AtriCure Swings to Q2 Profit on 12.8% Revenue Growth; SentreHEART Lawsuit Seeks $260M
ATRC sits 47% above its 52-week low of $25.36.
Summary
AtriCure reported Q2 2026 net income of $9.0M on revenue of $153.6M (+12.8% YoY), with gross margin improving to 77.2%. The 10-Q also reveals a lawsuit seeking up to $260M related to the SentreHEART acquisition.
Key Events · Earnings and Guidance · ATRC
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Q2 Revenue +12.8% to $153.6M
Worldwide revenue rose 12.8% (12.4% constant currency), driven by pain management (+27.8%), appendage management (+14.4%), and open ablation (+12.1%). U.S. revenue grew 13.6%.
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Net Income Swings to $9.0M Profit
Net income of $9.0M ($0.18 diluted EPS) compared to a $6.2M loss in Q2 2025, aided by a 269 bps gross margin expansion to 77.2% and a $5M reduction in R&D milestone payments.
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Lawsuit Seeks Up to $260M in Damages
Former SentreHEART securityholders allege breach of contract and seek damages up to $260M plus interest. The company intends to defend vigorously; no liability has been recorded as a loss is not probable or estimable.
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Strong Liquidity Position
Cash and equivalents of $167.8M, $62.75M unused borrowing capacity under the ABL facility, and $61M in long-term debt. Operating cash flow was $18.2M for H1 2026.
Analysis · ATRC · Industrial Applications And Services
A sharp swing to profitability highlights the quarter, with net income reaching $9.0M on revenue of $153.6M, reversing a year-ago loss. Gross margins expanded nearly 270 basis points, and the balance sheet remains solid with $167.8M in cash. However, the filing also discloses a lawsuit from former SentreHEART securityholders seeking up to $260M in damages — an amount that dwarfs the company's market cap and could become a material overhang if the case advances.
At the time of this filing, ATRC was trading at $37.31 on NASDAQ in the Industrial Applications And Services sector, with a market capitalization of approximately $1.9B. The 52-week trading range was $25.36 to $43.18. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.