AtriCure (ATRC) Q1 2026 earnings summary

Executive summary

• Achieved worldwide revenue of $141.2 million in Q1 2026, up 14.3% year-over-year, driven by strong U.S. adoption of new products and robust growth in pain management, open ablation, and appendage management franchises.

• Net income reached $0.1 million, a turnaround from a net loss of $6.7 million in Q1 2025, reflecting improved profitability and operational leverage.

• Adjusted EBITDA nearly doubled to $17.1 million, supported by higher sales and improved margins.

• Cash and investments increased to $146 million as of March 31, 2026, maintaining a strong balance sheet.

• Accelerated enrollment in the BoxX-NoAF clinical trial, now expected to complete a year ahead of schedule, positioning for significant clinical and commercial milestones.

Financial highlights

• U.S. revenue grew 14.9% to $116.2 million; international revenue rose 11.5% to $25 million, with European sales up 13.2%.

• Gross margin improved to 77.4%, up 246 basis points year-over-year, driven by favorable product and geographic mix.

• Operating expenses increased 10.3% to $108.8 million, reflecting higher R&D, SG&A, and personnel investments.

• Adjusted EBITDA was $17.1 million, up 95% year-over-year; net income was approximately $100,000, compared to a $6.7 million loss in Q1 2025.

• Ended the quarter with $146 million in cash and investments; cash burn improved versus prior year.

Outlook and guidance

• Reiterated full-year 2026 revenue guidance of $600–$610 million, representing 12–14% growth over 2025.

• Full-year adjusted EBITDA expected at $80–$82 million; net income guidance translates to EPS of $0.00–$0.04 and adjusted EPS of $0.09–$0.15.

• Anticipates mid-single digit sequential revenue growth in Q2, with continued strength in pain management, appendage management, and open ablation.

• Gross margin expected to show modest improvement for the full year, with some moderation in the second half due to manufacturing expansion.

• Management anticipates continued positive cash flow generation for 2026.