Core Insights - Penumbra, Inc. reported first-quarter 2025 adjusted earnings per share (EPS) of 83 cents, exceeding the Zacks Consensus Estimate by 25.8% and showing a year-over-year improvement of 102.4% [1] - The company achieved revenues of $324.1 million, a 16.3% increase year over year, surpassing the Zacks Consensus Estimate by 2.7% [2] Revenue Breakdown - U.S. revenues were $256.9 million, accounting for 79.2% of total revenues, reflecting a 22.5% year-over-year increase [3] - International revenues decreased by 2.5% to $67.3 million, representing 20.8% of total revenues [3] Product Performance - Thrombectomy product sales reached $226.5 million, up 20.7% year over year [4] - Sales from Embolization and Access products totaled $97.6 million, increasing by 7.3% [4] Margin Analysis - Gross profit improved by 19.2% to $215.9 million, with a gross margin of 66.6%, an expansion of 160 basis points [5] - Adjusted operating profit was $40.4 million, compared to $12.1 million in the prior year, with an adjusted operating margin of 12.4%, an increase of 810 basis points [6] Financial Position - At the end of Q1 2025, Penumbra had cash and cash equivalents of $378.8 million, up from $340.1 million at the end of Q4 2024 [7] 2025 Outlook - The company reaffirmed its 2025 revenue guidance of $1.34-$1.36 billion and updated its U.S. thrombectomy franchise growth range to 20%-21% [8] - Expected gross margin expansion of at least 100 basis points to over 67% and operating margin expansion to 13%-14% of revenues for the full year [8] Market Position - The strong performance in the U.S. thrombectomy business is attributed to proprietary technology, enhancing market position [9] - The company is well-positioned to achieve a gross margin profile of over 70% by the end of 2026 [9] Macroeconomic Considerations - Due to the macroeconomic scenario in China, Penumbra has excluded a previously forecasted $5 million for the remainder of the year [10]

Financial Data and Key Metrics Changes - The company reported total revenue of $324.1 million for Q1 2025, reflecting a year-over-year growth of 16.3% on a reported basis and 16.9% on a constant currency basis [10][26] - Gross margin improved to 66.6%, an increase of 160 basis points compared to the prior year [11][30] - Operating income reached $40.4 million, or 12.4% of revenue, up 550 basis points year-over-year [11][33] - Adjusted EBITDA was $59.6 million, representing 18.4% of total revenue, compared to $36.3 million or 13.5% in the same quarter last year [33] Business Line Data and Key Metrics Changes - U.S. thrombectomy revenue increased by 25% year-over-year to $187.9 million, with the USVTE franchise leading with a growth of 42% [10][26] - Revenue from the global thrombectomy business grew to $226.5 million, a 20.7% increase reported and 21.2% in constant currency [28] - The embolization and access business reported revenue of $97.6 million, a 7.3% increase reported and 8.1% in constant currency [30] Market Data and Key Metrics Changes - Sales from the U.S. accounted for 79.2% of total revenue, while international sales made up 20.8% [26] - International revenue decreased by 2.5% reported and 0.1% in constant currency, primarily due to a decline in China revenue of $6.7 million [27] - The company expects continued year-over-year headwinds from the China business for Q2 2025 [29] Company Strategy and Development Direction - The company aims to achieve a gross margin profile of over 70% by the end of 2026 [11] - Continuous innovation is a key strategy, with a focus on enhancing the proprietary CABT portfolio and investing in embolization and access portfolios [15][16] - The company is expanding market access initiatives to increase awareness of CABT's clinical and economic benefits [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong market position and growth potential, particularly in the U.S. thrombectomy business [10][23] - The company reiterated its total revenue guidance for the year at 12% to 14% year-over-year growth, while raising the U.S. thrombectomy growth guidance to 20% to 21% [35] - Management acknowledged the impact of macroeconomic conditions, particularly in China, but remains optimistic about overall growth [27][29] Other Important Information - The company ended Q1 2025 with cash, cash equivalents, and marketable securities of $378.8 million and no debt [34] - The FDA clearance for Ruby XL, a new diagnostic catheter-compatible peripheral coil, was received earlier than expected, with plans for market launch in late Q2 or early Q3 [16][17] Q&A Session Summary Question: Can you provide more color on stroke versus peripheral market trends? - Management noted significant growth in the stroke business, driven by the launch of the new Red 72 catheter, and emphasized that the stroke business is performing well above market growth [40][41] Question: How are you thinking about R&D spending going forward? - Management indicated that R&D spending is not linear and will continue to invest in innovation, with savings from the immersive business wind down contributing to lower R&D expenses this quarter [45][50] Question: What are the key metrics for the Thunderbolt product? - Management stated that the Thunderbolt product is submitted as a 510(k) and emphasized the importance of procedure time and device engagement time as key metrics for physicians [56][58] Question: What is the impact of the new thrombolytic agent on thrombectomy demand? - Management believes that the new drug targets different patient populations and does not see it impacting thrombectomy demand significantly [117] Question: Can you discuss the growth in international markets outside of China? - Management confirmed strong growth in international markets where CABT is available, but noted that the U.S. will continue to drive most of the growth due to its larger market size and reimbursement dynamics [71][73]

Revenue and Income - Revenue for the three months ended March 31, 2025, was $324.1 million, an increase of $45.5 million or 16.3% compared to $278.7 million for the same period in 2024[109] - Income from operations for the three months ended March 31, 2025, was $40.4 million, compared to $12.1 million for the same period in 2024[109] - Net income for the three months ended March 31, 2025, was $39.2 million, or 12.1% of revenue, compared to $11.0 million, or 3.9% of revenue in 2024[118] - Total revenue for the three months ended March 31, 2025, was $324.1 million, an increase of 16.3% from $278.7 million in the same period of 2024[123] Product Sales Performance - Global thrombectomy product revenue increased by $38.8 million, or 20.7%, to $226.5 million for the three months ended March 31, 2025[120] - U.S. thrombectomy product sales increased by 25.0% in the three months ended March 31, 2025[120] - Revenue from global embolization and access products increased by $6.6 million, or 7.3%, to $97.6 million for the three months ended March 31, 2025[121] - U.S. embolization and access product sales increased by 16.2% in the three months ended March 31, 2025[121] - Revenue from product sales in international markets decreased by $1.7 million, or 2.5%, to $67.3 million, primarily due to a decline in China revenue[123] Expenses - Research and development expenses for the three months ended March 31, 2025, were $22.1 million, down from $24.6 million in 2024[118] - Sales, general and administrative expenses for the three months ended March 31, 2025, were $153.5 million, compared to $144.4 million in 2024[118] - R&D expenses decreased by $2.5 million, or 10.4%, to $22.1 million, reflecting lower personnel-related costs after exiting the immersive healthcare business[125] - SG&A expenses increased by $9.0 million, or 6.3%, to $153.5 million, primarily due to higher personnel-related expenses and marketing costs[127] Profitability and Margins - Gross profit margin for the three months ended March 31, 2025, was 66.6%, compared to 65.0% for the same period in 2024[118] - Gross margin increased by 1.6 percentage points to 66.6% in Q1 2025, driven by a favorable product mix and productivity improvements[124] - The gross margin for the three months ended March 31, 2025, was positively influenced by a favorable product mix and productivity improvements[154] Cash and Working Capital - As of March 31, 2025, the company had $841.1 million in working capital, including $376.1 million in cash and cash equivalents[132] - Net cash provided by operating activities was $49.0 million, consisting of consolidated net income of $39.2 million and non-cash items of $19.7 million[138] - As of March 31, 2025, the company had cash and cash equivalents of $376.1 million and marketable investments of $2.8 million, primarily in U.S. treasury securities[152] Investment and Financial Policies - The company's investment policy focuses on capital preservation and liquidity needs, investing in highly rated securities while limiting credit exposure to any single issuer[152] - A hypothetical 100 basis point change in interest rates would not materially impact the value of the company's cash and cash equivalents or marketable investments[152] - The company does not enter into derivatives or other financial instruments for trading or speculative purposes, mitigating material market risk exposure[151] Foreign Currency Exposure - The company is exposed to foreign currency risks, billing most sales outside the U.S. in local currencies, primarily euros[153] - An immediate 10% adverse change in foreign exchange rates is not expected to materially impact the company's net income[153] - The company may consider hedging its exposure to foreign currency exchange rate fluctuations in the future[153] Taxation - The provision for income taxes was $3.6 million, or 10.6% of income before taxes, compared to $4.6 million, or 24.8%, in the prior year[130] Other - The company entered into agreements to acquire property in Costa Rica for a new manufacturing facility and warehouse[146] - The remaining authority for share repurchase under the $200 million program is $100 million as of March 31, 2025[134] - There have been no material changes to the company's critical accounting policies from those described in the previous Annual Report[149] - Changes in prices did not significantly impact the company's results of operations for the periods presented in the consolidated financial statements[154]

Revenue Performance - Total revenue for Q1 2025 was $324.1 million, a 16.3% increase from $278.7 million in Q1 2024[4] - Revenue from the United States in Q1 2025 was $256,860,000, a 22.5% increase from $209,644,000 in Q1 2024[28] - U.S. thrombectomy revenue reached $187.9 million in Q1 2025, reflecting a 25.0% increase year-over-year[7] - Thrombectomy product revenue for Q1 2025 was $226,544,000, reflecting a 20.7% increase from $187,703,000 in Q1 2024[29] - The company reported a constant currency revenue growth of 16.9% for the total revenue in Q1 2025[28] Profitability Metrics - Gross profit for Q1 2025 was $215.9 million, representing a gross margin of 66.6%, up from 65.0% in Q1 2024[4] - Income from operations was $40.4 million in Q1 2025, resulting in an operating margin of 12.4%[7] - Net income for Q1 2025 was $39.2 million, with a net income margin of 12.1%[7] - GAAP net income for Q1 2025 was $39,223,000, compared to $11,002,000 in Q1 2024, representing a significant increase[26] - Non-GAAP net income for Q1 2025 was $32,630,000, up from $16,182,000 in Q1 2024, reflecting a growth of 101.5%[26] - The GAAP net income margin improved to 12.1% in Q1 2025 from 3.9% in Q1 2024[27] Expenses and Cost Management - Operating expenses for Q1 2025 totaled $175.5 million, or 54.2% of total revenue, down from 60.7% in Q1 2024[5] - Research and development expenses were $22.1 million in Q1 2025, down from $24.6 million in Q1 2024[5] - Non-recurring litigation related expenses were $0 in Q1 2025, compared to $4,823,000 in Q1 2024[26] Future Projections - The company projects total revenue for 2025 to be between $1,340 million and $1,360 million[6] - Guidance for U.S. thrombectomy franchise growth has been increased to 20% to 21% year-over-year[6] EBITDA Performance - Adjusted EBITDA for Q1 2025 was $59.6 million, resulting in an adjusted EBITDA margin of 18.4%[7] - Adjusted EBITDA for Q1 2025 was $59,595,000, compared to $37,646,000 in Q1 2024, indicating a growth of 58.3%[27] Earnings Per Share - GAAP diluted EPS for Q1 2025 was $1.00, up from $0.28 in Q1 2024[26]

Core Insights - Penumbra, Inc. reported a total revenue of $324.1 million for Q1 2025, marking a 16.3% increase compared to $278.7 million in Q1 2024, with a 16.9% increase in constant currency [2][11][25] - The U.S. market accounted for 79.2% of total revenue, with U.S. thrombectomy revenue increasing by 25.0% year-over-year [2][11][27] - The company anticipates total revenue for 2025 to be between $1,340 million and $1,360 million, with U.S. thrombectomy growth guidance raised to 20%-21% [7][11] Financial Performance - Gross profit for Q1 2025 was $215.9 million, representing a gross margin of 66.6%, up from 65.0% in Q1 2024, driven by a favorable product mix and productivity improvements [3][19] - Total operating expenses were $175.5 million, or 54.2% of total revenue, down from 60.7% in Q1 2024, excluding non-recurring litigation expenses [4][19] - Income from operations for Q1 2025 was $40.4 million, compared to $12.1 million in Q1 2024, indicating a significant operational improvement [5][19] Product Performance - Revenue from global thrombectomy products reached $226.5 million, a 20.7% increase year-over-year, primarily due to U.S. sales growth [2][26] - Revenue from global embolization and access products grew to $97.6 million, a 7.3% increase, with U.S. sales increasing by 16.2% [2][26][27] Market Outlook - The company expects gross margin to expand by at least 100 basis points in 2025, targeting over 67% for the full year [7] - Operating margin is projected to expand to a range of 13% to 14% of revenue for the full year 2025 [7]

Core Viewpoint - Kaskela Law LLC is investigating Penumbra, Inc. on behalf of its current shareholders to determine potential violations of securities laws or breaches of fiduciary duties by the company and its officers [1][2]. Group 1 - The investigation is focused on recent corporate actions taken by Penumbra that may have affected shareholder interests [2]. - Shareholders are encouraged to reach out to Kaskela Law LLC for more information regarding their legal rights and options [3]. Group 2 - Kaskela Law LLC specializes in representing investors in cases related to securities fraud, corporate governance, and merger & acquisition litigation [3]. - The firm operates on a contingent basis, meaning they only get paid if the case is successful [3].

Core Viewpoint - Penumbra (PEN) is well-positioned to continue its earnings-beat streak, having surpassed earnings estimates consistently in recent quarters [1][5]. Earnings Performance - In the most recent quarter, Penumbra reported earnings of $0.97 per share, exceeding the expected $0.91 per share by 6.59% [2]. - For the previous quarter, the company reported $0.85 per share against an expectation of $0.69 per share, resulting in a surprise of 23.19% [2]. Earnings Estimates and Predictions - There has been a favorable change in earnings estimates for Penumbra, with a positive Earnings ESP of +1.97%, indicating bullish sentiment among analysts regarding the company's earnings prospects [5][8]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat, with historical data showing that such combinations lead to positive surprises nearly 70% of the time [6][8]. Upcoming Earnings Report - The next earnings report for Penumbra is expected to be released on April 23, 2025 [8].

Penumbra, Inc.’s (PEN) thrombectomy business is thriving, driven by growing sales of the U.S. vascular thrombectomy and CAVT (computer-assisted vacuum thrombectomy) line of products. The company’s robust product portfolio expansion is poised to drive growth in the upcoming quarters. Meanwhile, unfavorable foreign exchange and intense competition may pose operational risks for PEN.               In the past year, shares of this Zacks Rank #2 (Buy) company have increased 19.8% against the industry’s 18.4% dec ...

NEW YORK, April 8, 2025 /PRNewswire/ -- Purcell & Lefkowitz LLP announces that it is investigating Penumbra, Inc. (NYSE: PEN) on behalf of the company's shareholders.  The investigation seeks to determine whether Penumbra's directors breached their fiduciary duties in connection with recent corporate actions.If you are a shareholder of Penumbra and are interested in obtaining additional information regarding your rights and options, free of charge, please visit us at: https://pjlfirm.com/penumbra-inc/You ma ...

ALAMEDA, Calif., April 3, 2025 /PRNewswire/ -- Penumbra, Inc. (NYSE: PEN) today announced that it will host a conference call to discuss financial results for the first quarter 2025 after market close on Wednesday, April 23, 2025 at 4:30 PM Eastern Time. A press release with first quarter 2025 financial results will be issued after market close that day. Webcast & Conference Call InformationThe conference call can be accessed live over the phone by dialing (888) 596-4144 (conference id: 6572573), or the web ...