atrc-20260331

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, 2026

¨ 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 May 1, 2026
Common Stock, $.001 par value			50,640,970



		Page
PART I. FINANCIAL INFORMATION
Item 1.	Condensed Consolidated Financial Statements (Unaudited)	3
	Condensed Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025	3
	Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three Months Ended March 31, 2026 and 2025	4
	Condensed Consolidated Statements of Stockholders’ Equity for the Three Months Ended March 31, 2026 and 2025	5
	Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2026 and 2025	6
	Notes to Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	17
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	21
Item 4.	Controls and Procedures	21
PART II. OTHER INFORMATION		22
Item 1.	Legal Proceedings	22
Item 1A.	Risk Factors	22
Item 5.	Other Information	22
Item 6.	Exhibits	23
Signatures		24


	March 31, 2026		December 31, 2025
Assets
Current assets:
Cash and cash equivalents	$	146,165	$	167,428

Accounts receivable, less allowance for credit losses of $1,000 and $750	71,312		66,653
Inventories	81,142		78,492
Prepaid and other current assets	15,074		9,944
Total current assets	313,693		322,517

Property and equipment, net	39,737		39,123
Operating lease right-of-use assets	6,448		6,868
Intangible assets, net	45,642		48,026
Goodwill	234,781		234,781
Other noncurrent assets	3,687		2,864
Total Assets	$	643,988	$	654,179
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	30,558	$	25,310
Accrued liabilities	39,503		53,089
Other current liabilities	3,130		3,121
Total current liabilities	73,191		81,520
Long-term debt	61,000		61,865
Finance and operating lease liabilities	10,784		11,516

Other noncurrent liabilities	7,320		7,343
Total Liabilities	152,295		162,244
Commitments and contingencies (Note 8)
Stockholders’ Equity:
Common stock, $0.001 par value, 90,000 shares authorized and 50,634 and 49,792 issued and outstanding	51		50
Additional paid-in capital	904,510		904,522
Accumulated other comprehensive income	227		566
Accumulated deficit	(413,095)		(413,203)
Total Stockholders’ Equity	491,693		491,935
Total Liabilities and Stockholders’ Equity	$	643,988	$	654,179


	Three Months Ended March 31,
	2026		2025
Revenue	$	141,249	$	123,620
Cost of revenue	31,938		30,992
Gross profit	109,311		92,628
Operating expenses:
Research and development expenses	24,235		22,528
Selling, general and administrative expenses	84,550		76,054
Total operating expenses	108,785		98,582
Income (loss) from operations	526		(5,954)
Other income (expense):
Interest expense	(1,340)		(1,416)
Interest income	1,245		1,042

Other expense	(37)		(180)
Income (loss) before income tax expense	394		(6,508)
Income tax expense	286		239
Net income (loss)	$	108	$	(6,747)
Net income (loss) per share
Basic net income (loss) per share	$	0.00	$	(0.14)
Diluted net income (loss) per share	$	0.00	$	(0.14)
Weighted average shares outstanding
Basic	48,334		47,393
Diluted	49,046		47,393
Comprehensive income (loss):

Foreign currency translation adjustment	(339)		805

Net income (loss)	108		(6,747)
Comprehensive loss, net of tax	$	(231)	$	(5,942)


	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

	Three-Month Period Ended March 31, 2026
	Common Stock			Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Income (Loss)		Total Stockholders’ Equity
	Shares	Amount
Balance—December 31, 2025	49,792	$	50	$	904,522	$	(413,203)	$	566	$	491,935
Impact of equity compensation plans	843	1		(12)		—		—		(11)
Other comprehensive loss	—	—		—		—		(339)		(339)
Net income	—	—		—		108		—		108
Balance—March 31, 2026	50,635	$	51	$	904,510	$	(413,095)	$	227	$	491,693


	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	$	130,641	$	—	$	—	$	130,641




Total assets	$	130,641	$	—	$	—	$	130,641


	March 31, 2026		December 31, 2025
Raw materials	$	39,092	$	39,052
Work in process	7,388		3,759
Finished goods	34,662		35,681
Total	$	81,142	$	78,492


	March 31, 2026				December 31, 2025
	Cost		Accumulated Amortization		Cost		Accumulated Amortization
Technology	$	46,470	$	16,878	$	46,470	$	16,144
Patents	30,000		13,950		30,000		12,300
Total	$	76,470	$	30,828	$	76,470	$	28,444


2026 (excluding the three months ended March 31, 2026)	$	7,151
2027	10,435
2028	6,535
2029	2,935
2030	2,935
2031 and thereafter	15,651
Total	$	45,642


	March 31, 2026		December 31, 2025
Accrued compensation and employee-related expenses	$	32,251	$	46,760
Sales returns and allowances	3,969		3,476
Other accrued liabilities	3,283		2,853
Total	$	39,503	$	53,089


	March 31, 2026		December 31, 2025
Operating Leases
Weighted average remaining lease term (years)	4.9		5.1
Weighted average discount rate	7.0	%	7.0	%

Finance Leases
Weighted average remaining lease term (years)	4.4		4.7
Weighted average discount rate	7.0	%	7.0	%


	Three Months Ended March 31,
	2026		2025
Cash flows from operating activities:
Net income (loss)	$	108	$	(6,747)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Share-based compensation expense	11,273		9,630
Depreciation	2,889		2,974
Amortization of intangible assets	2,384		2,110
Amortization of deferred financing costs	105		120



Other non-cash adjustments	708		495
Changes in operating assets and liabilities:
Accounts receivable	(5,019)		(2,686)
Inventories	(2,770)		750
Other current assets	(5,163)		(3,885)
Accounts payable	5,572		(722)
Accrued liabilities	(13,508)		(12,561)
Other noncurrent assets and liabilities	(575)		(504)
Net cash used in operating activities	(3,996)		(11,026)
Cash flows from investing activities:


Purchases of property and equipment	(3,852)		(2,181)


Proceeds from capital grant	—		500
Net cash used in investing activities	(3,852)		(1,681)
Cash flows from financing activities:


Payments on debt, leases and financing obligation	(1,194)		(287)

Payment of financing costs	(777)		—
Shares repurchased for payment of taxes on stock awards	(11,442)		(10,172)
Proceeds from stock option exercises	158		134
Net cash used in financing activities	(13,255)		(10,325)
Effect of exchange rate changes on cash and cash equivalents	(160)		196


2026	$	1,034
2027	2,099
2028	2,162
2029	2,227
2030	2,294
2031	2,363


	Three Months Ended March 31,
	2026		2025
Open ablation	$	39,080	$	33,308
Minimally invasive ablation	6,386		8,480
Pain management	22,359		17,270

Appendage management	48,380		42,091
Total United States	$	116,205	$	101,149


	Three Months Ended March 31,
	2026		2025
Open ablation	$	9,516	$	8,995
Minimally invasive ablation	1,913		2,013
Pain management	1,990		1,789

Appendage management	11,625		9,674
Total International	$	25,044	$	22,471


	Three Months Ended March 31, 2026		Three Months Ended March 31, 2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	566	$	538
Operating cash flows for finance leases	126		147
Financing cash flows for finance leases	316		287

Right-of-use assets and corresponding lease obligations related to new and modified lease agreements:
Operating leases	$	60	$	1,558
Finance leases	—		—


	Three Months Ended March 31,
	2026		2025
Net income (loss) available to common stockholders	$	108	$	(6,747)
Basic weighted average common shares outstanding	48,334		47,393
Effect of dilutive securities	712		—
Diluted weighted average common shares outstanding	49,046		47,393

Basic net income (loss) per common share	$	0.00	$	(0.14)
Diluted net income (loss) per common share	$	0.00	$	(0.14)


	Three Months Ended March 31,				Change
	2026		2025		Amount		%
Open ablation	$	39,080	$	33,308	$	5,772	17.3	%
Minimally invasive ablation	6,386		8,480		(2,094)		(24.7)
Pain management	22,359		17,270		5,089		29.5
Appendage management	48,380		42,091		6,289		14.9
Total United States	$	116,205	$	101,149	$	15,056	14.9
Total International	25,044		22,471		2,573		11.5
Total revenue	$	141,249	$	123,620	$	17,629	14.3	%


Exhibit No.			Description
10.1#			Form of Performance Share Award Agreement for Awards Granted in 2026.
10.2			F irst Amendment to Credit Agreement among the JPMorgan Chase Bank, N.A., as administrative agent , JPMorgan Chase Bank, N.A., as bookrunner and lead arranger, the lenders party thereto ("Lenders"), and AtriCure, Inc. dated January 9, 2026 (incorporated by reference from Exhibit 10.1 to Current Report on Form 8-K filed January 12 , 2026).
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: May 6, 2026			/s/ Michael H. Carrel
			Michael H. Carrel
			President and Chief Executive Officer (Principal Executive Officer)


Date: May 6, 2026			/s/ Angela L. Wirick
			Angela L. Wirick
			Chief Financial Officer (Principal Accounting and Financial Officer)

SEC Form 10-Q filed by AtriCure Inc.