Shares of AtriCure, Inc. (Nasdaq: ATRC) rose 6.4% to $34.12 in Wednesday morning trading after the medical device maker reported fourth-quarter earnings that swung to a profit and exceeded analyst expectations for revenue.
The stock has traded in a 52-week range of $21.45 to $38.90. Today’s advance continues a recovery trend from mid-2025 lows, though the shares remain approximately 12% below their yearly peak as the medical technology sector faces broader pressure from volatile hospital capital equipment budgets.
Quarterly and Full-year Performance
AtriCure reported fourth-quarter worldwide revenue of $140.5 million, a 13.1% increase compared to $124.2 million in the same period last year. U.S. revenue climbed 12.6% to $114.3 million, driven by demand for the cryoSPHERE MAX probe and AtriClip FLEX-Mini appendage management device. International revenue grew 15.3% to $26.2 million.
The company posted fourth-quarter net income of $1.8 million, or $0.04 per diluted share, compared to a net loss of $15.6 million, or $0.33 per share, in the prior-year quarter. Adjusted EBITDA rose to $19.9 million from $12.7 million a year ago. Gross margin for the quarter was 75.0%, up 45 basis points year-over-year, supported by a more favorable product mix.
For the full year 2025, total revenue reached $534.5 million, representing 14.9% growth over 2024. The annual net loss narrowed significantly to $11.4 million, compared to a loss of $44.7 million in the previous year.
Sector Context
While AtriCure operates in the med-tech space, its valuation remains sensitive to macro pressures affecting high-growth “SaaS-adjacent” technology stocks. High interest rates have continued to weigh on growth-oriented equities, leading to tighter valuation multiples across the software and medical technology sectors. Despite these pressures, AtriCure management issued 2026 guidance projecting full-year revenue of $600 million to $610 million, representing approximately 12% to 14% growth.
Operational Outlook
Management attributed the improved profitability to operational leverage and cost efficiencies. The company ended 2025 with a stronger balance sheet, positioning it to fund ongoing clinical trials, including the LeAAPs and BoxX-NoAF studies.
However, the company remains subject to regulatory and competitive risks. Any shifts in FDA clearance timelines for new product iterations or increased competition from catheter-based technologies could impact its 2026 growth targets. Management expects continued positive cash generation through 2026.
The post AtriCure reports surprise Q4 profit on strong worldwide revenue growth first appeared on AlphaStreet News.
