# EDGAR Filing Document

**Accession Number:** 0001323885
**File Stem:** 0001323885-26-000023
**Filing Date:** 2026-5
**Character Count:** 122895
**Document Hash:** 71268451446c5c7d30f0f372a78535a9
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001323885-26-000023.hdr.sgml**: 20260506

**ACCESSION NUMBER**: 0001323885-26-000023

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 76

**CONFORMED PERIOD OF REPORT**: 20260331

**FILED AS OF DATE**: 20260506

**DATE AS OF CHANGE**: 20260506

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** AtriCure, Inc.
- **CENTRAL INDEX KEY:** 0001323885
- **STANDARD INDUSTRIAL CLASSIFICATION:** SURGICAL & MEDICAL INSTRUMENTS & APPARATUS [3841]
- **ORGANIZATION NAME:** 08 Industrial Applications and Services
- **EIN:** 341940305
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-51470
- **FILM NUMBER:** 26947202

**BUSINESS ADDRESS:**
- **STREET 1:** 7555 INNOVATION WAY
- **CITY:** MASON
- **STATE:** OH
- **ZIP:** 45040
- **BUSINESS PHONE:** 513-755-4100

**MAIL ADDRESS:**
- **STREET 1:** 7555 INNOVATION WAY
- **CITY:** MASON
- **STATE:** OH
- **ZIP:** 45040

?xml version='1.0' encoding='ASCII'? atrc-20260331

**<u>[**Table of Contents**](#ic849ed1758e7405d8b1c01bd5436e201_7)</u>**

**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION** 

**Washington, DC 20549** 

_____________________________________________

**FORM 10-Q** 

___________________________________________________________________________________________

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

**For the quarterly period ended March 31, 2026**

**or** 

◻**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** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(State or other jurisdiction of** <br>**incorporation)** | **(IRS Employer**<br>**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 ☐ <br> 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.

---

| | |
|:---|:---|
| **<u>Class</u>** | **<u>Outstanding at May 1, 2026</u>** |
| Common Stock, $.001 par value | 50640970 |

---

------

**<u>[**Table of Contents**](#ic849ed1758e7405d8b1c01bd5436e201_7)</u>**

**<u>**Table of Contents**</u>**

---

| | | |
|:---|:---|:---|
| | | **Page** |
| <u>[PART I. FINANCIAL INFORMATION](#ic849ed1758e7405d8b1c01bd5436e201_10)</u> | <u>[PART I. FINANCIAL INFORMATION](#ic849ed1758e7405d8b1c01bd5436e201_10)</u> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;[Item 1.](#ic849ed1758e7405d8b1c01bd5436e201_13) | <u>[Condensed Consolidated Financial Statements (Unaudited)](#ic849ed1758e7405d8b1c01bd5436e201_13)</u> | [3](#ic849ed1758e7405d8b1c01bd5436e201_10) |
|  | <u>[Condensed Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025](#ic849ed1758e7405d8b1c01bd5436e201_16)</u> | [3](#ic849ed1758e7405d8b1c01bd5436e201_16) |
|  | <u>[Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three Months Ended March 31, 2026 and 2025](#ic849ed1758e7405d8b1c01bd5436e201_19)</u> | [4](#ic849ed1758e7405d8b1c01bd5436e201_19) |
|  | <u>[Condensed Consolidated Statements of Stockholders' Equity for the Three Months Ended March 31, 2026 and 2025](#ic849ed1758e7405d8b1c01bd5436e201_22)</u> | [5](#ic849ed1758e7405d8b1c01bd5436e201_22) |
|  | <u>[Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2026 and 2025](#ic849ed1758e7405d8b1c01bd5436e201_25)</u> | [6](#ic849ed1758e7405d8b1c01bd5436e201_25) |
|  | <u>[Notes to Condensed Consolidated Financial Statements](#ic849ed1758e7405d8b1c01bd5436e201_28)</u> | [7](#ic849ed1758e7405d8b1c01bd5436e201_28) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Item 2.](#ic849ed1758e7405d8b1c01bd5436e201_67) | <u>[Management's Discussion and Analysis of Financial Condition and Results of Operations](#ic849ed1758e7405d8b1c01bd5436e201_67)</u> | [17](#ic849ed1758e7405d8b1c01bd5436e201_67) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Item 3.](#ic849ed1758e7405d8b1c01bd5436e201_70) | <u>[Quantitative and Qualitative Disclosures About Market Risk](#ic849ed1758e7405d8b1c01bd5436e201_70)</u> | [21](#ic849ed1758e7405d8b1c01bd5436e201_70) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Item 4.](#ic849ed1758e7405d8b1c01bd5436e201_73) | <u>[Controls and Procedures](#ic849ed1758e7405d8b1c01bd5436e201_73)</u> | [21](#ic849ed1758e7405d8b1c01bd5436e201_73) |
| <u>[PART II. OTHER INFORMATION](#ic849ed1758e7405d8b1c01bd5436e201_76)</u> | <u>[PART II. OTHER INFORMATION](#ic849ed1758e7405d8b1c01bd5436e201_76)</u> | [22](#ic849ed1758e7405d8b1c01bd5436e201_76) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Item 1.](#ic849ed1758e7405d8b1c01bd5436e201_79) | <u>[Legal Proceedings](#ic849ed1758e7405d8b1c01bd5436e201_79)</u> | [22](#ic849ed1758e7405d8b1c01bd5436e201_79) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Item 1A.](#ic849ed1758e7405d8b1c01bd5436e201_82) | <u>[Risk Factors](#ic849ed1758e7405d8b1c01bd5436e201_82)</u> | [22](#ic849ed1758e7405d8b1c01bd5436e201_82) |
| &nbsp;&nbsp;&nbsp;&nbsp;Item 5. | <u>[Other Information](#ic849ed1758e7405d8b1c01bd5436e201_85)</u> | [22](#ic849ed1758e7405d8b1c01bd5436e201_85) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Item 6.](#ic849ed1758e7405d8b1c01bd5436e201_88) | <u>[Exhibits](#ic849ed1758e7405d8b1c01bd5436e201_88)</u> | [23](#ic849ed1758e7405d8b1c01bd5436e201_88) |
| <u>[Signatures](#ic849ed1758e7405d8b1c01bd5436e201_91)</u> | <u>[Signatures](#ic849ed1758e7405d8b1c01bd5436e201_91)</u> | [24](#ic849ed1758e7405d8b1c01bd5436e201_91) |

---

------

**<u>[**Table of Contents**](#ic849ed1758e7405d8b1c01bd5436e201_7)</u>**

**PART I. FINANCIAL INFORMATION**

**Item 1. Financial Statements**

**ATRICURE, INC. AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

**(In Thousands, Except Per Share Amounts)**

 **(Unaudited)**

---

| | | |
|:---|:---|:---|
| | **March 31,<br>2026** | **December 31,<br>2025** |
| **Assets** | | |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $146165 | $167428 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, less allowance for credit losses of $1,000 and $750 | 71312 | 66653 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories | 81142 | 78492 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid and other current assets | 15074 | 9944 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 313693 | 322517 |
| Property and equipment, net | 39737 | 39123 |
| Operating lease right-of-use assets | 6448 | 6868 |
| Intangible assets, net | 45642 | 48026 |
| Goodwill | 234781 | 234781 |
| Other noncurrent assets | 3687 | 2864 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Assets | $643988 | $654179 |
| **Liabilities and Stockholders' Equity** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $30558 | $25310 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities | 39503 | 53089 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current liabilities | 3130 | 3121 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 73191 | 81520 |
| Long-term debt | 61000 | 61865 |
| Finance and operating lease liabilities | 10784 | 11516 |
| Other noncurrent liabilities | 7320 | 7343 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Liabilities | 152295 | 162244 |
| 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 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 904510 | 904522 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive income | 227 | 566 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated deficit | (413095) | (413203) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Stockholders' Equity | 491693 | 491935 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Liabilities and Stockholders' Equity | $643988 | $654179 |

---

See accompanying notes to condensed consolidated financial statements.

------

**<u>[**Table of Contents**](#ic849ed1758e7405d8b1c01bd5436e201_7)</u>**

**ATRICURE, INC. AND SUBSIDIARIES** 

**CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS**

**(In Thousands, Except Per Share Amounts)**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
| | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| | **2026** | **2025** |
| Revenue | $141249 | $123620 |
| Cost of revenue | 31938 | 30992 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross profit | 109311 | 92628 |
| Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development expenses | 24235 | 22528 |
| &nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative expenses | 84550 | 76054 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 108785 | 98582 |
| Income (loss) from operations | 526 | (5954) |
| Other income (expense): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | (1340) | (1416) |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income | 1245 | 1042 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other expense | (37) | (180) |
| Income (loss) before income tax expense | 394 | (6508) |
| Income tax expense | 286 | 239 |
| Net income (loss) | $108 | $(6747) |
| Net income (loss) per share |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic net income (loss) per share | $0.00 | $(0.14) |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted net income (loss) per share | $0.00 | $(0.14) |
| Weighted average shares outstanding |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | 48334 | 47393 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | 49046 | 47393 |
| Comprehensive income (loss): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency translation adjustment | (339) | 805 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income (loss) | 108 | (6747) |
| Comprehensive loss, net of tax | $(231) | $(5942) |

---

See accompanying notes to condensed consolidated financial statements.

------

**<u>[**Table of Contents**](#ic849ed1758e7405d8b1c01bd5436e201_7)</u>**

**ATRICURE, INC. AND SUBSIDIARIES** 

**CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY** 

**(In Thousands)**

**(Unaudited)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three-Month Period Ended March 31, 2025** | **Three-Month Period Ended March 31, 2025** | **Three-Month Period Ended March 31, 2025** | **Three-Month Period Ended March 31, 2025** | **Three-Month Period Ended March 31, 2025** | **Three-Month Period Ended March 31, 2025** |
| | **Common Stock**  | **Common Stock**  | **Additional**<br>**Paid-in**<br>**Capital**  | **Accumulated<br>Deficit** | **Accumulated**<br>**Other**<br>**Comprehensive**<br>**Income (Loss)**  | **Total**<br>**Stockholders'**<br>**Equity**  |
| | **Shares**  | **Amount**  | **Additional**<br>**Paid-in**<br>**Capital**  | **Accumulated<br>Deficit** | **Accumulated**<br>**Other**<br>**Comprehensive**<br>**Income (Loss)**  | **Total**<br>**Stockholders'**<br>**Equity**  |
| Balance—December 31, 2024 | 48869 | $49 | $863710 | $(401755) | $(1035) | $460969 |
| &nbsp;&nbsp;&nbsp;&nbsp;Impact of equity compensation plans | 624 |  | (408) |  |  | (408) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  |  |  |  | 805 | 805 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss |  |  |  | (6747) |  | (6747) |
| Balance—March 31, 2025 | 49493 | $49 | $863302 | $(408502) | $(230) | $454619 |
|  | **Three-Month Period Ended March 31, 2026** | **Three-Month Period Ended March 31, 2026** | **Three-Month Period Ended March 31, 2026** | **Three-Month Period Ended March 31, 2026** | **Three-Month Period Ended March 31, 2026** | **Three-Month Period Ended March 31, 2026** |
|  | **Common Stock**  | **Common Stock**  | **Additional**<br>**Paid-in**<br>**Capital**  | **Accumulated<br>Deficit** | **Accumulated**<br>**Other**<br>**Comprehensive**<br>**Income (Loss)**  | **Total**<br>**Stockholders'**<br>**Equity**  |
|  | **Shares**  | **Amount**  | **Additional**<br>**Paid-in**<br>**Capital**  | **Accumulated<br>Deficit** | **Accumulated**<br>**Other**<br>**Comprehensive**<br>**Income (Loss)**  | **Total**<br>**Stockholders'**<br>**Equity**  |
| Balance—December 31, 2025 | 49792 | $50 | $904522 | $(413203) | $566 | $491935 |
| &nbsp;&nbsp;&nbsp;&nbsp;Impact of equity compensation plans | 843 | 1 | (12) |  |  | (11) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive loss |  |  |  |  | (339) | (339) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income |  |  |  | 108 |  | 108 |
| Balance—March 31, 2026 | 50635 | $51 | $904510 | $(413095) | $227 | $491693 |

---

See accompanying notes to condensed consolidated financial statements.

------

**<u>[**Table of Contents**](#ic849ed1758e7405d8b1c01bd5436e201_7)</u>**

**ATRICURE, INC. AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(In Thousands)**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
| | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| | **2026** | **2025** |
| Cash flows from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income (loss) | $108 | $(6747) |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net income (loss) to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation expense | 11273 | 9630 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 2889 | 2974 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of intangible assets | 2384 | 2110 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred financing costs | 105 | 120 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other non-cash adjustments | 708 | 495 |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (5019) | (2686) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | (2770) | 750 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current assets | (5163) | (3885) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 5572 | (722) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities | (13508) | (12561) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other noncurrent assets and liabilities | (575) | (504) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities | (3996) | (11026) |
| Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases of property and equipment | (3852) | (2181) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from capital grant |  | 500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (3852) | (1681) |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments on debt, leases and financing obligation | (1194) | (287) |
| &nbsp;&nbsp;&nbsp;Payment of financing costs  | (777) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shares repurchased for payment of taxes on stock awards | (11442) | (10172) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from stock option exercises | 158 | 134 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing activities | (13255) | (10325) |
| Effect of exchange rate changes on cash and cash equivalents | (160) | 196 |
| Net decrease in cash and cash equivalents | (21263) | (22836) |
| Cash and cash equivalents—beginning of period | 167428 | 122721 |
| Cash and cash equivalents—end of period | $146165 | $99885 |
| Supplemental cash flow information: |  |  |
| &nbsp;&nbsp;&nbsp;Cash paid for interest | $1220 | $1246 |
| &nbsp;&nbsp;&nbsp;Cash paid for taxes, net of refunds | 91 | 116 |
| &nbsp;&nbsp;&nbsp;Non-cash investing and financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued purchases of property and equipment | 1075 | 1156 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

See accompanying notes to condensed consolidated financial statements.

------

**<u>[**Table of Contents**](#ic849ed1758e7405d8b1c01bd5436e201_7)</u>**

**ATRICURE, INC. AND SUBSIDIARIES**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(In Thousands, except per share amounts)**

**(Unaudited)**

**1. DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

***Nature of the Business***—The "Company" or "AtriCure" consists of AtriCure, Inc. and its wholly-owned subsidiaries. AtriCure is a leading innovator in surgical treatments and therapies for atrial fibrillation (Afib), left atrial appendage (LAA) management and post-operative pain management, and sells its products to medical centers globally through both its direct sales force and distributors.

***Basis of Presentation***—The accompanying interim financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (SEC). All intercompany accounts and transactions have been eliminated in consolidation. The accompanying interim financial statements are unaudited, but in the opinion of the Company's management, contain all normal, recurring adjustments considered necessary to present fairly the financial position, results of operations and cash flows for the periods presented in conformity with accounting principles generally accepted in the United States of America (GAAP) applicable to interim periods. Certain information and footnote disclosures included in annual financial statements prepared in accordance with GAAP have been omitted or condensed. The Company believes the disclosures herein are adequate to make the information presented not misleading. Results of operations are not necessarily indicative of the results expected for the full year or for any future period.

The accompanying interim financial statements should be read in conjunction with the Company's audited financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC. Except as discussed herein, there have been no changes in the Company's significant accounting policies for the three months ended March 31, 2026 as compared to the significant accounting policies described in the Company's Annual Report on Form 10-K for the year ended December 31, 2025.

***Use of Estimates***—The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense. Actual results could differ from those estimates.

***Segments***—The Company evaluates reporting segments in accordance with the Financial Accounting Standards Board's (FASB) Accounting Standards Codification (ASC) 280, "Segment Reporting". The chief operating decision maker for AtriCure is the Chief Executive Officer. The Company has one business activity and operates as one operating segment: the development, manufacture and sale of devices used by physicians in surgical procedures, designed primarily for the surgical ablation of cardiac tissue, the exclusion of the left atrial appendage and ablation of peripheral nerves to temporarily block pain. These devices are developed and marketed to a broad base of medical centers globally. Management considers all such sales to be part of the single operating segment. The Chief Executive Officer is regularly provided with consolidated expenses consistent with the presented consolidated statements of operations, accompanied by information about revenue by product type and geographic area, for purposes of allocating resources and net income (loss) is the measure used in evaluating financial performance. Revenue by product type and geographic area is included at Note 9 – Revenue. The Company's long-lived assets are located in the United States, except for $6,017 as of March 31, 2026 and $6,292 as of December 31, 2025 located primarily in Europe.

**2. FAIR VALUE**

Fair value is defined as the exchange price that would be received for an asset or paid to settle a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. To measure the fair value of assets and liabilities, the Company uses the following fair value hierarchy based on three levels of inputs:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1—Observable inputs, such as quoted prices in active markets for identical assets or liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

------

**<u>[**Table of Contents**](#ic849ed1758e7405d8b1c01bd5436e201_7)</u>**

**ATRICURE, INC. AND SUBSIDIARIES**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(In Thousands, except per share amounts)**

**(Unaudited)**

The following table represents the Company's fair value hierarchy for its financial assets measured at fair value on a recurring basis as of March 31, 2026:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Quoted Prices in<br>Active Markets for<br>Identical Assets<br>(Level 1)** | **Significant Other<br>Observable Inputs<br>(Level 2)** | **Significant Other<br>Unobservable<br>Inputs (Level 3)** | **Total** |
| **Assets:** | | | | |
| Money market funds | $130641 | $— | $— | $130641 |
| Total assets | $130641 | $— | $— | $130641 |

---

There were no changes in the levels or methodology of measurement of financial assets and liabilities during the three months ended March 31, 2026.

The following table represents the Company's fair value hierarchy for its financial assets measured at fair value on a recurring basis as of December 31, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Quoted Prices in<br>Active Markets for<br>Identical Assets<br>(Level 1)** | **Significant Other<br>Observable Inputs<br>(Level 2)** | **Significant Other<br>Unobservable<br>Inputs (Level 3)** | **Total** |
| **Assets:** | | | | |
| Money market funds | $156491 | $— | $— | $156491 |
| Total assets | $156491 | $— | $— | $156491 |

---

***Contingent Consideration.*** The Company's contingent consideration arrangements arising from the SentreHEART acquisition obligate the Company to pay certain defined amounts to former shareholders of SentreHEART if specified milestones are met related to the aMAZE™ IDE clinical trial, including PMA approval and reimbursement for the therapy involving SentreHEART's devices. The PMA approval milestone expired December 31, 2023, while the achievement period for the reimbursement milestone expires on December 31, 2026. The Company assessed the projected probability of payment during the contractual achievement periods as remote, resulting in no reported fair value as of March 31, 2026 and December 31, 2025.

**3. INVENTORIES**

Inventories consist of the following:

---

| | | |
|:---|:---|:---|
| | **March 31,<br>2026** | **December 31,<br>2025** |
| Raw materials | $39092 | $39052 |
| Work in process | 7388 | 3759 |
| Finished goods | 34662 | 35681 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $81142 | $78492 |

---

**4. INTANGIBLE ASSETS**

The following table provides a summary of the Company's intangible assets:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **December 31, 2025** | **December 31, 2025** |
| | **Cost** | **Accumulated<br>Amortization** | **Cost** | **Accumulated<br>Amortization** |
| Technology | $46470 | $16878 | $46470 | $16144 |
| Patents | 30000 | 13950 | 30000 | 12300 |
| Total | $76470 | $30828 | $76470 | $28444 |

---

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**<u>[**Table of Contents**](#ic849ed1758e7405d8b1c01bd5436e201_7)</u>**

**ATRICURE, INC. AND SUBSIDIARIES**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(In Thousands, except per share amounts)**

**(Unaudited)**

The following table summarizes the allocation of amortization expense of intangible assets:

---

| | | |
|:---|:---|:---|
| | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| | **2026** | **2025** |
| Cost of revenues | $1650 | $1350 |
| Research and development expenses | 734 | 760 |
| Total | $2384 | $2110 |

---

Future amortization expense is projected as follows:

---

| | |
|:---|:---|
| 2026 (excluding the three months ended March 31, 2026) | $7151 |
| 2027 | 10435 |
| 2028 | 6535 |
| 2029 | 2935 |
| 2030 | 2935 |
| 2031 and thereafter | 15651 |
| &nbsp;&nbsp;&nbsp;Total | $45642 |

---

**5. ACCRUED LIABILITIES**

Accrued liabilities consist of the following:

---

| | | |
|:---|:---|:---|
| | **March 31,<br>2026** | **December 31,<br>2025** |
| Accrued compensation and employee-related expenses | $32251 | $46760 |
| Sales returns and allowances | 3969 | 3476 |
| Other accrued liabilities | 3283 | 2853 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $39503 | $53089 |

---

**6. BORROWINGS AND FINANCING OBLIGATION**

***Asset backed revolving credit facility.*** The Company has an asset-based credit facility (Credit Agreement) with JPMorgan Chase Bank, N.A. (JPMCB, also the administrative agent) and Silicon Valley Bank (a division of First-Citizen Bank and Trust Company). The Credit Agreement provides a $125,000 asset-based revolving credit facility (ABL Facility), and the Company may request an increase in the revolving commitment up to $40,000 (not to exceed a total of $165,000). A portion of the ABL Facility, limited to $5,000, is available for the issuance of letters of credit by JPMCB or other financial institutions. JPMCB in its sole discretion, may create swingline loans by advancing floating rate revolving loans requested. Any such swingline loans will reduce availability under the ABL Facility on a dollar-for-dollar basis.

On January 9, 2026, the Company entered into a First Amendment to Credit Agreement. The First Amendment provides a three-year extension of the term of the Credit Agreement, and all outstanding borrowings are due upon the maturity of the Credit Agreement on January 9, 2029. Subject to customary exceptions and restrictions, the Company may voluntarily prepay outstanding amounts under the ABL Facility at any time without premium or penalty. Any voluntary prepayments will not reduce lender commitments under the ABL Facility. The Credit Agreement contains mandatory prepayment provisions which require prepayment of amounts outstanding under the ABL Facility upon specified events or availability shortfall. The First Amendment provides for a reduction in the overall interest rate on loans under the ABL Facility and removes the minimum utilization financial covenant in addition to certain other loan administration updates. Following closing, the Company paid down $865 of borrowings. The First Amendment was treated as a debt modification.

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**<u>[**Table of Contents**](#ic849ed1758e7405d8b1c01bd5436e201_7)</u>**

**ATRICURE, INC. AND SUBSIDIARIES**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(In Thousands, except per share amounts)**

**(Unaudited)**

As of March 31, 2026, the Company had total borrowings of $61,000 and had unused borrowing capacity of $62,750 under the ABL Facility. Future maturities of long-term debt are projected as follows:

---

| | |
|:---|:---|
| 2026 (excluding the three months ended March 31, 2026) | $— |
| 2027 |  |
| 2028 |  |
| 2029 | 61000 |
| 2030 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total long-term debt, of which $61,000 is noncurrent | $61000 |

---

The ABL Facility is subject to a commitment fee of 0.37% per annum of the daily available revolving commitment and paid on a quarterly basis. Outstanding amounts bear interest at a rate per annum equal to, at the Company's election: (i) an alternate base rate (ABR) plus an applicable margin or (ii) a term secured overnight financing rate (SOFR) plus an applicable margin. All swingline loans bear interest at a rate per annum equal to the ABR plus the applicable margin. Alternate base rate is equal to the greatest of Prime, the NYFRB Rate plus 0.50% and the Term SOFR rate plus 1.00%. The applicable margin on borrowings will adjust ranging from 1.25% to 1.50% per annum for ABR borrowings and from 2.25% to 2.50% per annum for Term SOFR borrowings determined by the average historical excess availability. As of March 31, 2026, the effective interest rate on the ABL Facility was 6.18%.

The ABL Facility is secured by the assets of the Company, consisting of personal, tangible or intangible property, including certain outstanding equity interests of the Company's direct subsidiaries, subject to limitations specified in the Credit Agreement. The Credit Agreement contains customary representations and warranties, events of default and financial, affirmative and negative covenants for facilities of this type, including but not limited to financial covenants relating to a fixed charge coverage ratio, and restrictions on indebtedness, liens, investments and acquisitions, asset dispositions, specified agreements, restricted payments and prepayment of certain indebtedness.

***Financing obligation.*** In August 2025, the Company transferred legal ownership of a building and certain real property on its corporate headquarters campus in Mason, Ohio for cash consideration of $6,250. Simultaneously, the Company entered into a contract to lease back the existing building and real property, as well as the planned building expansion space from the buyer-lessor. The buyer-lessor is financing the development and construction of the expansion of additional manufacturing and office space. During construction of the expansion, the Company will maintain occupancy and pay rent for the existing building. Upon construction completion, the expanded premises will be leased for fifteen years with three five-year options to renew. Annual rental payments will be calculated at an amount equal to 8% of the construction costs and will escalate 3% annually. Rental payments will be allocated between the existing and the expanded property based on the relative fair value upon construction completion. Expansion rental payments are projected to be $38,469 for the fifteen-year lease term expected to begin during 2026. The classification of the lease related to the expansion will be assessed upon completion of construction. Rental payments will be finalized upon completion of the expansion construction. Estimated rental payments for the expansion over the next five annual periods are as follows:

---

| | |
|:---|:---|
| 2026 | $1034 |
| 2027 | 2099 |
| 2028 | 2162 |
| 2029 | 2227 |
| 2030 | 2294 |
| 2031 | 2363 |

---

The lease of the existing building and certain real property sold is a failed sale-and-leaseback as a result of finance lease classification. The Company recorded a financing obligation equal to the $6,250 cash proceeds received. The Company allocated projected rental payments during the term of construction and fifteen-year lease term based on the estimated fair value of the existing real property assets and future expansion. The Company imputes interest monthly at a rate of 6.76%. During the three months ended March 31, 2026, interest expense was not significant.

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**<u>[**Table of Contents**](#ic849ed1758e7405d8b1c01bd5436e201_7)</u>**

**ATRICURE, INC. AND SUBSIDIARIES**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(In Thousands, except per share amounts)**

**(Unaudited)**

Future maturities of the financing obligation are projected as follows:

---

| | |
|:---|:---|
| 2026 (excluding the three months ended March 31, 2026) | $68 |
| 2027 | 128 |
| 2028 | 152 |
| 2029 | 180 |
| 2030 | 209 |
| 2031 and thereafter | 5485 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total long-term financing obligation, of which $99 is current | $6222 |

---

The financing obligation is included in Other current liabilities and Other noncurrent liabilities on the Condensed Consolidated Balance Sheet.

**7. LEASES**

The Company has operating and finance leases for office, manufacturing and warehouse facilities and automobiles. The Company's leases have remaining lease terms of less than two years to ten years. Options to renew or extend leases beyond their initial term have been excluded from measurement of the right-of-use (ROU) assets and lease liabilities as exercise is not reasonably certain.

The weighted average remaining lease term and the discount rate for the reporting periods are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **December 31, 2025** | **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 | % |

---

A letter of credit for $1,250 issued to the lessor of the Company's corporate headquarters building is renewed annually and remains outstanding as of March 31, 2026.

The components of lease expense are as follows:

---

| | | |
|:---|:---|:---|
| | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| | **2026** | **2025** |
| Operating lease cost | $530 | $466 |
| Finance lease cost: |  |  |
| &nbsp;&nbsp;&nbsp;Amortization of right-of-use assets | 262 | 262 |
| &nbsp;&nbsp;&nbsp;Interest on lease liabilities | 126 | 147 |
| Total finance lease cost | $388 | $409 |

---

Short-term lease expense was not significant for the three months ended March 31, 2026 and 2025.

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**<u>[**Table of Contents**](#ic849ed1758e7405d8b1c01bd5436e201_7)</u>**

**ATRICURE, INC. AND SUBSIDIARIES**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(In Thousands, except per share amounts)**

**(Unaudited)**

Supplemental cash flow information related to leases is as follows:

---

| | | |
|:---|:---|:---|
| | **Three Months Ended<br>March 31, 2026** | **Three Months Ended<br>March 31, 2025** |
| Cash paid for amounts included in the measurement of lease liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Operating cash flows for operating leases | $566 | $538 |
| &nbsp;&nbsp;&nbsp;Operating cash flows for finance leases | 126 | 147 |
| &nbsp;&nbsp;&nbsp;Financing cash flows for finance leases | 316 | 287 |
| Right-of-use assets and corresponding lease obligations related to new and modified lease agreements: |  |  |
| &nbsp;&nbsp;&nbsp;Operating leases | $60 | $1558 |
| &nbsp;&nbsp;&nbsp;Finance leases |  |  |

---

Supplemental balance sheet information related to leases is as follows:

---

| | | |
|:---|:---|:---|
| | **March 31, 2026** | **December 31, 2025** |
| **Operating Leases** | | |
| Operating lease right-of-use assets | $6448 | $6868 |
| Other current liabilities | $1694 | $1734 |
| Finance and operating lease liabilities | 5156 | 5541 |
| &nbsp;&nbsp;&nbsp;Total operating lease liabilities | $6850 | $7275 |
| **Finance Leases** |  |  |
| Property and equipment, at cost | $14750 | $14765 |
| Accumulated depreciation | (10169) | (9922) |
| &nbsp;&nbsp;&nbsp;Property and equipment, net | $4581 | $4843 |
| Other current liabilities | $1337 | $1306 |
| Finance and operating lease liabilities | 5628 | 5975 |
| &nbsp;&nbsp;&nbsp;Total finance lease liabilities | $6965 | $7281 |

---

Future maturities of lease liabilities as of March 31, 2026 are as follows:

---

| | | |
|:---|:---|:---|
| | **Operating Leases** | **Finance Leases** |
| 2026 (excluding the three months ended March 31, 2026) | $1391 | $1333 |
| 2027 | 1905 | 1808 |
| 2028 | 1475 | 1842 |
| 2029 | 1072 | 1818 |
| 2030 | 683 | 1339 |
| 2031 and thereafter | 1748 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total payments | $8274 | $8140 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less imputed interest | (1424) | (1175) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $6850 | $6965 |

---

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**<u>[**Table of Contents**](#ic849ed1758e7405d8b1c01bd5436e201_7)</u>**

**ATRICURE, INC. AND SUBSIDIARIES**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(In Thousands, except per share amounts)**

**(Unaudited)**

**8. COMMITMENTS AND CONTINGENCIES**

***Cooperation Agreement.*** The Company holds an exclusive licensing agreement (Cooperation Agreement) to co-develop and commercialize equipment incorporating pulsed field ablation (PFA) technology. The Cooperation Agreement requires the Company to pay contingent consideration, settled in cash, with a maximum total payout of $28,000 if all milestones are achieved successfully through the agreement term ending in 2034. As of the reporting date, the Company has paid $6,000 towards milestone achievements which were recorded as Research & Development expense when each milestone was achieved. For the three months ended March 31, 2026 and 2025, no milestones were achieved and therefore, there is no financial impact during the periods. The agreement also contains provisions requiring future royalty payments on devices incorporating co-developed technology upon commercialization.

***Purchase Agreements.*** The Company enters into standard purchase agreements with suppliers in the ordinary course of business, generally with terms that allow cancellation. In 2022, the Company entered into a clinical trial management agreement for the LeAAPS clinical trial. The terms of the agreement require payments upon achievement of various enrollment and project milestones over the estimated ten-year term, however, the agreement may be terminated early for any reason. Furthermore, the Company incurs additional variable costs, including pass through costs from clinical trial sites. Payments made under this agreement were $3,889 and $4,112 for the three months ended March 31, 2026 and 2025, respectively. In 2025, the Company entered into a non-cancellable cloud computing arrangement with a term of seven years requiring total payments of $3,616. Payments under this agreement will begin in the first half of 2026.

***Legal.*** The Company may, from time to time, become a party to legal proceedings which are subject to many uncertainties. Litigation and administrative proceedings over patent and other intellectual property rights are common in our industry, as are requests for information related to interactions with medical professionals. Accordingly, the financial impact of ultimate resolutions from legal proceedings may not be known for extended periods of time and are not predictable with assurance. A liability is established once management determines a loss is probable and an amount can be reasonably estimated. The Company recognizes income from a favorable resolution of legal proceedings when the associated cash or assets are received.

On February 7, 2025, the representative for former securityholders of SentreHEART, Inc. filed a complaint in the Delaware Court of Chancery naming the Company as a defendant, and on May 23, 2025 filed a first amended complaint. The Company acquired SentreHEART, Inc. pursuant to a merger agreement dated August 11, 2019. The merger agreement provides for contingent consideration to be paid upon achievement of specified PMA and CPT reimbursement milestones by specified dates. The amended complaint alleges breach of contract and a related claim for breach of the implied covenant of good faith and fair dealing resulting from the Company's alleged failure to use commercially reasonable efforts to obtain premarket approval from FDA for the LARIAT<sup>®</sup> System. The amended complaint seeks damages in the amount of the original PMA and CPT reimbursement milestones of up to $260,000 plus interest. The Company intends to vigorously defend this claim. A liability has not been recognized related to this matter because any potential loss is not currently probable or reasonably estimable.

**9. REVENUE**

The Company develops, manufactures and sells devices designed for surgical ablation of cardiac tissue, exclusion of the left atrial appendage, and temporarily blocking pain by ablating peripheral nerves. These devices are marketed to a broad base of medical centers globally and primarily used by cardiothoracic and thoracic surgeons. The Company recognizes revenue when control of promised goods is transferred to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods.

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**<u>[**Table of Contents**](#ic849ed1758e7405d8b1c01bd5436e201_7)</u>**

**ATRICURE, INC. AND SUBSIDIARIES**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(In Thousands, except per share amounts)**

**(Unaudited)**

United States revenue by product type is as follows:

---

| | | |
|:---|:---|:---|
| | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| | **2026** | **2025** |
| Open ablation | $39080 | $33308 |
| Minimally invasive ablation | 6386 | 8480 |
| Pain management | 22359 | 17270 |
| Appendage management | 48380 | 42091 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total United States | $116205 | $101149 |

---

International revenue by product type is as follows:

---

| | | |
|:---|:---|:---|
| | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| | **2026** | **2025** |
| Open ablation | $9516 | $8995 |
| Minimally invasive ablation | 1913 | 2013 |
| Pain management | 1990 | 1789 |
| Appendage management | 11625 | 9674 |
| &nbsp;&nbsp;Total International | $25044 | $22471 |

---

Revenue attributed to customer geographic locations is as follows:

---

| | | |
|:---|:---|:---|
| | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| | **2026** | **2025** |
| United States | $116205 | $101149 |
| Europe | 16072 | 14198 |
| Asia Pacific | 7078 | 6784 |
| Other International | 1894 | 1489 |
| &nbsp;&nbsp;Total International | 25044 | 22471 |
| Total Revenue | $141249 | $123620 |

---

**10. INCOME TAX PROVISION**

The Company files federal, state and foreign income tax returns in jurisdictions with varying statutes of limitations. The Company uses the asset and liability method to determine its provision for income taxes. The Company's provision for income taxes in interim periods is computed by applying the discrete method and is based on financial results through the end of the interim period. The Company determined that using the discrete method is more appropriate than using the annual effective tax rate method. The Company is unable to estimate the annual effective tax rate with sufficient precision to use the effective tax rate method, which requires a full-year projection of income. The effective tax rate for the three months ended March 31, 2026 and 2025 was 72.6% and (3.7%). The Company's worldwide effective tax rate differs from the US statutory rate of 21% primarily due to valuation allowances.

The Company's federal, state, local and foreign tax returns are subject to review by various taxing authorities. The Company has not accrued any interest and penalties related to unrecognized income tax benefits as a result of offsetting net operating losses. However, if required, the Company will recognize interest and penalties within income tax expense and within the related tax liability.

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**<u>[**Table of Contents**](#ic849ed1758e7405d8b1c01bd5436e201_7)</u>**

**ATRICURE, INC. AND SUBSIDIARIES**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(In Thousands, except per share amounts)**

**(Unaudited)**

**11. EQUITY COMPENSATION PLANS**

The Company has two share-based incentive plans: the 2023 Stock Incentive Plan (2023 Plan) and the 2018 Employee Stock Purchase Plan (ESPP).

***Stock Incentive Plan***

Under the 2023 Plan, the Board of Directors may grant restricted stock awards or restricted stock units (collectively RSAs), nonstatutory stock options, performance share awards, performance share units or stock appreciation rights to Company employees, directors and consultants, and may grant incentive stock options to Company employees. The Compensation Committee of the Board of Directors, as the administrator of the 2023 Plan, has the authority to determine the terms of any awards, including the number of shares subject to each award, the exercisability of the awards and the form of consideration. As of March 31, 2026, 5,787 shares of common stock have been reserved for issuance under the 2023 Plan, and 1,138 shares were available for future grants. The Company issues registered shares of common stock for stock option exercises, restricted stock grants and performance share award payments.

***Employee Stock Purchase Plan***

Under the ESPP, shares of the Company's common stock may be purchased at a discount (15%) to the lesser of the closing price of the Company's common stock on the first or last trading day of the offering period. The offering period (currently six months) and the offering price are subject to change. Participants may not purchase more than $25 of the Company's common stock in a calendar year or more than 3 shares during an offering period. As of March 31, 2026, there were 295 shares available for future issuance under the ESPP.

***Share-Based Compensation Expense Information***

The following table summarizes the allocation of share-based compensation expense:

---

| | | |
|:---|:---|:---|
| | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| | **2026** | **2025** |
| Cost of revenue | $683 | $669 |
| Research and development expenses | 2091 | 1852 |
| Selling, general and administrative expenses | 8499 | 7109 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $11273 | $9630 |

---

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**<u>[**Table of Contents**](#ic849ed1758e7405d8b1c01bd5436e201_7)</u>**

**ATRICURE, INC. AND SUBSIDIARIES**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(In Thousands, except per share amounts)**

**(Unaudited)**

**12. EARNINGS PER SHARE**

Basic earnings per share is computed by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share reflects net income available to common stockholders divided by the weighted average number of common shares outstanding during the period, including the effect of dilutive common share equivalents. Dilutive equivalents include shares issuable upon the vesting of restricted stock awards and restricted stock units, the exercise of stock options and shares issuable under the Company's employee ESPP.

---

| | | |
|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| | **2026** | **2025** |
| Net income (loss) available to common stockholders | $108 | $(6747) |
| Basic weighted average common shares outstanding | 48334 | 47393 |
| Effect of dilutive securities | 712 |  |
| Diluted weighted average common shares outstanding | 49046 | 47393 |
| Basic net income (loss) per common share | $0.00 | $(0.14) |
| Diluted net income (loss) per common share | $0.00 | $(0.14) |

---

The computation of diluted earnings per share in the three months ended March 31, 2026 and 2025 excludes the effect of 1,156 and 3,008 shares because the effect would be anti-dilutive.

**13. COMPREHENSIVE LOSS AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)**

In addition to net income (loss), comprehensive income (loss) includes foreign currency translation adjustments. Accumulated other comprehensive income (loss) consisted of the following, net of tax:

---

| | | |
|:---|:---|:---|
| | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| | **2026** | **2025** |
| <u>Foreign Currency Translation Adjustment</u> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Balance at beginning of period | $566 | $(1035) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive loss (income) before reclassifications | (356) | 717 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amounts reclassified to other income | 17 | 88 |
| Total accumulated other comprehensive income (loss) at end of period | $227 | $(230) |

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**<u>[**Table of Contents**](#ic849ed1758e7405d8b1c01bd5436e201_7)</u>**

**Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations**

*(Dollar amounts referenced in this Item 2 are in thousands, except per share amounts.)*

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the accompanying Condensed Consolidated Financial Statements and notes thereto contained in Item 1 of Part I of this Form 10-Q and our audited consolidated financial statements and notes thereto as well as the information under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations" as of and for the year ended December 31, 2025 included in our Form 10-K filed with the Securities and Exchange Commission (SEC). This discussion and analysis are intended to provide an understanding of our results of operations, financial condition and cash flows and contains forward-looking statements reflecting current expectations that involve risks, uncertainties and assumptions. The actual results may differ materially from those anticipated in these forward-looking statements as a result of many factors, including but not limited to those set forth under Item 1A "Risk Factors," the cautionary statement regarding forward-looking statements below and elsewhere in this Form 10-Q.

**Forward-Looking Statements**

This Form 10-Q contains forward-looking statements. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933 and Section 21F of the Securities Exchange Act of 1934. All forward-looking information is inherently uncertain and actual results may differ materially from assumptions, estimates or expectations reflected or contained in the forward-looking statements as a result of various factors, including those set forth under "Risk Factors" and elsewhere in this quarterly report on Form 10-Q, and in our annual report on Form 10-K for the year ended December 31, 2025 as amended by our subsequent quarterly reports on Form 10-Q. There may be additional risks of which we are not presently aware or that we currently believe are immaterial which could have an adverse impact on our business. Forward-looking statements often address our expected future business, financial performance, financial condition and results of operations, and often contain words such as "intends," "estimates," "anticipates," "hopes," "projects," "plans," "expects," "drives," "seek," "believes," "see," "focus," "should," "will," "would," "opportunity," "outlook," "could," "can," "may," "future," "predicts," "target," "potential," "forecast," "trend," "might" and similar expressions and the negative versions of those words, and may be identified by the context in which they are used. However, the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements include, without limitation, statements that address activities, events, circumstances or developments that AtriCure expects, believes or anticipates will or may occur in the future, such as earnings estimates (including projections and guidance), other predictions of financial performance, launches by AtriCure of new products, developments with competitors and market acceptance of AtriCure's products. Such statements are based largely upon current expectations of AtriCure. Any forward-looking statement speaks only as of the date made. Reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to differ materially from those expressed or implied. Forward-looking statements are based on AtriCure's expectations, experience and perception of current conditions, trends, expected future developments and other factors it believes are appropriate under the circumstances and are subject to numerous risks and uncertainties, many of which are beyond AtriCure's control. In light of these risks, uncertainties and other factors, the forward-looking events and circumstances described may not occur and our financial condition and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. In other words, these statements are not guarantees of future performance and inherently involve a wide range of risks and uncertainties that are difficult to predict. Some of the factors that could cause actual results to differ from our expectations include regional, national, or global political, economic, business, competitive, market and regulatory conditions and the other factors included in our Form 10-K for the fiscal year ended December 31, 2025 in "Item 1A Risk Factors," "Item 7 Management's Discussion and Analysis of Financial Condition and Results of Operations," and "Item 7A Quantitative and Qualitative Disclosures About Market Risk" and subsequent Form 10-Q reports. These forward-looking statements speak only as of the date of this Form 10-Q. We undertake no obligation to publicly update or revise any forward-looking statements to reflect new information or future events or otherwise unless required by law.

**Overview**

We are a leading innovator in surgical treatments and therapies for atrial fibrillation, left atrial appendage management and post-operative pain management. Our cardiac ablation and left atrial appendage management (LAAM) products are used by physicians during both open-heart and minimally invasive surgical procedures. In open-heart procedures, the patient is undergoing heart surgery for other conditions, such as a mitral or aortic valve repair or a coronary artery bypass, and our products are used by physicians in conjunction with (or "concomitant" to) such a procedure. Minimally invasive procedures are performed on a standalone basis, and often include multi-disciplinary or "hybrid" approaches, combining surgical procedures using our ablation and LAAM products with catheter ablation performed by an electrophysiologist. Our pain management solutions are used by physicians to freeze nerves during cardiac, thoracic or amputation surgical procedures. We anticipate that

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substantially all of our revenue for the foreseeable future will relate to products we currently sell or are in the process of developing.

We sell our products to medical centers through our direct sales force in the United States, Germany, France, the United Kingdom, the Benelux region, Australia and Canada. We also sell our products through distributors who in turn sell our products to medical centers in other markets. Our business is primarily transacted in U.S. Dollars; direct sales outside the United States are transacted in Euros, British Pounds, Australian Dollars or Canadian Dollars.

**Recent Developments**

During the first quarter of 2026, we realized strong growth resulting from our strategic initiatives of product innovation, clinical science and physician education and training to expand awareness and adoption. Our worldwide revenue for the three months ended March 31, 2026 was $141,249, representing an increase of $17,629, or 14.3% (12.8% on a constant currency basis), over the first three months of 2025, highlighted by accelerated adoption in our pain management, appendage management, and open ablation product lines, where recent product innovation contributed to growth. There are limited competitors in our key markets; however, new entrants are developing competing products, procedures, and/or clinical solutions that may cause variability in our results.

Highlights of the strategic and operational advancements include:

***PRODUCT INNOVATION***. We continue to see growth from our most recent product innovations. We remain focused on sustaining this momentum by advancing our internal research and product development efforts with the objective of enhancing our existing portfolio and supporting the introduction of future products while pursuing regulatory approvals to market and sell globally across all franchises. In April 2026, we received CE mark approval under EU MDR in Europe for our AtriClip FLEX-Mini<sup>®</sup> and PRO-Mini<sup>®</sup> devices and expect to launch both products in Europe later this year.

***CLINICAL SCIENCE*.** We continue to invest in studies to expand labeling claims, support various indications for our products and gather and publish clinical data for therapies and procedures involving our products.

*LeAAPS.* The Left Atrial Appendage Exclusion for Prophylactic Stroke Reduction (LeAAPS) IDE clinical trial is designed to evaluate the effectiveness of prophylactic LAA exclusion using the AtriClip LAA Exclusion System for the prevention of ischemic stroke or systemic arterial embolism in cardiac surgery patients without pre-operative AF diagnosis who are at risk for these events. This prospective, multicenter, randomized trial evaluates safety at 30 days post-procedure to demonstrate no increased risk with LAA exclusion during cardiac surgery, and efficacy over a minimum follow-up period of five years post procedure. In July 2025, we completed trial enrollment of 6,573 patients across 139 centers globally. Patient follow-up for a minimum of five years post procedure is required by the study protocol and remains ongoing.

*BoxX-NoAF.* The <u>Box</u> Lesion and Left Atrial Appendage E<u>X</u>clusion Procedure for the Prevention of <u>N</u>ew <u>O</u>nset of <u>A</u>trial <u>F</u>ibrillation (BoxX-NoAF) IDE trial evaluates the impact of concomitant ablation using the EnCompass clamp and LAA exclusion with the AtriClip system in non-AF patients for the reduction of post-operative AF (POAF) and Clinical AF. This prospective, multi-center, multi-national randomized trial evaluates safety at 30 days post-procedure for POAF and secondary effectiveness for Clinical AF through three years. The trial provides enrollment of up to 960 subjects across 75 sites. Site initiation and enrollment is ongoing.

***TRAINING*.** Our professional education team conducts in-person and virtual training programs for physicians and other healthcare professionals to support continuing education and product and procedural awareness. Over the last year, we launched new training methods including virtual proctoring and observerships, peer-to-peer case-in-a-box reviews and expanded courses for Advanced Practice Providers, incorporating new content and workshops. We also launched our first physician-developed electronic manual outlining best practices in developing and growing a Hybrid Ablation Program. These offerings, together with our traditional on-demand, local and national training courses, provide collaborative, hands-on engagement. Most recently, we added a live streaming platform in which healthcare professionals can view the courses without needing to leave their practice. Our professional education courses are further enhanced by the use of simulation models or synthetic cadavers, known as CADets. These reusable CADets provide a sustainable and cost-effective alternative to cadaver specimens while improving education efficiency.

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**Results of Operations**

***Three months ended March 31, 2026 compared to three months ended March 31, 2025***

The following table sets forth, for the periods indicated, our results of operations expressed as dollar amounts and as percentages of revenue:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| | **2026** | **2026** | **2025** | **2025** |
| | **Amount** | **% of <br>Revenues** | **Amount** | **% of <br>Revenues** |
| Revenue | $141249 | 100.0% | $123620 | 100.0% |
| Cost of revenue | 31938 | 22.6 | 30992 | 25.1 |
| Gross profit | 109311 | 77.4 | 92628 | 74.9 |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development expenses | 24235 | 17.2 | 22528 | 18.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative expenses | 84550 | 59.9 | 76054 | 61.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 108785 | 77.0 | 98582 | 79.7 |
| Income (loss) from operations | 526 | 0.4 | (5954) | (4.8) |
| Other expense, net | (132) | (0.1) | (554) | (0.4) |
| Income (loss) before income tax expense | 394 | 0.3 | (6508) | (5.3) |
| Income tax expense | 286 | 0.2 | 239 | 0.2 |
| Net income (loss) | $108 | 0.1% | $(6747) | (5.5)% |

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**Revenue.** The following table sets forth, for the periods indicated, our revenue by product type and geography expressed as dollar amounts and the corresponding change in such revenues between periods, in both dollars and percentages:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** | **Change** | **Change** |
| | **2026** | **2025** | **Amount** | **%** |
| Open ablation | $39080 | $33308 | $5772 | 17.3% |
| Minimally invasive ablation | 6386 | 8480 | (2094) | (24.7) |
| Pain management | 22359 | 17270 | 5089 | 29.5 |
| Appendage management | 48380 | 42091 | 6289 | 14.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total United States | $116205 | $101149 | $15056 | 14.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total International | 25044 | 22471 | 2573 | 11.5 |
| Total revenue | $141249 | $123620 | $17629 | 14.3% |

---

Worldwide revenue increased 14.3% (12.8% on a constant currency basis). In the United States, we saw a 14.9% increase in revenue driven by key product lines: AtriClip<sup>®</sup> FLEX-Mini and PRO-Mini devices for appendage management, cryoSPHERE<sup>®</sup> MAX<sup>™</sup> probe for post-operative pain management and EnCompass<sup>®</sup> clamp for open ablation. Minimally invasive ablation sales declined during the quarter from continued reduction in Hybrid procedures as physicians adopt PFA catheters to treat patients. International sales increased 11.5% (3.3% on a constant currency basis), with growth in appendage management, open ablation and pain management franchises. Additionally, we saw strong growth in most of our direct markets offset by distributor channels.

Revenue reported on a constant currency basis is a non-GAAP measure calculated by applying previous period foreign currency exchange rates, which are determined by the average daily exchange rate, to each of the comparable periods. Revenue is analyzed on a constant currency basis to better measure the comparability of results between periods. Because changes in foreign currency exchange rates have a non-operating impact on revenue, we believe that evaluating growth in revenue on a constant currency basis provides an additional and meaningful assessment of revenue to both management and investors.

**Cost of revenue and gross margin.** Cost of revenue increased $946 reflecting higher sales volumes. Gross margin increased 246 basis points, driven primarily by favorable product and geographic mix.

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**Research and development expenses.** Research and development expenses increased $1,707 or 7.6%, driven by an $818 increase in regulatory filing and submission costs as a result of timing of product development and clinical initiatives and $738 increase in personnel costs, including share-based compensation.

**Selling, general and administrative expenses.** Selling, general and administrative expenses increased $8,496, or 11.2%, driven by a $6,499 increase in personnel costs, including travel and share-based compensation, largely as a result of growth in headcount to support sales growth. Additional spending related to meeting costs increasing $788 and marketing and training costs increasing $679 driven by expanded tradeshow and training activities.

**Other expense.** Other expense consists primarily of net interest expense.

**Liquidity and Capital Resources**

As of March 31, 2026, we had cash and cash equivalents of $146,165 and outstanding debt of $61,000. We had unused borrowing capacity of $62,750 (see Note 6 – Borrowings and Financing Obligation for related discussion). All cash equivalents and most of our operating cash is held in United States financial institutions. A small portion of our cash is held in foreign banks to support our international operations. We had net working capital of $240,502 and an accumulated deficit of $413,095 as of March 31, 2026.

***Consolidated Cash Flows - For the three months ended March 31, 2026 and 2025***

![16831](atrc-20260331_g1.jpg)

**Cash flows used in operating activities.** Net cash used in operating activities decreased $7,030 from 2025 to 2026, reflecting improved operating results of $6,855, driven by higher sales and improved operating margin. These improvements were offset by an increase of $1,855 in working capital cash outflows primarily due to an increase in accounts receivable from increased sales as well as investments in inventory to support future growth.

**Cash flows used in investing activities.** Net cash used in investing activities increased by $2,171 from 2025 to 2026, due to a $1,671 increase in purchases of property and equipment and $500 in capital grant proceeds received in 2025.

**Cash flows used in financing activities.** Net cash used in financing activities increased by $2,930 from 2025 to 2026. This increase was a result of $777 cash used to pay financing costs as part of the First Amendment to the ABL Facility, $865 paid to reduce outstanding borrowings and a $1,270 increase in shares repurchased for payment of taxes on stock awards.

**Credit facility.** The Company's Credit Agreement with JPMorgan Chase Bank, N.A. and Silicon Valley Bank was amended as of January 9, 2026. The Credit Agreement provides for a $125,000 asset-based revolving credit facility, with an option to increase the revolving commitment by an additional $40,000. A portion of the ABL Facility, limited to $5,000, is available for the issuance of letters of credit. The Credit Agreement has a three-year term and expires January 9, 2029. Amounts available to be drawn from time to time under the ABL Facility are determined by calculating the applicable borrowing base, which is based upon applicable percentages of the values of eligible accounts receivable, eligible inventory, eligible liquid assets, less reserves as determined by the Administrative Agent, all as specified in the Credit Agreement. The borrowings bear

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interest at a rate per annum equal to, at the Company's election: (i) an alternate base rate (ABR) plus an applicable margin or (ii) a term secured overnight financing rate (SOFR) plus an applicable margin. As of March 31, 2026, the Company has borrowed $61,000, classified as noncurrent and had unused borrowing availability of $62,750.

Our corporate headquarters lease agreement requires a $1,250 letter of credit renewed annually and remains outstanding as of March 31, 2026.

For additional information on the terms and conditions, as well as applicable interest and fee payments, see Note 6 – Borrowings and Financing Obligation.

**Uses of liquidity and capital resources.** Our executive officers and Board of Directors review our funding sources and future capital requirements in connection with our annual operating plan and periodic updates to the plan. Our principal cash requirements include costs of operations, capital expenditures, debt service costs and other contractual obligations. Our future capital requirements depend on a number of factors, including, without limitation: market acceptance of our current and future products; investments in working capital; costs to develop and support our products, including professional training, clinical trials and contractual development costs; costs to expand and support our sales and marketing efforts; operating and filing costs relating to changes in regulatory policies or laws; costs for clinical trials and to secure regulatory approval for new products; costs to prosecute, defend and enforce our intellectual property rights; costs to defend against and/or resolve litigation or claims against us; maintenance and enhancements to our information systems and security; and possible acquisitions and joint ventures, including potential business integration costs. We continue to evaluate additional measures to maintain financial flexibility, and we will continue to closely monitor macroeconomic conditions including, but not limited to, inflationary pressures, changes in interest rates and fluctuations in currency exchange rates that may impact our liquidity and access to capital resources.

**Critical Accounting Policies and Estimates**

Our discussion and analysis of our financial condition and results of operations is based upon our financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). The preparation of financial statements requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, revenue and expenses and disclosures of contingent assets and liabilities at the date of the financial statements. On a periodic basis, we evaluate our estimates, including those related to sales returns and allowances, inventories, share-based compensation and income taxes. We use authoritative pronouncements, historical experience and other assumptions as the basis for making estimates. Actual results could differ from those estimates under different assumptions or conditions. Our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 includes additional information about the Company, our operations, our financial position and our critical accounting policies and estimates and should be read in conjunction with this Quarterly Report on Form 10-Q.

**Recent Accounting Pronouncements**

For a discussion of recently issued accounting pronouncements, refer to Note 1, "Description of the Business and Summary of Significant Accounting Policies" in the Company's Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC. There have been no new accounting pronouncements issued or adopted during the interim period that are expected to have a material impact on our consolidated financial statements.

**Item 3. Quantitative and Qualitative Disclosures About Market Risk**

As of March 31, 2026, there were no material changes to the information provided under Item 7A, "Quantitative and Qualitative Disclosures About Market Risk" in the Company's Form 10-K for the year ended December 31, 2025.

**Item 4. Controls and Procedures**

**Evaluation of Disclosure Controls and Procedures**

The Company's management, with the participation of the President and Chief Executive Officer (the Principal Executive Officer) and Chief Financial Officer (the Principal Accounting and Financial Officer), has evaluated the effectiveness of the Company's disclosure controls and procedures, as defined in Rules 13(a) -15(e) and 15(d) -15(e) of the Securities Exchange Act of 1934 as amended (Exchange Act), as of the end of the period covered by this report. Based on this evaluation, we concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were effective in providing reasonable assurance that information required to be disclosed by us in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's forms and rules,

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and the material information relating to the Company is accumulated and communicated to management, including the President and Chief Executive Officer and the Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures.

Control systems, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that control objectives are met. Because of inherent limitations in all control systems, no evaluation of controls can provide assurance that all control issues and instances of fraud, if any, within a company will be detected. Additionally, controls can be circumvented by individuals, by collusion of two or more people or by management override. Over time, controls can become inadequate because of changes in conditions or the degree of compliance may deteriorate. Further, the design of any system of controls is based in part upon assumptions about the likelihood of future events. There can be no assurance that any design will succeed in achieving its stated goals under all future conditions. Because of the inherent limitations in any cost-effective control system, misstatements due to errors or fraud may occur and not be detected.

**Changes in Internal Control Over Financial Reporting**

In the ordinary course of business, we routinely enhance our information systems by either upgrading current systems or implementing new ones. There were no changes in our internal control over financial reporting that occurred during the three months ended March 31, 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

**PART II. OTHER INFORMATION**

**Item 1. Legal Proceedings**

Information with respect to legal proceedings can be found under the heading "Legal" in Note 8 – Commitments and Contingencies to the Condensed Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report on Form 10-Q, and is incorporated herein by reference.

**Item 1A. Risk Factors**

In addition to the other information set forth in this report, careful consideration should be given to the factors discussed in Item 1A, "Risk Factors" in our Form 10-K for the year ended December 31, 2025, which could materially affect our business, financial condition or future results. The risks described therein are not the only risks facing us. Additional risks and uncertainties not currently known to us, or that we currently deem to be immaterial, also may adversely affect our business, financial condition and/or operating results. There have been no material changes with respect to the risk factors previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025, which are incorporated herein by reference.

**Item 5. Other Information**

During the three months ended March 31, 2026, none of our executive officers or directors adopted, terminated or modified a "Rule 10b5-1(c) trading arrangement" or a "non-Rule 10b5-1 trading arrangement" (as each term is defined in Item 408 of Regulation S-K), except as described below.

On February 20, 2026, Salvatore Privitera, our Chief Technical Officer, adopted a trading plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c). Mr. Privitera's plan covers the sale of up to 24,343 shares of our common stock between May 22, 2026 and February 19, 2027. Transactions under the plan were based upon pre-established dates and stock price thresholds.

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**Item 6. Exhibits**

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| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 10.1# | <u>[Form of Performance Share Award Agreement for Awards Granted in 2026.](exhibit101-performanceshar.htm)</u> |
| 10.2 | <u>[F](https://www.sec.gov/Archives/edgar/data/1323885/000119312526009814/d43112dex101.htm)[irst](https://www.sec.gov/Archives/edgar/data/1323885/000119312526009814/d43112dex101.htm)[Amendment to](https://www.sec.gov/Archives/edgar/data/1323885/000119312526009814/d43112dex101.htm)[Credit](https://www.sec.gov/Archives/edgar/data/1323885/000119312526009814/d43112dex101.htm)[Agreement among the JPMorgan Chase Bank, N.A.](https://www.sec.gov/Archives/edgar/data/1323885/000119312526009814/d43112dex101.htm)[, as](https://www.sec.gov/Archives/edgar/data/1323885/000119312526009814/d43112dex101.htm)[administrative agent](https://www.sec.gov/Archives/edgar/data/1323885/000119312526009814/d43112dex101.htm)[, 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](https://www.sec.gov/Archives/edgar/data/1323885/000119312526009814/d43112dex101.htm)[, 2026).](https://www.sec.gov/Archives/edgar/data/1323885/000119312526009814/d43112dex101.htm)</u> |
| 31.1 | <u>[Rule 13a-14(a) Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](exhibit311-331202610xq.htm)</u> |
| 31.2 | <u>[Rule 13a-14(a) Certification of Principal Accounting and Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](exhibit312-331202610xq.htm)</u> |
| 32.1 | <u>[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.](exhibit321-331202610xq.htm)</u> |
| 32.2 | <u>[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.](exhibit322-331202610xq.htm)</u> |
| 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) |

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_________________________

#&nbsp;&nbsp;&nbsp;&nbsp;Compensatory plan or arrangement.

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**<u>SIGNATURES</u>**

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

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| | |
|:---|:---|
| | <u>AtriCure</u>, <u>Inc.</u> |
| | (REGISTRANT) |
| Date: May 6, 2026 | /s/ Michael H. Carrel |
|  | **Michael H. Carrel** |
|  | **President and Chief Executive Officer**<br>**(Principal Executive Officer)** |
| Date: May 6, 2026 | /s/ Angela L. Wirick |
|  | **Angela L. Wirick** |
|  | **Chief Financial Officer**<br>**(Principal Accounting and Financial Officer)** |

---

## Exhibit 10.1

**Exhibit 10.1**

**ATRICURE, INC.** 

<br> **2023 STOCK INCENTIVE PLAN** 

**PERFORMANCE SHARE AWARD AGREEMENT** 

<u>Summary of Performance Share Award Grant</u> 

AtriCure, Inc., a Delaware corporation (the "<u>Company</u>"), grants to the Grantee named below, in accordance with the terms of the 2023 Stock Incentive Plan (as amended and restated from time to time, the "<u>Plan</u>"), and this Performance Share Award Agreement (the "<u>Agreement</u>"), Performance Shares as follows:

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| | |
|:---|:---|
| Name of Grantee: | |
| <br>Grant Number: | |
| Grant Date: | |
| Performance Goals: | As set forth on <u>Exhibit A</u> |
| Performance Period: | As set forth on <u>Exhibit A</u> |

---

<u>Terms of Agreement</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.Grant of Performance Shares.** Subject to and upon the terms, conditions, and restrictions set forth in this Agreement and in the Plan, the Company grants to the Grantee as of the Grant Date, this Performance Share Award consisting of the maximum number of shares of Common Stock of the Company ("<u>Performance Shares</u>") as provided in <u>Exhibit A</u>, upon the terms and conditions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.Eligibility.** The Grantee shall hold a position within the Company or any Subsidiary that is recommended by the Company's Chief Executive Officer and/or the award contemplated hereby shall be approved by the Compensation Committee of the Company ("<u>Committee</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.Vesting and Earning of Performance Shares.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The period during which the Performance Goals are measured shall be a three-year period, beginning in the year of the Grant Date and ending on December 31 of the third year (the "<u>Performance Period</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The number of Performance Shares earned by the Grantee will be determined at the end of the Performance Period based on the Performance Goals set forth on <u>Exhibit A</u>. Except as provided in Section 4 or <u>Exhibit A</u>, Performance Shares will vest and become nonforfeitable, if at all, on the last day of the Performance Period, <u>provided</u> that the Grantee has remained continuously employed by

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the Company or any Subsidiary from the Grant Date through the last day of the Performance Period (the "<u>Vesting Date</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)If the Grantee is hired by the Company or promoted within the Company prior to October 1 of any fiscal year within the Performance Period and is thereby granted Performance Shares under this Agreement, the Performance Shares shall be earned on a pro-rata basis beginning on the effective date of this Agreement until the end of the Performance Period as set forth on <u>Exhibit A</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Following the completion of the Performance Period and no later than 90 days following the end of the Performance Period, the Committee shall determine in writing the extent, if any, that the Performance Goals have been satisfied and shall determine the number of Performance Shares that Grantee shall earn, if any, subject to this Agreement. The Company shall deliver to the Grantee any and all Performance Shares earned by Grantee not later than 90 days after the completion of the Performance Period. The Committee may, in its sole discretion, modify the Performance Goals, in whole or in part, as the Committee deems appropriate and equitable to reflect a change in the business (including, without limitation, the Company's acquisition of another business or company), operations, corporate structure or capital structure of the Company or its Subsidiaries, the manner in which it conducts its business, or other events or circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.Termination of Continuous Employment.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Except as otherwise provided in Sections 4(b),4(c), or 4(d), if the Grantee's continuous employment with the Company or a Subsidiary is terminated prior to the Vesting Date, the Grantee's unvested Performance Shares shall be automatically forfeited upon such termination of continuous employment and neither the Company nor any Subsidiary shall have any further obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)If the Grantee's continuous employment with the Company or any Subsidiary terminates due to Disability (as defined in the Plan), the Grantee's employment with the Company or any Subsidiary shall, for all purposes under this Agreement, be deemed to continue. If Grantee dies while suffering a Disability, Grantee's estate shall have the rights to Shares underlying Performance Shares on the terms set forth in Section 4(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)If a "<u>Change in Control</u>" (as defined in Section 2(f) of the Plan) occurs while the Grantee is employed by the Company or any Subsidiary or if the Grantee dies, in either case at any time prior to the end of the Performance Period, then the Grantee shall be deemed to have earned the number of Performance Shares equal to the greater of (A) the Target Number of Performance Shares identified on <u>Exhibit A</u> to this Agreement or (B) the number of Performance Shares which would have vested based on the actual performance of the Company had the Performance Period ended on the date of the last fiscal quarter immediately prior to the date that the Company executes a definitive agreement ("<u>CIC Date</u>") pursuant to which a Change in Control occurs. Upon such Change in Control or death of the Grantee, as the case may be, the Company shall deliver to Grantee (or Grantee's estate in the case of death) the shares underlying all Performance Shares earned in accordance with this Section 4(c). The Committee shall have the authority to determine the extent to which Performance Goals with respect to the Performance Period (as shortened to end on the CIC Date) have been met based on such audited or unaudited financial information or other information, such as the Company's stock price or the performance of the Nasdaq Health Care Index constituents, then available that the Committee deems relevant so that the vesting contemplated by this Section 4(c) reflects the actual performance of the Company achieved immediately prior to the CIC Date. For purposes of determining the actual performance of the Company as of the CIC Date with respect to the Adjusted EBITDA Component described in <u>Exhibit A</u>, the Committee shall base its determination on Adjusted EBITDA compound annual growth rate achieved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Notwithstanding anything contained in this Agreement to the contrary, the Committee may, in its sole discretion, accelerate the time at which the shares underlying any Performance Shares become vested and nonforfeitable on such terms and conditions as it deems appropriate upon a Change in Control or the death or Disability of Grantee.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.Transferability.** The Performance Shares may not be transferred and shall not be subject in any manner to assignment, alienation, pledge, encumbrance or charge, unless otherwise provided under the Plan. Any purported transfer or encumbrance in violation of the provisions of this Section 5 shall be void, and the other party to any such purported transaction shall not obtain any rights to or interest in such Performance Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.Dividend, Voting and Other Rights.** Neither the Grantee nor any person claiming under or through the Grantee has any of the rights or privileges of a shareholder of the Company in respect of shares of Common Stock that may become deliverable hereunder unless and until certificates representing such shares of Common Stock have been issued, recorded on the records of the Company or its transfer agents or registrars, and delivered in certificate or book entry form to the Grantee or any person claiming under or through the Grantee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.Continuous Employment.** For purposes of this Agreement, the continuous employment of the Grantee with the Company and its Subsidiaries shall not be deemed to have been interrupted, and the Grantee shall not be deemed to have ceased to be an employee of the Company and its Subsidiaries, by reason of the transfer of his employment among the Company and its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.No Employment Contract.** Nothing contained in this Agreement shall confer upon the Grantee any right with respect to continuance of employment by the Company and its Subsidiaries, nor limit or affect in any manner the right of the Company and its Subsidiaries to terminate the employment or adjust the compensation of the Grantee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.Relation to Other Benefits.** Any economic or other benefit to the Grantee under this Agreement or the Plan shall not be taken into account in determining any benefits to which the Grantee may be entitled under any profit-sharing, retirement or other benefit or compensation plan maintained by the Company or a Subsidiary and shall not affect the amount of any life insurance coverage available to any beneficiary under any life insurance plan covering employees of the Company or a Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.Taxes and Withholding.** To the extent that the Company or any Subsidiary is required to withhold any federal, state, local, foreign or other tax in connection with the Performance Shares pursuant to this Agreement, it shall be a condition to earning the award that the Grantee make arrangements satisfactory to the Company or such Subsidiary for payment of such taxes required to be withheld. The Committee may, in its sole discretion, require the Grantee to satisfy such required withholding obligation by surrendering to the Company a portion of the shares earned by the Grantee under this Agreement, and the shares so surrendered by the Grantee shall be credited against any such withholding obligation at the Fair Market Value of such shares on the date of surrender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.Section 280G**. If any payment or benefit due under this Agreement, together with all other payments and benefits that the Grantee is entitled to receive from the Company or any of its Affiliates, would (if paid) constitute an "excess parachute payment" (as defined in Code Section 280G(b)(1)), the amounts otherwise payable under this Agreement may, at the discretion of the Committee, be limited to the minimum extent necessary to ensure that no portion thereof will fail to be tax-deductible to the Company (or a related entity) by reason of Code Section 280G or result in an excise tax payable pursuant to Code Section 4999. The determination of whether any payment or benefit would (if paid or provided) constitute an "excess parachute payment" will be made by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.Adjustments.** The number and kind of shares deliverable pursuant to the Performance Shares are subject to adjustment as provided in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.Compliance with Law.** The Company shall make reasonable efforts to comply with all applicable federal and state securities laws and listing requirements with respect to the Performance Shares; <u>provided</u>, <u>however</u>, notwithstanding any other provision of this Agreement, the Company shall

------

not be obligated to deliver any shares pursuant to this Agreement if the delivery of this Agreement would result in a violation of any such law or listing requirement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.Amendments.** Subject to the terms of the Plan, the Committee may modify this Agreement upon written notice to the Grantee. Any amendment to the Plan shall be deemed to be an amendment to this Agreement to the extent that the amendment is applicable to this Agreement. Notwithstanding the foregoing, no amendment of the Plan or this Agreement shall adversely affect the rights of the Grantee under this Agreement without the Grantee's consent unless the Committee determines, in good faith, that such amendment is required for the Agreement to either be exempt from the application of, or comply with, the requirements of Section 409A of the Code, or as otherwise may be provided in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.Compliance with Section 409A of the Code.** It is intended that this Agreement shall either be exempt from the application of, or comply with, the requirements of Section 409A of the Code. This Agreement shall be construed, administered, and governed in a manner that effects such intent, and the Committee shall not take any action that would be inconsistent with such intent. Without limiting the foregoing, the Performance Shares shall not be deferred, accelerated, extended, paid out, settled, adjusted, substituted, exchanged or modified in a manner that would cause the award to fail to satisfy the conditions of an applicable exception from the requirements of Section 409A of the Code or otherwise would subject the Grantee to the additional tax imposed under Section 409A of the Code. The amounts payable pursuant to this Agreement are intended to be separate payments that qualify for the "short-term deferral" exception to Section 409A of the Code to the maximum extent possible.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.Severability.** In the event that one or more of the provisions of this Agreement shall be invalidated for any reason by a court of competent jurisdiction, any provision so invalidated shall be deemed to be separable from the other provisions of this Agreement, and the remaining provisions of this Agreement shall continue to be valid and fully enforceable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17.Relation to Plan.** This Agreement is subject to the terms and conditions of the Plan. This Agreement and the Plan contain the entire agreement and understanding of the parties with respect to the subject matter contained in this Agreement, and supersede all prior written or oral communications, representations and negotiations with respect to this Agreement. In the event of any inconsistency between the provisions of this Agreement and the Plan, the Plan shall govern. Capitalized terms used of this Agreement without definition shall have the meanings assigned to them in the Plan. The Committee acting pursuant to the Plan, as constituted from time to time, shall, except as expressly provided otherwise of this Agreement, have the right to determine any questions which arise in connection with the grant of the Performance Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**18.Successors and Assigns.** Without limiting Section 5, the provisions of this Agreement shall inure to the benefit of, and be binding upon, the successors, administrators, heirs, legal representatives and assigns of the Grantee, and the successors and assigns of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**19.Governing Law.** The interpretation, performance, and enforcement of this Agreement shall be governed by the laws of the State of Delaware, without giving effect to the principles of conflict of laws of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**20.Electronic Delivery.** The Grantee consents and agrees to electronic delivery of any documents that the Company may elect to deliver (including, but not limited to, prospectuses, prospectus supplements, grant or award notifications and agreements, account statements, annual and quarterly reports, and all other forms of communications) in connection with this and any other award made or offered under the Plan. The Grantee understands that, unless earlier revoked by the Grantee by giving written notice to the Chief Financial Officer of the Company, this consent shall be effective for the duration of the Agreement. The Grantee also understands that he or she shall have the right at any time to request that the Company deliver written copies of any and all materials referred to above at no charge.

------

The Grantee consents to any and all procedures the Company has established or may establish for an electronic signature system for delivery and acceptance of any such documents that the Company may elect to deliver, and agrees that his or her electronic signature is the same as, and shall have the same force and effect as, his or her manual signature. The Grantee consents and agrees that any such procedures and delivery may be effected by a third party engaged by the Company to provide administrative services related to the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**21.Clawback.** The Performance Share Award subject to this Agreement shall be subject to the Company's Incentive Compensation Recoupment Policy.

------

The Company has caused this Agreement to be executed on its behalf by its duly authorized officer and the Grantee has also executed this Agreement, as of the Grant Date.

**ATRICURE, INC**.

By:<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

Name: Michael H. Carrel

Title: President & Chief Executive Officer

By:<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

Name: Angela L. Wirick

Title: Chief Financial Officer

***The undersigned acknowledges that a copy of the Plan, Plan Summary and Prospectus, and the Company's most recent Annual Report and Proxy Statement (the "<u>Prospectus Information</u>") are available for viewing on the Company's internet site at www.atricure.com. The Grantee consents to receiving this Prospectus Information electronically, or, in the alternative, agrees to contact the Company's Chief Financial Officer at (513) 755-4100 to request a paper copy of the Prospectus Information at no charge. The Grantee represents that he or she is familiar with the terms and provisions of the Prospectus Information and accepts the award of Performance Shares on the terms and conditions set forth in this Agreement and in the Plan.***

***&nbsp;&nbsp;&nbsp;&nbsp;***

**GRANTEE**

<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

Name:

------

**<u>EXHIBIT A</u>**

**PERFORMANCE GOALS AND PERFORMANCE PERIOD** 

Performance will be measured 50% on revenue growth (Revenue CAGR), 20% on relative total shareholder return (TSR), and 30% on Adjusted EBITDA (excludes PFA co-development agreement upfront and milestone payments), as described further below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Performance on each metric will be measured over a three-year (2026-2028) period

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Performance for the Revenue CAGR goal is relative to fiscal year 2025 (Base Year) and is measured in constant currency

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Revenue CAGR, TSR and Adjusted EBITDA component payouts (in shares) will be determined independently and then added together for the total payout for the three-year performance period, subject to the maximum defined in the payout range below

---

| | |
|:---|:---|
| **Possible Payout as a Percentage of Target Award** | **Possible Payout as a Percentage of Target Award** |
| | **2026-2028** |
| Payout Range\* | 0% - 200% |
| Scheduled Vest Date\*\* | December 31, 2028 |
| \*Payout as a percentage of target number of Performance Shares subject to this award.<br>\*\* Subject to Section 3 of the Agreement, Scheduled Vest Date is later of date indicated or the date the Committee determines whether and the extent to which the performance criteria have been satisfied and the number of Performance Shares earned, if any. | \*Payout as a percentage of target number of Performance Shares subject to this award.<br>\*\* Subject to Section 3 of the Agreement, Scheduled Vest Date is later of date indicated or the date the Committee determines whether and the extent to which the performance criteria have been satisfied and the number of Performance Shares earned, if any. |

---

---

| | | | |
|:---|:---|:---|:---|
| **Revenue CAGR Component (50%)** | **Revenue CAGR Component (50%)** | **Revenue CAGR Component (50%)** | **Revenue CAGR Component (50%)** |
| • Revenue compound annual growth rate (CAGR) | • Revenue compound annual growth rate (CAGR) | • Revenue compound annual growth rate (CAGR) | • Revenue compound annual growth rate (CAGR) |
| • Acquisitions and other business developments may result in adjustments pursuant to Section 12 of the Agreement | • Acquisitions and other business developments may result in adjustments pursuant to Section 12 of the Agreement | • Acquisitions and other business developments may result in adjustments pursuant to Section 12 of the Agreement | • Acquisitions and other business developments may result in adjustments pursuant to Section 12 of the Agreement |
| **Revenue CAGR** | **Revenue CAGR** | **Revenue CAGR** | **Revenue CAGR** |
|  | **2026-2028** | **Payout\*** | **Number of Performance Shares** |
| Stretch | 20% | 200% |  |
| **Target** | **14%** | **100%** |  |
| Threshold | 10% | 50% |  |
| Below Threshold | <10% | 0% | 0 |
| \*Payout as a percentage of target number of Performance Shares subject to this award; linear interpolation between goals | \*Payout as a percentage of target number of Performance Shares subject to this award; linear interpolation between goals | \*Payout as a percentage of target number of Performance Shares subject to this award; linear interpolation between goals |  |

---

------

---

| | | | |
|:---|:---|:---|:---|
| **Relative Total Shareholder Return (TSR) Component (20%)** | **Relative Total Shareholder Return (TSR) Component (20%)** | **Relative Total Shareholder Return (TSR) Component (20%)** | **Relative Total Shareholder Return (TSR) Component (20%)** |
| •TSR measured against the Nasdaq Health Care Index constituents | •TSR measured against the Nasdaq Health Care Index constituents | •TSR measured against the Nasdaq Health Care Index constituents | •TSR measured against the Nasdaq Health Care Index constituents |
| •TSR will be measured as the 20-trading-day average stock price prior to the end of the performance period over the 20-trading-day average stock price prior to the beginning of the performance period  | •TSR will be measured as the 20-trading-day average stock price prior to the end of the performance period over the 20-trading-day average stock price prior to the beginning of the performance period  | •TSR will be measured as the 20-trading-day average stock price prior to the end of the performance period over the 20-trading-day average stock price prior to the beginning of the performance period  | •TSR will be measured as the 20-trading-day average stock price prior to the end of the performance period over the 20-trading-day average stock price prior to the beginning of the performance period  |
| •Payout under this component will be capped at target if AtriCure's TSR is negative | •Payout under this component will be capped at target if AtriCure's TSR is negative | •Payout under this component will be capped at target if AtriCure's TSR is negative | •Payout under this component will be capped at target if AtriCure's TSR is negative |
| **Relative TSR (expressed in percentiles)** | **Relative TSR (expressed in percentiles)** | **Relative TSR (expressed in percentiles)** | **Relative TSR (expressed in percentiles)** |
|  | **2026-2028** | **Payout\*** | **Number of Performance Shares** |
| Stretch | 75th | 200% |  |
| **Target** | **55th** | **100%** |  |
| Threshold | 30th | 50% |  |
| Below Threshold | <30th | 0% | 0 |
| \*Payout as a percentage of target number of Performance Shares subject to this award; linear interpolation between goals | \*Payout as a percentage of target number of Performance Shares subject to this award; linear interpolation between goals | \*Payout as a percentage of target number of Performance Shares subject to this award; linear interpolation between goals |  |

---

---

| | | | |
|:---|:---|:---|:---|
| **Adjusted EBITDA Component (30%)** | **Adjusted EBITDA Component (30%)** | **Adjusted EBITDA Component (30%)** | **Adjusted EBITDA Component (30%)** |
| •Adjusted EBITDA is calculated as net income/loss before other income/expense (including interest), income tax expense, depreciation and amortization expense, share-based compensation expense, and non-recurring charges that are not reflective of the operational results of the Company's core business and may affect comparability of results period-over-period. Adjusted EBITDA specifically excludes PFA co-development upfront and milestone payments. | •Adjusted EBITDA is calculated as net income/loss before other income/expense (including interest), income tax expense, depreciation and amortization expense, share-based compensation expense, and non-recurring charges that are not reflective of the operational results of the Company's core business and may affect comparability of results period-over-period. Adjusted EBITDA specifically excludes PFA co-development upfront and milestone payments. | •Adjusted EBITDA is calculated as net income/loss before other income/expense (including interest), income tax expense, depreciation and amortization expense, share-based compensation expense, and non-recurring charges that are not reflective of the operational results of the Company's core business and may affect comparability of results period-over-period. Adjusted EBITDA specifically excludes PFA co-development upfront and milestone payments. | •Adjusted EBITDA is calculated as net income/loss before other income/expense (including interest), income tax expense, depreciation and amortization expense, share-based compensation expense, and non-recurring charges that are not reflective of the operational results of the Company's core business and may affect comparability of results period-over-period. Adjusted EBITDA specifically excludes PFA co-development upfront and milestone payments. |
| **Adjusted EBITDA** | **Adjusted EBITDA** | **Adjusted EBITDA** | **Adjusted EBITDA** |
|  | **2026-2028** | **Payout\*** | **Number of Performance Shares** |
| Stretch | $185 million | 200% |  |
| **Target** | **$135 million** | **100%** |  |
| Threshold | $107 million | 50% |  |
| Below Threshold | <$107 million | 0% | 0 |
| \*Payout as a percentage of target number of Performance Shares subject to this award; linear interpolation between goals | \*Payout as a percentage of target number of Performance Shares subject to this award; linear interpolation between goals | \*Payout as a percentage of target number of Performance Shares subject to this award; linear interpolation between goals |  |

---

The maximum number of Performance Shares in which the Grantee can vest on the basis of the actual level of Performance Goal attainment shall in no event exceed in the aggregate 200% of the number of Performance Shares set forth above.

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER**

**PURSUANT TO**

**SECTION 13(a) OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**AS ADOPTED PURSUANT TO**

**SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Michael H. Carrel, certify that:

1. I have reviewed this quarterly report on Form 10-Q of AtriCure, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: May 6, 2026 |  |  |
|  | By: | /s/ Michael H. Carrel |
|  |  | Michael H. Carrel |
|  |  | President and Chief Executive Officer |
|  |  | (Principal Executive Officer) |

---

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION OF PRINCIPAL ACCOUNTING AND FINANCIAL OFFICER**

**PURSUANT TO**

**SECTION 13(a) OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**AS ADOPTED PURSUANT TO**

**SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Angela L. Wirick, certify that:

1. I have reviewed this quarterly report on Form 10-Q of AtriCure, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

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

---

## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the quarterly report of AtriCure, Inc. (Company) on Form 10-Q for the quarter ended March 31, 2026 as filed with the Securities and Exchange Commission on the date hereof (Report), I, Michael H. Carrel, President and Chief Executive Officer and Principal Executive Officer of the Company, certify, pursuant to Rule 13a–14(b) and Section 1350 of Chapter 63 of Title 18 of the United States Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

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| | | |
|:---|:---|:---|
| Date: May 6, 2026 |  |  |
|  | By: | /s/ Michael H. Carrel |
|  |  | Michael H. Carrel |
|  |  | President and Chief Executive Officer |
|  |  | (Principal Executive Officer) |

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A signed original of this written statement or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement has been provided to AtriCure, Inc. and will be retained by AtriCure, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

The foregoing certification is being furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code) and is not being filed as part of the report or as a separate disclosure document.

## Exhibit 32.2

**Exhibit 32.2**

**CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the quarterly report of AtriCure, Inc. (Company) on Form 10-Q for the quarter ended March 31, 2026 as filed with the Securities and Exchange Commission on the date hereof (Report), I, Angela L. Wirick, Chief Financial Officer and Principal Accounting and Financial Officer of the Company, certify, pursuant to Rule 13a–14(b) and Section 1350 of Chapter 63 of Title 18 of the United States Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

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| | | |
|:---|:---|:---|
| Date: May 6, 2026 |  |  |
|  | &nbsp;&nbsp;By: | &nbsp;&nbsp;/s/ Angela L. Wirick |
|  |  | &nbsp;&nbsp;Angela L. Wirick |
|  |  | &nbsp;&nbsp;Chief Financial Officer |
|  |  | &nbsp;&nbsp;(Principal Accounting and Financial Officer) |

---

A signed original of this written statement or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement has been provided to AtriCure, Inc. and will be retained by AtriCure, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

The foregoing certification is being furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code) and is not being filed as part of the report or as a separate disclosure document.

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