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The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the accompanying Condensed Consolidated Financial Statements and notes thereto contained in Item 1 of Part I of this Form 10-Q and our audited consolidated financial statements and notes thereto as well as the information under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” as of and for the year ended December 31, 2025 included in our Form 10-K filed with the Securities and Exchange Commission (SEC).
−Removed: This discussion and analysis is intended to provide an understanding of our results of operations, financial condition and cash flows and contains forward-looking statements reflecting current expectations that involve risks, uncertainties and assumptions.
+Added: This discussion and analysis are intended to provide an understanding of our results of operations, financial condition and cash flows and contains forward-looking statements reflecting current expectations that involve risks, uncertainties and assumptions.
The actual results may differ materially from those anticipated in these forward-looking statements as a result of many factors, including but not limited to those set forth under Item 1A “Risk Factors,” the cautionary statement regarding forward-looking statements below and elsewhere in this Form 10-Q.
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Such statements are based largely upon current expectations of AtriCure.
−Removed: Reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to different materially from those expressed or implied.
+Added: Any forward-looking statement speaks only as of the date made.
+Added: Reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to differ materially from those expressed or implied.
Forward-looking statements are based on AtriCure’s expectations, experience and perception of current conditions, trends, expected future developments and other factors it believes are appropriate under the circumstances and are subject to numerous risks and uncertainties, many of which are beyond AtriCure’s control.
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We undertake no obligation to publicly update or revise any forward-looking statements to reflect new information or future events or otherwise unless required by law.
−Removed: We are a leading innovator in treatments for atrial fibrillation (Afib), left atrial appendage (LAA) management and post-operative pain management.
−Removed: Our ablation and left atrial appendage management (LAAM) products are used by physicians during both open-heart and minimally invasive surgical procedures.
−Removed: In open-heart procedures, the physician is performing heart surgery for other conditions and our products are used in conjunction with (or “concomitant” to) such a procedure.
−Removed: Minimally invasive procedures are performed on a standalone basis, and often include multi-disciplinary or “hybrid” approaches, combining surgical procedures using AtriCure ablation and LAAM products with catheter ablation procedures performed by electrophysiologists.
−Removed: Our pain management devices are used by physicians to ablate peripheral nerves, providing pain relief in
−Removed: cardiac, thoracic and amputation procedures.
−Removed: We anticipate that substantially all of our revenue for the foreseeable future will relate to products we currently sell or are in the process of developing.
+Added: We are a leading innovator in surgical treatments and therapies for atrial fibrillation, left atrial appendage management and post-operative pain management.
+Added: Our cardiac ablation and left atrial appendage management (LAAM) products are used by physicians during both open-heart and minimally invasive surgical procedures.
+Added: In open-heart procedures, the patient is undergoing heart surgery for other conditions, such as a mitral or aortic valve repair or a coronary artery bypass, and our products are used by physicians in conjunction with (or “concomitant” to) such a procedure.
+Added: Minimally invasive procedures are performed on a standalone basis, and often include multi-disciplinary or “hybrid” approaches, combining surgical procedures using our ablation and LAAM products with catheter ablation performed by an electrophysiologist.
+Added: Our pain management solutions are used by physicians to freeze nerves during cardiac, thoracic or amputation surgical procedures.
+Added: We anticipate that
+Added: substantially all of our revenue for the foreseeable future will relate to products we currently sell or are in the process of developing.
We sell our products to medical centers through our direct sales force in the United States, Germany, France, the United Kingdom, the Benelux region, Australia and Canada.
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Recent Developments
−Removed: In 2025, we continued to realize strong growth across most of our key franchises and geographies, resulting from our strategic initiatives of product innovation, clinical science and physician education and training to expand awareness and adoption.
−Removed: Our worldwide revenue for the nine months ended September 30, 2025 was $394,028, representing an increase of $52,998, or 15.5% (15.3% on a constant currency basis), over the first nine months of 2024, highlighted by accelerated adoption in our appendage management and pain management product lines, where recent product launches contributed to growth.
+Added: During the first quarter of 2026, we realized strong growth resulting from our strategic initiatives of product innovation, clinical science and physician education and training to expand awareness and adoption.
+Added: Our worldwide revenue for the three months ended March 31, 2026 was $141,249, representing an increase of $17,629, or 14.3% (12.8% on a constant currency basis), over the first three months of 2025, highlighted by accelerated adoption in our pain management, appendage management, and open ablation product lines, where recent product innovation contributed to growth.
There are limited competitors in our key markets;
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PRODUCT INNOVATION .
−Removed: We continue to invest in research and development of new products and pursue regulatory approvals to market and sell globally across all franchises.
−Removed: Pain management.
−Removed: During the third quarter of 2025, we launched the cryoICE® cryoXT™ probe in the United States.
−Removed: The cryoXT probe is a cryoablation device designed specifically for Cryo Nerve Block therapy to alleviate pain in amputation patients.
−Removed: This device temporarily blocks pain by freezing target peripheral nerves, preventing the conduction pathway at the site of amputation.
+Added: We continue to see growth from our most recent product innovations.
+Added: We remain focused on sustaining this momentum by advancing our internal research and product development efforts with the objective of enhancing our existing portfolio and supporting the introduction of future products while pursuing regulatory approvals to market and sell globally across all franchises.
+Added: In April 2026, we received CE mark approval under EU MDR in Europe for our AtriClip FLEX-Mini ® and PRO-Mini ® devices and expect to launch both products in Europe later this year.
CLINICAL SCIENCE .
−Removed: We invest in studies to expand labeling claims, support various indications for our products and gather and publish clinical data for therapies and procedures involving our products.
+Added: We continue to invest in studies to expand labeling claims, support various indications for our products and gather and publish clinical data for therapies and procedures involving our products.
The Left Atrial Appendage Exclusion for Prophylactic Stroke Reduction (LeAAPS) IDE clinical trial is designed to evaluate the effectiveness of prophylactic LAA exclusion using the AtriClip LAA Exclusion System for the prevention of ischemic stroke or systemic arterial embolism in cardiac surgery patients without pre-operative AF diagnosis who are at risk for these events.
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This prospective, multi-center, multi-national randomized trial evaluates safety at 30 days post-procedure for POAF and secondary effectiveness for Clinical AF through three years.
−Removed: The trial provides enrollment of up to 960 subjects.
−Removed: FDA approved the trial protocol during the fourth quarter of 2024 and during October 2025, we completed the first patient enrollment.
+Added: The trial provides enrollment of up to 960 subjects across 75 sites.
Site initiation and enrollment is ongoing.
−Removed: Our professional education team conducts a variety of in-person and virtual training programs for physicians and other healthcare professionals.
−Removed: These training methods ensure access to continuing education and awareness of our products and related procedures.
−Removed: During 2025, we launched new and innovative training methods for physicians that include virtual proctoring and observerships as well as the ability to review case-in-a-box on a peer-to-peer basis.
−Removed: We have also extended our courses for Advanced Practice Providers, incorporating new content and workshops.
−Removed: We also recently launched our first electronic manual created by physicians for physicians that provides an outline for best practices in developing and growing a Hybrid Ablation Program.
−Removed: These new training events along with our traditional on-demand, local and national training courses allow for collaborative, hands-on engagement with our physician partners and other healthcare professionals.
−Removed: Additionally, our professional education courses continue to be enhanced by the use of simulation models or synthetic cadavers, known as CADets.
−Removed: These reusable CADets provide a sustainable alternative to the use of cadaver specimens, in addition to increasing the efficiencies of education and more cost effective training alternatives.
+Added: Our professional education team conducts in-person and virtual training programs for physicians and other healthcare professionals to support continuing education and product and procedural awareness.
+Added: Over the last year, we launched new training methods including virtual proctoring and observerships, peer-to-peer case-in-a-box reviews and expanded courses for Advanced Practice Providers, incorporating new content and workshops.
+Added: We also launched our first physician-developed electronic manual outlining best practices in developing and growing a Hybrid Ablation Program.
+Added: These offerings, together with our traditional on-demand, local and national training courses, provide collaborative, hands-on engagement.
+Added: Most recently, we added a live streaming platform in which healthcare professionals can view the courses without needing to leave their practice.
+Added: Our professional education courses are further enhanced by the use of simulation models or synthetic cadavers, known as CADets.
+Added: These reusable CADets provide a sustainable and cost-effective alternative to cadaver specimens while improving education efficiency.
Results of Operations
−Removed: Three months ended September 30, 2025 compared to three months ended September 30, 2024
+Added: Three months ended March 31, 2026 compared to three months ended March 31, 2025
The following table sets forth, for the periods indicated, our results of operations expressed as dollar amounts and as percentages of revenue:
Three Months Ended
−Removed: September 30,
Revenues Amount % of
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Other expense, net (132) (0.1) (554) (0.4)
−Removed: Loss before income tax expense (86) (0.1) (7,531) (6.5)
+Added: Income (loss) before income tax expense 394 0.3 (6,508) (5.3)
Income tax expense 286 0.2 239 0.2
−Removed: Net loss $ (267) (0.2) % $ (7,853) (6.8) %
+Added: Net income (loss)
+Added: $ 108 0.1 % $ (6,747) (5.5) %
The following table sets forth, for the periods indicated, our revenue by product type and geography expressed as dollar amounts and the corresponding change in such revenues between periods, in both dollars and percentages:
Three Months Ended
−Removed: September 30, Change
+Added: March 31, Change
2026 2025 Amount %
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Worldwide revenue increased 14.3% (12.8% on a constant currency basis).
−Removed: In the United States, sales grew in most product lines with significant contribution from our AtriClip ® FLEX-Mini™ device for appendage management, our EnCompass ® clamp for open ablation and our cryoSPHERE MAX ™ probe for post-operative pain management.
+Added: In the United States, we saw a 14.9% increase in revenue driven by key product lines:
+Added: AtriClip ® FLEX-Mini and PRO-Mini devices for appendage management, cryoSPHERE ® MAX ™ probe for post-operative pain management and EnCompass ® clamp for open ablation.
Minimally invasive ablation sales declined during the quarter from continued reduction in Hybrid procedures as physicians adopt PFA catheters to treat patients.
−Removed: International sales increased 22.0% (17.9% on a constant currency basis), with broad growth across all of our franchises and most geographic regions.
+Added: International sales increased 11.5% (3.3% on a constant currency basis), with growth in appendage management, open ablation and pain management franchises.
+Added: Additionally, we saw strong growth in most of our direct markets offset by distributor channels.
Revenue reported on a constant currency basis is a non-GAAP measure calculated by applying previous period foreign currency exchange rates, which are determined by the average daily exchange rate, to each of the comparable periods.
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Cost of revenue and gross margin.
−Removed: Cost of revenue increased $3,820 primarily reflecting higher sales volumes.
−Removed: Gross margin increased 59 basis points, driven by favorable product mix.
+Added: Cost of revenue increased $946 reflecting higher sales volumes.
+Added: Gross margin increased 246 basis points, driven primarily by favorable product and geographic mix.
Research and development expenses.
−Removed: Research and development expenses increased $1,932 or 9.2%, primarily from a $2,081 increase in personnel costs, including share-based compensation and travel expenses.
−Removed: Clinical expenses overall decreased $517 driven by the completion of the LeAAPS trial enrollment, partially offset by patient enrollments in registries and continued LeAAPS trial follow-up activities.
+Added: Research and development expenses increased $1,707 or 7.6%, driven by an $818 increase in regulatory filing and submission costs as a result of timing of product development and clinical initiatives and $738 increase in personnel costs, including share-based compensation.
Selling, general and administrative expenses.
−Removed: Selling, general and administrative expenses increased $4,994, or 6.8%, driven by a $5,629 increase in personnel costs, including travel and share-based compensation, as a result of growth in headcount and variable compensation.
−Removed: These increases were partially offset by lower consulting costs of $1,071.
−Removed: Other income (expense).
+Added: Selling, general and administrative expenses increased $8,496, or 11.2%, driven by a $6,499 increase in personnel costs, including travel and share-based compensation, largely as a result of growth in headcount to support sales growth.
+Added: Additional spending related to meeting costs increasing $788 and marketing and training costs increasing $679 driven by expanded tradeshow and training activities.
+Added: Other expense.
Other expense consists primarily of net interest expense.
−Removed: Nine months ended September 30, 2025 compared to nine months ended September 30, 2024
−Removed: The following table sets forth, for the periods indicated, our results of operations expressed as dollar amounts and as percentages of revenue:
−Removed: Nine Months Ended
−Removed: September 30,
−Removed: Revenues Amount % of
−Removed: Revenue $ 394,028 100.0 % $ 341,030 100.0 %
−Removed: Cost of revenue 98,586 25.0 86,125 25.3
−Removed: Gross profit 295,442 75.0 254,905 74.7
−Removed: Operating expenses:
−Removed: Research and development expenses 74,704 19.0 61,221 18.0
−Removed: Selling, general and administrative expenses 232,676 59.1 219,174 64.3
−Removed: Total operating expenses 307,380 78.0 280,395 82.2
−Removed: Loss from operations (11,938) (3.0) (25,490) (7.5)
−Removed: Other expense, net
−Removed: (585) (0.1) (2,882) (0.8)
−Removed: Loss before income tax expense (12,523) (3.2) (28,372) (8.3)
−Removed: Income tax expense 681 0.2 758 0.2
−Removed: Net loss $ (13,204) (3.4) % $ (29,130) (8.5) %
−Removed: The following table sets forth, for the periods indicated, our revenue by product type and geography expressed as dollar amounts and the corresponding change in such revenues between periods, in both dollars and percentages:
−Removed: Nine Months Ended
−Removed: September 30, Change
−Removed: 2025 2024 Amount %
−Removed: Open ablation $ 105,368 $ 90,661 $ 14,707 16.2 %
−Removed: Minimally invasive ablation 23,747 35,263 (11,516) (32.7)
−Removed: Pain management 59,275 44,059 15,216 34.5
−Removed: Appendage management 132,649 111,257 21,392 19.2
−Removed: Total United States $ 321,039 $ 281,240 $ 39,799 14.2
−Removed: Total International 72,989 59,790 13,199 22.1
−Removed: Total revenue $ 394,028 $ 341,030 $ 52,998 15.5 %
−Removed: Worldwide revenue increased 15.5% (15.3% on a constant currency basis).
−Removed: In the United States, sales grew across most product lines with strong contribution from our AtriClip FLEX-Mini device for appendage management, EnCompass clamp in open ablation and cryoSPHERE MAX probe for post-operative pain management.
−Removed: Sales for minimally invasive ablation devices declined as physicians referred fewer patients for Hybrid procedures.
−Removed: International sales increased 22.1% (20.5% on a constant currency basis), with growth in major geographic markets across all product lines.
−Removed: Cost of revenue and gross margin.
−Removed: Cost of revenue increased $12,461 as a result of higher sales volumes.
−Removed: Gross margin increased 23 basis points, driven by favorable product mix.
−Removed: Research and development expenses.
−Removed: Research and development expenses increased $13,483 or 22.0%, driven by a $5,486 increase in personnel costs, including share-based compensation and travel, as a result of headcount growth and higher variable and share-based compensation.
−Removed: Additional increases include the second quarter milestone payment of $5,000 for the acquired IPR&D and $3,693 of clinical trial expenses for LeAAPS clinical trial patient enrollment and follow up activities.
−Removed: These increases were partially offset by a $879 reduction in regulatory filing costs as a result of the timing of product development initiatives.
−Removed: Selling, general and administrative expenses.
−Removed: Selling, general and administrative expenses increased $13,502, or 6.2%, driven by a $14,862 increase in personnel costs, including travel and share-based compensation, primarily reflecting growth in headcount and variable and share-based compensation.
−Removed: This increase was partially offset by $1,102 decrease in marketing and training costs and $1,018 decrease in consulting costs.
−Removed: Other income (expense).
−Removed: Other expense decreased $2,297, primarily due to the $1,362 loss on debt extinguishment during the first quarter of 2024.
−Removed: Net interest expense decreased $512 from lower borrowing costs, while net foreign currency transaction gain increased $402.
Liquidity and Capital Resources
−Removed: As of September 30, 2025, we had cash and cash equivalents of $147,865 and outstanding debt of $61,865.
+Added: As of March 31, 2026, we had cash and cash equivalents of $146,165 and outstanding debt of $61,000.
We had unused borrowing capacity of $62,750 (see Note 6 – Borrowings and Financing Obligation for related discussion).
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A small portion of our cash is held in foreign banks to support our international operations.
−Removed: We had net working capital of $223,270 and an accumulated deficit of $414,959 as of September 30, 2025.
−Removed: Consolidated Cash Flows - For the nine months ended September 30, 2025 and 2024
−Removed: Cash flows provided by operating activities.
−Removed: Net cash provided by operating activities increased $30,939 from 2024 to 2025, reflecting improved operating results of $15,926, driven by higher sales and moderating expansion of operating expenses.
−Removed: This improvement includes an adjustment of $5,000 related to the acquired IPR&D milestone payment in 2025.
−Removed: Cash used for working capital and other assets and liabilities decreased $6,559 primarily due to moderating investments in inventory.
+Added: We had net working capital of $240,502 and an accumulated deficit of $413,095 as of March 31, 2026.
+Added: Consolidated Cash Flows - For the three months ended March 31, 2026 and 2025
+Added: Cash flows used in operating activities.
+Added: Net cash used in operating activities decreased $7,030 from 2025 to 2026, reflecting improved operating results of $6,855, driven by higher sales and improved operating margin.
+Added: These improvements were offset by an increase of $1,855 in working capital cash outflows primarily due to an increase in accounts receivable from increased sales as well as investments in inventory to support future growth.
Cash flows used in investing activities.
−Removed: Net cash used in investing activities increased by $56,875 from 2024 to 2025, due to a $53,668 decrease in sales and maturities of available-for-sale securities and the first acquired IPR&D milestone payment for $5,000 in 2025.
+Added: Net cash used in investing activities increased by $2,171 from 2025 to 2026, due to a $1,671 increase in purchases of property and equipment and $500 in capital grant proceeds received in 2025.
Cash flows used in financing activities.
−Removed: Net cash used in financing activities decreased by $4,419 in 2025.
−Removed: This decrease was a result of $6,250 in proceeds from the August 2025 sale-and-leaseback arrangement and a $1,679 reduction of payments
−Removed: for extinguishment of debt and financing fees from 2024.
−Removed: These improvements were offset by a $4,176 increase in shares repurchased for payment of taxes on stock awards.
+Added: Net cash used in financing activities increased by $2,930 from 2025 to 2026.
+Added: This increase was a result of $777 cash used to pay financing costs as part of the First Amendment to the ABL Facility, $865 paid to reduce outstanding borrowings and a $1,270 increase in shares repurchased for payment of taxes on stock awards.
Credit facility.
−Removed: The Company has a credit agreement (Credit Agreement) with JPMorgan Chase Bank, N.A.
−Removed: as Administrative Agent, JPMorgan Chase Bank, N.A.
−Removed: and Silicon Valley Bank, a division of First-Citizens Bank and Trust Company, as Joint Lead Arrangers and Joint Bookrunners effective January 5, 2024.
−Removed: The Credit Agreement provides for a $125,000 asset-based revolving credit facility (ABL Facility), with an option to increase the revolving commitment by an additional $40,000.
+Added: The Company's Credit Agreement with JPMorgan Chase Bank, N.A.
+Added: and Silicon Valley Bank was amended as of January 9, 2026.
+Added: The Credit Agreement provides for a $125,000 asset-based revolving credit facility, with an option to increase the revolving commitment by an additional $40,000.
A portion of the ABL Facility, limited to $5,000, is available for the issuance of letters of credit.
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Amounts available to be drawn from time to time under the ABL Facility are determined by calculating the applicable borrowing base, which is based upon applicable percentages of the values of eligible accounts receivable, eligible inventory, eligible liquid assets, less reserves as determined by the Administrative Agent, all as specified in the Credit Agreement.
−Removed: The borrowings bear interest at a rate per annum equal to, at the Company's election:
−Removed: (i) an alternate base rate (ABR) plus an applicable margin or (ii) an adjusted term secured overnight financing rate (SOFR) plus an applicable margin.
−Removed: As of September 30, 2025, the Company has borrowed $61,865, classified as noncurrent and had unused borrowing availability of $61,885.
−Removed: Our corporate headquarters lease agreement requires a $1,250 letter of credit which we renew annually and remains outstanding as of September 30, 2025.
+Added: The borrowings bear
+Added: interest at a rate per annum equal to, at the Company's election:
+Added: (i) an alternate base rate (ABR) plus an applicable margin or (ii) a term secured overnight financing rate (SOFR) plus an applicable margin.
+Added: As of March 31, 2026, the Company has borrowed $61,000, classified as noncurrent and had unused borrowing availability of $62,750.
+Added: Our corporate headquarters lease agreement requires a $1,250 letter of credit renewed annually and remains outstanding as of March 31, 2026.
For additional information on the terms and conditions, as well as applicable interest and fee payments, see Note 6 – Borrowings and Financing Obligation.
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market acceptance of our current and future products;
−Removed: costs to develop and support our products, including professional training;
+Added: investments in working capital;
+Added: costs to develop and support our products, including professional training, clinical trials and contractual development costs;
costs to expand and support our sales and marketing efforts;
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and possible acquisitions and joint ventures, including potential business integration costs.
−Removed: We continue to evaluate additional measures to maintain financial flexibility, and we will continue to closely monitor macroeconomic conditions including, but not limited to, inflationary pressures, rising interest rates, tariffs, and fluctuations in currency exchange rates that may impact our liquidity and access to capital resources.
+Added: We continue to evaluate additional measures to maintain financial flexibility, and we will continue to closely monitor macroeconomic conditions including, but not limited to, inflationary pressures, changes in interest rates and fluctuations in currency exchange rates that may impact our liquidity and access to capital resources.
Critical Accounting Policies and Estimates
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Recent Accounting Pronouncements
−Removed: Refer to Note 1, “Description of the Business and Summary of Significant Accounting Policies” to the condensed financial statements for a discussion of recently issued accounting pronouncements.
+Added: For a discussion of recently issued accounting pronouncements, refer to Note 1, “Description of the Business and Summary of Significant Accounting Policies” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC.
+Added: There have been no new accounting pronouncements issued or adopted during the interim period that are expected to have a material impact on our consolidated financial statements.
Quantitative and Qualitative Disclosures About Market Risk
−Removed: As of September 30, 2025, there were no material changes to the information provided under Item 7A, “Quantitative and Qualitative Disclosures About Market Risk” in the Company’s Form 10-K for the year ended December 31, 2024.
+Added: As of March 31, 2026, there were no material changes to the information provided under Item 7A, “Quantitative and Qualitative Disclosures About Market Risk” in the Company’s Form 10-K for the year ended December 31, 2025.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.