Penumbra Reports 16.3% Revenue Growth to $324.1 Million in Q1 2025

Penumbra, Inc. reported a significant increase in financial performance for the first quarter of 2025, with total revenue reaching $324.1 million, a 16.3% increase from $278.7 million in the same period last year. The company's net income also saw a substantial rise, amounting to $39.2 million, compared to $11.0 million in the prior year, resulting in a diluted net income per share of $1.00, up from $0.28. This growth was primarily driven by increased sales of thrombectomy products, which rose by 20.7% to $226.5 million, reflecting strong market demand and effective sales strategies.

In terms of operational metrics, Penumbra's gross profit improved to $215.9 million, yielding a gross margin of 66.6%, up from 65.0% in the previous year. The increase in gross margin was attributed to a favorable product mix and productivity enhancements. Research and development expenses decreased by 10.4% to $22.1 million, reflecting a strategic shift following the exit from the immersive healthcare business, while sales, general, and administrative expenses rose by 6.3% to $153.5 million, driven by increased personnel costs and marketing efforts.

The company also made notable strategic moves, including the acquisition of property in Costa Rica to construct a new manufacturing facility, which is expected to enhance production capabilities. As of March 31, 2025, Penumbra had 38,725,940 shares of common stock outstanding and reported cash and cash equivalents of $376.1 million, an increase from $324.4 million at the end of 2024. The company’s working capital stood at $841.1 million, indicating a solid liquidity position to support ongoing operations and growth initiatives.

Geographically, revenue from the United States accounted for 79.2% of total sales, reflecting a 22.5% increase year-over-year, while international sales decreased slightly by 2.5% to $67.3 million, primarily due to a decline in revenue from China. The company continues to focus on expanding its market presence and product offerings, with plans to invest further in research and development to drive innovation in its medical device portfolio.

Looking ahead, Penumbra remains optimistic about its growth trajectory, emphasizing the importance of product innovation and market expansion. The company anticipates continued revenue growth driven by its expanding salesforce and the introduction of new products, while also acknowledging the competitive landscape and potential market fluctuations that could impact future performance.