Atricure (ATRC) AI Stock Analysis

• Market Cap: $1.56B
• Dividend Yield: N/A
• Average Volume (3M): 705.14K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.91
• Revenue Growth: 15.80%
• EPS Growth: 26.94%
• Country: US
• Employees: 1,300
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.04
• Shares Outstanding: 49,809,902
• 10 Day Avg. Volume: 875,350
• 30 Day Avg. Volume: 705,143
• PEG Ratio: 2.21
• Price to Book (P/B): 3.84
• Price to Sales (P/S): 3.53
• P/FCF Ratio: 39.12
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 2.76
• Enterprise Value/Gross Profit: 3.69
• Enterprise Value/Ebitda: 125.89
• 1Y Price Target: $49.29
• Price Target Upside: 57.68% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): -0.01
• Revenue Forecast (FY): $603.55M

• Rating: 60 Neutral
• Price Target: $34.00 ▲(8.77% Upside)
• Action: Downgraded Date: 02/20/26
• Date: Action: Downgraded 02/20/26

The score is driven primarily by improving fundamentals (strong growth, high gross margins, better 2025 cash generation) and constructive 2026 guidance. These positives are tempered by continued GAAP losses and historically uneven cash flow, while technicals are notably weak with the stock trading below key moving averages and negative MACD.

Positive Factors

Revenue Growth & High Gross Margins

Sustained multi-year top-line expansion combined with consistently high ~74–75% gross margins indicates durable product economics and pricing power. These fundamentals underpin operating leverage potential, enabling margin expansion and a clearer path to sustainable profitability as scale grows over the medium term.

Improving Cash Generation

A meaningful 2025 step-up to solid operating and free cash flow, plus a healthy cash & investments balance, materially strengthens financial flexibility. Durable internal cash generation reduces reliance on external financing for growth and clinical programs, supporting steady investment and liquidity over coming quarters.

Clinical & Product Momentum

Completion of a large LeAAPS enrollment, launched BoxX‑NoAF and first‑in‑human dual‑energy work signal durable innovation and evidence generation. Large trials and new product introductions lower adoption barriers, expand addressable markets and reinforce competitive differentiation over the medium term.

Negative Factors

Persistent GAAP Losses

Despite margin and cash improvements, recurring GAAP losses and negative ROE across recent years show profitability is still unproven. Continued reliance on adjusted metrics means sustained GAAP earnings must be delivered to convert balance sheet capital into shareholder returns and de-risk financing needs long term.

MIS/Hybrid Franchise Decline (PFA)

Rapid adoption of pulsed field ablation is structurally shrinking the MIS/hybrid addressable market and drove a ~31% U.S. MIS revenue decline. This technological displacement is durable and forces revenue mix shifts, pressuring growth and requiring product or commercial pivots to recover lost volume over months to years.

Rising Competitive Pressure

New entrant activity in the appendage/clip market intensifies price and share pressure in a core franchise that had been a growth driver. Increased competition combined with localized reimbursement volatility can persistently compress margins and slow account expansion, challenging midterm growth assumptions.

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 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 Money

Atricure generates revenue primarily through the sale of its medical devices and systems used in cardiac surgeries. The company's revenue model is driven by direct sales to hospitals and surgical centers, where its products are utilized in various cardiac procedures. Key revenue streams include the sale of its proprietary ablation devices and accessories, as well as related surgical instruments and technology. Additionally, Atricure has established partnerships with healthcare providers and institutions, which help to expand its market reach and enhance product adoption. The company also invests in research and development to innovate and introduce new products, which can further contribute to its earnings through increased market share and improved treatment options.

Atricure Financial Statement Overview

Summary

Strong multi-year revenue growth and consistently high ~74–75% gross margins support the business quality, and 2025 showed meaningful improvement (loss narrowing and cash generation improving). However, operating and net income remain negative in 2022–2025 and cash flow has been volatile historically, so sustained profitability is not yet proven.

Income Statement

Revenue has grown steadily over the last several years (from ~$207M in 2020 to ~$535M in 2025), and gross margins are consistently strong at ~74–75%, indicating solid product economics. However, profitability is still the weak point: operating profit and net income remain negative in 2022–2025, even though 2025 shows a sharp improvement versus 2024 (loss narrowing to roughly -2% net margin from about -10%). Overall, the trajectory is improving, but sustained profitability has not yet been re-established after the 2021 profit year.

Balance Sheet

The balance sheet looks conservative: debt is modest relative to equity (debt-to-equity ~0.16–0.18 across 2020–2025), and equity has remained sizable and fairly stable. Total assets are also stable, supporting financial flexibility. The main weakness is that returns on equity are negative in most years (2020, 2022–2025), reflecting that the company has not consistently converted its capital base into bottom-line profits.

Cash Flow

Cash generation improved meaningfully in 2025, with operating cash flow turning solidly positive (~$57M) and free cash flow positive (~$48M) after negative free cash flow in 2022–2024. This suggests better cash discipline and/or working-capital and spending improvements. The key risk is volatility: operating cash flow was negative in 2020–2022 and only modestly positive in 2023–2024, so the durability of the 2025 step-up still needs to be proven.

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

• Technical Analysis Sentiment: Negative
• Last Price: 31.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATRC, the sentiment is Negative. The current price of 31.26 is below the 20-day moving average (MA) of 34.35, below the 50-day MA of 37.69, and below the 200-day MA of 35.36, indicating a bearish trend. The MACD of -1.86 indicates Positive momentum. The RSI at 35.14 is Neutral, neither overbought nor oversold. The STOCH value of 29.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ATRC.

Atricure Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LMAT	75 Outperform	$2.46B	42.93	15.80%	0.95%	13.07%	27.98%
ATRC	60 Neutral	$1.56B	-129.71	-2.40%	―	15.80%	26.94%
PLSE	52 Neutral	$1.27B	-17.34	-86.99%	―	―	-40.63%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
TFX	50 Neutral	$5.39B	-5.94	-5.26%	1.11%	5.43%	-245.18%
NVCR	48 Neutral	$1.56B	-11.18	-50.60%	―	11.17%	-15.64%
QDEL	45 Neutral	$1.55B	-1.36	-46.15%	―	-3.43%	38.98%

Atricure Corporate Events

AtriCure Reports Strong Preliminary 2025 Revenue Growth

On January 9, 2026, AtriCure amended and extended its asset-based revolving credit facility with JPMorgan Chase and other lenders, securing a three-year extension of its credit agreement, lowering the interest rate, and removing a minimum utilization covenant on its up to $125 million facility, which can be increased to as much as $165 million; the facility, secured by a first-priority interest in substantially all borrower assets and guaranteed by AtriCure and its material domestic subsidiaries, is intended to fund working capital and general corporate purposes, strengthening the company’s liquidity and financial flexibility. On January 12, 2026, the company reported preliminary, unaudited results indicating fourth-quarter 2025 revenue of about $140.5 million, up roughly 13% year over year, and full-year 2025 revenue of approximately $534.5 million, up about 15%, driven by robust growth in pain management, open ablation and AtriClip devices; management expects 2025 adjusted EBITDA of $57 million to $59 million, an adjusted loss per share of $0.18 to $0.21, and year-end cash and investments of about $167 million, signaling improving profitability, operational leverage and a solid balance sheet ahead of the release of audited results and a detailed discussion on the upcoming earnings call in February.

The most recent analyst rating on (ATRC) stock is a Buy with a $48.00 price target. To see the full list of analyst forecasts on Atricure stock, see the ATRC Stock Forecast page.