AtriCure, Inc. (ATRC) - Stock Analysis
Last updated: Jan 19, 2026
Research Idea
Research content for general circulation. Not individualized advice. Methodology & Disclosures
AtriCure exhibits strong short-term growth supported by 16% revenue increase in Q3, positive EBITDA growth, cash flow improvement, clinical pipeline advancements, and strong technical breakout despite near-term technical softness.
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AI Analyst Overview
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Valuation Metrics
Fundamental Analysis
Key Financial Insights: ⢠Strong liquidity ⢠High gross margins ⢠Heavy opex Improving cash generation and strong liquidity (cash ~$148m vs $73.7m debt) plus high gross margins (~75â76%) contrast with a heavy operating-expense base that has driven historical losses, leaving valuation elevated despite recent operational gains.
Price Behavior
Key Price Behavior Insights: ⢠Resistance cap ⢠Stable support ⢠Lower highs forming Support Level: $37.00 Resistance Level: $42.00 ATRC traded sideways last month between roughly $37 and $42 but has shown a near-term bearish tilt after failing to sustain a break above $42 and falling to about $39.06, suggesting weakening buying momentum and a break above $42 or below $37 would signal the next directional move.
Sentiment & News
Key News Insights: ⢠Analyst optimism ⢠Revenue growth ⢠Market momentum AtriCure shows strong momentum and analyst optimismâModerate Buy consensus, doubleâdigit Q4 revenue growth, 52âweek highs, and confident 2026 guidance after investor presentations.
AI Summary
ATRC has shifted from a âgrowth-at-any-costâ story to a near-term cash-flow inflection play with management guiding to $600â610M revenue and positive adjusted EBITDA (~$80â82M) in 2026, so the investment now hinges on whether the company can sustain margin leverage and convert improving FCF into recurring profitability. Actionable focus: verify audited 2025/2026 margin quality and track quarterly beat-and-raise cadence plus PFA adoption/clinical trial progress (BoxXâNoAF, PFA programs) as the primary upside catalysts or downside risks.
Description
AtriCure develops, manufactures and sells surgical systems and devices used to ablate cardiac tissue and intercostal nerves, serving hospitals and cardiac centers in the United States and internationally. Its portfolio includes radiofrequency and cryoablation systems, epicardial appendage occlusion and suture-based closure solutions, and a range of supporting instruments and disposables for electrophysiology and cardiac surgery. The company distributes products through a mix of independent distributors and direct sales teams and is headquartered in Mason, Ohio; it was incorporated in 2000.
Idea History
| Date | Close | Ticker | Company | Summary | Status | P/L |
|---|---|---|---|---|---|---|
| Jan 12 | Jan 19 | ATRC | AtriCure, Inc. | AtriCure exhibits strong short-term growth supported by 16% revenue increase in Q3, positive EBITDA growth, cash flow improvement, clinical pipeline advancements, and strong technical breakout despite near-term technical softness. | Closed | +3.8% |