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AtriCure NASDAQ: ATRC said it is seeing continued growth across its atrial fibrillation, left atrial appendage management and postsurgical pain-management businesses, supported by new product adoption, expanding procedure volumes and progress in clinical trials.

Speaking at the Canaccord Genuity Global Growth Conference, President and CEO Mike Carrel said the company focuses on treating complex atrial fibrillation, or AFib, and pain after surgery. Its portfolio includes ablation products, AtriClip devices for managing the left atrial appendage to reduce stroke risk, and cryoablation technology designed to temporarily block pain signals after invasive procedures.

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Carrel said AtriCure has produced approximately 18% compound annual growth over the past five years and has begun generating profit and cash flow. He cited 77% gross margin in the most recent quarter and net income for a third consecutive quarter. The company has guided for annual revenue of roughly $602 million to $610 million, he said, while its long-range plan calls for $1 billion in revenue and 20% adjusted EBITDA by 2030.

Pain-management franchise drives volume growth CFO Angela Wirick said thoracic procedures remained the primary growth driver in AtriCure’s U.S. pain-management business during the second quarter. The launch of the cryoSPHERE MAX product, which cuts freeze time for certain procedures in half, has accelerated procedure volumes, she said.

Wirick said pain-management volume rose about 25% during the quarter, while the number of accounts grew approximately 12%, indicating that surgeons are using the technology in more procedures within existing accounts. She said market penetration is around 20% in thoracic procedures and remains substantially lower in sternotomy and amputation applications.

Carrel said the company has more than 2,000 systems installed in thoracic centers across the U.S. and more than 100 field personnel across clinical and sales roles supporting the pain business. He said the company views its installed infrastructure, clinical knowledge and field presence as competitive barriers, alongside its ability to manufacture systems at scale.

The company is also expanding cryotherapy into amputations through its cryoXT device. Carrel described the amputation opportunity as being in its early stages, while Wirick said AtriCure sees favorable momentum across pain-management applications.

Margins supported by product mix Wirick said product mix was the largest contributor to the company’s 77% gross margin in the latest quarter, as newer U.S. product launches represented a higher share of revenue and carried favorable margins. Geographic mix also contributed, she said, as U.S. margins are higher than those generated in international markets.

She said a new manufacturing facility is expected to come online during the current quarter, which could bring gross margin back toward the 76% range in the near term. Still, Wirick said AtriCure believes it has a path to continued margin improvement through the rest of the decade as it introduces new products and pursues manufacturing efficiencies.

While the company expects higher research and development spending in the second half of the year due to clinical-trial costs, Wirick said management continues to see a path to improved adjusted EBITDA. The company also expects only incremental sales-force investments as it prepares for potential market expansion from trial data, rather than a major increase in headcount.

Clinical trials could expand addressable market Carrel highlighted two major cardiac-surgery trials: LeAAPS, evaluating stroke reduction through prophylactic left atrial appendage management, and BoxX-NoAF, studying whether ablation can reduce postoperative AFib in cardiac-surgery patients.

LeAAPS enrolled 6,573 patients and is event-driven. Carrel said the study has passed 50% of its targeted events and is tracking ahead of the company’s original expectations, although he said AtriCure cannot provide a specific timing estimate for efficacy data. The company expects data by the end of the decade and said safety results have included zero device-related events in the trial.

BoxX-NoAF, a 1,000-patient trial, enrolled about 50% faster than expected, according to Carrel. AtriCure now expects full enrollment by the end of the year and data by the middle of next year. Carrel said positive results on the trial’s postoperative AFib endpoint could change usage patterns and support a label change, citing the clinical and hospital-resource burden associated with postoperative AFib.

Carrel said AtriCure estimates it has penetrated around one-third or less of the U.S. cardiac-surgery market for AtriClip, leaving substantial room for expansion if LeAAPS data are favorable. He said international penetration is below 15%.

Competition and capital allocation On potential competition from larger medical-device companies, Carrel said their interest in the left atrial appendage market validates the size of the opportunity. He said AtriCure’s differentiation includes product innovation, a large body of clinical evidence and an established field organization focused on AFib and cardiac surgery.

Wirick said the company’s capital-allocation priorities are to strengthen its balance sheet and fund organic investments, including R&D and commercial opportunities. She said mergers and acquisitions are not a high priority because management sees significant internal growth opportunities.

About AtriCure (NASDAQ:ATRC)AtriCure, Inc is a medical device company focused on the development, manufacture and marketing of innovative therapies to treat atrial fibrillation (AF) and related conditions. Founded in 2000 and headquartered in Mason, Ohio, AtriCure has established itself as a leader in surgical ablation devices designed to interrupt the errant electrical pathways that cause AF. The company's solutions are used by cardiac surgeons and electrophysiologists to reduce the risk of stroke and improve patient outcomes in the treatment of both paroxysmal and persistent AF.

The company's product portfolio centers on its Synergy Surgical Ablation System, which delivers controlled radiofrequency energy in a minimally invasive format, and the cryoICE Cryoablation System, which offers an alternative ablation modality using precise freezing techniques.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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AtriCure NASDAQ: ATRC reported double-digit revenue growth and a return to GAAP profitability in the second quarter of 2026, with management pointing to strong demand across its pain management, appendage management and open ablation franchises while noting continued pressure in minimally invasive ablation.

The medical device company generated worldwide revenue of $153.6 million, up 12.8% on a reported basis and 12.4% in constant currency from the second quarter of 2025, according to Chief Financial Officer Angela Wirick. U.S. revenue rose 13.6% to $125.6 million, while international revenue increased 9.6% on a reported basis to $28 million.

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President and CEO Michael Carrel said the quarter reflected “solid” performance and highlighted improving profitability. AtriCure recorded adjusted EBITDA of $27.3 million, up 78% from $15.4 million a year earlier. Net income was $9 million, compared with a net loss of $6.2 million in the prior-year quarter. Earnings per share and adjusted earnings per share were both $0.18, compared with a loss per share of $0.13 and an adjusted loss per share of $0.02 a year earlier.

Growth Led by Pain Management, Appendage Management and Open Ablation AtriCure’s U.S. business was supported by continued adoption of several newer devices, including CryoSphere MAX and cryoXT in pain management, AtriClip FLEX-Mini and PRO-Mini in appendage management, and the Encompass clamp in open ablation.

Pain management was the company’s fastest-growing franchise, with worldwide revenue up 27% in the quarter. U.S. pain management sales reached $27.1 million, up 27.8% year over year. Carrel said CryoSphere MAX remained a key driver, with the company continuing to add accounts while also seeing early traction in sternotomy procedures. During the question-and-answer portion of the call, Wirick said CryoSphere MAX represented about 75% of U.S. pain management revenue and that the company ended the quarter with “a little over 700 active accounts” in pain management.

Carrel also pointed to early momentum for CryoXT, which is designed for use in amputation procedures. He said the product was included in a presentation at the Society for Vascular Surgery annual meeting and that early adopters are reporting improvements in patient experience and recovery. Management said CryoXT is expected to contribute more meaningfully to revenue in the second half of the year, though from a small base.

Open ablation revenue increased 11% worldwide, led by the Encompass clamp. U.S. open ablation product sales were $40.9 million, up 12.1% year over year. Carrel said the company expects further adoption from a new Society of Thoracic Surgeons quality metric on concomitant AFib treatment, which he described as a potential long-term catalyst for surgical AFib ablation and left atrial appendage management.

Appendage management revenue grew 14% in the quarter. U.S. sales of appendage management products increased 14.4% to $51.6 million, reflecting adoption of AtriClip FLEX-Mini and PRO-Mini devices. Carrel said the mini devices now account for 45% of appendage management revenue in their respective open and minimally invasive categories.

Minimally Invasive Ablation Remains Under Pressure The company’s minimally invasive ablation business continued to decline, contributing $6 million in U.S. revenue for the quarter. Carrel said the market remains focused on treating patients with pulsed field ablation, or PFA, catheters. He added that AtriCure still believes hybrid AFib therapy has a role in patients with longstanding persistent AFib, but said broader stabilization is needed before the franchise can return to growth.

“We have seen referral patterns for hybrid procedures stabilize over the last several quarters in a small subset of accounts,” Carrel said. “However, we need to see this stabilization across a broader customer base before we can expect return to growth for this franchise.”

Clinical Trials Advance Toward Potential Label Expansion Management emphasized progress in two major clinical trials that AtriCure says could expand the market for its cardiac surgery products.

The BoxX-NoAF clinical study, which evaluates ablation and left atrial appendage management in cardiac surgery patients without a history of AFib, has surpassed 50% enrollment with more than 500 patients enrolled. AtriCure expects to complete enrollment of 960 patients by the end of 2026, ahead of its original plan, and anticipates data readouts in the first half of 2027.

Carrel said the company sees a large unmet need in preventing post-operative AFib, noting that U.S. healthcare spending for the condition exceeds $2 billion annually. In response to an analyst question, he said the trial’s first endpoint is post-operative AFib measured 30 days after final enrollment, with a potential data presentation at a major medical meeting in 2027. He said the product is under a PMA pathway and that approval could take roughly a year after submission to the FDA.

AtriCure is also continuing follow-up of more than 6,500 patients enrolled in the LeAAPS trial, which is studying the stroke reduction benefit of left atrial appendage management in cardiac surgery patients without AFib. Carrel said LeAAPS and BoxX-NoAF provide “multiple complementary paths for label expansion” and could be catalysts in the cardiac surgery market.

Guidance Raised for Adjusted EBITDA AtriCure updated its 2026 outlook, now expecting revenue of $602 million to $610 million, representing growth of approximately 12.5% to 14% over 2025. The company expects growth to be led by pain management, appendage management and open ablation, while pressure persists in minimally invasive ablation and certain international markets.

Wirick said AtriCure expects normal seasonal patterns in the second half, with third-quarter revenue down 1% to 2% sequentially from the second quarter, followed by a rebound in the fourth quarter.

The company raised its adjusted EBITDA outlook to approximately $85 million to $89 million for 2026, implying an adjusted EBITDA margin of about 14% at the midpoint of guidance. AtriCure also reiterated its expectation for full-year net income and projected full-year earnings per share of approximately $0.05 to $0.13, with adjusted earnings per share of approximately $0.24 to $0.32.

AtriCure ended the quarter with $167.8 million in cash and investments and generated approximately $22 million in cash during the quarter. Wirick said the company expects positive cash generation through the remainder of the year.

Management Addresses Competition and International Trends During the call, analysts asked about new competitors in the appendage management market. Carrel said new entrants validate the market opportunity, but argued AtriCure has advantages in product innovation, clinical evidence and physician education. He said competitive trialing in the back half of the year is incorporated into the company’s guidance.

Internationally, Wirick said Asia-Pacific weakness discussed in the prior quarter appeared transitory, while Europe saw softness in key markets including the U.K. and Germany. She said the company’s outlook incorporates continued pressure in certain markets.

Carrel concluded that AtriCure’s double-digit revenue growth, margin improvement and profitability leave the company “well ahead” of its long-range plan, while ongoing trials could shape the company’s next decade.

About AtriCure (NASDAQ:ATRC)AtriCure, Inc is a medical device company focused on the development, manufacture and marketing of innovative therapies to treat atrial fibrillation (AF) and related conditions. Founded in 2000 and headquartered in Mason, Ohio, AtriCure has established itself as a leader in surgical ablation devices designed to interrupt the errant electrical pathways that cause AF. The company's solutions are used by cardiac surgeons and electrophysiologists to reduce the risk of stroke and improve patient outcomes in the treatment of both paroxysmal and persistent AF.

The company's product portfolio centers on its Synergy Surgical Ablation System, which delivers controlled radiofrequency energy in a minimally invasive format, and the cryoICE Cryoablation System, which offers an alternative ablation modality using precise freezing techniques.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

Should You Invest $1,000 in AtriCure Right Now?Before you consider AtriCure, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and AtriCure wasn't on the list.

While AtriCure currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

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