AtriCure, Inc. (NASDAQ:ATRC) reported fourth‑quarter 2025 revenue of $140.5 million, up 13.1% on a reported basis and 12.1% on a constant‑currency basis versus the same period in 2024. Adjusted earnings per share of $0.04 beat consensus estimates of –$0.04, a $0.08 upside that reflects strong cost control and a favorable product mix. Gross margin expanded to 75.0%, a 45‑basis‑point improvement over Q4 2024, driven by higher‑margin product launches and a shift toward premium offerings.
The quarter’s revenue growth was largely powered by the launch of cryoSPHERE MAX, AtriClip FLEX‑Mini, and the EnCompass clamp, which together contributed a significant portion of the top‑line increase. At the same time, the company experienced a decline in its minimally invasive atrial fibrillation (AFib) device segment, a headwind attributed to the adoption of pulseless AFib (PFA) technology that has reduced demand for traditional devices. Reimbursement uncertainty in the United Kingdom also weighed on international growth.
Gross margin expansion was supported by a higher mix of high‑margin products and improved operational leverage. CFO Angela L. Wirick noted that “Gross margin for the fourth quarter of 2025 was 75%, an increase of 45 basis points from 2024, driven primarily by favorable product mix.” The company also reported adjusted EBITDA of $19.9 million, up from $12.7 million in Q4 2024, and net income of $1.8 million versus a $15.6 million loss in the prior year.
Management raised its 2026 outlook, projecting full‑year revenue of $600 million to $610 million and adjusted EBITDA of $80 million to $82 million—an increase that signals confidence in sustaining the current growth trajectory. CFO Wirick said, “Consistent with our guidance in early January, we expect to achieve between $600 million and $610 million in revenue for the year, translating to growth of 12% to 14% over full‑year 2025 results.”
CEO Michael H. Carrel emphasized the company’s momentum, stating, “2025 was an exceptional year at AtriCure, Inc. with achievements across our business. We closed the year with total revenue of $534 million, reflecting 15% growth over 2024, and made substantial improvements to profitability and cash generation, with nearly $62 million in adjusted EBITDA and $45 million in cash generated in 2025.” He added, “Entering 2026, we remain focused on driving durable growth, expanding margins and executing on strategic priorities that enhance AtriCure’s leadership position across our markets.”
The results underscore AtriCure’s ability to generate robust top‑line growth while managing headwinds in legacy segments. The company’s focus on high‑margin product launches and disciplined cost control has positioned it to maintain profitability and support an upward revision of its 2026 guidance, reinforcing investor confidence in its long‑term execution strategy.
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