Penumbra 2025 Q2 Earnings Strong Performance as Net Income Swings to Profit

Penumbra (PEN) reported its fiscal 2025 Q2 earnings on Jul 29th, 2025. The medical device company Penumbra (NYSE:PEN) announced better-than-expected revenue in Q2 CY2025, with sales up 13.4% year-on-year to $339.5 million. The company’s full-year revenue guidance of $1.36 billion at the midpoint came in 0.6% above analysts’ estimates. Its non-GAAP profit of $0.86 per share was 4.7% above analysts’ consensus estimates. Despite this positive performance, the stock price of Penumbra edged down 1.87% during the latest trading day.

Revenue

Penumbra's revenue reached $339.45 million in 2025 Q2, marking a 13.4% increase from the previous year. The thrombectomy segment led with $230.26 million, while embolization and access activities contributed an additional $109.20 million, showcasing growth across all areas of the business.

Earnings/Net Income

Penumbra demonstrated a remarkable turnaround, achieving an EPS of $1.17 in 2025 Q2, which reversed a loss of $1.55 per share from the previous year. The company also reported net income of $45.27 million, a notable improvement from the net loss of $60.20 million in 2024 Q2. This robust earnings performance signifies a positive shift in profitability.

Post-Earnings Price Action Review

The strategy of purchasing Penumbra shares following its quarterly revenue increases and maintaining them for 30 days has proven successful over the past three years. Penumbra's consistent revenue growth has been a strong catalyst, leading to positive investor sentiment and stock price appreciation. Following the Q1 2025 earnings release, Penumbra's stock price rose by approximately 11% in the ensuing 30-day period, reflecting investor confidence. The low-volatility environment during this period allowed for substantial gains without significant market fluctuations. Penumbra's track record of recurring revenue growth continues to drive stock performance, supported by increased guidance for the full year after the Q2 2025 earnings report. Analysts have reaffirmed their estimates over the past month, further enhancing market confidence in Penumbra's ongoing performance. Overall, the strategy of buying shares post-earnings has capitalized on Penumbra's consistent revenue growth and favorable market reactions, resulting in significant price appreciation and stability.

CEO Commentary

Adam Elsesser, CEO of Penumbra, highlighted strong second-quarter performance with total revenue reaching $339.5 million, reflecting a 13.4% year-over-year growth. He emphasized robust execution by the commercial team and successful adoption of innovative products, particularly the U.S. thrombectomy business, which grew 22.6% year-over-year. Elsesser noted strategic investments in a separate embolization sales force to enhance focus on growth opportunities. He expressed optimism regarding the company's trajectory, stating, “We remain on track to achieve a gross margin profile of over 70% by the end of 2026.” He reiterated commitment to advancing technology and improving patient outcomes across underpenetrated markets.

Guidance

Penumbra raised its guidance for total revenue to a range of $1.355 billion to $1.370 billion, anticipating 13% to 15% year-over-year growth. The company maintains its guidance for U.S. thrombectomy growth at 20% to 21% compared to 2024 levels. Management expects continued gross margin and operating margin improvements for the full year 2025, with a long-term goal of achieving a gross margin profile of 70% by the end of 2026.

Additional News

In recent non-earnings news, Penumbra announced the retirement of Don Kassing from its Board of Directors after 17 years of service, effective April 1, 2025. Kassing has been a significant contributor since joining the board in 2008, serving as Presiding Director since 2015. Additionally, Penumbra introduced the Ruby XL System in June 2025, following FDA clearance. This new system, designed for vascular embolization, aims to improve physician efficiency and optimize patient outcomes. Lastly, Penumbra announced a share repurchase authorization of up to $200 million on August 13, 2024, which includes a $100 million accelerated share repurchase, reflecting confidence in its business and commitment to returning value to shareholders.