ATRC earnings analysis
What we found in ATRC's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
AtriCure delivered a strong Q2, with revenue up 12.8% year over year to $153.604 million and operating margin improving 10.8 percentage points to 6.3%, producing $8.955 million of net income. Growth was broad across pain management, appendage management, open ablation, U.S. sales, and international sales, although minimally invasive ablation fell 23.1% amid PFA catheter adoption. Liquidity is solid at $167.786 million of cash, but increased receivables and inventory investment drove a $13.142 million increase in first-half working-capital cash outflows; the filing provided no quantitative updated guidance.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Double-digit revenue growth accelerated
- Q2 revenue rose 12.8% year over year to $153.604 million from $136.139 million, and increased approximately $12.355 million sequentially from the implied Q1 level of $141.249 million. Constant-currency growth was 12.4%.
- Gross margin remained above 77%
- Gross margin expanded 269 basis points year over year to 77.2% from 74.5%, reflecting favorable product/geographic mix and manufacturing efficiencies. It was modestly below Q1's 77.4% margin.
- Profitability inflected sharply positive
- Operating income was $9.665 million, or a 6.3% margin, versus a $6.192 million operating loss and a negative 4.5% margin a year earlier. The operating margin also improved from 0.4% in Q1 2026.
- EPS turned positive
- Net income was $8.955 million versus a $6.190 million net loss in Q2 2025; diluted EPS was $0.18 versus a loss of $0.13 in the prior-year quarter.
- Core growth franchises outperformed
- Pain management led franchise growth, increasing 27.8% to $27.058 million; appendage management rose 14.4% to $51.614 million and open ablation increased 12.1% to $40.885 million.
- Liquidity remains substantial
- First-half operating cash flow improved by $7.605 million year over year. The company ended June with $167.786 million of cash, $263.615 million of net working capital, and $62.750 million of unused borrowing capacity.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- PFA adoption pressures minimally invasive sales
- Minimally invasive ablation revenue declined 23.1% year over year to $6.031 million, a $1.808 million reduction, as physicians continued to adopt PFA catheters and Hybrid procedures declined.
- Receivables and inventory absorb cash
- Working-capital cash outflows increased $13.142 million in the first half, primarily from higher receivables tied to sales growth and inventory investment. This offset part of the $22.000 million improvement in operating results.
- Debt and interest-rate exposure remain
- Outstanding borrowings were $61.000 million at June 30, 2026 under the asset-based facility, despite $167.786 million of cash. The facility matures January 9, 2029.
- No material risk-factor update disclosed
- Item 1A reports no material changes to risk factors previously disclosed in the 2025 10-K. However, management identifies increasing competition as a risk to market share, pricing, and margins while Q2 revenue was $153.604 million.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.18
- Gross margin
- 77.2%
- Operating margin
- 6.3%
- Segment
- Open ablation: $40.885 million, up $4.417 million or 12.1% year over year
- Segment
- Minimally invasive ablation: $6.031 million, down $1.808 million or 23.1% year over year
- Segment
- Pain management: $27.058 million, up $5.890 million or 27.8% year over year
- Segment
- Appendage management: $51.614 million, up $6.506 million or 14.4% year over year
- Segment
- United States: $125.588 million, up $15.005 million or 13.6% year over year
- Segment
- International: $28.016 million, up $2.460 million or 9.6% year over year
What they said about what is next.
The 10-Q does not provide quantitative revenue or EPS guidance; numeric outlook remains deferred to the earnings release/call. Management expects to launch AtriClip FLEX-Mini and PRO-Mini in Europe later in 2026 following April 2026 CE-mark approval.
The filing reads better than the one before it.
What came before.
- 10-Q · May 6, 2026
- AtriCure reported Q1 2026 revenue of $141.2 million, a 14.3% year-over-year increase that surpassed estimates by $1.54 million. EPS was breakeven at $0.00, exceeding expectations of a loss of $0.06. The company also…
- 10-K · February 19, 2026
- AtriCure reported full-year 2025 revenue of approximately $535.0 million, up ~15% from 2024, with stable gross margins near 75% and improving operating results that turned positive in the back half of the year. Free…
- 10-Q · October 30, 2025
- AtriCure reported Q3 revenue of $134.269M, up from $115.910M a year ago, with gross profit of $101.332M and a small operating income of $0.208M (vs. operating loss of $7.405M in prior year Q3). GAAP diluted loss per…
- 10-Q · May 2, 2024
- AtriCure reported Q1 revenue of $108,851k, up $15,357k (+16.4%) year-over-year, while gross margin remained ~74.7%. Operating loss widened to $(10,917)k and net loss doubled to $(13,269)k (EPS $(0.28)) as R&D and SG&A…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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