Atricure, Inc. (ATRC)
NASDAQ:ATRC
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Atricure
(NASDAQ:ATRC)
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Rating:60Neutral
Price Target:
$30.00
▲(2.04% Upside)
Action:DowngradedDate: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 trajectory
Multi-year top-line growth to $534.5M in 2025 with mid-teens growth demonstrates expanding procedure adoption and market penetration. Sustained revenue momentum underpins capacity to invest in R&D, grow installed base, and achieve operating leverage over a 2–6 month horizon and beyond.
Negative Factors
Ongoing GAAP losses & negative ROE
Despite improving adjusted EBITDA, persistent GAAP losses and negative ROE indicate the company has not fully converted revenue growth into sustainable bottom-line returns. This constrains long-term equity returns and means continued execution risk as margins and cash must remain durable to reach sustained profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth trajectory
Multi-year top-line growth to $534.5M in 2025 with mid-teens growth demonstrates expanding procedure adoption and market penetration. Sustained revenue momentum underpins capacity to invest in R&D, grow installed base, and achieve operating leverage over a 2–6 month horizon and beyond.
Read all positive factors
Atricure (ATRC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.43B
Dividend YieldN/A
Average Volume (3M)584.12K
Price to Earnings (P/E)―
Beta (1Y)0.86
Revenue Growth15.80%
EPS Growth26.94%
CountryUS
Employees1,300
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)0.04
Shares Outstanding49,809,902
10 Day Avg. Volume579,563
30 Day Avg. Volume584,117
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 Cap0.97
Enterprise Value/Revenue2.59
Enterprise Value/Gross Profit3.46
Enterprise Value/Ebitda117.99
Forecast
1Y Price Target
$49.29Price Target Upside67.65% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)0.05
Revenue Forecast (FY)$603.19M
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:Feb 17, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call highlights strong revenue growth (FY2025 +14.9%), significant profitability improvement (adjusted EBITDA nearly doubled vs. prior year), solid cash generation, multiple product and clinical milestones (LeAAPS enrollment completed, BoxX‑NoAF launched, EnCompass adoption, new product launches), and reaffirmed 2026 guidance. Offsetting these positives are meaningful headwinds in the minimally invasive/hybrid Afib franchise driven by rapid PFA adoption, localized reimbursement challenges in the U.K., and new competitive entrants in the appendage market. Management expects the MIS pressure to moderate and has modeled modest competitive impacts into guidance while emphasizing operating leverage and continued investment in clinical evidence and innovation.Positive Updates
Strong Full Year Revenue Growth and Beat
Total revenue for FY2025 was $534.5 million, up 14.9% reported and 14.4% constant currency vs. 2024 — above the company’s initial 2025 guidance (11%–13%).
Negative Updates
Significant Decline in Minimally Invasive (MIS) / Hybrid Afib Business
The MIS/hybrid Afib franchise experienced substantial headwinds from PFA adoption. U.S. MIS revenue was $31.5 million for FY2025, a 31.2% decline vs. 2024; management reported a combined $16 million decline in U.S. MIS ablation and MIS appendage devices for 2025. Continued pressure is expected in 2026 (though at a moderated pace).
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Full Year Revenue Growth and Beat
Total revenue for FY2025 was $534.5 million, up 14.9% reported and 14.4% constant currency vs. 2024 — above the company’s initial 2025 guidance (11%–13%).
Read all positive updates
Company Guidance
AtriCure reaffirmed 2026 guidance of $600–$610 million in revenue (12–14% growth over 2025’s $534.5M), adjusted EBITDA of $80–$82M (implying GAAP EPS roughly $0 to $0.04 and adjusted EPS $0.09–$0.15), and another year of positive cash generation after an expected net cash burn in Q1; management expects modest gross‑margin expansion from the 2025 rate of 75%, R&D to grow low‑teens organically (mid‑teens including PFA milestone payments), SG&A to grow below top‑line, quarter‑to‑quarter seasonality with Q1 roughly flat to slightly down versus Q4 2025, pain management to lead franchise growth followed by open appendage and open ablation, a continued but moderated decline in MIS/hybrid businesses, and an adjusted EBITDA margin that steps down from the Q4 2025 exit rate then gradually rebuilds — all while building toward long‑range targets of ~$1 billion revenue and >20% adjusted EBITDA margin by 2030 (2025 results included $61.8M adjusted EBITDA, ~$45M cash generated and $167.4M cash & 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
Negative
29.40
Price Trends
31.26
Negative
35.06
Negative
34.80
Negative
Market Momentum
-0.80
Negative
42.11
Neutral
32.92
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 29.4 is above the 20-day moving average (MA) of 29.02, below the 50-day MA of 31.26, and below the 200-day MA of 34.80, indicating a bearish trend. The MACD of -0.80 indicates Negative momentum. The RSI at 42.11 is Neutral, neither overbought nor oversold. The STOCH value of 32.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $2.62B | 31.80 | 15.58% | 0.95% | 13.07% | 27.98% | |
60 Neutral | $1.43B | -165.01 | -2.43% | ― | 15.80% | 26.94% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $5.44B | -6.01 | -23.70% | 1.11% | 5.43% | -245.18% | |
47 Neutral | $1.29B | -12.71 | -73.46% | ― | ― | -40.63% | |
45 Neutral | $1.09B | -1.76 | -46.45% | ― | -3.43% | 38.98% | |
44 Neutral | $1.22B | -10.58 | -39.11% | ― | 11.17% | -15.64% |
* Healthcare Sector Average
ATRC
Atricure
29.40
-2.96
-9.15%
LMAT
Lemaitre Vascular
117.39
33.53
39.98%
QDEL
QuidelOrtho
17.32
-9.24
-34.79%
TFX
Teleflex
125.21
-1.83
-1.44%
NVCR
NovoCure
11.30
-5.16
-31.35%
PLSE
Pulse Biosciences
20.12
3.09
18.14%
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.