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Atricure (ATRC)
NASDAQ:ATRC
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Atricure (ATRC) AI Stock Analysis

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ATRC

Atricure

(NASDAQ:ATRC)

Rating:68Neutral
Price Target:
$38.00
▲(8.26%Upside)
AtriCure's overall stock score is driven by its strong earnings call performance, showcasing significant revenue growth and successful product launches. Technical analysis supports this positive outlook with bullish momentum indicators. However, financial performance is constrained by ongoing profitability challenges, and valuation metrics are weak due to negative earnings.
Positive Factors
Financial Performance
ATRC's revenue, EBITDA, and EPS exceeded consensus expectations.
Product Innovation
Analyst sees potential for ATRC's multiple new product launches to drive additional upside.
Negative Factors
Revenue Growth
Revenue growth slowed due to slower Open-Heart Ablation, Minimally Invasive Ablation, and Pain Management.
Stock Valuation
The price target for Atricure, Inc. was lowered due to peer multiple contraction.

Atricure (ATRC) vs. SPDR S&P 500 ETF (SPY)

Atricure Business Overview & Revenue Model

Company DescriptionAtriCure, Inc. develops, manufactures, and sells devices for the surgical ablation of cardiac tissue and systems, and intercostal nerves to medical centers in the United States, Europe, Asia, and internationally. The company offers Isolator Synergy Clamps, a single-use disposable radio frequency products; multifunctional pens and linear ablation devices, such as the MAX Pen device that enables surgeons to evaluate cardiac arrhythmias, perform temporary cardiac pacing, sensing, and stimulation and ablate cardiac tissue with the same device; and the Coolrail device, which enable users to make longer linear lines of ablation. It also provides cryoICE Cryoablation System that enables the user to make linear ablations of varied lengths; EPi-Sense Guided Coagulation System, a single-use disposable device used for the treatment of symptomatic, drug-refractory, and long-standing persistent atrial fibrillation; AtriClip System, an implantable device coupled to a single-use disposable applier; and LARIAT System, a suture-based solution for soft-tissue closure compatible with a range of anatomical shapes. In addition, the company sells Lumitip Dissectors to separate tissues to provide access to key anatomical structures that are targeted for ablation; Glidepath guides for placement of clamps; Subtle Cannula's to support access for EPi-Sense catheters; and various reusable cardiac surgery instruments, which are used during surgical procedures for repair or replacement of certain heart valves. It markets and sells its products through independent distributors and direct sales personnel. The company was incorporated in 2000 and is headquartered in Mason, Ohio.
How the Company Makes MoneyAtriCure generates revenue primarily through the sale of its medical devices to hospitals, surgical centers, and healthcare providers globally. Key revenue streams include sales of its ablation and cryoablation systems, which are used in procedures to treat atrial fibrillation and reduce the risk of stroke. The company also earns income from its access and closure devices that aid in surgical procedures. AtriCure's earnings are supported by its strong relationships with healthcare facilities and surgeons, as well as its ongoing investment in research and development to expand its product offerings and improve existing solutions. Additionally, the company may engage in partnerships or collaborations with other organizations to enhance its market presence and drive sales growth.

Atricure Earnings Call Summary

Earnings Call Date:Jul 29, 2025
(Q2-2025)
|
% Change Since: 10.62%|
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong quarter with significant revenue growth across multiple segments and successful completion of a major clinical trial enrollment. However, there were challenges noted in the hybrid therapy segment due to competitive pressures and a slight decrease in gross margin. Despite these challenges, the overall performance and strategic direction remain positive.
Q2-2025 Updates
Positive Updates
Record Revenue Growth
Achieved total revenue of $136 million, reflecting a 17% year-over-year increase. This growth was broad-based across all franchises.
Strong Performance in Appendage Management
Worldwide revenue for appendage management grew over 20%, driven by open left atrial appendage management growth of 29%.
Pain Management Franchise Expansion
Pain Management grew nearly 43% in the quarter, driven by sales of cryoSPHERE MAX and cryoSPHERE+ probes.
Completion of LeAAPS Clinical Trial Enrollment
Completed enrollment in the LeAAPS clinical trial, the largest global medical device clinical trial in cardiac surgery, with over 6,500 patients.
Positive Cash Generation
Generated nearly $18 million in cash during the second quarter, ending with $117.8 million in cash and investments.
Negative Updates
Pressure on Hybrid Therapy Procedures
Continued pressure on hybrid therapy procedures due to increased adoption of PFA catheter technology, resulting in a decline in minimally invasive ablation sales.
Gross Margin Slight Decrease
Gross margin was 74.5%, representing a 15 basis point decrease compared to the second quarter of 2024, driven by less favorable geographic and product mix.
Company Guidance
During the second quarter of 2025, AtriCure reported impressive financial results, with total revenue reaching $136 million, reflecting a 17% year-over-year increase. The company achieved over $15 million in adjusted EBITDA and generated nearly $18 million in cash. Notable product launches such as the AtriClip FLEX Mini and cryoSPHERE MAX significantly contributed to this growth, particularly in appendage management and pain management, with the latter growing nearly 43% in the quarter. The company completed enrollment in the LeAAPS clinical trial, the largest global medical device trial in cardiac surgery, and began testing their PFA device for cardiac surgery. AtriCure projects annual revenue for 2025 to be between $527 million and $533 million, with an adjusted EBITDA of approximately $49 million to $52 million, and an adjusted loss per share ranging from $0.34 to $0.39.

Atricure Financial Statement Overview

Summary
Atricure shows potential in revenue growth and operational efficiency, evident from its strong gross profit margin, but struggles with profitability, reflected in its negative net income and margins. The balance sheet is well-structured with low leverage, providing financial stability. Cash flow generation is improving but remains constrained by capital expenditures.
Income Statement
65
Positive
Atricure's TTM revenue growth rate of 3.17% indicates moderate growth in a competitive industry. The gross profit margin of 74.58% demonstrates strong cost control and efficient operations. However, the company remains unprofitable, with a net profit margin of -7.95% and negative EBIT and EBITDA margins, which suggest ongoing challenges in achieving profitability.
Balance Sheet
70
Positive
The balance sheet reflects a solid equity base with an equity ratio of 76.85%. The debt-to-equity ratio is low at 0.17, suggesting a conservative approach to leverage. However, return on equity is negative due to consistent net losses, indicating inefficiencies in converting equity into profit.
Cash Flow
60
Neutral
Cash flow statements highlight improved operational cash flow, yet free cash flow remains minimal, suggesting limited cash generation after capital expenditures. The operating cash flow to net income ratio is positive, indicating that cash operations are better than reported earnings. However, the free cash flow to net income ratio is low due to the small free cash flow figure.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue480.08M465.31M399.25M330.38M274.33M206.53M
Gross Profit358.12M347.52M300.37M245.94M205.86M149.31M
EBITDA-17.53M-18.53M-8.11M-29.50M-36.85M-33.61M
Net Income-38.18M-44.70M-30.44M-46.47M50.20M-48.16M
Balance Sheet
Total Assets591.63M609.33M613.93M585.45M615.31M714.54M
Cash, Cash Equivalents and Short-Term Investments99.89M122.72M137.28M121.11M119.09M244.22M
Total Debt77.41M76.53M74.49M69.08M75.65M74.00M
Total Liabilities137.01M148.36M147.76M128.69M131.56M302.14M
Stockholders Equity454.62M460.97M466.17M456.75M483.76M412.39M
Cash Flow
Free Cash Flow188.00K-11.26M-37.51M-39.02M-23.53M-25.13M
Operating Cash Flow23.05M12.20M4.48M-22.14M-13.78M-19.87M
Investing Cash Flow18.91M30.23M21.82M44.01M23.50M-156.20M
Financing Cash Flow-6.93M-3.60M-32.00K-7.06M-7.64M189.39M

Atricure Technical Analysis

Technical Analysis Sentiment
Positive
Last Price35.10
Price Trends
50DMA
32.36
Positive
100DMA
32.44
Positive
200DMA
33.82
Positive
Market Momentum
MACD
0.10
Negative
RSI
64.41
Neutral
STOCH
74.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATRC, the sentiment is Positive. The current price of 35.1 is above the 20-day moving average (MA) of 31.17, above the 50-day MA of 32.36, and above the 200-day MA of 33.82, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 64.41 is Neutral, neither overbought nor oversold. The STOCH value of 74.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ATRC.

Atricure Risk Analysis

Atricure disclosed 39 risk factors in its most recent earnings report. Atricure reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Atricure Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$1.86B41.6913.77%0.87%13.19%31.73%
68
Neutral
$1.57B-7.85%16.28%10.63%
67
Neutral
$5.10B36.403.48%1.19%0.29%-48.98%
52
Neutral
$7.47B0.53-62.70%2.38%14.92%0.82%
51
Neutral
$1.72B-10.59%-3.18%81.18%
46
Neutral
$1.30B-48.07%14.58%0.86%
44
Neutral
$989.60M-77.86%-1.00%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ATRC
Atricure
35.13
14.09
66.97%
LMAT
Lemaitre Vascular
81.97
-3.56
-4.16%
QDEL
QuidelOrtho
24.29
-17.71
-42.17%
TFX
Teleflex
113.91
-120.07
-51.32%
NVCR
NovoCure
10.97
-10.43
-48.74%
PLSE
Pulse Biosciences
15.02
-0.08
-0.53%

Atricure Corporate Events

Executive/Board ChangesShareholder Meetings
AtriCure Stockholders Approve Stock Incentive Plan Amendment
Neutral
May 20, 2025

At the 2025 Annual Meeting of Stockholders held on May 19, AtriCure’s stockholders approved an amendment to the 2023 Stock Incentive Plan, increasing the shares available for issuance from 2,800,000 to 4,500,000. This amendment aims to attract and retain key personnel by allowing directors, officers, and employees to acquire equity interests, aligning their interests with those of the stockholders. Additionally, the meeting saw the election of nine directors, the ratification of Deloitte & Touche LLP as the accounting firm, and advisory votes on executive compensation and its frequency, with the decision to hold annual advisory votes on executive compensation.

The most recent analyst rating on (ATRC) stock is a Buy with a $40.00 price target. To see the full list of analyst forecasts on Atricure stock, see the ATRC Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 31, 2025