AtriCure Reports Strong First Quarter 2025 Financial Results Driven by Product Innovation and Market Expansion
AtriCure, Inc. (Nasdaq: ATRC), a global leader in developing innovative surgical solutions for the treatment of atrial fibrillation (Afib), left atrial appendage (LAA) management, and post-operative pain management, today announced its financial results for the first quarter of 2025. The results reflect a strong start to the year, marked by robust revenue growth, improved operational performance, and ongoing execution of the company’s strategic initiatives aimed at expanding its footprint in cardiac and thoracic surgical care.
“Our performance in the first quarter reflects outstanding execution of several new product launches and the strength of our overall business,” said Michael Carrel, President and Chief Executive Officer of AtriCure. “As we shared at our recent Analyst and Investor Day, our path forward is rooted in innovation, the generation of compelling clinical evidence, and increasing therapy awareness. These pillars are enabling us to bring life-improving technologies to more healthcare providers and patients around the world, while expanding our profitability profile.”
First Quarter 2025 Highlights
AtriCure delivered total revenue of $123.6 million in the first quarter of 2025, representing a 13.6% increase over the $108.9 million reported in the same period in 2024. On a constant currency basis, the growth was slightly higher at 14.1%, underscoring the strength of the company’s product portfolio and its continued international expansion.
The company’s performance was fueled by broad-based demand across its three primary therapeutic categories—Afib treatment, LAA management, and post-operative pain management. Growth was supported by ongoing physician adoption of AtriCure’s innovative devices, including newer launches and established products that continue to gain traction in both domestic and international markets.
Revenue Breakdown: U.S. and International Growth
In the United States, revenue totaled $101.1 million, a 12.1% increase from the $90.2 million reported in the first quarter of 2024. This growth was primarily driven by strong performance in three key product categories:
- EnCompass® Clamp: Continued strong utilization in open ablation procedures for the treatment of persistent and long-standing persistent Afib.
- cryoSPHERE MAX™ Probes: A next-generation cryoablation solution offering broader surface area coverage for improved outcomes in post-operative pain management.
- AtriClip® Flex·Mini™ Device: Used for appendage management, this product continues to demonstrate strong physician uptake due to its design and clinical efficacy.
International revenue reached $22.5 million, an increase of 20.8% compared to the $18.6 million generated during the same period last year. On a constant currency basis, international revenue grew by 23.9%, reflecting accelerated adoption in key geographies across Europe, Asia-Pacific, and Latin America.
“We’re seeing strong international momentum in both mature and emerging markets,” added Carrel. “Our global commercial teams have done a tremendous job of educating providers, supporting clinical utilization, and ensuring timely access to our technologies.”
Profitability and Margin Expansion
AtriCure’s gross profit for the first quarter totaled $92.6 million, up from $81.3 million in the first quarter of 2024. The gross margin improved to 74.9%, an increase of 27 basis points year-over-year, primarily due to favorable product mix and ongoing efficiency improvements in manufacturing and distribution.
Operating expenses, including investments in R&D, sales and marketing, and administrative infrastructure, contributed to a loss from operations of $6.0 million for the quarter. However, this represents a substantial improvement from the $10.9 million loss in Q1 2024, reflecting improved leverage across the company’s cost base.
Net loss attributable to shareholders was $0.14 per share, on both a basic and diluted basis, compared to a net loss of $0.28 per share in the first quarter of 2024. This year-over-year improvement highlights the company’s continued progress toward achieving sustained profitability.
Adjusted EBITDA and Non-GAAP Metrics
For the first quarter of 2025, Adjusted EBITDA was $8.8 million, a significant increase from $2.8 million in the first quarter of 2024. The company also reported an adjusted loss per share of $0.14, versus $0.25 in the prior year period.
These non-GAAP metrics exclude certain one-time items and provide a clearer picture of AtriCure’s operational progress and underlying business strength. Reconciliations of these non-GAAP figures to the most directly comparable GAAP measures are provided in the accompanying financial tables included in the full earnings release.
Strategic Outlook for 2025
AtriCure reaffirmed its confidence in achieving continued growth and profitability throughout 2025. The company provided updated financial guidance for the full year, projecting:
- Revenue between $517 million and $527 million, representing a year-over-year growth rate of approximately 10% to 12%.
- Adjusted EBITDA in the range of $44 million to $46 million, up from $31 million in 2024, as the company continues to scale.
- Adjusted loss per share between $0.50 and $0.55, reflecting improved operating leverage and strategic investments in growth areas.
Additionally, the company expects to generate modest positive cash flow for the full year, a significant milestone that further strengthens AtriCure’s financial foundation and positions it for future investments in innovation and global expansion.
Innovation, Clinical Evidence, and Therapy Awareness Remain Core Drivers
Throughout 2025, AtriCure plans to continue expanding its market presence through a strategic focus on three key pillars:
- Innovation: The company remains committed to developing new and improved surgical tools, with several product launches planned for later in the year. These are aimed at enhancing procedural efficiency and clinical outcomes in Afib and pain management surgeries.
- Clinical Evidence: AtriCure continues to invest heavily in clinical trials and real-world data collection to build the body of evidence supporting its technologies. This commitment not only supports regulatory approvals but also drives broader reimbursement and adoption globally.
- Therapy Awareness: Through education programs, hands-on training, and partnerships with leading hospitals and medical societies, AtriCure is increasing awareness of surgical treatments for Afib and related conditions. These efforts are helping to expand the overall treatment market and ensure that more patients receive life-changing therapies.
AtriCure plans to hold a conference call to discuss these results and provide additional insights into its outlook. Investors, analysts, and stakeholders are encouraged to review the full earnings release and presentation materials available on the company’s investor relations website.
