AtriCure 2026 Conference Summary Company Overview - **Company**: AtriCure (NasdaqGM:ATRC) - **Industry**: Medical Technology (Med Tech) Key Points 2026 Guidance and Growth Expectations - AtriCure expects organic growth of **12%-14%** for 2026, a slight increase from the initial guidance for 2025 [5][8] - Growth is driven by strong product launches, particularly in pain management and cardiac surgery [8][9] - The company anticipates accelerated adoption of new products, particularly in the thoracic market, which has low penetration [8][9] Product Launches and Market Dynamics - **Pain Management**: New device for amputation procedures expected to drive growth [9] - **Open Heart Surgery**: Continued adoption of the EnCompass Clamp and AtriClip tools, with an ASP uplift expected [9][10] - The standalone treatment of Afib is expected to be a headwind but less severe than in 2025 [10] Segment Performance - Open ablation grew in the high teens percentage in 2025, indicating strong market demand [12] - The EnCompass Clamp has reduced procedure time significantly, enhancing adoption among surgeons [16][17] - CABG procedures have historically had low penetration (<10%) but are seeing increased adoption due to the EnCompass Clamp [20][21] Pain Management Franchise - The cryoSPHERE MAX device has improved procedure times, leading to increased adoption [27][28] - Reimbursement remains a headwind, but growth has been strong despite this challenge [31] - AtriCure is entering the post-op amputation pain market, with an estimated **180,000 amputations** annually in the U.S. [39][40] AtriClip Product Line - The AtriClip FLEX-Mini launched in 2024 has exceeded growth expectations, contributing to nearly **20% growth** in 2025 [45][48] - The device's smaller size has been a key factor in its adoption among surgeons [48][49] - The AtriClip PRO-Mini is designed for minimally invasive procedures, with expectations for ASP uplift but potential declines in underlying procedure growth [57] Competitive Landscape - AtriCure views competition as validation of market opportunity, with ongoing innovation as a key differentiator [63][64] - The company is focused on maintaining its leadership position through clinical science and product development [64] Clinical Trials and Future Opportunities - The LEAPS trial targets **2 million** cardiac surgery patients annually, focusing on those without pre-existing Afib [82] - The BoxX-NoAF trial aims to address post-operative Afib, a common complication in cardiac surgery [88][89] - Both trials are expected to provide robust clinical data supporting the management of appendages in cardiac surgery [84][89] International Market Insights - In Europe, PFA adoption has been slower, with a shift towards more robust procedures like CONVERGE for long-standing persistent Afib patients [76][77] Conclusion AtriCure is positioned for growth in 2026 with strong product launches and a focus on expanding its market share in pain management and cardiac surgery. The company is actively addressing competitive pressures and leveraging clinical trials to validate its product offerings and expand its market opportunities.

Financial Data and Key Metrics Changes - In 2025, total revenue reached $534 million, reflecting a 15% growth over 2024, with adjusted EBITDA of nearly $62 million and cash generated of $45 million [5][29] - For Q4 2025, worldwide revenue was $140.5 million, representing a 13.1% increase compared to Q4 2024, with U.S. revenue growing 12.6% to $114.3 million [20][24] - Full-year 2025 adjusted EBITDA was $61.8 million, compared to $31.1 million in 2024, with a loss per share of $0.24, improved from a loss of $0.95 in 2024 [29] Business Line Data and Key Metrics Changes - Pain management revenue grew 33% in 2025, with Q4 growth of 24%, driven by the adoption of the cryoSPHERE MAX device [12][13] - Appendage management saw a 19% increase in worldwide revenue for 2025, with Q4 growth of 15%, primarily due to the AtriClip FLEX-Mini and PRO-Mini devices [14][15] - Open ablation revenue increased by 16.3% in 2025, with the EnCompass Clamp contributing over 60% of U.S. open ablation revenue [25][26] Market Data and Key Metrics Changes - International revenue totaled $99.2 million in 2025, up 20.2% on a reported basis, despite a decline in the U.K. due to funding and reimbursement uncertainties [25][22] - The U.K. market, previously the fastest-growing in Europe, saw a significant drop in revenue, impacting overall international sales [22][80] Company Strategy and Development Direction - The company aims for sustained double-digit revenue growth, with a 12%-14% growth forecast for 2026, focusing on innovation and market expansion [6][30] - Strategic initiatives include the LeAAPS and BoxX-NoAF clinical trials, which are expected to unlock significant market opportunities [8][12] - The company is committed to expanding its presence in surgical pain management and cardiac surgery, with a focus on innovative product launches [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the competitive landscape, viewing new entrants as validation of market potential, and noted that competition has historically driven revenue growth [39][40] - The company remains cautiously optimistic about the minimally invasive ablation market, anticipating a moderated decline in revenue in 2026 [30][32] - Management highlighted the importance of ongoing clinical trials and product innovation to maintain leadership in the market [42][76] Other Important Information - The company ended 2025 with $167.4 million in cash and investments, reflecting efficient capital management [29] - Gross margin for 2025 was 75%, an increase driven by favorable product mix and production efficiencies [27][22] Q&A Session Summary Question: Impact of competitor entering the market - Management acknowledged the competitive entry as a validation of the market, noting that it has historically led to increased revenue growth [39][40] Question: Update on LeAAPS trial data - Management confirmed that the trial is ongoing and received positive feedback from the Data Safety Monitoring Board, but specific data release timelines were not provided [42][43] Question: Guidance for 2026 amid new competition - Management stated that the guidance for 2026 already factored in mild competitive pressures and remains confident in achieving 12%-14% growth [47][48] Question: Softness in U.S. appendage management - Management noted a decline in minimally invasive clips but highlighted strong growth in open appendage management, driven by the FLEX-Mini clip [49][50] Question: Revenue contribution from LeAAPS trial - Management confirmed that they receive payment for devices used in the trial, but the overall impact on revenue during enrollment was minimal [53][54] Question: Future enhancements for EnCompass - Management indicated no new product iterations are planned for EnCompass but emphasized ongoing marketing efforts and trial participation to drive adoption [57][58] Question: International sales impact from U.K. budget issues - Management reported significant impacts on pain management and minimally invasive ablation segments in the U.K. due to reimbursement changes [80][81]