Penumbra(US:PEN)2025-11-05 22:30Financial Data and Key Metrics Changes - The company reported total revenue of $354.7 million for Q3 2025, reflecting a year-over-year growth of 17.8% on a reported basis and 16.9% on a constant currency basis [5][18] - Gross margin improved to 67.8%, an increase of 130 basis points compared to the prior year [6][21] - Operating income was $48.8 million, representing 13.8% of revenue, compared to $40.3 million or 13.4% of revenue in the same period last year [7][23] - Adjusted EBITDA was $66.7 million, or 18.8% of total revenue, compared to $56.7 million or 18.8% in Q3 2024 [23] Business Line Data and Key Metrics Changes - U.S. thrombectomy sales increased by 18.5% year-over-year to $192 million, with the VTE franchise leading overall corporate growth at 34% year-over-year [5][19] - U.S. embolization and access revenue reached $83 million, up 29.2% year-over-year, driven by the RubyXL product [5][20] - International revenue was $79.7 million, a 6.6% increase year-over-year, or 3% in constant currency [6][18] Market Data and Key Metrics Changes - The U.S. market accounted for 77.5% of total sales, while international sales made up 22.5% [18] - The international thrombectomy revenue grew by 5.6% year-over-year, indicating a return to growth after previous headwinds [19] Company Strategy and Development Direction - The company is focused on achieving a gross margin profile of over 70% by the end of 2026 and expects operating margin expansion to outpace gross margin expansion [8][21] - The strategic buildout of a dedicated peripheral embolization sales team has contributed to strong sequential growth in embolization revenue [10][14] - The company is optimistic about the potential impact of the Storm PE trial on clinical practice and patient treatment protocols [10][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term strategy, emphasizing innovation, data generation, and investment in the team to support durable, profitable growth [17] - The company raised its revenue guidance for the year to $1,375 million-$1,380 million, reiterating a 20%-21% year-over-year growth for U.S. thrombectomy [12][24] Other Important Information - The company received FDA clearance for new products, Lightning Bolt 16 and Lightning Flash 3.0, which are expected to enhance its competitive positioning [9][12] - The company has a robust patent portfolio protecting its core CABT technology, with recent legal victories affirming its competitive patents [9] Q&A Session Summary Question: Update on Thunderbolt product approval timeline - Management clarified that Thunderbolt is a new product and the FDA process is thorough, with optimism about the approval timeline but no specific date provided [26][27] Question: Impact of Storm PE trial results on market adoption - Positive reactions from the medical community were noted, with expectations for changes in hospital protocols and increased adoption of CABT technology [30][31] Question: Insights on margins and growth drivers - Management indicated that all CABT products have strong margins and that the new RubyXL product is expected to contribute positively to margins [37][38] Question: Trends in U.S. thrombectomy market growth - Management acknowledged a deceleration in the stroke market but emphasized continued share gains and strong performance in the VTE segment [41][42] Question: International sales and China headwinds - Management indicated that headwinds from China are waning, with expectations for minimal impact moving forward [54][55] Question: DVT market trends and growth expectations - The company expects continued growth in the DVT segment, driven by positive responses to new products and ongoing health economic collaborations [74][76]