Atricure (ATRC) AI Stock Analysis

• Market Cap: $1.94B
• Dividend Yield: N/A
• Average Volume (3M): 457.86K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.85
• Revenue Growth: 15.80%
• EPS Growth: 26.94%
• Country: US
• Employees: 1,300
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): -0.01
• Shares Outstanding: 49,716,988
• 10 Day Avg. Volume: 497,007
• 30 Day Avg. Volume: 457,864
• PEG Ratio: -0.73
• Price to Book (P/B): 3.11
• Price to Sales (P/S): 3.08
• P/FCF Ratio: -127.52
• Enterprise Value/Market Cap: 0.84
• Enterprise Value/Revenue: 3.13
• Enterprise Value/Gross Profit: 4.19
• Enterprise Value/Ebitda: -259.54
• 1Y Price Target: $51.83
• Price Target Upside: 32.69% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): -0.1
• Revenue Forecast (FY): $600.37M

• Rating: 73 Outperform
• Price Target: $46.00 ▲(17.77% Upside)

ATRC scores well on operating momentum and outlook, driven by strong earnings-call guidance and improving profitability metrics, supported by a stable balance sheet and sharply better free cash flow. Technicals also reinforce strength with price above major moving averages and positive MACD. The main offset is valuation risk tied to ongoing losses (negative P/E) and the lack of a dividend.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and successful product adoption, supporting long-term business expansion.

Product Innovation

Innovative product launches enhance competitive positioning and drive revenue growth, sustaining market leadership.

Cash Flow Improvement

Improved cash flow and EBITDA reflect operational efficiency, providing financial flexibility for future investments.

Negative Factors

Profitability Challenges

Ongoing profitability issues may hinder financial health, requiring strategic focus to enhance shareholder value.

Minimally Invasive Ablation Decline

Declining sales in key segments could impact growth, necessitating strategic adjustments to regain market share.

Hybrid Therapy Market Challenges

Competitive pressures from new technologies may limit market penetration, requiring innovation to maintain relevance.

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

Atricure demonstrates solid revenue growth and efficient production, but faces profitability challenges. The balance sheet is stable with low leverage, yet shareholder returns are negative. Cash flow improvements are promising, reflecting better cash management. Addressing profitability issues will be key to enhancing overall financial health.

Income Statement

Atricure's income statement shows a positive revenue growth rate of 3.67% TTM, indicating a steady increase in sales. However, the company is facing challenges with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin remains strong at approximately 74.87%, suggesting efficient production processes. Overall, while revenue is growing, the company needs to address its profitability issues to improve its financial health.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.15, indicating conservative leverage. However, the return on equity is negative, highlighting challenges in generating returns for shareholders. The equity ratio is healthy, suggesting a strong capital structure. Overall, the balance sheet is stable, but improving profitability would enhance shareholder value.

Cash Flow

Atricure's cash flow statement shows a significant improvement in free cash flow growth at 153.43% TTM, indicating better cash management. The operating cash flow to net income ratio is below 1, suggesting that operating activities are not fully covering net losses. Despite this, the positive trend in free cash flow is a strong indicator of improving operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	518.30M	465.31M	399.25M	330.38M	274.33M	206.53M
Gross Profit	388.06M	347.52M	300.37M	245.94M	205.86M	149.31M
EBITDA	-6.26M	-18.53M	-8.11M	-29.50M	65.75M	-33.61M
Net Income	-28.77M	-44.70M	-30.44M	-46.47M	50.20M	-48.16M
Balance Sheet
Total Assets	635.44M	609.33M	613.93M	585.45M	615.31M	714.54M
Cash, Cash Equivalents and Short-Term Investments	147.87M	122.72M	137.28M	121.11M	119.09M	244.22M
Total Debt	76.73M	76.53M	74.49M	74.55M	75.65M	74.00M
Total Liabilities	158.94M	148.36M	147.76M	128.69M	131.56M	302.14M
Stockholders Equity	476.51M	460.97M	466.17M	456.75M	483.76M	412.39M
Cash Flow
Free Cash Flow	16.00M	-11.26M	-37.51M	-39.02M	-23.53M	-25.13M
Operating Cash Flow	43.14M	12.20M	4.48M	-22.14M	-13.78M	-19.87M
Investing Cash Flow	-26.64M	30.23M	21.82M	44.01M	23.50M	-156.20M
Financing Cash Flow	816.00K	-3.60M	-32.00K	-7.06M	-7.64M	189.39M

Atricure Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 39.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 39.06 is below the 20-day moving average (MA) of 40.17, above the 50-day MA of 37.85, and above the 200-day MA of 34.86, indicating a neutral trend. The MACD of 0.13 indicates Positive momentum. The RSI at 48.69 is Neutral, neither overbought nor oversold. The STOCH value of 45.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ATRC.

Atricure Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LMAT	75 Outperform	$2.00B	37.98	15.02%	0.95%	13.07%	27.98%
ATRC	73 Outperform	$1.94B	-64.24	-6.11%	―	15.80%	26.94%
TFX	61 Neutral	$4.55B	-14.00	-7.90%	1.11%	5.43%	-245.18%
QDEL	54 Neutral	$2.26B	-1.95	-44.21%	―	-3.43%	38.98%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
NVCR	48 Neutral	$1.53B	-8.46	-50.60%	―	11.17%	-15.64%
PLSE	46 Neutral	$965.69M	-12.55	-86.99%	―	―	-40.63%

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.