Penumbra Revenue Climbed as U.S. Demand Offset International Slowdown
Second-quarter revenue increased 14.9% from a year earlier as gross margin reached 67.9%.
Penumbra Inc. (PEN), a maker of vascular medical devices, returned to sequential revenue growth in the second quarter, recovering from the decline recorded at the start of the year. Sales increased 4.1% from the first quarter, while year-over-year growth eased from 15.6% to 14.9%.
Revenue totaled $390.0 million, up from $374.8 million in the first quarter and 1.2% above the fourth-quarter 2024 level. The rebound restored the company's quarterly sales above their late-2024 mark, though operating income remained 30.7% below the fourth quarter.
Thrombectomy revenue rose 12.5% from a year earlier to $259.0 million, a slight acceleration from first-quarter growth. Embolization and access remained the faster-growing category, increasing 20.0% to $131.1 million, though its growth slowed from 23.8% in the first quarter and 37.0% in the fourth quarter of 2024.
Embolization and access contributed $21.9 million of Penumbra's $50.6 million year-over-year revenue increase despite accounting for about one-third of quarterly sales. The U.S. generated $44.6 million of that increase as domestic revenue rose 17.1% to $305.4 million. International revenue advanced 7.6% to $84.6 million, down from 27.7% growth in the fourth quarter of 2024.
Gross margin expanded 1.9 percentage points from a year earlier and edged up 0.3 point sequentially. Operating income increased 7.4% from the first quarter to $41.0 million, leaving operating margin at about 10.5%, compared with 15.4% in the fourth quarter. Operating expenses rose to $223.9 million as selling, general and administrative costs increased to $198.5 million from $160.0 million a year earlier.
Net income increased 6.7% sequentially to $34.8 million but fell 23.1% from a year earlier, when the company recorded a substantially smaller income-tax provision. Acquisition-related expenses tied to the pending Boston Scientific transaction declined to $6.9 million from $9.4 million in the first quarter.
Penumbra continues to withhold full-year 2025 guidance and skipped its earnings call because of the pending acquisition, extending the disclosure change introduced in the first quarter. The company also omitted adjusted EBITDA and adjusted EBITDA margin from its quarterly highlights for a second consecutive period.