Business 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 line features various ablation technologies. These include Isolator Synergy Clamps, which are single-use radiofrequency products. Its multifunctional pens, such as the MAX Pen, uniquely enable surgeons to evaluate cardiac arrhythmias, conduct temporary pacing, sensing, and stimulation, and perform tissue ablation with a single device. The Coolrail device facilitates the creation of longer linear ablation lines. For varying lengths of linear ablations, the CryoICE Cryoablation System is available. Furthermore, the EPi-Sense Guided Coagulation System is a single-use solution for the treatment of symptomatic, drug-refractory, and long-standing persistent atrial fibrillation. AtriCure also provides systems for cardiac appendage management and soft-tissue closure. The AtriClip System is an implantable device accompanied by a disposable applier, while the LARIAT System offers a suture-based solution for soft-tissue closure, compatible with various anatomical shapes. Additionally, AtriCure offers supplementary surgical tools including Lumitip Dissectors, designed to separate tissues for optimal access, Glidepath guides for precise clamp placement, and Subtle Cannulas facilitating access for EPi-Sense catheters. A suite of reusable cardiac surgery instruments, crucial for procedures involving heart valve repair or replacement, is also available. The company distributes its offerings through a combination of independent distributors and direct sales personnel. Founded in 2000, AtriCure maintains its headquarters in Mason, Ohio.
Business History
Generated: Jun 1, 2026 7:26pmPrice Overview
Last updated: Jun 27, 2026 7:59am (just now)Price History (1 Year)
Revenue & Net Income Trend
| Period | Revenue | Net Income | Net Margin | YoY/QoQ |
|---|
Key Metrics
EPS (Diluted): -0.24
Total Equity: $491.94M
Shares: 47,750,000
Total Debt: $76.50M
Cash: $167.43M
EBITDA: $16.25M
Total Debt: $76.50M
Cash: $167.43M
Revenue: $534.53M
Shares: 47,750,000
Revenue: $534.53M
Revenue: $534.53M
Revenue: $534.53M
Total Equity: $491.94M
Tax Rate: -12.6%
Equity: $491.94M
Total Debt: $76.50M
Cash: $167.43M
Current Liabilities: $81.52M
Long-Term Debt: $73.38M
Total Debt: $76.50M
Total Equity: $491.94M
Shares: 47,750,000
Shares: 47,750,000
CapEx: -$9.05M
Shares: 47,750,000
Stock Price: $30.18
Net Income: -$11.45M
Industry Benchmarks
Advanced Analysis Forensic deep-dive · three lenses
The numbers tell a more constructive story than the 'pre-profit growth' label suggests. Revenue compounded from $274M (2021) to $534M (2025) — roughly 18% CAGR — at a remarkably stable 74-75% gross margin, and operating margin has marched from -12.9% (2022) back to roughly breakeven (-0.6%) in 2025. Crucially FCF flipped from -$11.3M to +$48.3M in a single year, and the balance sheet carries $167M cash with $91M net cash. Beneish (-2.91), Altman Z (5.32), and accruals (-3.9%) all clear the mechanical earnings-quality checks. This is not a survival story.
But the bear texture is real. SBC is running 8.4% of revenue (~$45M on $534M) — larger than the entire reported FCF — and buybacks only mop up 40% of it, meaning shareholders are paying the employees in equity while the company calls the residual 'FCF.' Diluted shares crept from 46.0M to 47.8M (~4% over four years, accelerating). The insider tape shows ZERO open-market buys and a cluster of S-sales (Prange, Doraiswamy x2) plus a CEO gift — directionally bearish, though small in dollar terms. The OCF/NI ratio of -1.05x flagged as 'Poor Cash Flow Quality' is mechanically distorted by negative NI, not a true quality signal — that's a module artifact.
Valuation at ~19x forward EV/FCF is reasonable IF the FCF margin holds and growth stays mid-teens. It is expensive if PFA (Boston/Abbott/J&J pulsed-field) compresses surgical ablation TAM or if 2025's FCF leap was partly a working-capital one-off after years of inventory build. The pipeline's bull-case framing is defensible; the GPT critique calling it cheap is also defensible. The honest read is mixed-leaning-constructive.
Deep Analysis
Pre-flight intelligence scans the company first, then routes to the right analytical methods.
Income Statement (Annual)
Last updated: Jun 22, 2026 4:11pm (4d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $274.3M | $330.4M | $399.2M | $465.3M | $534.5M |
| Cost of Revenue | $68.5M | $84.4M | $98.9M | $117.8M | $136.8M |
| Gross Profit | $205.9M | $245.9M | $300.4M | $347.5M | $397.7M |
| Operating Expenses | $150.7M | $288.6M | $327.1M | $387.5M | $401.2M |
| Operating Income | $55.2M | -$42.7M | -$26.7M | -$40.0M | -$3.4M |
| Net Income | $50.2M | -$46.5M | -$30.4M | -$44.7M | -$11.4M |
| EBITDA | $65.7M | -$29.5M | -$8.1M | -$18.5M | $16.2M |
| EPS | $1.11 | $-1.02 | $-0.66 | $-0.95 | $-0.24 |
| EPS (Diluted) | — | — | — | — | — |
Balance Sheet (Annual)
Last updated: Jun 22, 2026 4:11pm (4d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Cash & Equivalents | $43.7M | $58.1M | $84.3M | $122.7M | $167.4M |
| Total Current Assets | $196.1M | $215.2M | $266.2M | $267.8M | $322.5M |
| Total Assets | $615.3M | $585.4M | $613.9M | $609.3M | $654.2M |
| Current Liabilities | $56.4M | $58.4M | $74.6M | $73.4M | $81.5M |
| Long-Term Debt | $59.7M | $56.8M | $60.6M | $61.9M | $73.4M |
| Total Liabilities | $131.6M | $128.7M | $147.8M | $148.4M | $162.2M |
| Total Equity | $483.8M | $456.8M | $466.2M | $461.0M | $491.9M |
| Retained Earnings | -$280.2M | -$326.6M | -$357.1M | -$401.8M | -$413.2M |
Cash Flow (Annual)
Last updated: Jun 22, 2026 4:11pm (4d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Operating Cash Flow | -$13.8M | -$22.1M | $4.5M | $12.2M | $57.3M |
| Capital Expenditure | -$9.8M | -$16.9M | -$42.0M | -$23.5M | -$9.1M |
| Free Cash Flow | -$23.5M | -$39.0M | -$37.5M | -$11.3M | $48.3M |
| Acquisitions (net) | -$33.3M | -$44.0M | $0 | $0 | $0 |
| Debt Repayment | — | — | — | — | — |
| Dividends Paid | — | — | — | — | — |
| Stock Buybacks | -$18.0M | -$12.2M | -$6.6M | -$7.0M | -$11.2M |
| Net Change in Cash | $1.7M | $14.4M | $26.2M | $38.4M | $44.7M |
Analyst Estimates (Annual)
Last updated: Jun 27, 2026 7:59am (just now)| Metric | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|
| Revenue |
$678.0M $673.1M – $681.7M
|
$763.4M $763.4M – $763.4M
|
$847.2M $842.6M – $852.0M
|
$973.5M $968.2M – $979.0M
|
| EBITDA |
$16.4M $16.2M – $16.4M
|
$18.4M $18.4M – $18.4M
|
$20.4M $20.3M – $20.6M
|
$23.5M $23.4M – $23.6M
|
| Net Income |
$17.5M $14.7M – $19.3M
|
$30.6M $19.1M – $36.7M
|
$34.9M $34.6M – $35.1M
|
$49.7M $49.3M – $50.0M
|
| EPS | — | — | — | — |
Growth Trends (YoY %)
Last updated: Jun 22, 2026 4:11pm (4d ago)| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue Growth | +20.4% | +20.8% | +16.5% | +14.9% |
| Gross Profit Growth | +19.5% | +22.1% | +15.7% | +14.4% |
| Operating Income Growth | -177.3% | +37.5% | -50.0% | +91.4% |
| Net Income Growth | -192.6% | +34.5% | -46.8% | +74.4% |
| EBITDA Growth | -144.9% | +72.5% | -128.6% | +187.7% |
Insider Trading (Recent)
All SEC Form 4 codes
- P Purchase
- Open-market or private purchase of shares.
- S Sale
- Open-market or private sale of shares.
- A Award / grant
- Grant or award of securities (RSUs, options, etc.) under Rule 16b-3.
- D Return to issuer
- Securities disposed back to the company under Rule 16b-3.
- F In-kind (tax)
- Shares withheld or delivered to pay the option-exercise price or tax — not an open-market sale.
- I Discretionary
- Discretionary transaction under an employee plan — Rule 16b-3(f).
- M Option exercise
- Exercise or conversion of a derivative (option/RSU) into shares — exempt.
- C Conversion
- Conversion of a derivative security into the underlying shares.
- E Short expiration
- Expiration of a short derivative position.
- H Long expiration
- Expiration or cancellation of a long derivative position with value received.
- O OTM exercise
- Exercise of an out-of-the-money derivative.
- X ITM exercise
- Exercise of an in-the-money or at-the-money derivative.
- G Gift
- Bona fide gift of securities.
- L Small acquisition
- Small acquisition under Rule 16a-6.
- W Inheritance
- Acquisition or disposition by will or the laws of descent.
- Z Voting trust
- Deposit into or withdrawal from a voting trust.
- J Other
- Other acquisition or disposition (explained in a Form 4 footnote).
- K Equity swap
- Transaction in an equity swap or similar instrument.
- U Tender / buyout
- Disposition via tender of shares in a change-of-control transaction.
Compensation-plan codes (A, D, F, M) are routine and rarely directional. Open-market P (buy) and S (sale) carry the most signal.
| Date | Insider | Type | Shares | Price | Value |
|---|---|---|---|---|---|
| 2026-05-20 | Prange Karen | S-Sale | 3,000.00 | $28.65 | $85,950 |
| 2026-05-18 | Prange Karen | A-Award | 6,144.00 | $0.00 | $0 |
| 2026-05-18 | Telman Deborah H | A-Award | 6,144.00 | $0.00 | $0 |
| 2026-05-18 | Yuen Maggie | A-Award | 6,144.00 | $0.00 | $0 |
| 2026-05-18 | Nachman Shlomo | A-Award | 6,144.00 | $0.00 | $0 |
| 2026-05-18 | JOHNSON B KRISTINE | A-Award | 6,144.00 | $0.00 | $0 |
| 2026-05-18 | GROVES REGINA E | A-Award | 6,144.00 | $0.00 | $0 |
| 2026-05-18 | WEHRWEIN SVEN | A-Award | 6,144.00 | $0.00 | $0 |
| 2026-05-18 | WHITE ROBERT S. | A-Award | 6,144.00 | $0.00 | $0 |
| 2026-05-15 | Doraiswamy Vinayak | S-Sale | 5,000.00 | $28.13 | $140,650 |
| 2026-03-12 | Doraiswamy Vinayak | S-Sale | 5,000.00 | $29.83 | $149,150 |
| 2026-03-10 | WHITE ROBERT S. | M-Exempt | 10,000.00 | $14.99 | $149,900 |
| 2026-03-10 | WHITE ROBERT S. | M-Exempt | 10,000.00 | $14.99 | $149,900 |
| 2026-03-06 | CARREL MICHAEL H | G-Gift | 5,000.00 | $0.00 | $0 |
| 2026-03-06 | CARREL MICHAEL H | G-Gift | 1,000.00 | $0.00 | $0 |
| 2026-03-01 | CARREL MICHAEL H | A-Award | 101,280.00 | $0.00 | $0 |
| 2026-03-01 | CARREL MICHAEL H | F-InKind | 72,777.00 | $31.26 | $2.3M |
| 2026-03-01 | CARREL MICHAEL H | A-Award | 68,618.00 | $0.00 | $0 |
| 2026-03-01 | Noznesky Justin J | A-Award | 15,198.00 | $0.00 | $0 |
| 2026-03-01 | Noznesky Justin J | A-Award | 27,991.00 | $0.00 | $0 |
Narrative Economics
market-narrative step).
Delvantic AI Findings
Looking at the raw quarterly tape first: revenue went $116.3M → $115.9M → $124.3M → $123.6M → $136.1M → $134.3M → $140.5M → $141.2M. That's a clean 21% lift over seven quarters with a clear seasonal Q1 dip pattern broken this year (Q1 2026 actually edged above Q4 2025). YoY in the most recent quarter is $141.2M vs $123.6M = 14.2%, slightly decelerating from the 18% they printed in mid-2025 but still solid. More important: the net income line went from -$15.6M in Q4 2024 to roughly breakeven across the last four quarters, with TTM net income now barely negative (-$4.5M) versus -$36.7M for calendar 2024. Operating margin flipped from -8.6% annualized in 2024 to roughly flat in 2025. FCF of $48.3M on $534.5M revenue (9% FCF margin) is the real story the synthesis underweights — this is no longer a cash-burning pre-profit name, it's a freshly cash-generative one trading at 28x trailing FCF and ~3.5x sales.
Where I disagree with the prior models: the "Pre-Flight" thesis claims the market repriced from $43 to $26 on slower adoption or competitive fears, and Synthesis lands on "High Conviction Required" framing this as uncomfortable middle ground. I think both are anchoring on staleness. The TTM cash flow inflection is fresh — FY2025 was the first genuinely FCF-positive year, and Q1 2026 sustained it. At $1.34B market cap with $167M cash and apparently no meaningful debt, EV is ~$1.17B, putting EV/FCF near 24x for a 75% gross margin medical device franchise growing revenue 15% with operating leverage just kicking in. That's not "disconnected from fundamentals" — that's reasonable-to-cheap for the asset profile. The EV/EBITDA of 54x is misleading because EBITDA is suppressed by the tail of stock-comp-heavy losses; FCF tells the truer story.
The contrarian case I'd actually worry about: gross margin is 74.4% versus the 77% peak medical device peers print, and it has been flat-to-down — there's no margin expansion narrative supporting the valuation, only revenue scale. Stock-based compensation is the gap between $48M FCF and -$11M GAAP net income — that's roughly $60M/year of dilution running through, which on a $1.34B cap is ~4.5% annual share creep. The insider activity is also worth flagging more harshly than the models do: nine awards on a single May 2026 date plus two sales in the same week, with no offsetting open-market purchases over the visible window, is consistent with comp-driven liquidation, not conviction. And the "platform-monopoly" narrative is generous — AtriClip is a real franchise but Boston Scientific's Farapulse PFA platform is genuinely cannibalizing the catheter ablation adjacency and could compress AtriCure's TAM growth assumption from low-teens to high-single digits. If revenue growth slips to 10%, the multiple compresses fast.
GPT Critique
An independent review of AtriCure, Inc., reveals a company transitioning from persistent losses to a nascent profitability era. Revenue has steadily grown, illustrating a 21% increase over the past seven quarters, with the latest quarter showing $141.2M in revenue, up 14.2% year-on-year. This growth is commendable given the company's previous challenges, with net income moving from substantial losses to near breakeven in recent quarters. The shift from a -$15.6M net income in Q4 2024 to a modest profit of $108K in Q1 2026 indicates operational improvements, though these are yet to be consistent. The balance sheet shows strength with $167.4M in cash and no debt, supporting the operational shift and potential for strategic investments.
Opus correctly identifies the significance of AtriCure's cash flow inflection, stating that the company is no longer a cash-burning entity. The free cash flow of $48.3M in 2025, equating to a 9% FCF margin, supports this narrative. I agree with Opus's assertion that the current valuation, at approximately 24x EV/FCF, isn't "disconnected from fundamentals" for a company with a 75% gross margin and solid revenue growth. However, I diverge from Opus on the valuation perspective. While Opus sees the company's market repricing as overdone, I believe the market's caution might be warranted given the potential competitive threats and margin pressures highlighted in the data.
Opus argues that the market's transition from $43 to $26 is a stale thesis, suggesting that the recent cash flow improvements warrant a reevaluation. However, the margin expansion narrative remains unconvincing. A gross margin of 74.4%, below the peak of 77% seen in similar companies, coupled with significant stock-based compensation, poses challenges to sustainable profitability. The dilution from stock-based compensation, at approximately 4.5% annually, is a concern that Opus underplays when considering the firm's valuation metrics.
A careful skeptic would argue that while AtriCure shows promise, the risks of competitive pressures and stock dilution are significant. The narrative of becoming a "platform-monopoly" might be overly optimistic, especially with competitors like Boston Scientific presenting viable threats. The absence of consistent insider buying, in contrast to sales, may signal internal caution about future prospects. For AtriCure to justify a higher valuation, it must demonstrate consistent margin improvement and address competitive threats effectively.