AtriCure (ATRC) Wells Fargo 21st Annual Healthcare Conference summary

Strategic targets and financial outlook

• Long-term targets set for 2030 include $1B annual revenue, 20% adjusted EBITDA margin, and 75% free cash flow conversion, with 2028 milestones also established.

• Current performance is ahead of both top-line and bottom-line LRP targets, with profitability and revenue growth outpacing expectations.

• 2026 guidance was raised due to strong growth in pain management and consistent performance in ablation and appendage management franchises.

• International business is lagging behind the U.S., with near-term catalysts expected to impact the U.S. more significantly.

• Capital deployment prioritizes internal development, clinical trials, and product pipeline investments, with organic growth favored over acquisitions.

Clinical trials and innovation

• LEAPS and BoxX-NoAF clinical trials are progressing ahead of schedule, with BoxX-NoAF enrollment expected to finish by year-end and data readout at AATS in May next year.

• BoxX-NoAF targets non-AFib cardiac surgery patients, potentially multiplying the addressable market.

• LEAPS is event-driven, with the next interim readout expected within a couple of years.

• Investments continue in PFA-enabled technology and new pain management applications, with a PFA trial expected to start by end of 2027.

• New product launches, including smaller and open-end clip devices, are planned for late 2026 and 2027.

Market dynamics and competitive landscape

• STS ACSD quality measure update aims to increase ablation rates in cardiac surgery from 35% to 70%, with initial impact expected from awareness and future revenue growth tied to star ratings.

• Appendage management franchise faces modest near-term impact from new competitor launches, with confidence in sustained growth due to product innovation and under-penetrated patient population.

• Previous competitor devices underperformed due to technology and lack of field support; Edwards may face similar challenges without ablation technology.

• Robotic procedures are seen as an opportunity, with some devices already compatible and further innovation underway.