AtriCure Raises Profit Outlook as Margins Expand
The medical-device maker lifted its 2026 adjusted EBITDA forecast to $85 million-$89 million.
AtriCure Inc. (ATRC) turned profitable in the second quarter as wider margins and growth in pain-management products lifted operating income to $9.7 million from a $6.2 million loss a year earlier.
The medical-device maker’s revenue growth moderated for a second consecutive quarter, while profitability accelerated. Adjusted EBITDA rose 78% to $27.3 million, and its margin reached about 17.8%, compared with 12.1% in the first quarter and 11.3% a year earlier.
Revenue rose 12.8% from a year earlier to $153.6 million and increased 8.8% sequentially. The annual growth rate eased from 14.3% in the first quarter and 17.1% in the year-earlier period. Net income was $0.18 a share, compared with a loss of $0.13 a share a year earlier and approximately breakeven earnings in the preceding quarter.
U.S. revenue increased 13.6% to $125.6 million, led by a 27.8% gain in pain management. Appendage management rose 14.4% and open ablation increased 12.1%, while minimally invasive ablation fell 23.1%.
International revenue rose 9.6% to $28.0 million, slowing from 11.5% growth in the first quarter and 23.3% a year earlier. International appendage management grew 14.5%, while minimally invasive ablation declined 14.8%.
Gross margin expanded 269 basis points from a year earlier to 77.2%, reversing the contraction recorded in the comparable quarter, though it slipped 20 basis points sequentially. The stronger annual margin helped operating margin reach about 6.3%, up from about 0.4% in the first quarter.
AtriCure now expects 2026 revenue of $602 million to $610 million, compared with its previous range of $600 million to $610 million. It also forecasts adjusted earnings of $0.24 to $0.32 a share, up from $0.00 to $0.04, and introduced GAAP net-income guidance of $0.05 to $0.13 a share.
The company generated $21.6 million in quarterly cash, up from $17.9 million a year earlier. Cash and equivalents increased just $0.4 million from year-end to $167.8 million as receivables and inventories grew, tempering the cash impact of the quarter’s stronger earnings.