Group 1 - Penumbra, Inc. will present at the Canaccord Genuity 45th Annual Growth Conference on August 12, 2025, at 12:30pm ET [1] - A webcast of the presentation will be available on the company's website for at least two weeks following the event [1] Group 2 - Penumbra, Inc. is a leading thrombectomy company focused on innovative technologies for medical conditions such as ischemic stroke and venous thromboembolism [2] - The company's portfolio includes computer assisted vacuum thrombectomy (CAVT) aimed at efficiently removing blood clots [2] - Penumbra supports healthcare providers in over 100 countries, enhancing patient outcomes and quality of life [2]

For the quarter ended June 2025, Penumbra (PEN) reported revenue of $339.46 million, up 13.4% over the same period last year. EPS came in at $0.86, compared to $0.64 in the year-ago quarter.The reported revenue represents a surprise of +3.54% over the Zacks Consensus Estimate of $327.85 million. With the consensus EPS estimate being $0.81, the EPS surprise was +6.17%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expect ...

Company Performance - Penumbra reported quarterly earnings of $0.86 per share, exceeding the Zacks Consensus Estimate of $0.81 per share, and up from $0.64 per share a year ago, representing an earnings surprise of +6.17% [1] - The company posted revenues of $339.46 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.54%, and an increase from $299.4 million year-over-year [2] - Over the last four quarters, Penumbra has consistently surpassed consensus EPS and revenue estimates [2] Stock Outlook - Penumbra shares have declined approximately 3.1% since the beginning of the year, while the S&P 500 has gained 8.6% [3] - The company's current Zacks Rank is 3 (Hold), indicating expected performance in line with the market in the near future [6] - The consensus EPS estimate for the upcoming quarter is $0.96 on revenues of $341.93 million, and for the current fiscal year, it is $3.72 on $1.35 billion in revenues [7] Industry Context - The Medical - Instruments industry, to which Penumbra belongs, is currently ranked in the bottom 37% 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 Penumbra's stock performance [5]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $339.5 million, reflecting a year-over-year growth of 13.4% on a reported basis and 12.7% on a constant currency basis [7][19] - Gross margin was reported at 66%, an increase from 54.4% in Q2 2024, excluding a one-time inventory write-off of $33.4 million [22][24] - Operating income was $40.8 million, representing 12% of revenue, compared to an operating loss of $1.6 million in the same quarter last year [24][25] - Adjusted EBITDA was $61.4 million, or 18.1% of total revenue, compared to $13 million, or 4.3%, in Q2 2024 [25] Business Line Data and Key Metrics Changes - U.S. Thrombectomy revenue increased by 22.6% year-over-year to $188.5 million, driven by strong adoption of the CAVT portfolio [9][19] - Global thrombectomy business revenue grew to $230.3 million, a 13.1% increase reported and 12.6% in constant currency [21] - Revenue from the Embolization and Access business was $109.2 million, an increase of 13.9% reported and 12.8% in constant currency [22] Market Data and Key Metrics Changes - The U.S. region reported growth of 19.5%, primarily driven by the thrombectomy franchise [20] - International regions saw a decrease of 3.2% reported and 5.8% in constant currency, mainly due to a decline in China revenue [20] - Excluding China, international thrombectomy revenue grew by 14.4% compared to the same period last year [21] Company Strategy and Development Direction - The company is focused on continuous innovation and expanding the total number of patients treated globally with its technologies [7][8] - A separate peripheral embolization sales force has been established to enhance focus on thrombectomy and embolization, with over 50 new sales representatives added [12] - The company aims to achieve a gross margin profile of over 70% by 2026, with operating margin expansion expected to outpace gross margin expansion [10][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about easing headwinds in China, anticipating a return to growth in international regions [20] - The company is committed to running high-quality clinical studies to support its product offerings and market access initiatives [14] - Management highlighted the importance of the STORM PE trial, which could fundamentally shift patient treatment for pulmonary embolism [13][31] Other Important Information - The company ended Q2 2025 with cash, cash equivalents, and marketable securities of $424.6 million and no debt, an increase of $45.7 million sequentially [25] - The company is increasing its revenue guidance for 2025 to a range of $1.355 billion to $1.37 billion, representing 13% to 15% year-over-year growth [26] Q&A Session Summary Question: Importance of STORM PE study - Management emphasized that STORM PE is the first randomized study comparing anticoagulation and mechanical thrombectomy, which is significant for the field [31][33] Question: Update on Thunderbolt FDA review - Management stated that the FDA review process is thorough and as expected, and reiterated excitement about the Thunderbolt product [37][38] Question: Impact of Salesforce split on margins - Management clarified that the investment in the commercial team does not impact gross margin but may cause month-to-month variability in product mix [52] Question: Anticipated slowdown in specific divisions - Management noted that while the stroke market has shown softer growth, the company continues to gain market share [70] Question: Update on international markets, particularly China - Management indicated that while there were headwinds in China, recent orders have been filled, and the company is optimistic about future growth [79] Question: Market share in pulmonary embolism and DVT - Management believes they have gained significant market share in DVT, estimating over 50%, and have made substantial progress in the PE market [110]

Financial Data and Key Metrics Changes - Total revenue for the second quarter of 2025 was $339,500,000, representing a year-over-year growth of 13.4% on a reported basis and 12.7% on a constant currency basis [6][19] - Gross margin for the second quarter was 66%, up from 54.4% in the same quarter of 2024, which included a one-time $33,400,000 inventory write-off [22][23] - Operating income was $40,800,000, or 12% of revenue, compared to an operating loss of $1,600,000 for the same period last year [25][26] - Adjusted EBITDA was $61,400,000, or 18.1% of total revenue, compared to $13,000,000, or 4.3%, in the second quarter of the previous year [26] Business Line Data and Key Metrics Changes - U.S. Thrombectomy revenue increased by 22.6% year-over-year to $188,500,000, driven by a 42% growth in the USVTE franchise [8][19] - Global thrombectomy business revenue grew to $230,300,000, an increase of 13.1% reported and 12.6% in constant currency [21] - Revenue from the Embolization and Access business was $109,200,000, an increase of 13.9% reported and 12.8% in constant currency, primarily driven by U.S. Embolization sales [22] Market Data and Key Metrics Changes - The U.S. region reported growth of 19.5%, driven by the strong performance of the thrombectomy franchise [20] - International regions saw a decrease of 3.2% reported and 5.8% in constant currency, primarily due to a decline in China revenue [20] - Excluding the impact of the China region, international thrombectomy revenue grew by 14.4% compared to the same period last year [21] Company Strategy and Development Direction - The company is focused on continuous innovation and expanding the total number of patients treated globally with its technologies [6][7] - A separate peripheral embolization sales force has been established to enhance focus on thrombectomy and embolization, with over 50 new sales representatives added [11] - The company aims to achieve a gross margin profile of over 70% by 2026, with operating margin expansion expected to outpace gross margin expansion [9][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about easing headwinds in China, anticipating a return to growth across all international regions [20] - The company is committed to running high-quality clinical studies to support its product offerings and market access initiatives [12][17] - Management highlighted the importance of the STORM PE trial, which is expected to provide significant evidence for the treatment of pulmonary embolism [12][34] Other Important Information - The company ended the second quarter with cash, cash equivalents, and marketable securities of $424,600,000 and no debt, reflecting strong operating profitability [26] - Due to outperformance in the second quarter, the company increased its revenue guidance for 2025 to a range of $1,355,000,000 to $1,370,000,000, representing 13% to 15% year-over-year growth [27] Q&A Session Summary Question: Importance of STORM PE study - Management emphasized that STORM PE is the first randomized study comparing anticoagulation and mechanical thrombectomy, which is significant for the field [32][34] Question: Update on Thunderbolt FDA review - Management stated that the FDA review process is thorough and ongoing, and they remain excited about the product's potential impact [38][39] Question: Impact of Salesforce split on margins - Management clarified that the investment in the commercial team does not impact gross margins but is expected to support long-term margin goals [52][54] Question: Anticipated slowdown in U.S. thrombectomy business - Management acknowledged a potential deceleration in the stroke market but remains optimistic about continued growth in the thrombectomy business [48][72] Question: International market performance and China - Management noted that international markets are beginning to show signs of recovery, particularly with the launch of new products [80][82]

[PART I. FINANCIAL INFORMATION](index=2&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents Penumbra, Inc.'s unaudited interim financial statements and management's discussion [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=2&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20%28Unaudited%29) This section presents Penumbra, Inc.'s unaudited interim financial statements and comprehensive notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's financial position at specific interim dates | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :------------------------------- | | Total Assets | $1,674,809 | $1,533,181 | | Total Liabilities | $380,858 | $382,250 | | Total Stockholders' Equity | $1,293,951 | $1,150,931 | - Cash and cash equivalents increased by **$97.36 million** from **$324.40 million** at December 31, 2024, to **$421.77 million** at June 30, 2025[11](index=11&type=chunk) - Retained earnings significantly increased from **$60.00 million** at December 31, 2024, to **$144.50 million** at June 30, 2025[11](index=11&type=chunk) [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section details the company's revenues, expenses, and net income or loss over interim periods | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $339,455 | $299,403 | $663,595 | $578,058 | | Gross profit | $224,010 | $162,829 | $439,893 | $343,968 | | Income (loss) from operations | $40,828 | $(80,961) | $81,178 | $(68,860) | | Net income (loss) | $45,270 | $(60,200) | $84,493 | $(49,198) | | Basic EPS | $1.17 | $(1.55) | $2.18 | $(1.27) | | Diluted EPS | $1.15 | $(1.55) | $2.15 | $(1.27) | - Revenue increased by **13.4%** for the three months ended June 30, 2025, compared to the same period in 2024, and by **14.8%** for the six months ended June 30, 2025, compared to the same period in 2024[13](index=13&type=chunk) - The company reported a significant turnaround from a net loss of **$(60.2) million** in Q2 2024 to a net income of **$45.27 million** in Q2 2025, and from a net loss of **$(49.2) million** in YTD 2024 to a net income of **$84.49 million** in YTD 2025[13](index=13&type=chunk) [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20%28Loss%29) This section presents net income or loss alongside other comprehensive income or loss components | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income (loss) | $45,270 | $(60,200) | $84,493 | $(49,198) | | Foreign currency translation adjustments, net of tax | $6,284 | $(451) | $9,019 | $(2,304) | | Net change in unrealized gains (losses) on available-for-sale securities, net of tax | $1 | $241 | $(21) | $407 | | Total other comprehensive income (loss), net of tax | $6,285 | $(210) | $8,998 | $(1,897) | | Comprehensive income (loss) | $51,555 | $(60,410) | $93,491 | $(51,095) | - Comprehensive income significantly improved from a loss of **$(60.41) million** in Q2 2024 to an income of **$51.56 million** in Q2 2025, primarily driven by the shift from net loss to net income and positive foreign currency translation adjustments[15](index=15&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) This section outlines changes in stockholders' equity, including common stock and retained earnings | Metric (in thousands) | Balance at Dec 31, 2024 | Balance at June 30, 2025 | | :-------------------- | :---------------------- | :----------------------- | | Common Stock (Shares) | 38,490,836 | 38,971,153 | | Common Stock (Amount) | $38 | $39 | | Additional Paid-in Capital | $1,096,732 | $1,146,260 | | Accumulated Other Comprehensive Income (Loss) | $(5,843) | $3,155 | | Retained Earnings | $60,004 | $144,497 | | Total Stockholders' Equity | $1,150,931 | $1,293,951 | - Total stockholders' equity increased by **$143.02 million** from December 31, 2024, to June 30, 2025, primarily due to net income and increases in additional paid-in capital and accumulated other comprehensive income[18](index=18&type=chunk) - Issuance of common stock and stock-based compensation contributed to the increase in additional paid-in capital[18](index=18&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section reports cash inflows and outflows from operating, investing, and financing activities | Cash Flow Activity (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $93,916 | $60,906 | | Net cash (used in) provided by investing activities | $(16,082) | $52,858 | | Net cash provided by financing activities | $17,525 | $7,480 | | Net increase in cash and cash equivalents | $97,364 | $120,846 | | Cash and cash equivalents—End of period | $421,768 | $288,332 | - Net cash provided by operating activities increased by **$33.01 million**, from **$60.91 million** in YTD 2024 to **$93.92 million** in YTD 2025, driven by a shift from net loss to net income[21](index=21&type=chunk) - Investing activities shifted from providing **$52.86 million** in YTD 2024 to using **$16.08 million** in YTD 2025, primarily due to increased purchases of property and equipment and lower proceeds from marketable investments[21](index=21&type=chunk) [Note 1. Organization and Description of Business](index=8&type=section&id=Note%201.%20Organization%20and%20Description%20of%20Business) This note describes Penumbra, Inc.'s business, focus, and innovative medical technologies - Penumbra, Inc. is a leading thrombectomy company focused on developing innovative technologies for medical conditions like ischemic stroke, venous thromboembolism, and acute limb ischemia[22](index=22&type=chunk) - The company's portfolio includes computer assisted vacuum thrombectomy (CAVT) for removing blood clots[22](index=22&type=chunk) [Note 2. Summary of Significant Accounting Policies](index=8&type=section&id=Note%202.%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines the significant accounting policies used in preparing the financial statements - The unaudited condensed consolidated financial statements are prepared in accordance with U.S. GAAP and SEC regulations for interim financial information[23](index=23&type=chunk) - No changes to significant accounting policies occurred during the six months ended June 30, 2025, compared to the fiscal year ended December 31, 2024[25](index=25&type=chunk) - The company operates as one operating segment, focusing on the design, development, manufacturing, and marketing of innovative medical products[30](index=30&type=chunk) - The company is evaluating the impact of new FASB ASUs 2023-09 (Income Tax Disclosures) and 2024-03 (Expense Disaggregation Disclosures) but has not early adopted them as of June 30, 2025[31](index=31&type=chunk)[32](index=32&type=chunk) [Note 3. Investments and Fair Value of Financial Instruments](index=9&type=section&id=Note%203.%20Investments%20and%20Fair%20Value%20of%20Financial%20Instruments) This note details the company's investments and the fair value measurement of financial instruments | Investment Type | June 30, 2025 Fair Value (in thousands) | December 31, 2024 Fair Value (in thousands) | | :---------------- | :------------------------------------ | :---------------------------------------- | | Marketable investments (U.S. treasury) | $2,795 | $15,727 | | Non-marketable investments (debt securities) | $12,850 | $12,850 | | Total | $15,645 | $28,577 | - Marketable investments, primarily U.S. treasury securities, decreased significantly from **$15.73 million** to **$2.80 million**[33](index=33&type=chunk)[35](index=35&type=chunk) - Non-marketable investments in preferred stock of privately held companies are classified as Level 3 in the fair value hierarchy and their fair value remained unchanged at **$12.85 million**[33](index=33&type=chunk)[35](index=35&type=chunk)[45](index=45&type=chunk) [Note 4. Impairment of Immersive Healthcare Asset Group](index=12&type=section&id=Note%204.%20Impairment%20of%20Immersive%20Healthcare%20Asset%20Group) This note discusses impairment charges related to the immersive healthcare asset group - No impairment charge was recorded during the three and six months ended June 30, 2025[49](index=49&type=chunk) - During Q2 2024, the company recorded a pre-tax impairment charge of **$76.9 million**, primarily for finite-lived intangible assets (**$58.9 million**) and property and equipment (**$18.0 million**), related to its immersive healthcare asset group[50](index=50&type=chunk)[54](index=54&type=chunk) - Additionally, a **$33.4 million** charge for the write-down of immersive healthcare inventory was recorded to cost of revenue in Q2 2024[52](index=52&type=chunk) [Note 5. Balance Sheet Components](index=13&type=section&id=Note%205.%20Balance%20Sheet%20Components) This note provides detailed breakdowns of key balance sheet components like inventory and liabilities | Inventory Component (in thousands) | June 30, 2025 | December 31, 2024 | | :--------------------------------- | :------------ | :---------------- | | Raw materials | $122,591 | $133,967 | | Work in process | $45,661 | $35,713 | | Finished goods | $259,376 | $237,057 | | Total Inventories | $427,628 | $406,737 | | Accrued Liabilities Component (in thousands) | June 30, 2025 | December 31, 2024 | | :------------------------------------------- | :------------ | :---------------- | | Payroll and employee-related expenses | $74,075 | $74,201 | | Accrued expenses | $11,676 | $13,982 | | Other accrued liabilities | $28,638 | $24,246 | | Total Accrued Liabilities | $114,389 | $112,429 | - The company is acquiring property in Costa Rica and constructing a 330,000 sq ft manufacturing facility and warehouse, with **$16.4 million** paid during the six months ended June 30, 2025[57](index=57&type=chunk)[59](index=59&type=chunk) [Note 6. Intangible Assets](index=15&type=section&id=Note%206.%20Intangible%20Assets) This note details the company's intangible assets, including customer relationships and technology | Intangible Asset (in thousands) | June 30, 2025 Net | December 31, 2024 Net | | :------------------------------ | :---------------- | :-------------------- | | Customer relationships | $3,267 | $3,097 | | Trade secrets and processes | $3,285 | $3,416 | | Developed technology | $— | $— | | Total Intangible Assets | $6,552 | $6,513 | - During the six months ended June 30, 2025, the company disposed of previously impaired intangible assets related to its immersive healthcare business, resulting in a write-off of **$83.3 million** in developed technology and accumulated amortization[60](index=60&type=chunk) | Amortization Expense (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Cost of revenue | $66 | $66 | $131 | $131 | | Sales, general and administrative | $112 | $2,486 | $218 | $4,974 | | Total | $178 | $2,552 | $349 | $5,105 | [Note 7. Goodwill](index=16&type=section&id=Note%207.%20Goodwill) This note provides information on the company's goodwill and any impairment assessments | Goodwill (in thousands) | Total Company | | :---------------------- | :------------ | | Balance as of December 31, 2024 | $165,826 | | Foreign currency translation | $926 | | Balance as of June 30, 2025 | $166,752 | - Goodwill increased by **$0.93 million** due to foreign currency translation during the six months ended June 30, 2025[64](index=64&type=chunk) - The company determined there were no impairment indicators for goodwill as of or during the six months ended June 30, 2025[65](index=65&type=chunk) [Note 8. Commitments and Contingencies](index=16&type=section&id=Note%208.%20Commitments%20and%20Contingencies) This note outlines the company's contractual commitments and potential contingent liabilities - The company enters into standard indemnification arrangements in the ordinary course of business, but no costs have been incurred to defend lawsuits or settle claims related to these agreements to date[67](index=67&type=chunk)[69](index=69&type=chunk) - A class action and PAGA lawsuit filed in April 2023 by a former contractor and current employee was settled for an aggregate amount of **$4.6 million**, with final court approval on March 12, 2025, and payments completed in Q2 2025[71](index=71&type=chunk)[73](index=73&type=chunk) [Note 9. Stockholders' Equity](index=17&type=section&id=Note%209.%20Stockholders%27%20Equity) This note details changes in stockholders' equity, including stock-based compensation expenses | Stock-based Compensation Expense (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Cost of revenue | $887 | $981 | $1,664 | $2,175 | | Research and development | $2,375 | $1,746 | $4,541 | $3,914 | | Sales, general and administrative | $10,972 | $6,833 | $21,814 | $17,040 | | Total | $14,234 | $9,560 | $28,019 | $23,129 | - Total stock-based compensation expense increased by **48.9%** for the three months ended June 30, 2025, and by **21.1%** for the six months ended June 30, 2025, compared to the respective prior periods[76](index=76&type=chunk) - Unrecognized compensation cost for unvested share-based arrangements (excluding PSUs) was **$62.6 million**, with a weighted average recognition period of **2.9 years** as of June 30, 2025[76](index=76&type=chunk) - Unrecognized compensation cost for unvested PSU share-based arrangements was **$30.6 million**, with a weighted average recognition period of **3.2 years** as of June 30, 2025[77](index=77&type=chunk) [Note 10. Accumulated Other Comprehensive Income (Loss)](index=17&type=section&id=Note%2010.%20Accumulated%20Other%20Comprehensive%20Income%20%28Loss%29) This note breaks down components of accumulated other comprehensive income or loss | Component (in thousands) | Balance, Dec 31, 2024 | Balance, June 30, 2025 | | :----------------------- | :-------------------- | :--------------------- | | Marketable Investments | $(701) | $(722) | | Non-Marketable Investments | $2,850 | $2,850 | | Currency Translation Adjustments | $(7,992) | $1,027 | | Total | $(5,843) | $3,155 | - Accumulated other comprehensive income (loss) shifted from a loss of **$(5.84) million** at December 31, 2024, to an income of **$3.16 million** at June 30, 2025, primarily due to positive foreign currency translation adjustments[81](index=81&type=chunk) [Note 11. Income Taxes](index=18&type=section&id=Note%2011.%20Income%20Taxes) This note provides details on income tax expense, effective tax rates, and related adjustments | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Income tax expense (benefit) | $40 | $(17,674) | $4,675 | $(14,050) | | Effective tax rate | 0.1% | 22.7% | 5.2% | 22.2% | - The effective tax rate changed significantly from **22.7%** (benefit) in Q2 2024 to **0.1%** (expense) in Q2 2025, and from **22.2%** (benefit) in YTD 2024 to **5.2%** (expense) in YTD 2025, primarily due to increased excess tax benefits from stock-based compensation in the U.S. jurisdiction[87](index=87&type=chunk) - The **$26.5 million** income tax benefit from the immersive healthcare impairment charge in Q2 2024 was excluded from the estimated annual effective tax rate calculation[84](index=84&type=chunk) - The company does not expect any material impact to its consolidated income statement for 2025 from the recently signed One Big Beautiful Bill Act (OBBBA), which extends and modifies business tax frameworks[90](index=90&type=chunk) [Note 12. Net Income (Loss) per Share](index=19&type=section&id=Note%2012.%20Net%20Income%20%28Loss%29%20per%20Share) This note presents basic and diluted net income or loss per share calculations | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Basic Net Income (Loss) per Share | $1.17 | $(1.55) | $2.18 | $(1.27) | | Diluted Net Income (Loss) per Share | $1.15 | $(1.55) | $2.15 | $(1.27) | | Basic Weighted Average Shares Outstanding | 38,834,917 | 38,793,341 | 38,699,307 | 38,755,337 | | Diluted Weighted Average Shares Outstanding | 39,245,953 | 38,793,341 | 39,214,027 | 38,755,337 | - The company reported positive basic and diluted EPS in Q2 and YTD 2025, a significant improvement from losses in the comparable periods of 2024[93](index=93&type=chunk) - Potentially dilutive stock-based awards were excluded from diluted EPS calculation in periods of net loss (Q2 and YTD 2024) because their effect would have been anti-dilutive[93](index=93&type=chunk) [Note 13. Interest and other income (expense), net](index=20&type=section&id=Note%2013.%20Interest%20and%20other%20income%20%28expense%29%2C%20net) This note details interest income, interest expense, and other non-operating income or expense | Component (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Interest income | $3,989 | $3,657 | $7,374 | $6,950 | | Interest expense | $(319) | $(344) | $(640) | $(746) | | Other income (expense), net | $812 | $(226) | $1,256 | $(592) | | Total Interest and other income, net | $4,482 | $3,087 | $7,990 | $5,612 | - Interest and other income, net, increased by **$1.39 million** (**45.1%**) in Q2 2025 and **$2.38 million** (**42.4%**) in YTD 2025, primarily driven by a shift from net expense to net income in 'Other income (expense), net' (mainly foreign currency gains/losses)[94](index=94&type=chunk) [Note 14. Segment Reporting](index=20&type=section&id=Note%2014.%20Segment%20Reporting) This note explains the company's operating segments and how performance is evaluated - The company operates as one operating and reportable segment, focusing on the design, development, manufacturing, and marketing of innovative medical products[95](index=95&type=chunk) - The Chief Operating Decision-Maker (CODM) reviews consolidated operating results and functional expenses (cost of revenue, R&D, SG&A) to allocate resources and evaluate performance[96](index=96&type=chunk) [Note 15. Revenues](index=21&type=section&id=Note%2015.%20Revenues) This note provides a detailed breakdown of revenue by geographic area and product category | Geographic Area (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | United States | $260,818 | $218,180 | $517,678 | $427,824 | | International | $78,637 | $81,223 | $145,917 | $150,234 | | Total | $339,455 | $299,403 | $663,595 | $578,058 | | Product Category (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Thrombectomy | $230,256 | $203,502 | $456,800 | $391,205 | | Embolization and Access | $109,199 | $95,901 | $206,795 | $186,853 | | Total | $339,455 | $299,403 | $663,595 | $578,058 | - U.S. revenue increased by **19.5%** in Q2 2025 and **21.0%** in YTD 2025, while international revenue decreased by **3.2%** in Q2 2025 and **2.9%** in YTD 2025, primarily due to a decline in China revenue[100](index=100&type=chunk)[134](index=134&type=chunk)[146](index=146&type=chunk) - Thrombectomy product revenue increased by **13.1%** in Q2 2025 and **16.8%** in YTD 2025, and Embolization and Access product revenue increased by **13.9%** in Q2 2025 and **10.7%** in YTD 2025[100](index=100&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial condition, operational results, liquidity, and accounting policies [Overview](index=24&type=section&id=Overview) This section provides a high-level overview of Penumbra's business and product portfolio - Penumbra is a leading thrombectomy company developing innovative technologies for ischemic stroke, venous thromboembolism, and acute limb ischemia, with a broad portfolio including computer assisted vacuum thrombectomy (CAVT)[114](index=114&type=chunk) - The company's product families include Peripheral thrombectomy (INDIGO System), Neuro thrombectomy (Penumbra System), Peripheral embolization (RUBY Embolization Platform), Neuro embolization (Penumbra SMART COIL), Access (delivery catheters), and Neurosurgical (Artemis Neuro Evacuation Device)[117](index=117&type=chunk)[121](index=121&type=chunk) - Revenue for Q2 2025 was **$339.5 million** (up **$40.1 million** YoY) and for YTD 2025 was **$663.6 million** (up **$85.5 million** YoY)[119](index=119&type=chunk) - The company recorded an impairment charge of **$110.3 million** related to its immersive healthcare asset group in Q2 2024 due to a strategic decision to explore alternative avenues for the business[120](index=120&type=chunk) [Factors Affecting Our Performance](index=25&type=section&id=Factors%20Affecting%20Our%20Performance) This section discusses key internal and external factors influencing the company's financial performance - Salesforce growth and effectiveness impact revenue and costs - Intense competition from large, well-capitalized companies - Successful introduction and transition of new products, ensuring adequate supply - Impact of clinical results on product adoption - Seasonality of physician procedures (medical conferences, holidays) - Fluctuations in foreign currency exchange rates for international sales - Availability and levels of reimbursement for procedures using company products - Quarterly revenue, gross profit, and gross margin percentage are subject to variability due to factors like selling days, product mix, geographic mix, demand, regulatory approvals, competition, customer orders, inventory write-offs, new product introductions, and raw material costs[123](index=123&type=chunk) [Components of Results of Operations](index=26&type=section&id=Components%20of%20Results%20of%20Operations) This section defines how revenue, cost of revenue, and operating expenses are recognized and reported - Revenue is recognized upon shipment, customer receipt, or utilization for consigned products, including shipping and handling costs[124](index=124&type=chunk) - Cost of revenue includes raw materials, personnel, freight, warehousing, royalties, and manufacturing overhead, with most products manufactured in California facilities[125](index=125&type=chunk) - R&D expenses are expensed as incurred and include product development, clinical, regulatory, materials, and personnel costs[126](index=126&type=chunk) - SG&A expenses cover salaries, benefits, stock-based compensation for sales, marketing, and administrative personnel, as well as marketing trials, medical education, commissions, and amortization of acquired intangible assets[127](index=127&type=chunk) - Income taxes are determined by applicable rates in each jurisdiction, with deferred tax assets and liabilities subject to judgment and valuation allowances[128](index=128&type=chunk) [Results of Operations](index=27&type=section&id=Results%20of%20Operations) This section provides a detailed analysis of the company's financial performance for interim periods | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $339,455 | $299,403 | $663,595 | $578,058 | | Cost of revenue | $115,445 | $136,574 | $223,702 | $234,090 | | Gross profit | $224,010 | $162,829 | $439,893 | $343,968 | | R&D expenses | $23,218 | $24,942 | $45,295 | $49,568 | | SG&A expenses | $159,964 | $141,903 | $313,420 | $286,315 | | Impairment charge | $— | $76,945 | $— | $76,945 | | Income (loss) from operations | $40,828 | $(80,961) | $81,178 | $(68,860) | | Net income (loss) | $45,270 | $(60,200) | $84,493 | $(49,198) | - Revenue growth was primarily driven by increased sales of existing thrombectomy products and new embolization and access products, particularly in the United States[130](index=130&type=chunk)[131](index=131&type=chunk)[132](index=132&type=chunk)[143](index=143&type=chunk)[144](index=144&type=chunk)[145](index=145&type=chunk) - Gross margin significantly increased to **66.0%** in Q2 2025 (from **54.4%** in Q2 2024) and **66.3%** in YTD 2025 (from **59.5%** in YTD 2024), primarily due to the absence of the **$33.4 million** inventory impairment charge from Q2 2024, favorable product mix, and productivity improvements[135](index=135&type=chunk)[147](index=147&type=chunk) - R&D expenses decreased due to lower personnel-related expenses following the exit from the immersive healthcare business, partially offset by investments in growth[136](index=136&type=chunk)[148](index=148&type=chunk) - SG&A expenses increased due to higher personnel-related expenses from headcount growth and increased travel, partially offset by decreased amortization expense of intangible assets and lower litigation-related expenses (YTD)[138](index=138&type=chunk)[150](index=150&type=chunk) - The effective tax rate shifted from a benefit in 2024 to an expense in 2025, mainly due to an increase in excess tax benefits from stock-based compensation in the U.S. jurisdiction[141](index=141&type=chunk)[154](index=154&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) This section assesses the company's ability to meet short-term and long-term financial obligations | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Cash and cash equivalents | $421,768 | $324,404 | | Marketable investments | $2,795 | $15,727 | | Working capital | $907,723 | $792,780 | - The company had **$907.7 million** in working capital as of June 30, 2025, and believes its current liquidity sources are sufficient for at least the next 12 months[156](index=156&type=chunk)[159](index=159&type=chunk) - Principal liquidity requirements include funding operations, expanding manufacturing (e.g., Costa Rica facility), R&D, and capital expenditures[157](index=157&type=chunk) - The Board of Directors extended the **$100.0 million** remaining share repurchase authorization to December 31, 2025[158](index=158&type=chunk) [Contractual Obligations and Commitments](index=35&type=section&id=Contractual%20Obligations%20and%20Commitments) This section outlines the company's significant contractual obligations and future commitments - The company entered into agreements to acquire property in Costa Rica and construct a manufacturing facility and warehouse during the six months ended June 30, 2025[170](index=170&type=chunk) - No other material changes to contractual obligations and commitments were reported as of June 30, 2025, compared to the Annual Report on Form 10-K for 2024[171](index=171&type=chunk) [Critical Accounting Policies and Estimates](index=35&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section highlights accounting policies requiring significant judgment and estimation - No material changes to critical accounting policies were reported from those described in the Annual Report on Form 10-K for the year ended December 31, 2024[173](index=173&type=chunk) [Recently Issued Accounting Standards](index=35&type=section&id=Recently%20Issued%20Accounting%20Standards) This section discusses the impact of new accounting standards on the company's financial reporting - Information on recently issued accounting standards and their impact is referenced to Note 2 of the condensed consolidated financial statements[174](index=174&type=chunk) [Item 3. Quantitative and Qualitative Disclosure about Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosure%20about%20Market%20Risk) This section details the company's exposure to interest rate and foreign currency market risks - The company is exposed to interest rate risk from its cash, cash equivalents (**$421.8 million**), and marketable investments (**$2.8 million**), but a hypothetical **100 basis point** change in interest rates would not have a material impact[176](index=176&type=chunk) - The company is exposed to foreign currency risk as most international sales are denominated in local currencies (primarily euros), but does not currently hedge this exposure and does not believe a **10%** adverse change in exchange rates would materially impact net income[177](index=177&type=chunk) - Changes in product prices did not have a significant impact on the company's results of operations for the six months ended June 30, 2025[178](index=178&type=chunk) [Item 4. Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of disclosure controls and internal control over financial reporting - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[181](index=181&type=chunk) - No material changes in internal control over financial reporting occurred during the quarterly period ended June 30, 2025[182](index=182&type=chunk) - Control systems provide reasonable, not absolute, assurance that objectives are met due to inherent limitations[183](index=183&type=chunk) [PART II. OTHER INFORMATION](index=38&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section provides other required information, including legal proceedings, risk factors, and equity sales [Item 1. Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to detailed information regarding the company's legal proceedings - Legal proceedings information is detailed in Note 8. Commitments and Contingencies[186](index=186&type=chunk) [Item 1A. Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) This section addresses potential risks and uncertainties that could impact the company's business - No material changes to risk factors or new risk factors identified since the filing of the Annual Report on Form 10-K for the year ended December 31, 2024[188](index=188&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section reports on any unregistered sales of equity securities and the application of proceeds - No unregistered sales of equity securities and use of proceeds to report[189](index=189&type=chunk) [Item 3. Defaults Upon Senior Securities](index=38&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section confirms whether there have been any defaults on senior securities - No defaults upon senior securities to report[191](index=191&type=chunk) [Item 4. Mine Safety Disclosure](index=38&type=section&id=Item%204.%20Mine%20Safety%20Disclosure) This section indicates if any mine safety disclosures are required for the reporting period - No mine safety disclosure to report[193](index=193&type=chunk) [Item 5. Other Information](index=38&type=section&id=Item%205.%20Other%20Information) This section provides additional information, including Rule 10b5-1 trading plans by insiders | Name and Title of Officer or Director | Plan Action | Plan Action Date | Plan Duration | Total Securities to be Sold | | :------------------------------------ | :---------- | :--------------- | :-------------------- | :-------------------------- | | Arani Bose, Director | Adoption | 5/23/2025 | 9/2/2025 - 2/27/2026 | 30,000 | | Harpreet Grewal, Director | Adoption | 5/28/2025 | 9/2/2025 - 4/15/2026 | 944 | | Thomas Wilder, Director | Adoption | 5/13/2025 | 8/12/2025 - 5/15/2026 | 744 | - Several directors and officers adopted Rule 10b5-1 Trading Arrangements during the quarter ended June 30, 2025, for future sales of common stock[195](index=195&type=chunk) [Item 6. Exhibits](index=39&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the Form 10-Q, including certifications and data files - Exhibits include Amended and Restated Certificate of Incorporation and Bylaws, certifications of principal executive and financial officers, and Inline Extensible Business Reporting Language (iXBRL) formatted financial statements[197](index=197&type=chunk)

Exhibit 99.1 Penumbra, Inc. Reports Second Quarter 2025 Financial Results ALAMEDA, Calif., July 29, 2025 /PRNewswire/ -- Penumbra, Inc. (NYSE: PEN), the world's leading thrombectomy company, today reported financial results for the second quarter ended June 30, 2025. Second Quarter 2025 Financial Results Total revenue increased to $339.5 million for the second quarter of 2025 compared to $299.4 million for the second quarter of 2024, an increase of 13.4%, or 12.7% in constant currency . The United States re ...

ALAMEDA, Calif., July 29, 2025 /PRNewswire/ -- Penumbra, Inc. (NYSE: PEN), the world's leading thrombectomy company, today reported financial results for the second quarter ended June 30, 2025. Revenue of $339.5 million in the second quarter of 2025, an increase of 13.4% or 12.7% in constant currency1, compared to the second quarter of 2024. U.S. Thrombectomy revenue of $188.5 million in the second quarter of 2025, an increase of 22.6% compared to the second quarter of 2024. U.S. VTE revenue increased 42% c ...

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Penumbra (PEN) , which belongs to the Zacks Medical - Instruments industry.This medical device maker has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 16.18%.For the last reported quarter, Penumbra came out with earnings of $0.83 per share versus the Za ...

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Penumbra, with a focus on how actual results compare to estimates, which could significantly impact the stock price [1][2]. Earnings Expectations - Penumbra is expected to report quarterly earnings of $0.81 per share, reflecting a year-over-year increase of +26.6% [3]. - Revenue projections stand at $327.85 million, indicating a growth of 9.5% compared to the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, suggesting stability in analysts' assessments [4]. - A positive Earnings ESP of +1.28% indicates that analysts have recently become more optimistic about Penumbra's earnings prospects [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model compares the Most Accurate Estimate to the Zacks Consensus Estimate, with a positive reading suggesting a likely earnings beat [8][10]. - Stocks with a positive Earnings ESP and a Zacks Rank of 1, 2, or 3 have historically produced positive surprises nearly 70% of the time [10]. Historical Performance - In the last reported quarter, Penumbra exceeded expectations by delivering earnings of $0.83 per share against an estimate of $0.66, resulting in a surprise of +25.76% [13]. - The company has beaten consensus EPS estimates in all of the last four quarters [14]. Conclusion - Penumbra is positioned as a strong candidate for an earnings beat, but investors should consider other influencing factors before making investment decisions [17].