Core Viewpoint - AtriCure (ATRC) has experienced significant selling pressure, resulting in a 13.6% decline over the past four weeks, but analysts anticipate better earnings than previously expected, indicating a potential turnaround for the stock [1] Technical Analysis - The Relative Strength Index (RSI) is a key technical indicator used to determine if a stock is oversold, with readings below 30 typically indicating oversold conditions [2] - ATRC's current RSI reading is 28.61, suggesting that the heavy selling may be exhausting itself and a trend reversal could be imminent [5] Fundamental Analysis - There has been a strong consensus among sell-side analysts to raise earnings estimates for ATRC, with the consensus EPS estimate increasing by 32.9% over the last 30 days, which often correlates with price appreciation [7] - ATRC holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a near-term turnaround [8]

Core Insights - AtriCure reported $134.27 million in revenue for Q3 2025, a 15.8% year-over-year increase, with an EPS of -$0.01 compared to -$0.17 a year ago, indicating significant improvement in earnings performance [1] - The revenue exceeded the Zacks Consensus Estimate by 2.09%, while the EPS surprise was 90.91% above the consensus estimate [1] Revenue Performance - United States Revenue for Pain Management reached $20.84 million, surpassing the average estimate of $20.59 million, reflecting a year-over-year increase of 27.7% [4] - International Revenue for Pain Management was $2.08 million, below the average estimate of $2.77 million, but still showing a year-over-year increase of 30.8% [4] - Total Ablation Revenue in the United States was $63.86 million, exceeding the $63.41 million estimate, with a year-over-year change of 10.04% [4] - International Total Ablation Revenue was reported at $14.79 million, above the $14.54 million estimate, marking a 24.52% year-over-year increase [4] - Overall United States Revenue totaled $109.31 million, surpassing the $106.47 million estimate, with a year-over-year increase of 14.5% [4] Segment Performance - United States Revenue for Open Ablation was $35.59 million, exceeding the average estimate of $34.88 million, reflecting a year-over-year increase of 16.3% [4] - International Revenue for Open Ablation reached $10.85 million, above the $9.73 million estimate, with a year-over-year increase of 26.1% [4] - United States Revenue for Minimally Invasive Ablation was $7.43 million, below the average estimate of $7.94 million, showing a significant year-over-year decline of 33.2% [4] - International Revenue for Minimally Invasive Ablation was $1.86 million, slightly below the $2.04 million estimate, but showing a year-over-year increase of 10.8% [4] - United States Revenue for Appendage Management was $45.45 million, exceeding the average estimate of $43.06 million, with a year-over-year increase of 21.5% [4] - International Total Revenue was reported at $24.96 million, slightly below the $25.12 million estimate, but reflecting a year-over-year increase of 22% [4] Stock Performance - AtriCure's shares have returned -4.02% over the past month, contrasting with the Zacks S&P 500 composite's +0.95% change, indicating underperformance relative to the broader market [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential for performance in line with the broader market in the near term [3]

Core Insights - AtriCure (ATRC) is outperforming its peers in the Medical sector, with a year-to-date gain of 11.4% compared to the sector average of 0.7% [4] - The Zacks Rank for AtriCure is 2 (Buy), indicating strong analyst sentiment and an improving earnings outlook, with a 32.9% increase in the full-year earnings estimate over the past quarter [3] - AtriCure is part of the Medical - Products industry, which has seen a modest gain of 0.6% year-to-date, further highlighting AtriCure's strong performance within its specific industry [5] Industry Overview - The Medical sector consists of 951 individual stocks and currently holds a Zacks Sector Rank of 5, indicating its relative performance compared to other sectors [2] - The Medical - Biomedical and Genetics industry, to which Cabaletta Bio, Inc. (CABA) belongs, has a higher year-to-date gain of 10.9% and is ranked 95 among 469 stocks [6] - AtriCure's performance is notable as it exceeds both the overall Medical sector and its specific industry, showcasing its competitive position [4][5]

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Revenue Growth - Worldwide revenue for the nine months ended September 30, 2025, was $394,028, representing an increase of $52,998, or 15.5% over the same period in 2024[73] - Revenue for the three months ended September 30, 2025, was $134,269, an increase of $18,359, or 15.8% compared to $115,910 in 2024[80] - Total revenue in the United States increased by 14.2% to $321,039, with significant contributions from the AtriClip FLEX-Mini device and other products[84] - International revenue grew by 22.1% to $72,989, with growth across major geographic markets[84] - Pain management revenue increased by 27.7% to $20,837 million in Q3 2025, compared to $16,314 million in Q3 2024[80] - International sales increased by 22.0% (17.9% on a constant currency basis) for the three months ended September 30, 2025[80] Profitability - Gross profit for the three months ended September 30, 2025, was $101,332, with a gross margin of 75.5%, compared to 74.9% in 2024[80] - Gross profit increased to $295,442, with a gross margin of 75.0%, up from 74.7% in 2024[84][85] - Gross profit margin improved to 75.5% in Q3 2025 from 74.9% in Q3 2024, with cost of revenue at $32,937 million[80][81] Expenses - Research and development expenses increased by $1,932, or 9.2%, primarily due to a $2,081 increase in personnel costs[82] - Selling, general and administrative expenses rose by $4,994, or 6.8%, driven by a $5,629 increase in personnel costs[83] - Research and development expenses rose by $13,483, or 22.0%, totaling $74,704, driven by personnel costs and clinical trial expenses[86] - Selling, general and administrative expenses increased by $13,502, or 6.2%, totaling $232,676, primarily due to higher personnel costs[87] Net Loss - Net loss for the nine months ended September 30, 2025, was $13,204, compared to a net loss of $29,130 in 2024, reflecting improved operating results[84] - Net loss for Q3 2025 was $267 million, compared to a net loss of $7,853 million in Q3 2024[80] Cash and Debt - Cash and cash equivalents as of September 30, 2025, were $147,865, with outstanding debt of $61,865 and unused borrowing capacity of $61,885[89] - Net cash provided by operating activities increased by $30,939, reflecting improved operating results and reduced working capital needs[93] - The Company has a $125,000 asset-based revolving credit facility with an option to increase by an additional $40,000, effective January 5, 2024[96] - As of September 30, 2025, the Company has borrowed $61,865 and has unused borrowing availability of $61,885[96] Clinical Trials and Product Launches - The cryoICE® cryoXT™ probe was launched in the United States during Q3 2025, designed for Cryo Nerve Block therapy[75] - The LeAAPS clinical trial completed enrollment of 6,500 patients across 137 centers globally in July 2025[77] Financial Flexibility and Future Outlook - Future capital requirements depend on factors such as market acceptance of products, costs for clinical trials, and potential acquisitions[98] - The Company continues to evaluate measures to maintain financial flexibility amid macroeconomic conditions like inflation and rising interest rates[98] Accounting and Reporting - Financial statements are prepared in accordance with GAAP, requiring management to make estimates that could differ from actual results[99] - The Annual Report on Form 10-K for the fiscal year ended December 31, 2024, includes additional information about the Company's operations and financial position[99] - Recent accounting pronouncements are discussed in the condensed financial statements[100]

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Core Insights - AtriCure reported $134.27 million in revenue for Q3 2025, a 15.8% year-over-year increase, with an EPS of -$0.01 compared to -$0.17 a year ago, indicating significant improvement in profitability [1] - The revenue exceeded the Zacks Consensus Estimate by 2.09%, while the EPS surprise was 90.91% above the consensus estimate [1] Revenue Performance - U.S. revenue from pain management reached $20.84 million, surpassing the average estimate of $20.59 million, reflecting a 27.7% year-over-year increase [4] - International revenue from pain management was $2.08 million, below the average estimate of $2.77 million, but still showing a 30.8% year-over-year increase [4] - U.S. revenue from total ablation was $43.02 million, significantly below the average estimate of $63.41 million, marking a 25.9% year-over-year decline [4] - International revenue from total ablation was $12.71 million, slightly below the average estimate of $14.54 million, but showing a 7% year-over-year increase [4] - Total U.S. revenue was $109.31 million, exceeding the average estimate of $106.47 million, with a 14.5% year-over-year increase [4] - International revenue from appendage management was $10.17 million, below the average estimate of $10.58 million, reflecting an 18.5% year-over-year increase [4] - U.S. revenue from open ablation was $35.59 million, slightly above the average estimate of $34.88 million, with a 16.3% year-over-year increase [4] - International revenue from open ablation was $10.85 million, exceeding the average estimate of $9.73 million, marking a 26.1% year-over-year increase [4] - U.S. revenue from minimally invasive ablation was $7.43 million, below the average estimate of $7.94 million, showing a 33.2% year-over-year decline [4] - International revenue from minimally invasive ablation was $1.86 million, below the average estimate of $2.04 million, but reflecting a 10.8% year-over-year increase [4] - U.S. revenue from appendage management was $45.45 million, exceeding the average estimate of $43.06 million, with a 21.5% year-over-year increase [4] - Total international revenue was $24.96 million, slightly below the average estimate of $25.12 million, but showing a 22% year-over-year increase [4] Stock Performance - AtriCure's shares have returned 3.4% over the past month, compared to a 3.8% change in the Zacks S&P 500 composite, indicating a performance in line with the broader market [3]

Core Viewpoint - AtriCure reported a quarterly loss of $0.01 per share, significantly better than the Zacks Consensus Estimate of a loss of $0.11, marking an earnings surprise of +90.91% [1] - The company achieved revenues of $134.27 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 2.09% and showing a year-over-year increase from $115.91 million [2] Financial Performance - AtriCure has surpassed consensus EPS estimates in all four of the last quarters [2] - The company has also topped consensus revenue estimates three times over the last four quarters [2] - The current consensus EPS estimate for the upcoming quarter is -$0.04 on revenues of $139.15 million, and for the current fiscal year, it is -$0.35 on revenues of $530.41 million [7] Stock Performance - AtriCure shares have increased approximately 19.3% since the beginning of the year, outperforming the S&P 500's gain of 17.2% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Outlook - The Medical - Products industry, to which AtriCure belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact AtriCure's stock performance [5]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $134 million, reflecting a 16% increase year over year [4] - Adjusted EBITDA was nearly $18 million, with over $30 million in cash generated during the quarter [4] - Gross margin improved to 75.5%, an increase of 59 basis points from Q3 2024 [16] - Adjusted loss per share was $0.01, compared to $0.17 in Q3 2024 [17] Business Line Data and Key Metrics Changes - Appendage management revenue grew over 20% globally, driven by the adoption of AtriClip FLEX Mini and AtriClip PRO Mini devices [5][6] - Open ablation product sales in the U.S. were $35.6 million, up 16.3% year over year [14] - Pain management franchise grew 28% in the quarter, driven by CryoSPHERE MAX and CryoSPHERE PLUS probes [10][11] Market Data and Key Metrics Changes - U.S. revenue was $109.3 million, a 14.5% increase from Q3 2024 [13] - International revenue totaled $25 million, up 22% on a reported basis [15] - European sales contributed $15.2 million, representing 24.2% growth [16] Company Strategy and Development Direction - The company is focused on product innovation and clinical science initiatives, with recent successful product launches [4] - AtriCure is expanding its market opportunity with the initiation of the BoxX no-AF clinical trial [5] - The company aims to drive awareness and access to AtriClip devices globally, with recent approvals in Japan [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth trajectory for underpenetrated markets [18] - The company raised its full-year 2025 revenue guidance to approximately $532 million to $534 million, reflecting 14% to 15% growth [19] - Management highlighted the importance of continued investment in clinical science and product development to drive future growth [19] Other Important Information - The company completed enrollment of over 6,500 patients in the LEAPS clinical trial, aimed at evaluating AtriClip devices for stroke prevention [6] - A one-time cash inflow of approximately $6 million was recognized from a sale leaseback transaction [17] Q&A Session Summary Question: Impact of CMS proposal on EpiSense business - Management indicated that the CMS proposal may not materially affect the EpiSense business, as growth will depend on non-responders to PFA seeking alternative treatments [22][23] Question: Opportunity in Japan post-approvals - Management noted that there are about 40,000 cardiac surgeries in Japan, with expectations for gradual market preparation and rollout of new technologies [24][25] Question: Sustainability of open ablation growth - Management attributed growth to increased adoption among CABG surgeons and the efficiency of the Encompass clamp, with significant room for market penetration [27][28] Question: Guidance on adjusted EBITDA and margins - Management discussed strengths in gross margin due to favorable product mix and efficiency in manufacturing, while also indicating a conservative approach to fourth-quarter guidance [32][33] Question: Appendage management business growth sustainability - Management expressed optimism about the growth potential in the appendage management segment, citing ongoing market penetration and the impact of clinical trials [35][36] Question: Competition and differentiation of AtriClip - Management acknowledged competition but emphasized the strength of AtriClip's clinical data and ongoing innovation as key differentiators [59][60]

For immediate release October 29, 2025 2025 Financial Guidance Full year 2025 revenue is now projected to be approximately $532 million to $534 million, and management now expects full year 2025 Adjusted EBITDA of approximately $55 million to $57 million. Full year 2025 adjusted loss per share is expected to be in the range of $0.23 to $0.26. Additionally, management continues to expect cash flow generation for the full year 2025. Conference Call AtriCure will host a conference call at 4:30 p.m. Eastern Tim ...