Top-Line Growth
Worldwide revenue of $141.2M in Q1 2026, up 14.3% reported and 12.8% constant currency vs Q1 2025; sequential increase ~1% vs Q4 2025.
Atricure
· ATRC
May 5th, 2026
Summary
- Earnings Call Date:
- 2026-05-05
- Change Since:
- -3.78%
- Next Earnings Date:
- 2026-08-04
Earnings Call Sentiment
PositiveThe call emphasized durable double-digit revenue growth, meaningful margin expansion, near-term profitability improvement (adjusted EBITDA and net income turning positive), strong U.S. product adoption (notably pain management, EnCompass and AtriClip FLEX-Mini), and materially accelerated enrollment in the BoxX-NoAF trial — all significant positives. Offsetting items include a steep decline in MIS ablation, international softness (U.K. and Asia distributor lumpiness), incremental R&D and SG&A to support accelerated trials and launches, and a manufacturing ramp that will moderate gross margin improvement. On balance, the positives (strong top-line, EBITDA expansion, cash position, and trial momentum) outweigh the negatives, which are mostly transient or strategic investments.
Company Guidance
AtriCure reiterated 2026 guidance calling for full‑year revenue of $600–$610 million (≈12–14% growth vs. 2025), adjusted EBITDA of $80–$82 million, GAAP net income translating to EPS of ~$0.00–$0.04 and adjusted EPS of ~$0.09–$0.15, and expects mid‑single‑digit sequential growth in Q2; management expects modest full‑year gross‑margin improvement over 2025 despite an exceptional Q1 gross margin of 77.4% (up 246 bps) as expanded manufacturing capacity coming online in H2 2026 will increase manufacturing cost burden. The company plans incremental R&D spend over the next three quarters to accelerate BoxX‑NoAF enrollment (≈300 of 960 patients enrolled; full enrollment now expected around year‑end, nearly 1 year ahead), anticipates positive cash flow for the remainder of the year with full‑year cash generation moderately higher than 2025, and exited Q1 with approximately $146 million in cash and investments.
U.S. Performance Driving Momentum
U.S. revenue $116.2M, up 14.9% YoY; strength led by new-product adoption across pain management, open ablation and appendage management.
Improved Profitability and EBITDA Expansion
Adjusted EBITDA of $17.1M vs $8.8M in Q1 2025, a 95% increase; net income ~ $0.1M vs net loss $6.7M prior year; EPS breakeven at $0.00 vs loss per share $0.14 in Q1 2025.
Strong Gross Margin Expansion
Gross margin of 77.4%, up 246 basis points year-over-year driven by favorable product and geographic mix and strong U.S. performance.
Pain Management Franchise Acceleration
Pain management grew 28% YoY; cryoSPHERE MAX drove growth, contributing ~70% of pain management sales in the quarter and ~70% adoption within pain accounts.
Appendage Management Growth and Product Adoption
Appendage management grew 16% worldwide; U.S. open appendage revenue $48.4M (+14.9% YoY) with AtriClip FLEX-Mini contributing ~40% of open appendage revenue and continued share gains.
Open Ablation Strength (EnCompass)
Worldwide open ablation revenue grew 15% YoY; U.S. open ablation sales up 17.3% to $39.1M driven by EnCompass clamp adoption in U.S. and Europe.
BoxX-NoAF Trial Enrollment Progress
Enrolled ~300 of planned 960 patients since Q4 2025; tracking well ahead of schedule and expecting enrollment completion around year-end (nearly a year ahead of original plan), supporting potential landmark clinical evidence.
Balance Sheet and Cash Outlook
Ended Q1 with ~$146M in cash and investments; cash burn improved vs prior year and company expects positive cash flow for remainder of 2026 with full-year cash generation moderately higher than 2025.
Reiterated 2026 Guidance
Maintained full-year revenue outlook of $600M–$610M (≈12%–14% growth), adjusted EBITDA guidance of $80M–$82M, and full-year adjusted EPS guidance of $0.09–$0.15.
Operator
Good afternoon, and welcome to AtriCure's First Quarter 2026 Earnings Conference Call. This call is being recorded for replay purposes. [Operator Instructions] I would now like to turn the call over to Marissa Bych from the Gilmartin Group for a few introductory comments.
Marissa Bych
Great. Thank you. By now, you should have received a copy of the earnings press release. If you have not received a copy, please call (513) 644-4484 to have one e-mailed to you. Before we begin today, let me remind you that the company's remarks include forward-looking statements. Forward-looking statements are subject to numerous risks and uncertainties, many of which are beyond AtriCure's control, including risks and uncertainties described from time to time in AtriCure's SEC filings. These statements include, but are not limited to, financial expectations and guidance, expectations regarding the potential market opportunity for AtriCure's franchises and growth initiatives, future product approvals and clearances, competition, reimbursement and clinical trial enrollment and outcomes. AtriCure's results may differ materially from those projected.
AtriCure undertakes no obligation to publicly update any forward-looking statements. Additionally, we refer to non-GAAP financial measures, specifically constant currency revenue, adjusted EBITDA and adjusted loss per share. A reconciliation of these non-GAAP financial measures with the most directly comparable GAAP measures is included in our press release, which is available on our website. And with that, I would like to turn the call over to Mike Carrel, Presi...
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