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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on ATRC

AtriCure's recent performance was negatively impacted by a Q4 loss of $0.08 per share, which lagged revenue estimates. The company's earnings beat was overshadowed by a decline in key metrics, including a 14.1% year-over-year decrease in procedure volume. Additionally, AtriCure's guidance for 2025 was muted, citing a challenging macroeconomic environment and increased competition in the electrophysiology market. Furthermore, the company's Q4 earnings call highlighted concerns around pricing pressure and a slowdown in procedure growth.

1.c. Company Highlights

2. AtriCure's Q3 2025 Earnings: Strong Revenue Growth and Improving Profitability

AtriCure reported a strong third quarter with total revenue of $134.3 million, a 15.8% increase year-over-year. The company's adjusted EBITDA margin expanded to 13.3% for the quarter, showing continued progress throughout 2025. The basic and diluted net loss per share was $0.01, beating estimates of $-0.11. The company's revenue growth was driven across key franchises globally, with the U.S. revenue increasing by 14.5% to $109.3 million.

Publication Date: Nov -25

📋 Highlights
  • Revenue Growth: Total revenue reached $134.3 million in Q3 2025, reflecting a 15.8% year-over-year increase, driven by strong performance across key franchises globally.
  • Profitability Improvements: Adjusted EBITDA improved to $18 million, with $30+ million in cash generated, and EBITDA margin expanded to 13.3%, surpassing prior guidance.
  • Product Innovation Impact: Pain management revenue grew 28%, fueled by cryoSPHERE MAX and cryoSPHERE+ probes, while open ablation growth accelerated to 18% YoY, led by EnCompass Clamp adoption.
  • International Expansion: U.S. revenue rose 14.5% YoY to $109.3 million, while Europe saw over 30% growth in open ablation due to EnCompass Clamp adoption and market expansion.
  • Guidance Upside: Full-year 2025 revenue guidance raised to $532–534 million (14–15% YoY growth), with adjusted EBITDA projected at $55–57 million, reflecting confidence in market penetration and cost efficiency.

Segment Performance

The company's open ablation growth accelerated to over 18% for the quarter, driven by sales of the EnCompass Clamp. The appendage management business grew in the high 20s, driven by the adoption of the AtriClip FLEX-Mini device. The pain management franchise grew 28%, driven by sales of the cryoSPHERE MAX and cryoSPHERE+ probes. As noted by Michael H. Carrel, "We think there's a tremendous opportunity in this space... we're still in less than 30% of all sites in the U.S. with FLEX-Mini, and we're confident that we'll see a long runway of growth as we increase adoption and usage of the product."

Guidance and Outlook

The company raised its full-year 2025 revenue guidance to $532 million to $534 million, reflecting approximately 14% to 15% growth compared to 2024. The adjusted EBITDA outlook was also raised to $55 million to $57 million, corresponding to an adjusted loss per share of $0.23 to $0.26. Analysts estimate next year's revenue growth at 12.3%, indicating a continued strong growth trajectory.

Valuation

AtriCure's current valuation multiples are -62.54x P/E Ratio, 3.78x P/B Ratio, and 3.62x P/S Ratio. The EV/EBITDA ratio is -287.98x, indicating that the company's profitability is still in the early stages. With a ROE of -6.2% and ROIC of -4.91%, the company's return on equity and invested capital is negative, but improving. The Net Debt / EBITDA ratio is 11.85x, indicating a relatively high debt burden. Overall, the valuation multiples suggest that the market is pricing in significant growth expectations, but the company's improving profitability and growth prospects may justify the current valuation.

3. NewsRoom

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Is AtriCure Stock a Buy or Sell After a Director Dumped 10,000 Shares?

Nov -29

Source: fool.com

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Wall Street Analysts Believe AtriCure (ATRC) Could Rally 36.3%: Here's is How to Trade

Nov -25

Source: zacks.com

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Is AtriCure (ATRC) Stock Outpacing Its Medical Peers This Year?

Nov -20

Source: zacks.com

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8,681 Shares in AtriCure, Inc. $ATRC Purchased by Campbell & CO Investment Adviser LLC

Nov -18

Source: defenseworld.net

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AtriCure, Inc. (ATRC) Presents at UBS Global Healthcare Conference 2025 Transcript

Nov -10

Source: seekingalpha.com

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AtriCure (ATRC) Loses 13.6% in 4 Weeks, Here's Why a Trend Reversal May be Around the Corner

Nov -07

Source: zacks.com

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Is AtriCure (ATRC) Outperforming Other Medical Stocks This Year?

Nov -04

Source: zacks.com

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AtriCure, Inc. (ATRC) Q3 2025 Earnings Call Transcript

Oct -30

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.47%)

6. Segments

Appendage Management

Expected Growth: 12%

AtriCure's Appendage Management segment growth is driven by increasing adoption of its LARIAT device, expanding indications for left atrial appendage closure, and rising awareness of stroke risk reduction. Additionally, strategic partnerships, investments in clinical trials, and growing demand for minimally invasive procedures contribute to the 12% growth rate.

Open Ablation

Expected Growth: 13%

Open Ablation's 13% growth driven by increasing adoption in atrial fibrillation treatment, expanding indications for persistent and long-standing persistent AF, and growing demand for minimally invasive procedures. Additionally, AtriCure's strategic partnerships, investments in clinical trials, and sales force expansion contribute to the segment's growth.

Minimally Invasive Ablation

Expected Growth: 14%

Strong demand for minimally invasive procedures, increasing adoption of AtriCure's Synergy Ablation System, and expanding indications for atrial fibrillation treatment drive 14% growth. Additionally, investments in clinical trials, sales force expansion, and strategic partnerships contribute to the company's rapid growth.

Pain Management

Expected Growth: 11%

AtriCure's Pain Management segment growth is driven by increasing adoption of minimally invasive procedures, rising demand for alternative treatments to opioids, and expanding indications for ablation therapies. Additionally, the company's investments in clinical trials, product innovation, and strategic partnerships are contributing to its 11% growth.

7. Detailed Products

Isolator Synergy Ablation System

A minimally invasive cardiac ablation system designed to treat atrial fibrillation and other cardiac arrhythmias.

EPi-Sense System

A system that provides real-time feedback during cardiac ablation procedures to help physicians identify and treat abnormal heart rhythms.

Synergy Ablation System

A cardiac ablation system that uses radiofrequency energy to create lesions in the heart tissue to block abnormal electrical signals.

Cryo1 Cryoablation System

A cryoablation system that uses extremely cold temperatures to freeze and destroy abnormal heart tissue.

Hybrid AF Solution

A comprehensive solution that combines minimally invasive surgical and catheter-based ablation procedures to treat atrial fibrillation.

8. AtriCure, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

AtriCure, Inc. faces moderate threat from substitutes due to the presence of alternative treatments for atrial fibrillation, such as medications and catheter ablation. However, the company's minimally invasive surgical ablation technology provides a unique solution that is less invasive and more effective than traditional surgical methods.

Bargaining Power Of Customers

AtriCure, Inc. has a diverse customer base, including hospitals and medical centers, which reduces the bargaining power of individual customers. Additionally, the company's products are specialized and critical to patient care, making it difficult for customers to negotiate prices.

Bargaining Power Of Suppliers

AtriCure, Inc. has a diversified supply chain and is not heavily dependent on a single supplier. The company also has a strong track record of developing and manufacturing its own products, reducing its reliance on external suppliers.

Threat Of New Entrants

The medical device industry is highly regulated, and new entrants would need to invest heavily in research and development, clinical trials, and regulatory approvals to enter the market. AtriCure, Inc.'s established brand and intellectual property also create barriers to entry.

Intensity Of Rivalry

The medical device industry is highly competitive, with several established players competing for market share. However, AtriCure, Inc.'s focus on atrial fibrillation and its minimally invasive surgical ablation technology differentiate it from competitors and reduce the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 11.93%
Debt Cost 9.12%
Equity Weight 88.07%
Equity Cost 10.99%
WACC 10.77%
Leverage 13.54%

11. Quality Control: AtriCure, Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Warby Parker

A-Score: 4.5/10

Value: 3.3

Growth: 7.4

Quality: 4.1

Yield: 0.0

Momentum: 9.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
AtriCure

A-Score: 4.5/10

Value: 5.0

Growth: 6.0

Quality: 4.0

Yield: 0.0

Momentum: 7.5

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
Daxor

A-Score: 4.4/10

Value: 3.5

Growth: 6.7

Quality: 8.6

Yield: 0.0

Momentum: 4.5

Volatility: 3.3

1-Year Total Return ->

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Retractable Technologies

A-Score: 4.0/10

Value: 9.4

Growth: 0.6

Quality: 3.9

Yield: 0.0

Momentum: 6.5

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
Stereotaxis

A-Score: 3.8/10

Value: 6.2

Growth: 1.7

Quality: 3.7

Yield: 0.0

Momentum: 9.0

Volatility: 2.3

1-Year Total Return ->

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Sanara MedTech

A-Score: 3.2/10

Value: 3.0

Growth: 6.8

Quality: 2.3

Yield: 0.0

Momentum: 4.0

Volatility: 3.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

39.86$

Current Price

39.86$

Potential

-0.00%

Expected Cash-Flows