Summary of Penumbra FY Conference Call (January 12, 2026) Company Overview - **Company**: Penumbra (NYSE:PEN) - **Founded**: 2004 - **Headquarters**: Alameda, California - **Employees**: Over 4,500 worldwide - **Manufacturing**: All products currently manufactured in California, with plans for expansion in Costa Rica by mid to late 2027 [2][4] Manufacturing and Expansion - **Current Facilities**: Nine buildings in Alameda, with 260,000 sq ft dedicated to manufacturing [3] - **New Facilities**: - Roseville facility: 300,000 sq ft, successful expansion [4] - Costa Rica facility: 330,000 sq ft, expected to open in mid to late 2027 [4] Business Segments - **Thrombectomy**: Focused on growth, with significant market share in mechanical thrombectomy [5][7] - **Embolization**: Both peripheral and neuro embolization segments are growing significantly [5] Market Insights - **Thrombectomy Market**: - Estimated 250,000 patients in the U.S. for arterial thrombectomy [6] - DVT (Deep Vein Thrombosis) represents the largest opportunity with a focus on iliofemoral DVTs [8] - Stroke market has about 200,000 patients, with over 30% penetration [10] - **Emerging Technologies**: Introduction of CAVT (computer-assisted vacuum thrombectomy) is expected to enhance treatment outcomes [11] Clinical Trials and Product Development - **STORM-PE Trial**: - Landmark trial for pulmonary embolism, showing significant safety and efficacy [12][13] - Procedure time was notably low at 25 minutes, with significant improvements in patient outcomes [13][14] - **Regulatory Updates**: Ongoing communication with the FDA regarding product submissions, with no major concerns reported [25] Growth Drivers and Challenges - **Growth Drivers**: - Anticipated recovery in the Chinese market, which had been a headwind [29] - Increased focus on embolization and thrombectomy as separate business units [29] - **Challenges**: - Need to convert physicians from traditional methods to newer technologies [41] - Structural issues in stroke care delivery remain a challenge [62] Financial Performance and Projections - **Margins**: Commitment to achieving 70%+ gross margins, with expectations for continued improvement [64] - **Growth Outlook**: Anticipated mid-teens growth with over 30% growth on the bottom line [26] Conclusion - **Innovation Commitment**: Penumbra emphasizes ongoing innovation and product development to enhance treatment options and patient outcomes [22] - **Market Position**: The company is positioned as a leader in mechanical thrombectomy, with a strong focus on expanding its market share in both thrombectomy and embolization [41][43]

Core Insights - Penumbra's stock surged after exceeding third-quarter expectations, driven by strong performance in its venous thromboembolism (VTE) platform, which saw a 34% increase in sales in the U.S. [1][2] - The company is gaining market share in pulmonary embolism treatments, supported by positive results from the STORM-PE study, which demonstrated the effectiveness of its Lightning Flash device over traditional blood thinners [2][4] - Overall sales for Penumbra reached $354.7 million in the third quarter, marking an 18% increase and surpassing forecasts [6][7] Sales Performance - The embolization and access (E&A) division outperformed expectations with sales growing 22% to $118.3 million, exceeding forecasts of $103.1 million [3] - Thrombectomy sales increased nearly 16% to $236.4 million, aligning closely with expectations of $236.1 million [3] - Penumbra raised its sales guidance for the year to between $1.375 billion and $1.38 billion, indicating a year-over-year growth of 15% to 16% [7] Future Growth Catalysts - The company is pursuing FDA approval for its Thunderbolt device, which is intended for removing blood clots from the brain, and is optimistic about the regulatory process [4][6] - Analysts suggest that the current revenue mix indicates potential for significant growth in 2026, with ongoing catalysts expected to drive sales [5] - The STORM-PE study results are anticipated to positively influence U.S. VTE growth, further enhancing investor sentiment [2][5]