atrc-20250331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

_____________________________________________

FORM 10-Q

___________________________________________________________________________________________

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2025

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from_____________to_____________

Commission File Number 000-51470

_____________________________________________

AtriCure, Inc.

(Exact name of Registrant as specified in its charter)

_____________________________________________


Delaware			34-1940305
(State or other jurisdiction of incorporation)			(IRS Employer Identification No.)

7555 Innovation Way

Mason, OH 45040

(Address of principal executive offices)

(513) 755-4100

(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

_____________________________________________

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $.001 par value	ATRC	NASDAQ Global Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days: Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer

☒

Accelerated Filer

☐

Emerging growth company

☐

Non-Accelerated Filer

☐

Smaller reporting company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act: ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act): YES ☐ NO ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.


Class			Outstanding at April 28, 2025
Common Stock, $.001 par value			49,504,851



		Page
PART I. FINANCIAL INFORMATION
Item 1.	Condensed Consolidated Financial Statements (Unaudited)	3
	Condensed Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024	3
	Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three Months Ended March 31, 2025 and 2024	4
	Condensed Consolidated Statements of Stockholders’ Equity for the Three Months Ended March 31, 2025 and 2024	5
	Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2025 and 2024	6
	Notes to Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	16
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	20
Item 4.	Controls and Procedures	20
PART II. OTHER INFORMATION		21
Item 1.	Legal Proceedings	21
Item 1A.	Risk Factors	21
Item 5.	Other Information	21
Item 6.	Exhibits	22
Signatures		23


	March 31, 2025		December 31, 2024
Assets
Current assets:
Cash and cash equivalents	$	99,885	$	122,721

Accounts receivable, less allowance for credit losses of $550	63,323		60,339
Inventories	74,911		75,335
Prepaid and other current assets	13,365		9,431
Total current assets	251,484		267,826

Property and equipment, net	41,239		41,659
Operating lease right-of-use assets	6,968		5,727
Intangible assets, net	54,357		56,467
Goodwill	234,781		234,781
Other noncurrent assets	2,802		2,868
Total Assets	$	591,631	$	609,328
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	25,176	$	25,032
Accrued liabilities	33,205		45,587
Current lease liabilities	2,840		2,805
Total current liabilities	61,221		73,424
Long-term debt	61,865		61,865
Finance and operating lease liabilities	12,708		11,860

Other noncurrent liabilities	1,218		1,210
Total Liabilities	137,012		148,359
Commitments and contingencies (Note 8)
Stockholders’ Equity:
Common stock, $0.001 par value, 90,000 shares authorized and 49,493 and 48,869 issued and outstanding	49		49
Additional paid-in capital	863,302		863,710
Accumulated other comprehensive loss	(230)		(1,035)
Accumulated deficit	(408,502)		(401,755)
Total Stockholders’ Equity	454,619		460,969
Total Liabilities and Stockholders’ Equity	$	591,631	$	609,328


	Three Months Ended March 31,
	2025		2024
Revenue	$	123,620	$	108,851
Cost of revenue	30,992		27,583
Gross profit	92,628		81,268
Operating expenses:
Research and development expenses	22,528		19,845
Selling, general and administrative expenses	76,054		72,340
Total operating expenses	98,582		92,185
Loss from operations	(5,954)		(10,917)
Other income (expense):
Interest expense	(1,416)		(1,677)
Interest income	1,042		952
Loss on debt extinguishment	—		(1,362)
Other expense	(180)		(82)
Loss before income tax expense	(6,508)		(13,086)
Income tax expense	239		183
Net loss	$	(6,747)	$	(13,269)

Basic and diluted net loss per share	$	(0.14)	$	(0.28)


Weighted average shares outstanding—basic and diluted	47,393		46,719

Comprehensive income (loss):
Unrealized gain on investments	$	—	$	539
Foreign currency translation adjustment	805		(243)
Other comprehensive income	805		296
Net loss	(6,747)		(13,269)
Comprehensive loss, net of tax	$	(5,942)	$	(12,973)


	Three-Month Period Ended March 31, 2024
	Common Stock			Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Income (Loss)		Total Stockholders’ Equity
	Shares	Amount
Balance—December 31, 2023	47,526	$	48	$	824,170	$	(357,057)	$	(993)	$	466,168
Impact of equity compensation plans	855	—		3,118		—		—		3,118
Other comprehensive income	—	—		—		—		296		296
Net loss	—	—		—		(13,269)		—		(13,269)
Balance—March 31, 2024	48,381	$	48	$	827,288	$	(370,326)	$	(697)	$	456,313

	Three-Month Period Ended March 31, 2025
	Common Stock			Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Income (Loss)		Total Stockholders’ Equity
	Shares	Amount
Balance—December 31, 2024	48,869	$	49	$	863,710	$	(401,755)	$	(1,035)	$	460,969
Impact of equity compensation plans	624	—		(408)		—		—		(408)
Other comprehensive income	—	—		—		—		805		805
Net loss	—	—		—		(6,747)		—		(6,747)
Balance—March 31, 2025	49,493	$	49	$	863,302	$	(408,502)	$	(230)	$	454,619


	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)		Total
Assets:
Money market funds	$	83,368	$	—	$	—	$	83,368




Total assets	$	83,368	$	—	$	—	$	83,368


	March 31, 2025		December 31, 2024
Raw materials	$	37,410	$	37,703
Work in process	6,411		3,604
Finished goods	31,090		34,028
Total	$	74,911	$	75,335


	March 31, 2025				December 31, 2024
	Cost		Accumulated Amortization		Cost		Accumulated Amortization
Technology	$	46,470	$	13,863	$	46,470	$	13,103
Patents	30,000		8,250		30,000		6,900
Total	$	76,470	$	22,113	$	76,470	$	20,003


2025 (excluding the three months ended March 31, 2025)	$	6,331
2026	9,535
2027	10,435
2028	6,535
2029	2,935
2030 and thereafter	18,586
Total	$	54,357


	March 31, 2025		December 31, 2024
Accrued compensation and employee-related expenses	$	26,880	$	39,505
Sales returns and allowances	3,141		3,123
Other accrued liabilities	3,184		2,959
Total	$	33,205	$	45,587


	March 31, 2025		December 31, 2024
Operating Leases
Weighted average remaining lease term (years)	5.8		4.4
Weighted average discount rate	6.9	%	6.9	%

Finance Leases
Weighted average remaining lease term (years)	5.4		5.7
Weighted average discount rate	7.0	%	7.0	%


	Three Months Ended March 31,
	2025		2024
Cash flows from operating activities:
Net loss	$	(6,747)	$	(13,269)
Adjustments to reconcile net loss to net cash used in operating activities:
Share-based compensation expense	9,630		9,265
Depreciation	2,974		2,589
Amortization of intangible assets	2,110		1,863
Amortization of deferred financing costs	120		176
Amortization of investments	—		107
Loss on debt extinguishment	—		1,362
Other non-cash adjustments	495		190
Changes in operating assets and liabilities:
Accounts receivable	(2,686)		(2,789)
Inventories	750		(4,145)
Other current assets	(3,885)		(3,458)
Accounts payable	(722)		2,093
Accrued liabilities	(12,561)		(14,888)
Other noncurrent assets and liabilities	(504)		(112)
Net cash used in operating activities	(11,026)		(21,016)
Cash flows from investing activities:

Sales and maturities of available-for-sale securities	—		12,418
Purchases of property and equipment	(2,181)		(2,774)
Proceeds from capital grant	500		—


Net cash (used in) provided by investing activities	(1,681)		9,644
Cash flows from financing activities:

Proceeds from revolving credit facility, net of financing costs	—		61,210
Payments on debt and leases	(287)		(62,065)
Payment of financing costs and bank fees	—		(860)
Proceeds from stock option exercises	134		390
Shares repurchased for payment of taxes on stock awards	(10,172)		(6,537)
Net cash used in financing activities	(10,325)		(7,862)
Effect of exchange rate changes on cash and cash equivalents	196		(109)
Net decrease in cash and cash equivalents	(22,836)		(19,343)
Cash and cash equivalents—beginning of period	122,721		84,310


	Operating Leases		Finance Leases
2025 (excluding the three months ended March 31, 2025)	$	1,417	$	1,309
2026	1,699		1,775
2027	1,654		1,808
2028	1,237		1,842
2029	883		1,818
2030 and thereafter	2,193		1,339
Total payments	$	9,083	$	9,891
Less imputed interest	(1,715)		(1,711)
Total	$	7,368	$	8,180


	Three Months Ended March 31,
	2025		2024
Open ablation	$	33,308	$	29,300
Minimally invasive ablation	8,480		12,318
Pain management	17,270		12,739

Appendage management	42,091		35,892
Total United States	$	101,149	$	90,249


	Three Months Ended March 31,
	2025		2024
Open ablation	$	8,995	$	7,902
Minimally invasive ablation	2,013		2,114
Pain management	1,789		937

Appendage management	9,674		7,649
Total International	$	22,471	$	18,602


	Three Months Ended March 31, 2025		Three Months Ended March 31, 2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	538	$	393
Operating cash flows for finance leases	147		158
Financing cash flows for finance leases	287		264

Right-of-use assets and corresponding lease obligations related to new and modified lease agreements:
Operating leases	1,558		235
Finance leases	—		—


	Three Months Ended March 31,				Change
	2025		2024		Amount		%
Open ablation	$	33,308	$	29,300	$	4,008	13.7	%
Minimally invasive ablation	8,480		12,318		(3,838)		(31.2)
Pain management	17,270		12,739		4,531		35.6
Appendage management	42,091		35,892		6,199		17.3
Total United States	$	101,149	$	90,249	$	10,900	12.1
Total International	22,471		18,602		3,869		20.8
Total revenue	$	123,620	$	108,851	$	14,769	13.6	%


Exhibit No.			Description
10.1#			Form of Performance Share Award Agreement for Awards Granted in 2025.
31.1			Rule 13a-14(a) Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2			Rule 13a-14(a) Certification of Principal Accounting and Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1			Certification pursuant to 18 U.S.C. Section 1350 by the Principal Executive Officer, as adopted, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2			Certification pursuant to 18 U.S.C. Section 1350 by the Principal Accounting and Financial Officer, as adopted, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS			XBRL Instance Document
101.SCH			XBRL Taxonomy Extension Schema Document
101.CAL			XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF			XBRL Taxonomy Definition Linkbase Document
101.LAB			XBRL Taxonomy Extension Label Linkbase Document
101.PRE			XBRL Taxonomy Extension Presentation Linkbase Document
104			Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)


			AtriCure, Inc.
			(REGISTRANT)


Date: April 30, 2025			/s/ Michael H. Carrel
			Michael H. Carrel
			President and Chief Executive Officer (Principal Executive Officer)


Date: April 30, 2025			/s/ Angela L. Wirick
			Angela L. Wirick
			Chief Financial Officer (Principal Accounting and Financial Officer)

SEC Form 10-Q filed by AtriCure Inc.