Penumbra Stock Up Post Q3 Earnings & Revenue Beat, Margins Expand

Core Insights - Penumbra, Inc. reported third-quarter 2025 adjusted earnings per share (EPS) of 97 cents, exceeding the Zacks Consensus Estimate by 7.78% and showing a year-over-year improvement of 14.1% [1][9] - The company's revenues reached $354.7 million, reflecting a 17.8% year-over-year increase and surpassing the Zacks Consensus Estimate by 4.12% [2][9] - Penumbra's gross margin expanded to 67.8%, an increase of 124 basis points year over year, while the operating margin improved to 13.8%, up 202 basis points [5][6][9] Revenue Breakdown - In the United States, Penumbra generated $275 million in revenues, accounting for 77.5% of total revenues, which is a 21.5% increase year over year [3] - International revenues amounted to $79.7 million, representing 22.5% of total revenues, with a year-over-year increase of 6.6% [3] - Thrombectomy product sales reached $236.4 million, up 15.8% year over year, while Embolization and Access product sales totaled $118.3 million, reflecting a 22% increase [4] Margin Performance - Gross profit for the quarter improved by 20% year over year to $240.4 million [5] - Selling, general and administrative expenses rose by 20.9% to $168.9 million, while research and development expenses decreased by 10% to $22.7 million [6] - Adjusted operating profit was $48.8 million, compared to $35.4 million in the same quarter of 2024 [6] Financial Position - At the end of the third quarter, Penumbra had cash and cash equivalents and marketable investments totaling $470.3 million, an increase from $424.6 million at the end of the second quarter [7] Future Outlook - For the full year 2025, Penumbra expects revenues to be between $1.375 billion and $1.380 billion, indicating a growth of 15%-16% over 2024 [10] - The company anticipates gross margin expansion of at least 100 basis points to over 67% and operating margin expansion to a range of 13%-14% of revenues [10] Market Performance - Following the earnings announcement on November 5, Penumbra's shares increased by 20%, closing at $270.55 [2] - The company achieved the highest sequential quarterly increase in VTE case volume growth to date in 2025, indicating strong market performance [12]