What changed in this filing

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Item 1. Financial Statements

2026-07-27 compared with 2026-05-06 · 107 added, 54 removed, 427 unchanged (27% of the section changed)

40 unchanged sentences

AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(In Thousands, Except Per Share Amounts)

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

Revenue $ 153,604 $ 136,139 $ 294,853 $ 259,759

9 unchanged sentences

Interest income 1,179 941 2,424 1,983

Other expense ( 37 ) ( 180 )

Other income (expense) ( 100 ) 812 ( 137 ) 632

Income (loss) before income tax expense 9,426 ( 5,929 ) 9,820 ( 12,437 )

10 unchanged sentences

Net income (loss) 8,955 ( 6,190 ) 9,063 ( 12,937 )

Comprehensive loss, net of tax $ ( 231 ) $ ( 5,942 )

Comprehensive income (loss), net of tax $ 8,829 $ ( 5,211 ) $ 8,598 $ ( 11,153 )

See accompanying notes to condensed consolidated financial statements.

3 unchanged sentences

(In Thousands)

Three-Month Period Ended March 31, 2025

Three-Month Period Ended June 30, 2025

Deficit Accumulated

2 unchanged sentences

Stockholders’

Balance—December 31, 2024

Balance—March 31, 2025

49,493 $ 49 $ 863,302 $ ( 408,502 ) $ ( 230 ) $ 454,619

2 unchanged sentences

Net loss — — — ( 6,190 ) — ( 6,190 )

Balance—June 30, 2025

49,691 $ 50 $ 878,384 $ ( 414,692 ) $ 749 $ 464,491

Three-Month Period Ended June 30, 2026

Deficit Accumulated

Comprehensive

Income (Loss)

Stockholders’

Balance—March 31, 2026

50,635 $ 51 $ 904,510 $ ( 413,095 ) $ 227 $ 491,693

Three-Month Period Ended March 31, 2026

Impact of equity compensation plans 228 — 15,911 — — 15,911

Other comprehensive loss — — — — ( 126 ) ( 126 )

Net income — — — 8,955 — 8,955

Balance—June 30, 2026

50,863 $ 51 $ 920,421 $ ( 404,140 ) $ 101 $ 516,433

Six-Month Period Ended June 30, 2025

Deficit Accumulated

5 unchanged sentences

Impact of equity compensation plans 822 1 14,674 — — 14,675

Other comprehensive income — — — — 1,784 1,784

Net loss — — — ( 12,937 ) — ( 12,937 )

Balance—June 30, 2025

49,691 $ 50 $ 878,384 $ ( 414,692 ) $ 749 $ 464,491

Six-Month Period Ended June 30, 2026

Deficit Accumulated

Comprehensive

Income (Loss)

Stockholders’

Balance—December 31, 2025

49,792 $ 50 $ 904,522 $ ( 413,203 ) $ 566 $ 491,935

Impact of equity compensation plans 1,071 1 15,899 — — 15,900

Other comprehensive loss — — — — ( 465 ) ( 465 )

Net income — — — 9,063 — 9,063

Balance—March 31, 2026

Balance—June 30, 2026

50,863 $ 51 $ 920,421 $ ( 404,140 ) $ 101 $ 516,433

4 unchanged sentences

(In Thousands)

Three Months Ended

Six Months Ended

Cash flows from operating activities:

Net income (loss) $ 9,063 $ ( 12,937 )

Adjustments to reconcile net income (loss) to net cash used in operating activities:

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Share-based compensation expense 23,586 21,001

2 unchanged sentences

Amortization of deferred financing costs 210 239

Acquired in-process research and development expense — 5,000

Other non-cash adjustments 1,177 311

6 unchanged sentences

Other noncurrent assets and liabilities ( 1,995 ) ( 1,001 )

Net cash used in operating activities ( 3,996 ) ( 11,026 )

Net cash provided by operating activities 18,196 10,591

Cash flows from investing activities:

Purchases of property and equipment ( 7,618 ) ( 4,843 )

Acquisitions, including in-process research and development — ( 5,000 )

Proceeds from capital grant — 500

2 unchanged sentences

Payments on debt, leases and financing obligation ( 1,528 ) ( 579 )

Payment of financing costs

Payment of financing costs and debt fees ( 779 ) —

Shares repurchased for payment of taxes on stock awards ( 11,756 ) ( 10,578 )

Proceeds from stock option exercises 158 134

Proceeds from stock option exercises and employee stock purchase plan 4,070 4,251

Net cash used in financing activities ( 9,993 ) ( 6,906 )

Effect of exchange rate changes on cash and cash equivalents ( 227 ) 733

Net decrease in cash and cash equivalents ( 21,263 ) ( 22,836 )

Net increase (decrease) in cash and cash equivalents 358 ( 4,925 )

Cash and cash equivalents—beginning of period 167,428 122,721

21 unchanged sentences

The accompanying interim financial statements should be read in conjunction with the Company’s audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC.

Except as discussed herein, there have been no changes in the Company's significant accounting policies for the three months ended March 31, 2026 as compared to the significant accounting policies described in the Company's Annual Report on Form 10-K for the year ended December 31, 2025.

Except as discussed herein, there have been no changes in the Company's significant accounting policies for the six months ended June 30, 2026 as compared to the significant accounting policies described in the Company's Annual Report on Form 10-K for the year ended December 31, 2025.

Use of Estimates —The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense.

6 unchanged sentences

Management considers all such sales to be part of the single operating segment.

The Chief Executive Officer is regularly provided with consolidated expenses consistent with the presented consolidated statements of operations, accompanied by information about revenue by product type and geographic area, for purposes of allocating resources and net income (loss) is the measure used in evaluating financial performance.

Revenue by product type and geographic area is included at Note 9 – Revenue.

The Company’s long-lived assets are located in the United States, except for $ 6,017 as of March 31, 2026 and $ 6,292 as of December 31, 2025 located primarily in Europe.

Net income (loss) is the measure used in evaluating financial performance.

Revenue by product type and geographic area is included in Note 9 – Revenue.

The Company’s long-lived assets are located in the United States, except for $ 5,917 as of June 30, 2026 and $ 6,292 as of December 31, 2025 located primarily in Europe.

Fair value is defined as the exchange price that would be received for an asset or paid to settle a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

9 unchanged sentences

(In Thousands, except per share amounts)

The following table represents the Company’s fair value hierarchy for its financial assets measured at fair value on a recurring basis as of March 31, 2026:

The following table represents the Company’s fair value hierarchy for its financial assets measured at fair value on a recurring basis as of June 30, 2026:

Quoted Prices in

7 unchanged sentences

Total assets $ 157,082 $ — $ — $ 157,082

There were no changes in the levels or methodology of measurement of financial assets and liabilities during the three months ended March 31, 2026.

There were no changes in the levels or methodology of measurement of financial assets and liabilities during the three and six months ended June 30, 2026.

The following table represents the Company’s fair value hierarchy for its financial assets measured at fair value on a recurring basis as of December 31, 2025:

11 unchanged sentences

The PMA approval milestone expired December 31, 2023, while the achievement period for the reimbursement milestone expires on December 31, 2026.

The Company assessed the projected probability of payment during the contractual achievement periods as remote, resulting in no reported fair value as of March 31, 2026 and December 31, 2025.

The Company assessed the projected probability of payment during the contractual achievement periods as remote, resulting in no reported fair value as of June 30, 2026 and December 31, 2025.

Inventories consist of the following:

6 unchanged sentences

The following table provides a summary of the Company’s intangible assets:

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Cost Accumulated

9 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

Cost of revenues $ 1,650 $ 1,350 $ 3,300 $ 2,700

Research and development expenses

734 761 1,468 1,521

Total $ 2,384 $ 2,111 $ 4,768 $ 4,221

Future amortization expense is projected as follows:

2026 (excluding the three months ended March 31, 2026)

2026 (excluding the six months ended June 30, 2026)

2031 and thereafter

27 unchanged sentences

(In Thousands, except per share amounts)

As of March 31, 2026, the Company had total borrowings of $ 61,000 and had unused borrowing capacity of $ 62,750 under the ABL Facility.

As of June 30, 2026, the Company had total borrowings of $ 61,000 and had unused borrowing capacity of $ 62,750 under the ABL Facility.

Future maturities of long-term debt are projected as follows:

2026 (excluding the three months ended March 31, 2026) $ —

2026 (excluding the six months ended June 30, 2026)

Total long-term debt, of which $ 61,000 is noncurrent

5 unchanged sentences

The applicable margin on borrowings will adjust ranging from 1.25 % to 1.50 % per annum for ABR borrowings and from 2.25 % to 2.50 % per annum for Term SOFR borrowings determined by the average historical excess availability.

As of March 31, 2026, the effective interest rate on the ABL Facility was 6.18 %.

As of June 30, 2026, the effective interest rate on the ABL Facility was 5.89 %.

The ABL Facility is secured by the assets of the Company, consisting of personal, tangible or intangible property, including certain outstanding equity interests of the Company’s direct subsidiaries, subject to limitations specified in the Credit Agreement.

8 unchanged sentences

Rental payments will be allocated between the existing and the expanded property based on the relative fair value upon construction completion.

Expansion rental payments are projected to be $ 38,469 for the fifteen-year lease term expected to begin during 2026.

Expansion rental payments are projected to be $ 38,469 for the fifteen-year lease term and are expected to begin during the second half of 2026.

The classification of the lease related to the expansion will be assessed upon completion of construction.

1 unchanged sentence

Estimated rental payments for the expansion over the next five annual periods are as follows:

2026 (excluding the six months ended June 30, 2026)

The lease of the existing building and certain real property sold is a failed sale-and-leaseback as a result of finance lease classification.

2 unchanged sentences

The Company imputes interest monthly at a rate of 6.76 %.

During the three months ended March 31, 2026, interest expense was not significant.

During the six months ended June 30, 2026, interest expense was not significant.

ATRICURE, INC.

3 unchanged sentences

Future maturities of the financing obligation are projected as follows:

2026 (excluding the three months ended March 31, 2026) $ 68

2026 (excluding the six months ended June 30, 2026)

2031 and thereafter 5,485

5 unchanged sentences

The weighted average remaining lease term and the discount rate for the reporting periods are as follows:

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Operating Leases

4 unchanged sentences

Weighted average discount rate 7.0 % 7.0 %

A letter of credit for $ 1,250 issued to the lessor of the Company's corporate headquarters building is renewed annually and remains outstanding as of March 31, 2026.

A letter of credit for $ 1,250 issued to the lessor of the Company's corporate headquarters building is renewed annually and remains outstanding as of June 30, 2026.

The components of lease expense are as follows:

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

Operating lease cost $ 471 $ 491 $ 1,001 $ 957

3 unchanged sentences

Total finance lease cost $ 380 $ 404 $ 768 $ 813

Short-term lease expense was not significant for the three months ended March 31, 2026 and 2025.

Short-term lease expense was not significant for the three and six months ended June 30, 2026 and 2025.

ATRICURE, INC.

3 unchanged sentences

Supplemental cash flow information related to leases is as follows:

Three Months Ended

March 31, 2026 Three Months Ended

March 31, 2025

Six Months Ended

June 30, 2026 Six Months Ended

June 30, 2025

Cash paid for amounts included in the measurement of lease liabilities:

6 unchanged sentences

Supplemental balance sheet information related to leases is as follows:

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Operating Leases

12 unchanged sentences

Total finance lease liabilities $ 6,643 $ 7,281

Future maturities of lease liabilities as of March 31, 2026 are as follows:

Future maturities of lease liabilities as of June 30, 2026 are as follows:

Operating Leases Finance Leases

2026 (excluding the three months ended March 31, 2026)

$ 1,391 $ 1,333

2026 (excluding the six months ended June 30, 2026)

2027 1,897 1,808

14 unchanged sentences

The Cooperation Agreement requires the Company to pay contingent consideration, settled in cash, with a maximum total payout of $ 28,000 if all milestones are achieved successfully through the agreement term ending in 2034.

As of the reporting date, the Company has paid $ 6,000 towards milestone achievements which were recorded as Research & Development expense when each milestone was achieved.

For the three months ended March 31, 2026 and 2025, no milestones were achieved and therefore, there is no financial impact during the periods.

As of the reporting date, the Company has paid $ 6,000 towards milestone achievements which were recorded as research and development expense when each milestone was achieved.

For the three and six months ended June 30, 2026, no milestones were achieved and therefore, there was no financial impact during the periods.

For the three and six months ended June 30, 2025, payments made under the agreement were $ 5,000 .

The agreement also contains provisions requiring future royalty payments on devices incorporating co-developed technology upon commercialization.

2 unchanged sentences

In 2022, the Company entered into a clinical trial management agreement for the LeAAPS clinical trial.

The terms of the agreement require payments upon achievement of various enrollment and project milestones over the estimated ten-year term, however, the agreement may be terminated early for any reason.

The terms of the agreement require payments upon achievement of various enrollment and project milestones over the estimated ten-year term;

however, the agreement may be terminated early for any reason.

Furthermore, the Company incurs additional variable costs, including pass through costs from clinical trial sites.

Payments made under this agreement were $ 3,889 and $ 4,112 for the three months ended March 31, 2026 and 2025, respectively.

In 2025, the Company entered into a non-cancellable cloud computing arrangement with a term of seven years requiring total payments of $ 3,616 .

Payments under this agreement will begin in the first half of 2026.

Payments made under this agreement were $ 1,299 and $ 3,375 for the three months ended June 30, 2026 and 2025 and $ 5,188 and $ 7,487 for the six months ended June 30, 2026 and 2025.

In 2025, the Company entered into a non-cancellable cloud computing arrangement, as amended with a term of seven years requiring total payments of $ 5,593 .

Payments made under this agreement were $ 258 for the three and six months ended June 30, 2026.

For the three and six months ended June 30, 2025, there were no payments made during the periods.

The Company may, from time to time, become a party to legal proceedings which are subject to many uncertainties.

21 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

Open ablation $ 40,885 $ 36,468 $ 79,965 $ 69,776

5 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

Open ablation $ 11,243 $ 10,349 $ 20,759 $ 19,344

5 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

United States $ 125,588 $ 110,583 $ 241,793 $ 211,732

10 unchanged sentences

The Company is unable to estimate the annual effective tax rate with sufficient precision to use the effective tax rate method, which requires a full-year projection of income.

The effective tax rate for the three months ended March 31, 2026 and 2025 was 72.6 % and ( 3.7 %).

The effective tax rate for the three months ended June 30, 2026 and 2025 was 5.0 % and ( 4.4 %).

The effective tax rate for the six months ended June 30, 2026 and 2025 was 7.7 % and ( 4.0 %).

The Company’s worldwide effective tax rate differs from the US statutory rate of 21% primarily due to valuation allowances.

12 unchanged sentences

The Compensation Committee of the Board of Directors, as the administrator of the 2023 Plan, has the authority to determine the terms of any awards, including the number of shares subject to each award, the exercisability of the awards and the form of consideration.

As of March 31, 2026, 5,787 shares of common stock have been reserved for issuance under the 2023 Plan, and 1,138 shares were available for future grants.

As of June 30, 2026, 7,287 shares of common stock have been reserved for issuance under the 2023 Plan, and 3,251 shares were available for future grants.

The Company issues registered shares of common stock for stock option exercises, restricted stock grants and performance share award payments.

3 unchanged sentences

Participants may not purchase more than $ 25 of the Company’s common stock in a calendar year or more than 3 shares during an offering period.

As of March 31, 2026, there were 295 shares available for future issuance under the ESPP.

As of June 30, 2026, there were 899 shares available for future issuance under the ESPP.

Share-Based Compensation Expense Information

1 unchanged sentence

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

Cost of revenue $ 747 $ 741 $ 1,430 $ 1,410

7 unchanged sentences

EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding during the period.

Basic earnings per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of shares of common stock outstanding during the period.

Diluted earnings per share reflects net income available to common stockholders divided by the weighted average number of common shares outstanding during the period, including the effect of dilutive common share equivalents.

Dilutive equivalents include shares issuable upon the vesting of restricted stock awards and restricted stock units, the exercise of stock options and shares issuable under the Company's employee ESPP.

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Net income (loss) available to common stockholders $ 8,955 $ ( 6,190 ) $ 9,063 $ ( 12,937 )

4 unchanged sentences

Diluted net income (loss) per common share $ 0.18 $ ( 0.13 ) $ 0.18 $ ( 0.27 )

The computation of diluted earnings per share in the three months ended March 31, 2026 and 2025 excludes the effect of 1,156 and 3,008 shares because the effect would be anti-dilutive.

COMPREHENSIVE LOSS AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The computation of diluted earnings per share in the three and six months ended June 30, 2026 excludes the effect of 2,807 and 1,162 shares because the effect would be anti-dilutive.

The computation of diluted earnings per share in the three and six months ended June 30, 2025 excludes the effect of 2,930 shares because the effect would be anti-dilutive.

COMPREHENSIVE INCOME (LOSS) AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

In addition to net income (loss), comprehensive income (loss) includes foreign currency translation adjustments.

1 unchanged sentence

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

Total accumulated other comprehensive income (loss) at beginning of period

$ 227 $ ( 230 ) $ 566 $ ( 1,035 )

Foreign Currency Translation Adjustment

Balance at beginning of period $ 227 $ ( 230 ) $ 566 $ ( 1,035 )

Other comprehensive loss (income) before reclassifications ( 356 ) 717

Amounts reclassified to other income 17 88

Total accumulated other comprehensive income (loss) at end of period $ 227 $ ( 230 )

Other comprehensive income (loss) before reclassifications ( 231 ) 1,640 ( 587 ) 2,357

Amounts reclassified to other income (expense) 105 ( 661 ) 122 ( 573 )

Balance at end of period $ 101 $ 749 $ 101 $ 749

Total accumulated other comprehensive income at end of period $ 101 $ 749 $ 101 $ 749

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.

What changed 10-Q

Item 1. Financial Statements