AtriCure achieved a 77.4% gross margin in 2026Q1, reflecting strong product value despite the ongoing challenge of balancing $11.3 million in stock-based compensation against modest GAAP profitability.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 |
|---|
| Sales/Revenue | 552.16M | 534.53M | 465.31M | 399.25M | 330.38M | 274.33M | 206.53M | 230.81M | 201.63M | 174.72M | 155.11M | 129.75M | 107.45M | 81.89M | 70.25M | 64.4M | 59.01M | 54.53M | 55.26M | 48.31M | 38.24M | 30.96M | 19.16M |
| Revenue Growth % | 15.01% | 14.88% | 16.55% | 20.84% | 20.43% | 32.83% | -10.52% | 14.47% | 15.4% | 12.64% | 19.54% | 20.75% | 31.22% | 16.57% | 9.08% | 9.15% | 8.2% | -1.31% | 14.38% | 26.32% | 23.54% | 61.6% | - |
| Cost of Goods Sold | 135.46M | 136.79M | 117.78M | 98.88M | 84.44M | 68.47M | 57.22M | 60.47M | 54.51M | 48.55M | 44.01M | 36.88M | 31.7M | 22.33M | 20.23M | 17.41M | 13.62M | 12.75M | 13.22M | 10.14M | 7.63M | 8.06M | 5.2M |
| COGS % of Revenue | - | 25.59% | 25.31% | 24.77% | 25.56% | 24.96% | 27.71% | 26.2% | 27.03% | 27.79% | 28.37% | 28.42% | 29.5% | 27.26% | 28.8% | 27.03% | 23.08% | 23.38% | 23.93% | 20.98% | 19.94% | 26.03% | 27.15% |
| Gross Profit | 416.7M | 397.74M | 347.52M | 300.37M | 245.94M | 205.86M | 149.31M | 170.34M | 147.12M | 126.16M | 111.1M | 92.88M | 75.75M | 59.56M | 50.01M | 47M | 45.39M | 41.78M | 42.03M | 38.17M | 30.62M | 22.9M | 13.96M |
| Gross Margin % | 75.47% | 74.41% | 74.69% | 75.23% | 74.44% | 75.04% | 72.29% | 73.8% | 72.97% | 72.21% | 71.63% | 71.58% | 70.5% | 72.74% | 71.2% | 72.97% | 76.92% | 76.62% | 76.07% | 79.02% | 80.06% | 73.97% | 72.85% |
| Gross Profit Growth % | - | 14.45% | 15.7% | 22.13% | 19.47% | 37.88% | -12.34% | 15.78% | 16.61% | 13.56% | 19.62% | 22.61% | 27.18% | 19.09% | 6.42% | 3.54% | 8.63% | -0.59% | 10.11% | 24.68% | 33.7% | 64.1% | - |
| Operating Expenses | 418.67M | 401.19M | 387.54M | 327.05M | 288.61M | 150.66M | 193.54M | 203.46M | 164.25M | 151.14M | 142.24M | 119.59M | 92.11M | 70.45M | 57.21M | 51.73M | 48.58M | 50.48M | 53.03M | 50.74M | 45.39M | 33.7M | 19.61M |
| OpEx % of Revenue | - | 75.05% | 83.29% | 81.92% | 87.36% | 54.92% | 93.71% | 88.15% | 81.46% | 86.51% | 91.7% | 92.17% | 85.72% | 86.04% | 81.44% | 80.32% | 82.33% | 92.57% | 95.97% | 105.03% | 118.68% | 108.87% | 102.35% |
| Selling, General & Admin | 319.51M | 311.02M | 291.36M | 253.14M | 231.27M | 204.65M | 150.47M | 162.23M | 129.52M | 117M | 106.42M | 93.85M | 73.51M | 57.01M | 45.06M | 39.87M | 37.05M | 35.11M | 42.42M | 39.75M | 33.17M | 24.59M | 15.19M |
| SG&A % of Revenue | - | 58.19% | 62.62% | 63.4% | 70% | 74.6% | 72.86% | 70.29% | 64.24% | 66.96% | 68.61% | 72.33% | 68.41% | 69.62% | 64.15% | 61.91% | 62.79% | 64.39% | 76.77% | 82.29% | 86.74% | 79.45% | 79.27% |
| Research & Development | 99.16M | 90.17M | 96.18M | 73.92M | 57.34M | 48.51M | 43.07M | 41.23M | 34.72M | 34.14M | 35.82M | 25.74M | 18.6M | 13.44M | 12.15M | 11.86M | 11.53M | 11.41M | 10.61M | 10.99M | 12.22M | 9.11M | 4.42M |
| R&D % of Revenue | - | 16.87% | 20.67% | 18.51% | 17.35% | 17.68% | 20.85% | 17.86% | 17.22% | 19.54% | 23.1% | 19.84% | 17.31% | 16.41% | 17.29% | 18.41% | 19.54% | 20.93% | 19.2% | 22.74% | 31.94% | 29.42% | 23.08% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | -102.5M | 0 | 0 | 0 | 0 | 0 | -456K | 182K | -553K | -286K | 0 | 0 | 3.96M | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -1.97M | -3.45M | -40.01M | -26.68M | -42.67M | 55.2M | -44.23M | -33.12M | -17.13M | -24.98M | -31.14M | -26.72M | -16.36M | -10.89M | -7.2M | -4.73M | -3.19M | -15.51M | -11M | -12.57M | -14.77M | -10.8M | -5.65M |
| Operating Margin % | -0.36% | -0.64% | -8.6% | -6.68% | -12.92% | 20.12% | -21.42% | -14.35% | -8.49% | -14.3% | -20.07% | -20.59% | -15.23% | -13.3% | -10.25% | -7.35% | -5.41% | -28.44% | -19.9% | -26.02% | -38.62% | -34.9% | -29.51% |
| Operating Income Growth % | - | 91.39% | -49.96% | 37.47% | -177.29% | 224.81% | -33.55% | -93.39% | 31.43% | 19.78% | -16.53% | -63.33% | -50.22% | -51.31% | -52.16% | -48.21% | 79.42% | -41.04% | 12.49% | 14.91% | -36.72% | -91.11% | - |
| EBITDA | 13.48M | 17.08M | -21.28M | -11.87M | -30.96M | 65.65M | -34.69M | -23.76M | -8.37M | -15.85M | -21.84M | -20.44M | -11.59M | -8.87M | -5.3M | -2.81M | -828.52K | -12.74M | -8.32M | -10.25M | -12.88M | -9.25M | -4.69M |
| EBITDA Margin % | 2.44% | 3.2% | -4.57% | -2.97% | -9.37% | 23.93% | -16.79% | -10.29% | -4.15% | -9.07% | -14.08% | -15.75% | -10.78% | -10.83% | -7.54% | -4.36% | -1.4% | -23.36% | -15.05% | -21.21% | -33.69% | -29.88% | -24.48% |
| EBITDA Growth % | 162.32% | 180.28% | -79.28% | 61.66% | -147.16% | 289.26% | -46.01% | -183.72% | 47.18% | 27.42% | -6.83% | -76.44% | -30.61% | -67.41% | -88.68% | -238.97% | 93.5% | -53.19% | 18.84% | 20.47% | -39.31% | -97.19% | - |
| D&A (Non-Cash Add-back) | 15.45M | 20.53M | 18.73M | 14.81M | 11.71M | 10.44M | 9.55M | 9.37M | 8.75M | 9.13M | 9.3M | 6.28M | 4.77M | 2.02M | 1.9M | 1.92M | 2.36M | 2.77M | 2.68M | 2.32M | 1.89M | 1.55M | 962.36K |
| EBIT | 2.77M | -4.29M | -37.27M | -22.92M | -41.21M | 55.3M | -43.16M | -30.88M | -16.3M | -24.61M | -31.5M | -26.88M | -15.87M | -10.88M | -6.68M | -4.61M | -2.91M | -15.74M | -9.86M | -12.57M | -14.77M | -10.8M | -5.64M |
| Net Interest Income | -1.65M | -1.4M | -1.97M | -3.13M | -2.99M | -4.45M | -3.78M | -1.71M | -3.6M | -2.04M | -1.57M | -102K | -209K | -550K | -791K | -798K | -840K | -761.24K | 18.21K | 0 | 0 | 0 | 0 |
| Interest Income | 4.25M | 4.48M | 4.43M | 3.79M | 1.99M | 466K | 1.1M | 2.4M | 1.01M | 227K | 227K | 190K | 96K | 16K | 11K | 15.93K | 22.22K | 51.09K | 382.29K | 0 | 0 | 0 | 0 |
| Interest Expense | 5.9M | 5.88M | 6.41M | 6.92M | 4.99M | 4.92M | 4.88M | 4.11M | 4.61M | 2.26M | 1.8M | 292K | 305K | 566K | 802K | 814.43K | 861.57K | 812.33K | 364.07K | 0 | 0 | 0 | 0 |
| Other Income/Expense | -1.29M | -6.72M | -3.66M | -3.16M | -3.53M | -4.82M | -3.81M | -1.87M | -3.78M | -1.9M | -2.16M | -456K | 182K | -553K | -286K | -693.62K | -544.17K | -1.04M | 773.78K | 1.31M | 1.05M | -2.1M | -3.8M |
| Pretax Income | -3.26M | -10.16M | -43.67M | -29.85M | -46.2M | 50.39M | -48.04M | -34.99M | -20.91M | -26.88M | -33.3M | -27.18M | -16.18M | -11.44M | -7.48M | -5.42M | -3.77M | -16.55M | -10.22M | -11.25M | -12.68M | -12.64M | 0 |
| Pretax Margin % | -0.59% | -1.9% | -9.39% | -7.48% | -13.98% | 18.37% | -23.26% | -15.16% | -10.37% | -15.38% | -21.47% | -20.94% | -15.06% | -13.98% | -10.65% | -8.42% | -6.39% | -30.35% | -18.5% | -23.29% | -33.16% | -40.82% | - |
| Income Tax | 1.33M | 1.28M | 1.02M | 591K | 268K | 188K | 114K | 199K | 226K | 14K | 40K | 36K | 33K | 18K | 50K | 30.89K | 19.05K | -58.64K | -57.25K | -1.31M | 1.05M | 46.93K | 3.8M |
| Effective Tax Rate % | -40.85% | -12.64% | -2.34% | -1.98% | -0.58% | 0.37% | -0.24% | -0.57% | -1.08% | -0.05% | -0.12% | -0.13% | -0.2% | -0.16% | -0.67% | -0.57% | -0.5% | 0.35% | 0.56% | 11.68% | -8.29% | -0.37% | - |
| Net Income | -4.59M | -11.45M | -44.7M | -30.44M | -46.47M | 50.2M | -48.16M | -35.19M | -21.14M | -26.89M | -33.34M | -27.21M | -16.21M | -11.46M | -7.53M | -5.46M | -3.79M | -16.49M | -10.17M | -11.25M | -13.72M | -12.68M | -9.45M |
| Net Margin % | -0.83% | -2.14% | -9.61% | -7.62% | -14.06% | 18.3% | -23.32% | -15.25% | -10.48% | -15.39% | -21.49% | -20.97% | -15.09% | -14% | -10.72% | -8.47% | -6.43% | -30.25% | -18.4% | -23.29% | -35.87% | -40.97% | -49.34% |
| Net Income Growth % | 87.97% | 74.39% | -46.85% | 34.49% | -192.56% | 204.24% | -36.83% | -66.5% | 21.4% | 19.34% | -22.51% | -67.86% | -41.43% | -52.14% | -38.1% | -43.88% | 77.01% | -62.24% | 9.65% | 17.96% | -8.16% | -34.18% | - |
| Net Income (Continuing) | -4.59M | -11.45M | -44.7M | -30.44M | -46.47M | 50.2M | -48.16M | -35.19M | -21.14M | -26.89M | -33.34M | -27.21M | -16.21M | -11.46M | -7.53M | -5.46M | -3.79M | -16.49M | -10.17M | -11.25M | -13.72M | -12.68M | -9.45M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.09 | -0.24 | -0.95 | -0.66 | -1.02 | 1.09 | -1.14 | -0.94 | -0.62 | -0.83 | -1.05 | -0.97 | -0.61 | -0.56 | -0.47 | -0.35 | -0.25 | -1.13 | -0.72 | -0.84 | -1.13 | -2.10 | -5.17 |
| EPS Growth % | 87.93% | 74.74% | -43.94% | 35.29% | -193.58% | 195.61% | -21.28% | -51.61% | 25.3% | 20.95% | -8.25% | -59.02% | -8.93% | -19.15% | -34.29% | -40% | 77.88% | -56.94% | 14.29% | 25.66% | 46.19% | 59.38% | - |
| EPS (Basic) | - | -0.24 | -0.95 | -0.66 | -1.02 | 1.11 | -1.14 | -0.94 | -0.62 | -0.83 | -1.05 | -0.97 | -0.61 | -0.56 | -0.47 | -0.35 | -0.25 | -1.13 | -0.72 | -0.84 | -1.13 | -2.10 | -5.17 |
| Diluted Shares Outstanding | 49.05M | 47.75M | 46.97M | 46.31M | 45.74M | 46.04M | 42.13M | 37.59M | 34.09M | 32.39M | 31.61M | 28.06M | 26.37M | 20.43M | 16.19M | 15.67M | 15.1M | 14.56M | 14.19M | 13.38M | 12.14M | 6.03M | 1.83M |
| Basic Shares Outstanding | 48.33M | 47.75M | 46.97M | 46.31M | 45.74M | 45.07M | 42.13M | 37.59M | 34.09M | 32.39M | 31.61M | 28.06M | 26.37M | 20.43M | 16.19M | 15.67M | 15.1M | 14.56M | 14.19M | 13.38M | 12.14M | 6.03M | 1.83M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Competitive PFA Technology Adoption
According to the most recent quarterly filings, AtriCure maintained a 14.3% year-over-year revenue growth rate, demonstrating consistent demand for its specialized cardiac surgical devices despite the broader industry shift toward alternative ablation technologies that may challenge the company's current market positioning in the electrophysiology space.
The company's ability to sustain double-digit top-line growth suggests that its core AtriClip and EPi-Sense franchises remain deeply embedded in surgical workflows. However, investors should monitor whether this growth trajectory can persist as competitors accelerate the adoption of Pulsed Field Ablation, which may eventually alter the standard of care for atrial fibrillation.
As reported in financial statements, AtriCure achieved a robust 77.4% gross margin in the most recent quarter, reflecting the significant intellectual property value and specialized manufacturing requirements inherent in its high-end cardiac surgical tools compared to lower-margin, commodity-based medical device competitors in the broader healthcare sector.
This elevated gross margin profile provides a substantial buffer for the company to absorb potential pricing pressures or inflationary input costs. The consistency of these margins suggests that the company maintains strong pricing power, likely derived from its unique FDA-labeled indications for persistent atrial fibrillation.
Based on reported figures, AtriCure's operating margin reached a positive 0.4% in 2026Q1, marking a significant improvement from the double-digit negative margins observed in previous periods and indicating that the company is finally beginning to realize meaningful operating leverage from its established direct sales force infrastructure.
The transition to positive operating income suggests that the heavy investment phase in clinical trials and sales support is beginning to yield returns. If this trend continues, it may indicate that the company is successfully moving toward a self-sustaining financial model that is less reliant on external capital.
Analysis of recent income statements reveals that stock-based compensation remains a persistent expense, totaling $11.3 million in the most recent quarter, which effectively offsets the modest GAAP net income and warrants caution regarding the underlying cash-generative capacity of the business at this stage of its lifecycle.
While the company has reached a near-breakeven point on a GAAP basis, the reliance on equity-based incentives suggests that true economic profitability remains elusive. Investors should carefully distinguish between operational improvements and the impact of non-cash compensation when evaluating the company's progress toward long-term earnings sustainability.
Data from recent periods suggests that while revenue growth remains stable, the company faces significant risks from the rapid adoption of Pulsed Field Ablation by larger competitors, which could potentially compress margins if AtriCure is forced to lower prices to maintain its current market share.
The reliance on a specialized direct sales force creates a high fixed-cost structure that could become a liability if procedure volumes fail to scale as expected. Should the market shift toward less invasive, non-surgical alternatives, the company's current business model may face structural headwinds that are not yet fully reflected in the valuation.
Quick answers to the most common questions about buying ATRC stock.
For fiscal year 2025, AtriCure, Inc. (ATRC) reported total revenue of $534.5M. This represents a 2690.2% increase compared to $19.2M in 2004.
AtriCure, Inc. (ATRC) reported a net loss of $11.4M for the fiscal year ending 2025.
AtriCure, Inc. (ATRC) reported an operating income of $-3.4M, resulting in an operating profit margin of -0.6%. This margin reflects the operational efficiency of the business before interest and taxes.
AtriCure, Inc. (ATRC) generated $397.7M in gross profit for the year, representing a gross profit margin of 74.4%. This demonstrates the company's core pricing power and production efficiency.