Atricure (ATRC)
NASDAQ:ATRC
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Atricure
(NASDAQ:ATRC)
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Rating:62Neutral
Price Target:
$31.00
▲(4.31% Upside)
Action:ReiteratedDate:05/06/26
The score is driven primarily by improving fundamentals (strong growth, high gross margins, and better 2025 cash generation) and a constructive earnings-call outlook with reiterated growth/EBITDA guidance and expected positive cash flow. These strengths are tempered by still-limited GAAP profitability, a weak-to-neutral technical setup, and a very high P/E that raises valuation risk.
Positive Factors
Recurring, procedure-driven revenue growth
AtriCure's revenue base is anchored in per‑procedure disposable devices and LAA products, creating recurring revenue as procedure volumes grow. Multi‑year growth from $207M to $535M shows durable commercial traction and scale potential as installed base and new‑product adoption expand.
Negative Factors
Inconsistent GAAP profitability
Despite margin and revenue gains, GAAP profitability has not been consistently re‑established, with net losses in recent years and negative ROE. Persistent GAAP losses constrain retained earnings, limit self‑funding for growth and can pressure strategic flexibility until profitability is reliably sustained.
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Positive Factors
Negative Factors
Recurring, procedure-driven revenue growth
AtriCure's revenue base is anchored in per‑procedure disposable devices and LAA products, creating recurring revenue as procedure volumes grow. Multi‑year growth from $207M to $535M shows durable commercial traction and scale potential as installed base and new‑product adoption expand.
Read all positive factors
Atricure (ATRC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.42B
Dividend YieldN/A
Average Volume (3M)597.46K
Price to Earnings (P/E)3192.1
Beta (1Y)0.85
Revenue Growth15.01%
EPS Growth88.10%
CountryUS
Employees1,300
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)-0.24
Shares Outstanding50,634,808
10 Day Avg. Volume677,711
30 Day Avg. Volume597,461
Financial Highlights & Ratios
PEG Ratio2.21
Price to Book (P/B)3.84
Price to Sales (P/S)3.53
P/FCF Ratio39.12
Enterprise Value/Market Cap0.95
Enterprise Value/Revenue2.51
Enterprise Value/Gross Profit3.36
Enterprise Value/Ebitda114.49
Forecast
1Y Price Target
$48.50Price Target Upside63.19% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)0.08
Revenue Forecast (FY)$604.06M
Atricure Business Overview & Revenue Model
Company Description
AtriCure, 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 Synerg...
How the Company Makes Money
AtriCure makes money primarily by selling single-use and capital medical devices used in cardiac procedures, with revenue largely tied to procedural volumes at hospitals and heart centers. Its key revenue streams include: (1) Ablation-related prod...
Atricure Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call emphasized durable double-digit revenue growth, meaningful margin expansion, near-term profitability improvement (adjusted EBITDA and net income turning positive), strong U.S. product adoption (notably pain management, EnCompass and AtriClip FLEX-Mini), and materially accelerated enrollment in the BoxX-NoAF trial — all significant positives. Offsetting items include a steep decline in MIS ablation, international softness (U.K. and Asia distributor lumpiness), incremental R&D and SG&A to support accelerated trials and launches, and a manufacturing ramp that will moderate gross margin improvement. On balance, the positives (strong top-line, EBITDA expansion, cash position, and trial momentum) outweigh the negatives, which are mostly transient or strategic investments.Positive Updates
Top-Line Growth
Worldwide revenue of $141.2M in Q1 2026, up 14.3% reported and 12.8% constant currency vs Q1 2025; sequential increase ~1% vs Q4 2025.
Negative Updates
Minimally Invasive (MIS) Ablation Headwinds
U.S. MIS ablation sales declined ~25% YoY to $6.4M; management cites continued headwinds and slower procedure volumes for hybrid therapy.
Read all updates
Q1-2026 Updates
Positive
Negative
Top-Line Growth
Worldwide revenue of $141.2M in Q1 2026, up 14.3% reported and 12.8% constant currency vs Q1 2025; sequential increase ~1% vs Q4 2025.
Read all positive updates
Company Guidance
AtriCure reiterated 2026 guidance calling for full‑year revenue of $600–$610 million (≈12–14% growth vs. 2025), adjusted EBITDA of $80–$82 million, GAAP net income translating to EPS of ~$0.00–$0.04 and adjusted EPS of ~$0.09–$0.15, and expects mid‑single‑digit sequential growth in Q2; management expects modest full‑year gross‑margin improvement over 2025 despite an exceptional Q1 gross margin of 77.4% (up 246 bps) as expanded manufacturing capacity coming online in H2 2026 will increase manufacturing cost burden. The company plans incremental R&D spend over the next three quarters to accelerate BoxX‑NoAF enrollment (≈300 of 960 patients enrolled; full enrollment now expected around year‑end, nearly 1 year ahead), anticipates positive cash flow for the remainder of the year with full‑year cash generation moderately higher than 2025, and exited Q1 with approximately $146 million in cash and investments.Atricure Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
74
Positive
Cash Flow
68
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 534.53M | 465.31M | 399.25M | 330.38M | 274.33M |
| Gross Profit | 397.74M | 347.52M | 300.37M | 245.94M | 205.86M |
| EBITDA | 16.25M | -18.53M | -8.11M | -29.50M | 65.75M |
| Net Income | -11.45M | -44.70M | -30.44M | -46.47M | 50.20M |
Balance Sheet | |||||
| Total Assets | 654.18M | 609.33M | 613.93M | 585.45M | 615.31M |
| Cash, Cash Equivalents and Short-Term Investments | 167.43M | 122.72M | 137.28M | 121.11M | 119.09M |
| Total Debt | 88.02M | 76.53M | 74.49M | 74.55M | 75.65M |
| Total Liabilities | 162.24M | 148.36M | 147.76M | 128.69M | 131.56M |
| Stockholders Equity | 491.94M | 460.97M | 466.17M | 456.75M | 483.76M |
Cash Flow | |||||
| Free Cash Flow | 48.28M | -11.26M | -37.51M | -39.02M | -23.53M |
| Operating Cash Flow | 57.33M | 12.20M | 4.48M | -22.14M | -13.78M |
| Investing Cash Flow | -14.55M | 30.23M | 21.82M | 44.01M | 23.50M |
| Financing Cash Flow | 1.18M | -3.60M | -32.00K | -7.06M | -7.64M |
Atricure Technical Analysis
Neutral
29.72
Price Trends
30.64
Negative
34.89
Negative
34.73
Negative
Market Momentum
-0.44
Negative
51.57
Neutral
64.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATRC, the sentiment is Neutral. The current price of 29.72 is above the 20-day moving average (MA) of 28.99, below the 50-day MA of 30.64, and below the 200-day MA of 34.73, indicating a neutral trend. The MACD of -0.44 indicates Negative momentum. The RSI at 51.57 is Neutral, neither overbought nor oversold. The STOCH value of 64.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ATRC.
Atricure Risk Analysis
Atricure disclosed 40 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $2.51B | 39.69 | 15.58% | 0.95% | 13.27% | 36.99% | |
62 Neutral | $1.42B | 3,192.06 | -2.43% | ― | 15.01% | 88.10% | |
57 Neutral | $5.45B | -1.89 | -23.70% | 1.11% | -2.75% | -1515.83% | |
55 Neutral | $1.91B | -4.37 | -50.82% | ― | 8.48% | -1.53% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $1.31B | -19.69 | -73.46% | ― | ― | -13.79% | |
46 Neutral | $746.18M | -2.83 | -46.45% | ― | -3.86% | -258.96% |
* Healthcare Sector Average
ATRC
Atricure
28.01
-2.30
-7.59%
LMAT
Lemaitre Vascular
110.22
29.36
36.31%
QDEL
QuidelOrtho
10.96
-14.89
-57.60%
TFX
Teleflex
123.23
2.54
2.11%
NVCR
NovoCure
16.50
-0.15
-0.93%
PLSE
Pulse Biosciences
19.21
2.52
15.10%
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.