Penumbra (PEN 2.06%), a medical device innovator focused on clot removal and vascular care, reported its second quarter 2025 results on July 29, 2025. The company delivered $339.5 million in GAAP revenue and $0.86 in non-GAAP earnings per share, Revenue exceeded analyst expectations. Revenue (GAAP) exceeded the consensus estimate by $11.7 million. These numbers were powered by double-digit growth in its U.S. thrombectomy business and improved profitability. Despite continued contraction in international sales, especially in China, management characterized the quarter as a strong one and increased full-year revenue guidance. Margin expansion was another highlight as one-time charges from the prior year rolled off and the mix shifted to higher-value products.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $0.86 | $0.82 | $0.00 | — |
| Revenue (GAAP) | $339.5 million | $327.8 million | $299.4 million | 13.4 % |
| Operating Margin (GAAP) | 12.0 % | (27.0) % | 39.0 pp | |
| Adjusted EBITDA | $61.4 million | $13.0 million | 372.3 % | |
| Gross Margin (GAAP) | 66.0 % | 54.4 % | 11.6 pp |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Company Overview and Key Success Factors
Penumbra specializes in producing medical devices that treat vascular conditions, particularly by providing tools for removing clots from blood vessels (thrombectomy) and for stopping unwanted blood flow (embolization). Its core business revolves around its thrombectomy and embolization systems, which are used by physicians to restore blood flow or control bleeding in critical situations like stroke, deep vein thrombosis (DVT), pulmonary embolism (PE), and other vascular blockages.
The company emphasizes innovation, rolling out new product generations regularly—most recently with technologies like Lightning Flash and Lightning Bolt for advanced thrombectomy. Its commercial success hinges on maintaining a lead through ongoing research and development, strong relationships with clinical users, and expanding market share primarily in the U.S. market. Strategic choices, such as winding down its immersive healthcare business, have sharpened its focus on core growth areas and helped drive profitability.
Quarterly Financial and Operational Highlights
During the quarter, Penumbra delivered $339.5 million in GAAP revenue, surpassing consensus estimates (GAAP). U.S. revenue contributed 76.8% of total sales, up 19.5% year over year, largely due to success in thrombectomy products. Global thrombectomy revenue climbed to $230.3 million, marking 13.1% growth over the same period last year. The company’s U.S. Venous ThromboEmbolism (VTE) line—a set of devices designed to treat blood clots in veins—was particularly strong, growing 42% year-over-year.
However, international revenue weakened, down 3.2% compared to the second quarter of 2024. Excluding China, overseas thrombectomy growth was 18.2%, indicating that declines were concentrated in one region rather than an industrywide pullback. U.S. performance continued to outpace other geographies, supporting the company’s overall growth and helping offset international pressure.
The gross margin (GAAP) expanded to 66.0%, up from 54.4% in the prior year, a change shaped by a one-time $33.4 million impairment charge in Q2 2024 and an improved product mix in the current quarter. Operating expenses fell as a percent of sales, thanks in part to the exit from the immersive healthcare business, resulting in a swing from a GAAP operating loss of $81.0 million in Q2 2024 to GAAP operating income of $40.8 million. Adjusted EBITDA reached $61.4 million, compared to $12.965 million in Q2 2024.
Research and development (R&D) expenses were 6.8% of revenue, down from 8.8% in Q1 2024, reflecting the phaseout of immersive healthcare. Yet, management maintained that investment in product innovation remains high, with dollar spending concentrated on core new devices. Selling, general and administrative (SG&A) costs increased 12.7% compared to the prior year.
Several special items impacted reported results. The prior-year quarter included a large impairment charge that made year-over-year comparisons appear more favorable in terms of margins. Excluding these one-time items, improvement in core operating metrics is still clear, with adjusted (non-GAAP) operating expenses were 54.0% of revenue, compared to 54.9% in Q2 2024.
On the product front, Penumbra continued its push into next-generation thrombectomy and embolization. Key launches included Lightning Flash and Lightning Bolt—both modular thrombectomy platforms—and Ruby XL, a peripheral coil for embolization cleared earlier than expected by the FDA and now rolling out to market. The Thunderbolt platform, a neurovascular catheter system, is awaiting FDA review; management indicated the review process is proceeding normally without surprises but offered no prediction on final approval timing.
Growth came from higher sales volume, not higher prices. Management made clear that most of the reported increases in the past quarter came from more cases being performed and new accounts rather than raising prices on existing products. The company also noted that many of its competitors are raising prices, whereas Penumbra has maintained pricing discipline, focusing instead on expanding access and adoption through demonstration of clinical and health-economic benefits.
Strategically, the company continued investing in a new Costa Rica manufacturing facility, which is set to provide global supply flexibility and hedge against potential tariff risks. Penumbra remains debt-free and increased its cash position to $421.8 million. These financial and operational choices aim to position Penumbra for sustainable margin expansion and resilience.
PEN does not currently pay a dividend.
Looking Ahead: Guidance and Watchlist
For the remainder of fiscal 2025, management raised its revenue target to a range of $1.355–$1.370 billion, or 13–15 % annual growth over 2024. This increase reflects continued confidence in U.S. thrombectomy expansion, with guidance for that segment at 20–21% growth year over year, unchanged from prior messaging. Expectations for further improvement in both gross and operating margins were reaffirmed.
Investors should monitor a few key risks: persistent international weakness (mainly tied to China), the necessity for a steady pace of innovation in the face of increased competition, and pipeline regulatory milestones such as Thunderbolt’s review process. There was no update on a timeline for FDA approval, but management stated there were “no surprises” so far. Volume-led growth, not price-led, remains a defining feature for Penumbra. PEN does not currently pay a dividend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
