Penumbra’s first quarter saw robust demand across its U.S. thrombectomy business, a trend management attributed to continued physician adoption of proprietary CABT (computer-assisted blood clot thrombectomy) technology and the successful launch of new devices. CEO Adam Elsesser highlighted that clinical evidence supporting CABT’s benefits, especially in venous thromboembolism (VTE), drove significant conversion from traditional treatments. The strong product mix and operational efficiencies contributed to margin expansion, while international results were tempered by ongoing weakness in China. As Elsesser noted, “Our strong first quarter results underscore Flash 2.0’s durable growth and momentum in VTE, with 2.0’s demonstrated value proposition continuing to drive conversions.”
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Penumbra (PEN) Q1 CY2025 Highlights:
- Revenue: $324.1 million vs analyst estimates of $315.7 million (16.3% year-on-year growth, 2.7% beat)
- Adjusted EPS: $0.83 vs analyst estimates of $0.67 (24.5% beat)
- Adjusted EBITDA: $59.6 million vs analyst estimates of $42.32 million (18.4% margin, 40.8% beat)
- The company reconfirmed its revenue guidance for the full year of $1.35 billion at the midpoint
- Operating Margin: 12.4%, up from 4.3% in the same quarter last year
- Constant Currency Revenue rose 16.9% year on year (15.2% in the same quarter last year)
- Market Capitalization: $9.95 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Penumbra’s Q1 Earnings Call
- Robbie Marcus (JPMorgan) asked for color on stroke versus peripheral thrombectomy trends; CEO Adam Elsesser explained that U.S. stroke business grew above market rates, aided by new product launches and strong physician adoption.
- Lynn (Wells Fargo, for Larry Biegelsen) inquired about the FDA review timeline for Thunderbolt; Elsesser refrained from predicting timing but emphasized confidence in the clinical data submitted and relevance of new procedural metrics.
- Pito Chickering (Deutsche Bank) pressed on international thrombectomy growth outside China; Elsesser confirmed ongoing traction in markets with reimbursement, but reiterated that U.S. growth will remain dominant in the near term.
- Bill Plovanic (Canaccord) asked about volume versus pricing in arterial products; Elsesser clarified that recent growth was volume-driven, with minimal price impact, as new cases are being converted from open surgery.
- Travis Steed (Bank of America) sought insight on Ruby XL’s market opportunity; Elsesser noted early physician interest and described the product as built on Penumbra’s core coil platform, with market potential to become clearer after initial adoption.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be watching (1) the pace of adoption for new product launches such as Ruby XL and the outcome of the Thunderbolt FDA review, (2) continued U.S. thrombectomy market share gains and conversion from traditional therapies, and (3) progress in operational efficiency and early signs of international expansion offsetting China headwinds. Sustained margin improvement and execution of the clinical evidence strategy will also be key markers for Penumbra’s performance.
Penumbra currently trades at $257.01, down from $278.39 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).
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