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Core Insights - Penumbra reported quarterly earnings of $0.97 per share, exceeding the Zacks Consensus Estimate of $0.90 per share, and showing an increase from $0.85 per share a year ago, resulting in an earnings surprise of +7.78% [1] - The company achieved revenues of $354.69 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 4.12% and up from $301.04 million year-over-year [2] - Penumbra has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Company Performance - The stock has underperformed the market, losing about 1% since the beginning of the year, while the S&P 500 gained 15.1% [3] - The current consensus EPS estimate for the upcoming quarter is $1.10 on revenues of $361.16 million, and for the current fiscal year, it is $3.68 on revenues of $1.37 billion [7] - The estimate revisions trend for Penumbra was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Medical - Instruments industry, to which Penumbra belongs, is currently in the top 37% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment and stock performance [5]

Financial Data and Key Metrics Changes - The company reported total revenue of $354.7 million for Q3 2025, reflecting a year-over-year growth of 17.8% on a reported basis and 16.9% on a constant currency basis [5][18] - Gross margin improved to 67.8%, an increase of 130 basis points compared to the prior year [6][21] - Operating income was $48.8 million, representing 13.8% of revenue, compared to $40.3 million or 13.4% of revenue in the same period last year [7][23] - Adjusted EBITDA was $66.7 million, or 18.8% of total revenue, compared to $56.7 million or 18.8% in Q3 2024 [23] Business Line Data and Key Metrics Changes - U.S. thrombectomy sales increased by 18.5% year-over-year to $192 million, with the VTE franchise leading overall corporate growth at 34% year-over-year [5][19] - U.S. embolization and access revenue reached $83 million, up 29.2% year-over-year, driven by the RubyXL product [5][20] - International revenue was $79.7 million, a 6.6% increase year-over-year, or 3% in constant currency [6][18] Market Data and Key Metrics Changes - The U.S. market accounted for 77.5% of total sales, while international sales made up 22.5% [18] - The international thrombectomy revenue grew by 5.6% year-over-year, indicating a return to growth after previous headwinds [19] Company Strategy and Development Direction - The company is focused on achieving a gross margin profile of over 70% by the end of 2026 and expects operating margin expansion to outpace gross margin expansion [8][21] - The strategic buildout of a dedicated peripheral embolization sales team has contributed to strong sequential growth in embolization revenue [10][14] - The company is optimistic about the potential impact of the Storm PE trial on clinical practice and patient treatment protocols [10][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term strategy, emphasizing innovation, data generation, and investment in the team to support durable, profitable growth [17] - The company raised its revenue guidance for the year to $1,375 million-$1,380 million, reiterating a 20%-21% year-over-year growth for U.S. thrombectomy [12][24] Other Important Information - The company received FDA clearance for new products, Lightning Bolt 16 and Lightning Flash 3.0, which are expected to enhance its competitive positioning [9][12] - The company has a robust patent portfolio protecting its core CABT technology, with recent legal victories affirming its competitive patents [9] Q&A Session Summary Question: Update on Thunderbolt product approval timeline - Management clarified that Thunderbolt is a new product and the FDA process is thorough, with optimism about the approval timeline but no specific date provided [26][27] Question: Impact of Storm PE trial results on market adoption - Positive reactions from the medical community were noted, with expectations for changes in hospital protocols and increased adoption of CABT technology [30][31] Question: Insights on margins and growth drivers - Management indicated that all CABT products have strong margins and that the new RubyXL product is expected to contribute positively to margins [37][38] Question: Trends in U.S. thrombectomy market growth - Management acknowledged a deceleration in the stroke market but emphasized continued share gains and strong performance in the VTE segment [41][42] Question: International sales and China headwinds - Management indicated that headwinds from China are waning, with expectations for minimal impact moving forward [54][55] Question: DVT market trends and growth expectations - The company expects continued growth in the DVT segment, driven by positive responses to new products and ongoing health economic collaborations [74][76]

Revenue Performance - Revenue for the three months ended September 30, 2025, was $354.7 million, an increase of 17.8% from $301.0 million in the same period of 2024[130]. - Revenue for the nine months ended September 30, 2025, reached $1,018.3 million, up 15.8% from $879.1 million in the prior year[130]. - Revenue increased by $53.6 million, or 17.8%, to $354.7 million in Q3 2025 from $301.0 million in Q3 2024, driven by sales of existing thrombectomy and new embolization products[141]. - For the nine months ended September 30, 2025, total revenue increased by $139.2 million, or 15.8%, to $1,018.3 million, with significant contributions from both thrombectomy and embolization products[155]. Profitability Metrics - Income from operations for the three months ended September 30, 2025, was $48.8 million, compared to $35.4 million for the same period in 2024, representing a 37.1% increase[130]. - Net income for the three months ended September 30, 2025, was $45.9 million, or 12.9% of revenue, compared to $29.5 million, or 9.8% of revenue in the same period of 2024[140]. - Gross profit margin for the three months ended September 30, 2025, was 67.8%, compared to 66.5% in the same period of 2024[140]. - Gross margin improved by 1.3 percentage points to 67.8% in Q3 2025, attributed to favorable product mix and productivity improvements[146]. - Gross margin for the nine months ended September 30, 2025, increased by 4.9 percentage points to 66.8%, excluding a one-time inventory impairment charge from the previous year[159]. - The gross margin for the nine months ended September 30, 2025, was positively impacted by a favorable product mix and productivity improvements[190]. Expenses - Research and development expenses for the three months ended September 30, 2025, were $22.7 million, representing 6.4% of revenue, compared to 8.4% in the same period of 2024[140]. - R&D expenses decreased by $2.5 million, or 10.0%, to $22.7 million in Q3 2025, primarily due to a reduction in one-time expenses[147]. - R&D expenses decreased by $6.8 million, or 9.1%, to $68.0 million for the nine months ended September 30, 2025, compared to $74.8 million in the same period of 2024[160]. - SG&A expenses increased by $29.2 million, or 20.9%, to $168.9 million in Q3 2025, driven by higher personnel-related costs and marketing expenses[149]. - SG&A expenses increased by $56.3 million, or 13.2%, to $482.3 million for the nine months ended September 30, 2025, from $426.1 million in the same period of 2024[162]. Impairment and Taxation - The company recorded an impairment charge of $110.3 million related to its immersive healthcare asset group during the nine months ended September 30, 2024[127]. - No impairment charges were recorded during the nine months ended September 30, 2025, compared to a $76.9 million impairment charge in the same period of 2024[165]. - Income tax expense for Q3 2025 was $6.5 million, or 12.4% of income before taxes, down from $10.3 million, or 25.8%, in Q3 2024[151]. - The effective tax rate for the nine months ended September 30, 2025, was 7.9%, compared to an income tax benefit of 16.2% for the same period in 2024[166]. Cash Flow and Capital Management - Net cash provided by operating activities was $152.2 million for the nine months ended September 30, 2025, compared to $117.4 million in the same period of 2024[174]. - Net cash used in investing activities was $178.9 million during the nine months ended September 30, 2025, primarily for marketable investments and capital expenditures[177]. - Net cash provided by financing activities was $21.5 million for the nine months ended September 30, 2025, primarily from stock option exercises and employee stock purchase plan proceeds[180]. - As of September 30, 2025, the company had $971.9 million in working capital, including $321.0 million in cash and cash equivalents[168]. - As of September 30, 2025, the company had cash and cash equivalents of $321.0 million and marketable investments of $149.3 million[188]. - The company has remaining authority to repurchase $100.0 million of its common stock under the share repurchase authorization as of September 30, 2025[170]. Foreign Currency and Investment Strategy - The company is exposed to foreign currency risks, billing most sales outside the U.S. in local currencies, primarily euros[189]. - An immediate 10% adverse change in foreign exchange rates is not expected to materially impact the company's net income[189]. - The company does not believe that a hypothetical 100 basis point change in interest rates would have a material impact on the value of its cash and cash equivalents or marketable investments[188]. - The company focuses on the preservation of capital and principal in its investment strategy[188]. - The company utilizes external investment managers who adhere to its investment policy guidelines[188]. - The company does not enter into derivatives or other financial instruments for trading or speculative purposes[187]. Strategic Initiatives - The company plans to continue developing its portfolio of thrombectomy, embolization, and access technologies while iterating on existing products[126]. - Global thrombectomy product revenue rose by $32.3 million, or 15.8%, to $236.4 million in Q3 2025, with U.S. sales increasing by 18.5%[142]. - Revenue from global embolization and access products increased by $21.4 million, or 22.0%, to $118.3 million in Q3 2025, with U.S. sales up by 29.2%[143]. - International revenue grew by $4.9 million, or 6.6%, to $79.7 million in Q3 2025, representing 22.5% of total revenue, down from 24.8% in Q3 2024[145]. - Changes in prices did not have a significant impact on the company's results of operations for any periods presented[190]. - There have been no material changes to the company's critical accounting policies from those described in its Annual Report on Form 10-K for the year ended December 31, 2024[185].

Revenue Performance - Total revenue for Q3 2025 reached $354.7 million, a 17.8% increase from $301.0 million in Q3 2024[3] - U.S. revenue accounted for 77.5% of total revenue, with a 21.5% increase to $275.0 million compared to Q3 2024[8] - Revenue from global thrombectomy products grew to $236.4 million, a 15.8% increase year-over-year[3] - Revenue from global embolization and access products reached $118.3 million, marking a 22.0% increase compared to the same period last year[3] - U.S. revenue for Q3 2025 was $275.029 million, a 21.5% increase from $226.326 million in Q3 2024[29] - International revenue for Q3 2025 was $79.656 million, a 6.6% increase from $74.713 million in Q3 2024[29] - For the three months ended September 30, 2025, total revenue was $354.685 million, representing a reported change of $53.646 million or 17.8% growth compared to the same period in 2024[30] - For the nine months ended September 30, 2025, total revenue reached $1.018 billion, reflecting a reported change of $139.183 million or 15.8% growth compared to the same period in 2024[33] Profitability Metrics - Gross profit for Q3 2025 was $240.4 million, representing a gross margin of 67.8%, up from 66.5% in Q3 2024[3] - Net income for Q3 2025 was $45.9 million, with an adjusted EBITDA of $66.7 million, yielding net income and adjusted EBITDA margins of 12.9% and 18.8%, respectively[8] - Net income for Q3 2025 was $45.851 million, up from $29.527 million in Q3 2024, resulting in a net income margin of 12.9%[22] - Adjusted EBITDA for Q3 2025 was $66.723 million, representing an adjusted EBITDA margin of 18.8%[27] Operating Expenses - Operating expenses totaled $191.6 million, or 54.0% of total revenue, down from 54.8% in Q3 2024[4] - Total operating expenses for Q3 2025 were $191.578 million, up from $164.942 million in Q3 2024[22] - Research and development expenses decreased to $22.677 million in Q3 2025 from $25.205 million in Q3 2024[22] Guidance and Future Outlook - The company raised its full-year 2025 revenue guidance to between $1.375 billion and $1.380 billion, indicating a growth of 15% to 16% over 2024[6] - The company continues to focus on expanding its product offerings and market presence, particularly in the Thrombectomy and Embolization segments[30] - Penumbra, Inc. is committed to ongoing research and development to enhance its product portfolio and drive future growth[30] Earnings Per Share - The company reported a diluted EPS of $1.17 for Q3 2025, compared to $0.75 for Q3 2024[26] - Non-GAAP net income for Q3 2025 was $38.097 million, with a non-GAAP diluted EPS of $0.97[26] Currency Impact - The constant currency change for total revenue in the three months ended September 30, 2025, was $50.957 million or 16.9% growth, after accounting for a foreign exchange impact of $(2.689) million[32] - The constant currency change for total revenue in the nine months ended September 30, 2025, was $136.014 million or 15.5% growth, after accounting for a foreign exchange impact of $(3.169) million[33]

Core Insights - The STORM-PE randomized controlled trial demonstrated that computer assisted vacuum thrombectomy (CAVT) combined with anticoagulation significantly improves clinical outcomes in patients with acute intermediate-high risk pulmonary embolism (PE) compared to anticoagulation alone [1][6][15] Study Overview - STORM-PE is a pivotal, multi-center randomized controlled trial involving 100 patients across 22 international sites, comparing CAVT with anticoagulation against anticoagulation alone for treating acute intermediate-high risk PE [2][8] - The trial's primary efficacy endpoint was the reduction in right ventricular to left ventricular (RV/LV) ratio at 48 hours, assessed by an independent core laboratory [8] Key Findings - Patients receiving CAVT plus anticoagulation showed a 2.7 times greater reduction in thrombus burden (42.1% vs. 15.6% relative reduction; P < 0.001) [7] - Significant early physiological recovery was observed, with lower heart rates (80.0 bpm vs. 86.4 bpm; P = 0.022) and reduced supplemental oxygen requirements (0.5 L/min vs. 1.4 L/min; P = 0.027) [7] - CAVT patients had a 2.2 times greater likelihood of recovering functional status by discharge (P = 0.032) and walked significantly longer distances in a 90-day six-minute walk test (472m vs. 376m; P = 0.019) [7] Safety Profile - The safety profile of CAVT was comparable to anticoagulation alone, with no device-related mortality and no significant difference in symptomatic PE recurrence [7][4] Implications for Patient Care - The results of the STORM-PE trial highlight the importance of early intervention in patients with intermediate-high risk PE and suggest that CAVT could be a superior therapeutic option, potentially influencing future treatment guidelines [3][4]

Core Insights - AlphaQuest LLC increased its stake in Penumbra, Inc. by 237.9% in Q2, owning 838 shares valued at $215,000 [2] - Several institutional investors have also increased their positions in Penumbra, indicating strong institutional interest in the stock [3] Institutional Ownership - Wallace Advisory Group LLC purchased a new position worth approximately $229,000 in Q2 [3] - Securian Asset Management Inc. grew its stake by 3.4%, now owning 3,001 shares valued at $770,000 [3] - VIRGINIA RETIREMENT SYSTEMS ET AL acquired a new position worth approximately $1,386,000 [3] - WCM Investment Management LLC increased its stake by 7.6%, owning 43,554 shares valued at $11,169,000 [3] - New York State Teachers Retirement System grew its stake by 0.3%, now owning 38,154 shares valued at $9,791,000 [3] - Hedge funds and institutional investors collectively own 88.88% of Penumbra's stock [3] Stock Performance - Penumbra's shares opened at $227.34, with a market capitalization of $8.87 billion [4] - The company has a P/E ratio of 60.46, a PEG ratio of 2.10, and a beta of 0.41 [4] - The stock has a quick ratio of 4.04 and a current ratio of 6.75, indicating strong liquidity [4] - The twelve-month low and high for the stock are $207.58 and $310.00, respectively [4] Analyst Ratings - Evercore ISI reduced its price target from $300.00 to $285.00 while maintaining an "outperform" rating [5][6] - Morgan Stanley raised its price objective from $260.00 to $266.00, giving an "equal weight" rating [5][6] - Needham & Company LLC reaffirmed a "buy" rating with a price objective of $326.00 [5][6] - UBS Group set a price objective of $335.00 and rated the stock as "buy" [6] - The consensus rating for Penumbra is "Moderate Buy" with a price target of $305.94 [6] Insider Transactions - CEO Adam Elsesser sold 15,800 shares at an average price of $269.65, totaling $4,260,470, reducing his position by 7.97% [7] - EVP Johanna Roberts sold 600 shares at an average price of $249.70, totaling $149,820, resulting in a 0.93% decrease in her position [7] - Insiders have sold a total of 64,460 shares worth $16,322,614 over the last ninety days, with insiders owning 4.20% of the stock [7] Company Overview - Penumbra, Inc. designs, develops, manufactures, and markets medical devices, including the Indigo System for thrombus aspiration and various thrombectomy systems [8]

Accessibility StatementSkip Navigation ALAMEDA, Calif., Oct. 27, 2025 /PRNewswire/ --Â Penumbra, Inc. (NYSE: PEN) announced the results of the landmark STORM-PE randomized controlled trial (RCT), which found that the use of mechanical thrombectomy, specifically computer assisted vacuum thrombectomy (CAVTâ"¢), with anticoagulation achieved superior reduction in right heart strain compared to nticoagulation therapy alone in patients with acute intermediate-high risk pulmonary embolism (PE). The data was prese ...

Core Insights - The discussion revolves around the STORM-PE trial, which is considered a landmark study in the field of pulmonary embolism (PE) intervention, indicating significant advancements for PE patients and the industry as a whole [2]. Group 1: Company Overview - Penumbra is actively involved in the STORM-PE trial, showcasing its commitment to improving treatment options for PE patients [2]. - The presence of key figures such as Dr. Rob Lookstein from Mount Sinai highlights the collaborative effort and expertise involved in the trial [2]. Group 2: Industry Impact - The data presented from the STORM-PE trial is expected to enhance the treatment landscape for PE patients, suggesting a pivotal moment for the industry [2]. - The trial is positioned as foundational evidence that may lead to increased opportunities for healthcare providers to treat a larger number of PE patients [2].

Core Viewpoint - The trade dispute between China and the Netherlands regarding Dutch chipmaker Nexperia poses a significant risk to automotive production and requires urgent diplomatic intervention [1] Group 1: Industry Impact - The ongoing trade tensions could disrupt the supply chain in the automotive sector, which is heavily reliant on semiconductor components [1] - A resolution is critical to prevent potential production halts in the automotive industry, highlighting the interconnectedness of global supply chains [1] Group 2: Company Specifics - Nexperia, as a key player in the semiconductor market, is at the center of this dispute, which could affect its operations and partnerships [1] - The outcome of the diplomatic negotiations will have direct implications for Nexperia's production capabilities and market position [1]