Start here if you're new
what it is
AtriCure sells surgical devices that help doctors treat Afib and manage pain after heart surgery.
how it gets paid
Last year Atricure made $535M in revenue. Ablation systems was the main engine at $260M, or 49% of sales.
why it's growing
Revenue grew 14.9% last year. Revenue was the number that mattered because $394M shows demand is there.
what just happened
Revenue hit $394M, but EPS stayed red at -$0.28.
At a glance
B balance sheet — gets the job done, barely
40/100 earnings predictability — expect surprises
385.1x trailing p/e — you're paying up for this one
7.5% return on capital — nothing to write home about
xvary composite: 40/100 — below average
What they do
AtriCure sells surgical devices that help doctors treat Afib (an irregular heartbeat) and manage pain after heart surgery.
Doctors do not switch tools because a brochure looks nicer. AtriCure sits inside procedures for Afib (an irregular heartbeat), and that matters when 37 million people worldwide need treatment. You feel the lock-in when the surgeon already knows the device and the patient is already on the table.
How they make money
$535M
annual revenue · their business grew +14.9% last year
Ablation systems
$260M
Appendage management
$165M
Post-op pain management
$110M
The products that matter
left atrial appendage management
AtriClip
$1.2B market
this is the cleanest moat on the page. a dominant share in a $1.2B market gives atricure procedure-level relevance even though the page does not break out product revenue.
core niche
surgical ablation systems
Isolator
59M afib cases globally
59M global afib cases tell you the clinical need is real. in human-speak: the medical problem is large. your question is how much of that demand becomes procedures atricure actually monetizes.
procedure driver
cryoanalgesia for pain management
cryoICE
12–14% 2026 growth guide
management expects pain management to help support the 12–14% 2026 revenue target. the page is thin on segment profit, so you are still betting on adoption before you can model margins with confidence.
growth swing factor
Key numbers
$535M
annual sales
That is the top line you need to beat before the market cares about stories.
75.0%
gross margin
For every $1 of sales, AtriCure keeps 75 cents before overhead. That is strong for a device maker.
1.8%
operating margin
The business still loses money at the operating line, so growth has not turned into clean profit.
385.1x
trailing p/e
You are paying 385.1 times trailing earnings. The market is pricing in a lot of clean execution.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 4 — safer than 20% of stocks
- price stability 25 / 100
- long-term debt $62M (3% of capital)
- net profit margin 5.1% — keeps 5 cents of every dollar in revenue
- return on equity 8% — $0.08 profit for every $1 investors have put in
B — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in ATRC 3 years ago → it's now worth $8,920.
The index would have given you $14,770.
source: institutional data · total return
What just happened
missed estimates
Revenue hit $394M, but EPS stayed red at -$0.28.
Sales rose 193% vs. prior year, and gross margin held at 75.0%. The catch is that profits still lag the revenue line.
$394M
revenue
$0.28
eps
75.0%
gross margin
the number that mattered
Revenue was the number that mattered because $394M shows demand is there, while the negative EPS shows the profit work is not done.
-
our 2026 and 2027 top- and bottom-line estimates indicate a cautiously optimistic outlook.assuming 2025 revenue and share loss of $530 million and $0.25, respectively, were on point, advances are likely from this year onward.
-
first, company initiatives geared toward improving business conditions ought to gain traction.atricure, like its industry peers, has continued to pare expenses in order to offset inflated costs. investments in innovation have already driven an increase in the company’s addressable markets. atricure’s suite of medical devices includes the encompass line of clamps and clips used during atrial fibrillation procedures.
-
also, the cryosphere portfolio includes products used in postoperative, pain management processes.in the recent past, the company has managed to develop and gain fda approvals for next-generation versions of these products.
-
also, enhancements to existing devices have proven beneficial.
-
the above scenarios should be enhanced by an improved economic backdrop, especially if favorable broader market developments lead to more hospital admissions.
source: company earnings report, 2026
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What could go wrong
the core risk is simple: 12–14% growth holds the story together, but 5.1% net margin leaves little room for a stumble.
med
growth guidance slips
the stock trades at 385.1x trailing earnings while management guides for 12–14% revenue growth in 2026. if growth falls below that range, you're left with a premium multiple and less evidence to support it.
the first thing to break would be valuation, not the balance sheet.
med
margin progress stalls
net margin is 5.1%. that means pricing pressure, selling costs, or procedure mix changes do not need to be dramatic to matter. a company this expensive needs margin expansion, not just more revenue.
small earnings misses hit harder when the earnings base is still small.
med
procedure adoption takes longer than the market wants
AtriClip has a strong niche in a $1.2B market, and international revenue grew 15.4% last quarter. both are encouraging. they still depend on hospitals, surgeons, and reimbursement moving quickly enough to satisfy a high-expectation stock.
you could get the market opportunity right and the stock timing wrong.
med
institutional conviction fades
99.11% institutional ownership means this is a professionally owned stock. that sounds reassuring until estimates get cut or one downgrade changes the mood. crowded ownership works both ways.
liquidity stays there. patience can disappear fast.
385.1x earnings and a 5.1% net margin mean ATRC does not need a disaster to disappoint you — it just needs growth to cool before profitability fully shows up.
source: institutional data · regulatory filings · risk analysis
Pay attention to
checkpoint
next earnings report
you want an early read on whether 12–14% 2026 guidance is holding. after a 385.1x trailing p/e, one soft quarter will get judged quickly.
metric
net margin above 5.1%
revenue grew 15% in 2025. now you need proof that more of each dollar reaches the bottom line.
trend
international growth staying ahead of U.S.
15.4% international growth versus 12.6% in the U.S. is a useful contrast. if that spread holds, the runway gets broader.
risk
estimate cuts or fresh downgrades
with 99.11% institutional ownership, analyst sentiment is not background noise. it is part of the trading setup.
Analyst rankings
earnings predictability
40 / 100
in human-speak, analysts do not see this as a smooth quarterly story yet.
risk profile
4
that sits on the riskier side of the scale, which fits a small-cap med-tech name still trying to turn revenue growth into steadier earnings.
source: institutional data
Institutional activity
institutions have been net buying for 2 consecutive quarters — 99 buyers vs. 95 sellers in 3q2025. total institutional holdings: 49.2M shares. net buying for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$15
$51
$39
current price
$33
target midpoint · 14% from current · 3-5yr high: $65 (+70% · 14% ann'l return)
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