AtriCure — Third Quarter 2026 Earnings Summary

Financial Performance:

• Worldwide revenue for Q3 2026 reached $154.5 million, a 15.0% year-over-year increase (15.1% on a constant currency basis) compared to $134.3 million in Q3 2025.
• U.S. revenue totaled $128.0 million, up 17.1% year-over-year, driven by sales of cryoSPHERE® MAX™, EnCompass® clamp, and AtriClip FLEX-Mini®/PRO-Mini® devices.
• International revenue was $26.4 million, an increase of 5.8% year-over-year (6.1% constant currency), with growth across all franchises.
• Gross profit was $119.4 million in Q3 2026 versus $101.3 million in Q3 2025; gross margin expanded to 77.3% from 75.5% (an 180 basis point increase), attributed to favorable product and geographic mix.
• Income from operations was $4.4 million in Q3 2026 compared to $0.2 million in Q3 2025.
• Net income was $4.1 million in Q3 2026, reversing a net loss of $0.3 million in Q3 2025; basic and diluted net income per share was $0.08 versus a loss of $0.01 per share.
• Adjusted EBITDA was $26.8 million in Q3 2026, a 51% increase from $17.8 million in Q3 2025.
• Adjusted earnings per share was $0.18 in Q3 2026, compared to an adjusted loss of $0.01 per share in Q3 2025.
• Cash and cash equivalents were $187.0 million as of September 30, 2026, up from $167.4 million as of December 31, 2025.
• Long-term debt stood at $61.0 million as of September 30, 2026, down from $61.9 million as of December 31, 2025.

Guidance and Future Outlook:

• Full-year 2026 revenue guidance is raised to approximately $606 million to $610 million.
• Full-year 2026 adjusted EBITDA guidance is projected at approximately $91 million to $94 million.
• Full-year 2026 net income per share is expected to range from $0.21 to $0.27.
• Full-year 2026 adjusted earnings per share is projected to be approximately $0.40 to $0.46.
• Management expects continued positive cash generation for the full year 2026.

Business Segments and Product Lines:

• U.S. revenue growth was driven by the cryoSPHERE® MAX™ probe for post-operative pain management, the EnCompass® clamp for open ablation, and AtriClip FLEX-Mini® and AtriClip PRO-Mini® devices for appendage management.
• Minimally invasive ablation sales declined in the quarter due to a continued reduction in Hybrid procedures as physicians adopt PFA catheters.
• Pain management revenue in the U.S. increased to $28.1 million in Q3 2026 from $20.8 million in Q3 2025.
• Appendage management revenue in the U.S. increased to $51.6 million in Q3 2026 from $45.5 million in Q3 2025.
• The BoxX-NoAF clinical trial is progressing rapidly, reinforcing confidence in future opportunities.

Market and Competitive Landscape:

• Physicians are increasingly adopting PFA catheters to treat patients, leading to a reduction in Hybrid procedures and a decline in minimally invasive ablation sales.
• AtriCure's AtriClip® Left Atrial Appendage Exclusion System products remain the most widely sold LAA management devices worldwide.
• The Isolator® Synergy™ Ablation System is the first medical device to receive FDA approval for the treatment of persistent Afib.

Risks and Challenges:

• Risks include negative clinical data, clinical trial enrollment issues, and competition from existing and new products, including drug or catheter-based technologies.
• Potential challenges involve reliance on independent distributors, inventory-related charges, and the timing of regulatory clearances and third-party payor reimbursement.
• Other risks include manufacturing disruptions, tariffs, intellectual property management, and fluctuations in foreign currency exchange rates.

Management Commentary and Tone:

• Michael Carrel, President and CEO, stated that the results demonstrate the strength of the broad portfolio and disciplined execution.
• Management noted that adoption of innovative technologies is driving strong growth and expanding profitability.
• The company expressed confidence in extending its leadership in cardiac surgery and post-operative pain management.

Other Key Points:

• A conference call to discuss the results is scheduled for November 3, 2026, at 4:30 p.m. Eastern Time.
• The press release includes reconciliations of non-GAAP financial measures (constant currency revenue, adjusted EBITDA, and adjusted earnings per share) to GAAP measures.
• The company operates in the treatment of atrial fibrillation (Afib), left atrial appendage (LAA) management, and post-operative pain management, affecting over 59 million people worldwide.