0001323885-26-000023
SEC filingAtriCure's Q1 2026 revenue grew 14.3% to $141.2M, gross margin expanded 246 bps, and the company returned to profitability.
For the three months ended March 31, 2026, AtriCure reported revenue of $141.2 million, a 14.3% increase compared to $123.6 million in the same period of 2025. On a constant currency basis, growth was 12.8%. Gross profit rose to $109.3 million from $92.6 million, with gross margin improving 246 basis points to 77.4%, primarily due to favorable product mix and geographic mix. Operating income turned positive at $0.5 million versus an operating loss of $6.0 million in the prior year, reflecting higher revenue and margin expansion. Net income was $0.1 million compared to a net loss of $6.7 million.
Selling, general and administrative expenses increased 11.2% to $84.6 million, driven by higher personnel costs and expanded trade show and training activities. Research and development expenses increased 7.6% to $24.2 million, largely due to higher regulatory filing costs and personnel expenses.
Revenue growth was led by appendage management, which rose 14.9% to $48.4 million, and pain management, which surged 29.5% to $22.4 million, driven by the AtriClip FLEX-Mini/PRO-Mini and cryoSPHERE MAX probe, respectively. Open ablation revenue grew 17.3% to $39.1 million, benefiting from the EnCompass clamp. However, minimally invasive ablation revenue declined 24.7% to $6.4 million, as physicians adopted PFA catheters for hybrid procedures. In the United States, revenue increased 14.9% to $116.2 million, with strong performance across most franchises. International revenue grew 11.5% (3.3% constant currency) to $25.0 million, driven by appendage management, open ablation, and pain management.
The MD&A did not provide explicit forward guidance or financial outlook. Management highlighted continued investment in product innovation, clinical science (including the LeAAPS and BoxX-NoAF trials), and physician training as strategic priorities. The company noted recent CE mark approval for AtriClip FLEX-Mini and PRO-Mini in Europe, expected to launch later in 2026. Ongoing macroeconomic monitoring of inflation, interest rates, and currency fluctuations was mentioned, but no specific impact on future performance was quantified.
As of March 31, 2026, AtriCure held $61.0M in total debt under its asset-based revolving credit facility (ABL Facility), down from $61.865M at year-end 2025, reflecting a net repayment of $0.865M. The ABL Facility provides up to $125M (expandable to $165M), with $62.75M unused as of quarter end. The company also has a financing obligation of $6.222M related to a failed sale-and-leaseback of its corporate headquarters, recorded in other liabilities. Inventory stood at $81.1M, up from $78.5M. The company's money market funds of $130.6M (disclosed in fair value note) indicate a strong cash position, though cash and cash equivalents are not explicitly stated in the notes.
AtriCure has a non-cancellable cloud computing arrangement requiring total payments of $3.616M over seven years, starting in the first half of 2026. The company also has a cooperative agreement for pulsed field ablation technology with a maximum contingent payout of $28M; no milestones were achieved during the quarter. There is an ongoing legal claim from former SentreHEART shareholders alleging breach of contract related to PMA and CPT milestones, seeking up to $260M in damages; no liability has been recorded as the loss is not probable or estimable. Lease commitments (operating and finance) total $16.4M in future payments, with $2.7M due within the next year.
Net debt repayment of $0.865M was the primary capital allocation disclosed in the notes. No share repurchases or dividends were mentioned. Capital expenditures are not discussed in the notes; they appear only in the cash flow statement (not part of notes). The financing obligation and lease payments represent additional fixed commitments.
The company operates as a single segment, but Note 9 provides rich revenue detail. US revenue was $116.2M (82% of total), up 14.9% year-over-year, driven by appendage management ($48.4M) and open ablation ($39.1M). International revenue grew 11.5% to $25.0M, with Europe ($16.1M) and Asia Pacific ($7.1M) as key regions. Minimally invasive ablation declined in both US and international markets, while pain management grew strongly.