ATRC · AtriCure, Inc.

AtriCure delivered a strong second quarter, with revenue of $153.6 million (+12.8% YoY, +12.4% constant currency) materially ahead of prior expectations, driven by robust U.S. growth of 13.6% and international growth of 9.6%. U.S. outperformance was led by the pain management franchise (cryoSPHERE MAX probe) up 27.8% and appendage management up 14.4%, while open ablation rose 12.1%. Minimally invasive ablation declined 23.1% in the U.S., likely reflecting procedure mix. Gross margin expanded 269 bps to 77.2% on favorable product mix and manufacturing efficiencies, fueling a swing to GAAP net income of $9.0 million ($0.18 per share) from a $6.2 million loss a year ago. Adjusted EBITDA surged 78% to $27.3 million, representing a 17.8% margin, up from 11.3% in Q2 2025. Management highlighted confidence in clinical trial progress (BoxX-NoAF, LeAAPS) as key catalysts. Full-year 2026 guidance was raised/reaffirmed: revenue of $602-$610 million (implying ~12% growth at midpoint), adjusted EBITDA of $85-$89 million, and adjusted EPS of $0.24-$0.32. The guidance implies continued margin expansion. The balance sheet remains solid with $167.8 million cash, no near-term debt maturities, and positive cash generation of $21.6 million in the quarter. The inflection to profitability and accelerating free cash flow underline the company's transition to a self-sustaining growth story.