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Atricure
(NASDAQ:ATRC)
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Rating:69Neutral
Price Target:
$41.00
▲(17.01% Upside)
Action:Downgraded
Date:07/28/26
ATRC scores as moderately attractive primarily due to improving financial performance (scaling revenue, strong gross margins, better cash flow, and low leverage) and supportive technical trend strength (price above key moving averages). The main offset is valuation risk from a very high P/E, while the earnings call was broadly constructive with raised EBITDA outlook but flagged meaningful near-term headwinds (MIS weakness, international softness, and expected charges).
Positive Factors
Revenue scale & high gross margins
Sustained revenue scaling plus mid-70s gross margins indicate a durable, high-margin device franchise tied to recurring procedure volumes and disposables. This structural margin cushion supports reinvestment, funds R&D/clinical work, and reduces sensitivity to modest pricing pressure over the next 2–6 months.
Negative Factors
MIS ablation franchise weakness
Persistent weakness in minimally invasive ablation is a structural concern where market preference is shifting toward PFA catheters. Low MIS contribution limits upside from a higher-growth procedural segment and could constrain long-term TAM capture unless product/clinical positioning improves.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue scale & high gross margins
Sustained revenue scaling plus mid-70s gross margins indicate a durable, high-margin device franchise tied to recurring procedure volumes and disposables. This structural margin cushion supports reinvestment, funds R&D/clinical work, and reduces sensitivity to modest pricing pressure over the next 2–6 months.
Read all positive factors
Atricure Key Performance Indicators (KPIs)
Any
Revenue by Segment
Shows how sales split across the company’s product lines and services, revealing which devices or consumables drive growth and profit. For Atricure, this highlights dependence on surgical ablation systems versus consumable disposables (and any emerging product lines), signals where adoption or pricing pressure could affect margins, and points to which segments offer the most upside if clinical adoption or reimbursement improves.
Shows how sales split across the company’s product lines and services, revealing which devices or consumables drive growth and profit. For Atricure, this highlights dependence on surgical ablation systems versus consumable disposables (and any emerging product lines), signals where adoption or pricing pressure could affect margins, and points to which segments offer the most upside if clinical adoption or reimbursement improves.
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The Fly
The FlyAtricure (ATRC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.92B
Dividend YieldN/A
Average Volume (3M)985.87K
Price to Earnings (P/E)177.9
Beta (1Y)0.78
Revenue Growth13.94%
EPS GrowthN/A
CountryUS
Employees1,350
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)0.21
Shares Outstanding50,866,295
10 Day Avg. Volume895,019
30 Day Avg. Volume985,869
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$47.29Price Target Upside34.95% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)0.04
Revenue Forecast (FY)$606.13M
Atricure Business Overview & Revenue Model
Company Description
AtriCure, Inc. creates, produces, and markets medical devices for the surgical treatment of cardiac tissue and intercostal nerves. Its market reach spans the United States, Europe, Asia, and other international territories. The company's product l...
How the Company Makes Money
AtriCure makes money primarily by selling medical devices and related disposable components used in cardiac surgery and electrophysiology-adjacent procedures. Its core revenue streams include: (1) Surgical ablation products: sales of ablation devi...
Atricure Earnings Call Summary
Earnings Call Date:Jul 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call emphasized strong, broad-based Q2 performance with double-digit revenue growth, substantial improvement in profitability (adjusted EBITDA up 78% and a return to GAAP net income), healthy cash generation, and constructive clinical trial progress (BoxX-NoAF and LeAAPS) that management positions as long-term catalysts. Several operational investments and new product launches (cryoSPHERE MAX, cryoXT, AtriClip Mini devices, EnCompass) underpinned margin improvement and guidance uplift. Key challenges include continued weakness in the minimally invasive ablation franchise, some international reimbursement/market softness (notably U.K. and Germany), a near-term manufacturing transition headwind, anticipated IPR&D charges tied to PFA milestones, and competitive entry in appendage management—all of which were acknowledged and largely framed as manageable or anticipated. On balance, the positive financial momentum, upgraded adjusted EBITDA outlook, strong trial enrollment, and franchise momentum outweigh the headwinds described.Positive Updates
Quarterly Revenue Growth
Worldwide revenue of $153.6M in Q2 2026, up 12.8% year-over-year (12.4% constant currency) and up 8.7% sequentially from Q1 2026. U.S. revenue totaled $125.6M, up 13.6% year-over-year.
Negative Updates
Minimally Invasive (MIS) Ablation Pressure
MIS ablation franchise remained under pressure; MIS ablation contributed only $6M in revenue for the quarter. Management attributes weakness to market focus on PFA catheters and slower hybrid therapy adoption outside a small subset of accounts.
Read all updates
Q2-2026 Updates
Positive
Negative
Quarterly Revenue Growth
Worldwide revenue of $153.6M in Q2 2026, up 12.8% year-over-year (12.4% constant currency) and up 8.7% sequentially from Q1 2026. U.S. revenue totaled $125.6M, up 13.6% year-over-year.
Read all positive updates
Company Guidance
Management reiterated 2026 guidance of $602–$610 million in revenue (≈12.5%–14% growth vs. 2025), raised full‑year adjusted EBITDA to $85–$89 million (implying ~14% margin at the midpoint), and expects full‑year GAAP EPS of ~$0.05–$0.13 and adjusted EPS of ~$0.24–$0.32; they forecast typical back‑half seasonality with Q3 revenue down 1%–2% sequentially from Q2 ($153.6M) and a Q4 rebound, expect positive cash generation through the rest of 2026 after ending Q2 with $167.8M in cash/investments and ~$22M of cash generated in the quarter, and noted additional PFA milestones likely to trigger IPR&D charges in H2 2026; growth is expected to be led by pain management, appendage management and open ablation while MIS ablation faces ongoing international pressure.Atricure Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
78
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 569.62M | 534.53M | 465.31M | 399.25M | 330.38M | 274.33M |
| Gross Profit | 433.85M | 397.74M | 347.52M | 300.37M | 245.94M | 205.86M |
| EBITDA | 27.15M | 16.25M | -18.53M | -8.11M | -29.50M | 65.75M |
| Net Income | 10.55M | -11.45M | -44.70M | -30.44M | -46.47M | 50.20M |
Balance Sheet | ||||||
| Total Assets | 676.64M | 654.18M | 609.33M | 613.93M | 585.45M | 615.31M |
| Cash, Cash Equivalents and Short-Term Investments | 167.79M | 167.43M | 122.72M | 137.28M | 121.11M | 119.09M |
| Total Debt | 71.05M | 88.02M | 76.53M | 74.49M | 74.55M | 75.65M |
| Total Liabilities | 160.21M | 162.24M | 148.36M | 147.76M | 128.69M | 131.56M |
| Stockholders Equity | 516.43M | 491.94M | 460.97M | 466.17M | 456.75M | 483.76M |
Cash Flow | ||||||
| Free Cash Flow | 58.11M | 48.28M | -11.26M | -37.51M | -39.02M | -23.53M |
| Operating Cash Flow | 64.94M | 57.33M | 12.20M | 4.48M | -22.14M | -13.78M |
| Investing Cash Flow | -12.82M | -14.55M | 30.23M | 21.82M | 44.01M | 23.50M |
| Financing Cash Flow | -1.91M | 1.18M | -3.60M | -32.00K | -7.06M | -7.64M |
Atricure Technical Analysis
Positive
35.04
Price Trends
31.66
Positive
30.13
Positive
33.17
Positive
Market Momentum
2.22
Negative
65.73
Neutral
75.44
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 35.04 is below the 20-day moving average (MA) of 36.34, above the 50-day MA of 31.66, and above the 200-day MA of 33.17, indicating a bullish trend. The MACD of 2.22 indicates Negative momentum. The RSI at 65.73 is Neutral, neither overbought nor oversold. The STOCH value of 75.44 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 41 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $5.08B | 34.70 | 9.07% | ― | 10.51% | 20.67% | |
75 Outperform | $2.32B | 36.71 | 16.42% | 0.94% | 13.27% | 36.99% | |
69 Neutral | $1.92B | 177.95 | 2.14% | ― | 13.94% | ― | |
62 Neutral | $611.31M | -16.81 | -21.01% | ― | 9.46% | -6.34% | |
58 Neutral | $6.05B | -6.00 | -28.27% | 1.03% | -6.61% | -812.37% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
ATRC
Atricure
39.34
2.82
7.72%
ANGO
AngioDynamics
15.04
6.64
79.05%
LMAT
Lemaitre Vascular
79.00
-13.38
-14.48%
MMSI
Merit Medical Systems
87.18
3.63
4.34%
TFX
Teleflex
136.78
25.98
23.45%
MBOT
Microbot Medical
1.85
-1.02
-35.54%
Atricure Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
AtriCure Shareholders Approve Expanded Equity and Governance Plans
Positive
May 19, 2026
At its May 18, 2026 annual meeting, AtriCure shareholders approved an amendment to the 2023 Stock Incentive Plan, lifting the common shares available for issuance to 6 million and preserving an omnibus structure that supports multiple equity award...
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.