AtriCure (ATRC) Q2 2026 earnings summary

Executive summary

• Achieved Q2 2026 worldwide revenue of $153.6 million, up 12.8% year-over-year, with U.S. revenue growing 13.6% and international revenue up 9.6%; strong growth in pain management, appendage management, and open ablation.

• Net income reached $9 million, reversing a prior-year loss; adjusted EBITDA rose 78% to $27.3 million.

• Growth led by pain management (27.8% U.S. growth), appendage management (14.4% U.S. growth), and open ablation (12.1% U.S. growth); CryoSphere MAX now accounts for 75% of U.S. pain management revenue.

• Strategic clinical trials (BoxX-NoAF and LeAAPS) progressing ahead of schedule, supporting future label expansion and market growth.

• Focused on establishing standard of care for Afib and post-surgical pain, leveraging innovation and clinical science to drive growth in large, underserved markets.

Financial highlights

• Gross margin improved to 77.2%, up 269–270 basis points year-over-year, driven by favorable product and geographic mix and manufacturing efficiencies.

• Adjusted EBITDA for Q2 2026 was $27.3 million (17.8% margin), up from $15.4 million in Q2 2025; net income turned positive at $9.0 million versus a $6.2 million loss.

• EPS and adjusted EPS were $0.18, compared to a loss per share of $0.13 and adjusted loss per share of $0.02 in Q2 2025.

• Cash and investments at June 30, 2026 were $167.8 million; outstanding debt was $61 million.

• Operating expenses rose 1.2% to $109 million; excluding a prior-year milestone payment, expenses increased 6.1%, mainly from R&D and SG&A investments.

Outlook and guidance

• Full-year 2026 revenue expected at $602–$610 million, reflecting 12.5%–14% growth over 2025; adjusted EBITDA guidance raised to $85–$89 million, with a margin of approximately 14%.

• Full-year net income and positive cash generation reiterated; EPS guidance of $0.05–$0.13 and adjusted EPS of $0.24–$0.32.

• Long-term targets: $750M+ revenue and ~14% adjusted EBITDA margin by 2028; $1B+ revenue and 20%+ adjusted EBITDA margin by 2030.

• Anticipates typical seasonality: Q3 revenue down 1–2% sequentially, followed by a Q4 rebound.

• Management expects continued revenue growth driven by product innovation, expanded clinical indications, and increased physician training.