AtriCure (NasdaqGM:ATRC) Q4 2025 Earnings call February 17, 2026 04:30 PM ET Speaker10Good afternoon, and welcome to AtriCure's fourth quarter and full year 2025 earnings conference call. This call is being recorded for replay purposes, and at this time, all participants are in listen-only mode. We will be facilitating a question-and-answer session following prepared remarks from AtriCure's management. I would now like to turn the call over to Marissa Bych from the Gilmartin Group for a few introductory com ...

Core Viewpoint - The successful completion of the first atrial fibrillation pulsed electric field ablation surgery at Jinan Third People's Hospital marks a significant breakthrough in the field of arrhythmia intervention treatment, providing advanced treatment options for atrial fibrillation patients in the eastern region of Jinan [1][8]. Group 1: Procedure Details - The patient, a 71-year-old male, was diagnosed with paroxysmal atrial fibrillation and underwent the pulsed electric field ablation (PFA) technique after consultations with a renowned expert from Beijing Anzhen Hospital [3]. - The surgery was performed under general anesthesia, taking approximately 30 minutes, significantly shorter than the typical 90 minutes required for traditional radiofrequency ablation [3]. - Post-surgery, the patient experienced no discomfort, did not have any recurrence of atrial fibrillation, and showed no complications, achieving the expected outcomes [3]. Group 2: Advantages of Pulsed Electric Field Ablation - Pulsed electric field ablation offers three core advantages: 1. It utilizes non-thermal ablation through ultra-short high-voltage electric pulses, minimizing risks to surrounding tissues such as blood vessels and nerves [4]. 2. The procedure is efficient, with surgery time reduced to about one hour, allowing patients to be discharged within 1-2 days post-operation [6]. 3. It is suitable for a wide range of patients, including those with poor drug treatment responses, elderly patients, and those with complex heart structures or previous ablation failures [7]. Group 3: Institutional Impact - Jinan Third People's Hospital, as a collaborative center for the National Clinical Research Center for Cardiovascular Diseases, is committed to innovative breakthroughs in minimally invasive treatments for arrhythmias [8]. - The successful implementation of the pulsed electric field ablation surgery signifies the hospital's entry into a new phase of "precision and minimally invasive" treatment for atrial fibrillation, filling a gap in high-end arrhythmia intervention technology in eastern Jinan [8].

Investment Rating - Investment Rating: Buy (Maintained) [1] Core Views - The company reported a revenue of 2.066 billion yuan in 2024, representing a year-on-year increase of 25.18%, and a net profit attributable to shareholders of 673 million yuan, up 26.08% year-on-year [4][5] - In Q1 2025, the company achieved a revenue of 564 million yuan, reflecting a year-on-year growth of 23.93%, and a net profit of 183 million yuan, which is a 30.69% increase year-on-year [4][5] - The company has successfully expanded its electrophysiology business, with over 1,360 hospitals covered and a 50% increase in the number of three-dimensional electrophysiology surgeries performed in 2024 [5][6] Financial Performance - The company’s revenue from coronary access reached 1.054 billion yuan in 2024, a year-on-year increase of 33.30%, while electrophysiology revenue was 440 million yuan, up 19.73% [6] - The company’s overseas revenue was 280 million yuan, showing a growth of 19.75%, with a notable 45.88% increase in international business under its own brand [6] - The projected revenues for 2025, 2026, and 2027 are 2.741 billion yuan, 3.580 billion yuan, and 4.664 billion yuan, respectively, with growth rates of 32.7%, 30.6%, and 30.3% [7][8] Earnings Forecast - The expected net profits for 2025, 2026, and 2027 are 907 million yuan, 1.197 billion yuan, and 1.572 billion yuan, with growth rates of 34.8%, 32.0%, and 31.3% [8][10] - The projected EPS for the same years are 9.34 yuan, 12.33 yuan, and 16.19 yuan, with corresponding P/E ratios of 46x, 35x, and 27x [8][10]