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ATRC Stock Analysis - AtriCure, Inc. AI Rating

ATRC Nasdaq Surgical & Medical Instruments & Apparatus DE CIK: 0001323885
Recently Updated • Analysis: Mar 20, 2026 • SEC Data: 2025-12-31
AI Rating
HOLD
62% Confidence

📊 ATRC Key Takeaways

Revenue: $534.5M
Net Margin: -2.1%
Free Cash Flow: $48.3M
Current Ratio: 3.96x
Debt/Equity: 0.13x
EPS: $-0.24
AI Rating: HOLD with 62% confidence

Investment Thesis

AtriCure demonstrates strong revenue growth (+14.9% YoY) and excellent gross margins (75%), supported by robust free cash flow generation ($48.3M). However, persistent operating losses (-1.8% margin) and negative profitability despite substantial revenue raise concerns about the path to sustainable profitability and operational efficiency.

ATRC Strengths

  • + Strong revenue growth at 14.9% YoY indicates market demand and commercial execution
  • + Exceptional gross margin of 75% demonstrates pricing power and operational leverage potential
  • + Solid free cash flow of $48.3M (9% FCF margin) shows the business generates cash despite net losses
  • + Strong balance sheet with low leverage (0.13x Debt/Equity) and substantial cash position ($167.4M)
  • + Excellent liquidity ratios (3.96x current, 2.99x quick) provide financial flexibility
  • + Improving net income losses (-2.1% net margin vs worse prior year) shows trajectory toward profitability

ATRC Risks

  • ! Persistent operating losses (-$9.4M) despite $534.5M revenue scale raises questions about cost structure and operational efficiency
  • ! Negative interest coverage (-5.6x) indicates inability to cover interest from operating earnings; dependent on FCF and cash reserves
  • ! Net losses continue (-$11.4M) though improved, suggesting the company has not achieved sustainable profitability despite scale
  • ! Heavy R&D and SG&A burden appears to be suppressing operating leverage despite strong gross margins
  • ! Medical device sector competitive pressures and regulatory risks could impact future growth sustainability

Key Metrics to Watch

ATRC Financial Metrics

Revenue
$534.5M
Net Income
$-11.4M
EPS (Diluted)
$-0.24
Free Cash Flow
$48.3M
Total Assets
$654.2M
Cash Position
$167.4M

💡 AI Analyst Insight

Strong liquidity with a 3.96x current ratio provides a solid financial cushion.

ATRC Profitability Ratios

Gross Margin 75.0%
Operating Margin -1.8%
Net Margin -2.1%
ROE -2.3%
ROA -1.7%
FCF Margin 9.0%

ATRC vs Healthcare Sector

How AtriCure, Inc. compares to Healthcare sector averages

Net Margin
ATRC -2.1%
vs
Sector Avg 12.0%
ATRC Sector
ROE
ATRC -2.3%
vs
Sector Avg 15.0%
ATRC Sector
Current Ratio
ATRC 4.0x
vs
Sector Avg 2.0x
ATRC Sector
Debt/Equity
ATRC 0.1x
vs
Sector Avg 0.6x
ATRC Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

ATRC Balance Sheet & Liquidity

Current Ratio
3.96x
Quick Ratio
2.99x
Debt/Equity
0.13x
Debt/Assets
24.8%
Interest Coverage
-5.63x
Long-term Debt
$61.9M

ATRC 5-Year Financial Trend

ATRC 5-year financial data: Year 2021: Revenue $274.3M, Net Income -$35.2M, EPS $-0.94. Year 2022: Revenue $330.4M, Net Income -$48.2M, EPS $-1.14. Year 2023: Revenue $399.2M, Net Income $50.2M, EPS $1.09. Year 2024: Revenue $465.3M, Net Income -$46.5M, EPS $-1.02. Year 2025: Revenue $534.5M, Net Income -$30.4M, EPS $-0.66.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: AtriCure, Inc.'s revenue has grown significantly by 95% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.66 indicates the company is currently unprofitable.

ATRC Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
9.0%
Free cash flow / Revenue

ATRC Quarterly Performance

Quarterly financial performance data for AtriCure, Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $115.9M -$267.0K $-0.01
Q2 2025 $116.3M -$6.2M $-0.13
Q1 2025 $108.9M -$6.7M $-0.14
Q3 2024 $98.3M -$7.9M $-0.17
Q2 2024 $100.9M -$5.1M $-0.11
Q1 2024 $93.5M -$6.5M $-0.14
Q3 2023 $83.2M -$9.1M $-0.20
Q2 2023 $84.5M -$5.1M $-0.11

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

ATRC Capital Allocation

Operating Cash Flow
$57.3M
Cash generated from operations
Capital Expenditures
$9.1M
Investment in assets
Dividends
None
No dividend program

ATRC SEC Filings

Access official SEC EDGAR filings for AtriCure, Inc. (CIK: 0001323885)

📋 Recent SEC Filings

Date Form Document Action
Mar 16, 2026 4 xslF345X05/wk-form4_1773663272.xml View →
Mar 12, 2026 4 xslF345X05/wk-form4_1773319961.xml View →
Mar 9, 2026 4 xslF345X05/wk-form4_1773059554.xml View →
Mar 3, 2026 4 xslF345X05/wk-form4_1772574793.xml View →
Mar 3, 2026 4 xslF345X05/wk-form4_1772574787.xml View →

Frequently Asked Questions about ATRC

What is the AI rating for ATRC?

AtriCure, Inc. (ATRC) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.

What are ATRC's key strengths?

Strong revenue growth at 14.9% YoY indicates market demand and commercial execution. Exceptional gross margin of 75% demonstrates pricing power and operational leverage potential.

What are the risks of investing in ATRC?

Persistent operating losses (-$9.4M) despite $534.5M revenue scale raises questions about cost structure and operational efficiency. Negative interest coverage (-5.6x) indicates inability to cover interest from operating earnings; dependent on FCF and cash reserves.

What is ATRC's revenue and growth?

AtriCure, Inc. reported revenue of $534.5M.

Does ATRC pay dividends?

AtriCure, Inc. does not currently pay dividends.

Where can I find ATRC SEC filings?

Official SEC filings for AtriCure, Inc. (CIK: 0001323885) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is ATRC's EPS?

AtriCure, Inc. has a diluted EPS of $-0.24.

How is the AI analysis conducted?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 20, 2026 | Data as of: 2025-12-31 | Powered by Claude AI