targets maintained, signaling confidence in execution .
STORM-PE Level 1 evidence and clinician momentum are unlocking venous intervention growth; expect protocol updates at hospitals and broader PE/DVT treatment adoption .
U.S. embolization & access now a second engine of growth (RubyXL, Swift/MMA) with 29.2% YoY and 21.2% sequential gains; embo-dedicated sales force should drive durable compounding .
Stroke softness likely transient; Thunderbolt 510(k) could be a neuro catalyst; management remains prudent but optimistic .
International recovery underway ex-China; headwinds easing with expectation of minimal impact early next year .
Balance sheet strength (cash + marketable investments $470.3M, no debt) supports investment and optionality as mix shifts to higher-margin franchises .

Notes:
* Values retrieved from S&P Global.

Sources

Q3 2025 8-K and press release: revenue/margins/segment/geography, guidance, reconciliations
Earnings call transcript (Q3 2025): prepared remarks, Q&A (Thunderbolt, STORM-PE, margins, tariffs, international, embolization)
STORM-PE press releases (Oct 27, Nov 3): clinical efficacy/safety and functional outcomes; publication in Circulation
Prior quarters (Q1/Q2 2025) 8-Ks: revenue/margins/guidance context

Penumbra Inc (PEN)·Q3 2025 Earnings Summary