Penumbra Inc

Penumbra, Inc. describes itself as the world’s leading thrombectomy company, focused on developing technologies for challenging medical conditions such as ischemic stroke, venous thromboembolism including pulmonary embolism, and acute limb ischemia. The company’s broad portfolio centers on computer assisted vacuum thrombectomy (CAVT) and removing blood clots from head-to-toe. The thrombectomy market encompasses vascular diseases throughout the body, including ischemic stroke, venous thromboembolism, acute limb ischemia, deep vein thrombosis, coronary disease, and other conditions. The company estimates there are approximately 2.15 million incidences of clot in the vasculature each year in the United States, the vast majority of which do not currently receive mechanical thrombectomy intervention. For pulmonary embolism, the company estimates approximately 1.2 million PEs occur annually worldwide, with approximately 350,000 PEs per year in the U.S. causing approximately 50,000 annual deaths according to the Centers for Disease Control and Prevention. For deep vein thrombosis, approximately 4 million DVTs occur annually worldwide, with approximately 350,000 DVTs eligible for treatment with mechanical or computer assisted vacuum thrombectomy in the U.S. For acute limb ischemia, it is estimated that approximately 2.5 million ALIs occur annually and that there are approximately 16 million ALI survivors worldwide. For ischemic stroke, the American Heart Association and American Stroke Association estimate that nearly 800,000 strokes occur annually in the United States, with ischemic strokes representing approximately 87% of strokes, or approximately 700,000 patients annually. For acute coronary syndrome, approximately 8.5 million AMIs occur annually and there are approximately 23.5 million AMI survivors worldwide. The embolization and access markets include conditions such as aneurysm, hemorrhagic stroke, vessel malformations, bleeding, endoleaks, ovarian veins, varicoceles, and hematomas. Approximately 2% of the general population has or will develop an aneurysm and approximately 9 million people in the United States may currently have an aneurysm. Hemorrhagic strokes represent approximately 13% of strokes in the United States.

The medical device industry is intensely competitive, subject to rapid change and significantly affected by new product introductions. The company’s most notable competitors are Boston Scientific, Medtronic, Stryker (now including Inari Medical), Terumo and several private companies. Most of these competitors are large, well-capitalized companies with longer operating histories and greater resources. Some competitors have significantly greater name recognition, broader or deeper relations with healthcare professionals, customers, group purchasing organizations, and third-party payors, more established distribution networks, additional lines of products and the ability to offer rebates or bundle products, greater experience in conducting research and development, manufacturing, clinical trials, marketing and obtaining regulatory clearance or approval for products, and greater financial and human resources for product development, sales and marketing and patent litigation. The company competes primarily on the basis that its products are able to treat patients with neuro and vascular diseases and disorders and other health conditions safely and effectively. The company’s continued success depends on its ability to develop innovative, proprietary products that can cost-effectively address significant clinical needs, continue to innovate and develop scientifically advanced technology, obtain and maintain regulatory clearances or approvals, demonstrate safety and efficacy in Penumbra-sponsored and third-party clinical trials and studies, apply technology across product lines and markets, attract and retain skilled research and development and sales personnel, and cost-effectively manufacture and successfully market and sell products.

The company generates revenue primarily through the sale of its interventional products directly to hospitals and other healthcare providers and through distributors for use in procedures performed by specialist physicians to treat patients in two key markets: thrombectomy and embolization and access. Revenue is primarily comprised of product revenue net of returns, discounts, administration fees and sales rebates. Revenue from product sales is recognized either on the date of shipment or the date of receipt by the customer, but is deferred for certain transactions when control has not yet transferred. With respect to products that the company consigns to hospitals, which primarily consist of coils, revenue is recognized at the time hospitals utilize products in a procedure. The company sells its products through purchase orders and does not have long term purchase commitments from its customers. Direct sales accounted for approximately 90% of revenue in 2025, with the balance generated by independent distributors that sell products outside of the United States and by arrangements with a partner in China, which include licensing royalty and distribution revenue. Sales to distributors represented 10.0% ¹ of revenue in 2025, 13.2% ² in 2024, and 16.7% ³ in 2023.

The company’s product portfolio includes 6 product families within its major markets. Thrombectomy products include the Indigo System for peripheral thrombectomy, which is comprised of Continuous Aspiration Mechanical Thrombectomy (CAT) Catheters, Computer Assisted Vacuum Thrombectomy (CAVT) Technology, Indigo Separators, and the Penumbra ENGINE or Penumbra Pump MAX. In 2023, the company launched Lightning Flash, an advanced mechanical thrombectomy system to address venous and pulmonary thrombus using CAVT technology, and Lightning Bolt 7, an advanced arterial thrombectomy system. In 2024, the company launched Lightning Flash 2.0, and in 2025 launched Lightning Flash 3.0, featuring advanced Lightning Flash algorithms designed for enhanced clot detection capabilities with increased sensitivity to thrombus and blood and enlarged tubing coupled with an automated backflush feature tailored for large thrombus burdens. In 2025, the company also launched Lightning Bolt 12 and Lightning Bolt 6X with TraX, its latest CAVT technology involving modulated aspiration. Neuro thrombectomy products include the Penumbra System brand, consisting of reperfusion catheters and separators, the 3D Revascularization Device, aspiration tubing, and aspiration pump. Penumbra System Reperfusion Catheters include the Penumbra RED, JET, ACE, BMX, and MAX families of catheters. In 2021, the company launched its RED family of catheters. In 2022, the company initiated the THUNDER Study, an IDE study designed to evaluate the safety and effectiveness of CAVT technology for neurovascular applications, which completed enrollment in September 2024. In 2023, the company added to the RED family by launching the RED 43 catheter and RED 72 catheter with SENDit Technology. Embolization and access products include the Ruby Embolization Platform, consisting of detachable coils for peripheral applications, the Ruby LP Embolization Platform, and the Ruby XL Embolization Platform launched in 2025, described as the company’s largest volume coil designed to achieve more efficient embolization. The LANTERN Delivery Microcatheter is a low-profile microcatheter with a high-flow lumen. The POD (Penumbra Occlusion Device) System addresses a specific need in the peripheral embolization market to rapidly and precisely occlude a target vessel. The Packing Coil is a complementary device for use with other peripheral embolization products. Neuro embolization products include the Penumbra Coil 400, Penumbra SMART COIL, Penumbra SwiftPAC Coil, and in 2025 the company launched SwiftSET, a new complex coil solution engineered to optimize vessel wall apposition. Access products include the Neuron family of guide catheters, the Penumbra distal delivery catheters (DDC), the BENCHMARK catheter, the BENCHMARK BMX Access System, and the MIDWAY intermediate catheter family launched in 2024, consisting of MIDWAY43 and MIDWAY62. Neurosurgical tools include the Artemis Neuro Evacuation Device, which offers a minimally invasive approach to surgical removal of fluid and tissue from the ventricles and cerebrum. The company generated revenue of $947.9 million ⁴ from its thrombectomy product category for the year ended December 31, 2025, compared to $815.5 million ⁵ in 2024 and $677.3 million ⁶ in 2023. The company generated revenue of $455.7 million ⁷ from its embolization and access product categories for the year ended December 31, 2025, compared to $379.1 million ⁸ in 2024 and $381.2 million ⁹ in 2023.

On January 14, 2026, the company entered into an Agreement and Plan of Merger with Boston Scientific Corporation and Pinehurst Merger Sub, Inc., pursuant to which Boston Scientific Corporation has agreed to acquire the company in a transaction reflecting an enterprise value of approximately $14.5 billion ¹⁰. Under the terms of the Merger Agreement, the transaction values each share of the company’s common stock at $374 ¹¹ per share, with stockholders having the right to elect, for each share, to receive $374 ¹² in cash or 3.8721 ¹³ shares of Boston Scientific Corporation’s common stock (valued at $374 ¹⁴ based on the volume weighted average price of Boston Scientific Corporation’s common stock over the 10 trading days ending January 13, 2026), subject to proration, so that the total transaction consideration is paid approximately 73% ¹⁵ in cash and approximately 27% ¹⁶ in shares of Boston Scientific Corporation’s common stock. The Merger is expected to close by the end of 2026, subject to customary closing conditions, including approval by the company’s stockholders and regulatory approvals. During the year ended December 31, 2024, the company made the strategic decision to wind down and exit its immersive healthcare business, and as a result incurred $115.3 million ¹⁷ in impairment and other charges in connection with this decision. During the year ended December 31, 2024, the company permanently ceased sales of its immersive healthcare products and related commercial operations. There were no impairment or other charges in connection with the wind down and exit of the immersive healthcare business during the year ended December 31, 2025. On August 5, 2024, the company’s Board of Directors approved a share repurchase authorization in the amount of up to $200.0 million ¹⁸. Under this authorization, the company entered into an accelerated share repurchase agreement with JPMorgan Chase Bank, National Association to repurchase $100.0 million ¹⁹ of its common stock during the three months ended September 30, 2024. During the three months ended September 30, 2024, the company repurchased an aggregate of 517,763 ²⁰ shares under the ASR at an aggregate cost of $100.4 million ²¹, including legal and financial advisor fees of $0.4 million ²² associated with the repurchase. During the three months ended September 30, 2025 and December 31, 2025, the company’s Board of Directors extended the repurchase authorization for the remaining $100.0 million ²³ to December 31, 2025 and December 31, 2026, respectively. As of December 31, 2025, the company had remaining authority to purchase $100.0 million ²⁴ of its common stock under the share repurchase authorization. During the year ended December 31, 2025, the company entered into agreements to acquire property in Costa Rica and construct a manufacturing facility and warehouse for the production of medical devices. The total capital project is expected to cost approximately $58 million ²⁵. During the year ended December 31, 2025, the company made payments of $37.3 million ²⁶ related to the Costa Rica capital project. In addition, during the year ended December 31, 2025, the company entered into an agreement to lease approximately 46,000 ²⁷ square feet of manufacturing and warehouse facilities in Costa Rica. The lease will commence upon the completion of certain improvements to the premises, which are expected to be completed in 2026, and will expire five years after commencement, subject to the company’s option to renew the lease for an additional three years.

The company generated revenue of $1,403.7 million ²⁸ for the year ended December 31, 2025, compared to $1,194.6 million ²⁹ in 2024 and $1,058.5 million ³⁰ in 2023, representing an annual increase of 17.5% ³¹ and 12.9% ³², respectively. The company generated income from operations of $189.2 million ³³ for the year ended December 31, 2025, compared to $9.3 million ³⁴ in 2024 and $73.6 million ³⁵ in 2023. Net income was $177.7 million ³⁶ for the year ended December 31, 2025, compared to $14.0 million ³⁷ in 2024 and $91.0 million ³⁸ in 2023. Gross margin was 67.1% ³⁹ in 2025, compared to 63.2% ⁴⁰ in 2024. The 2024 gross margin included a one-time $33.4 million ⁴¹ inventory charge to cost of revenue in connection with the impairment of the immersive healthcare asset group, which decreased gross margin by 2.8 percentage points ⁴² in 2024. Net cash provided by operating activities was $238.7 million ⁴³ in 2025, compared to $168.5 million ⁴⁴ in 2024 and $97.3 million ⁴⁵ in 2023.

The company’s future growth depends, in part, on its ability to further penetrate its current customer base and increase the frequency of use of its products by its customers as well as expand its user base to include additional specialist physicians and other healthcare providers in both its existing and future target end markets. The company expects to continue to develop and build its portfolio of products, including its thrombectomy, embolization, and access technologies, while iterating on its currently available products. The company’s research and development activities are centered around the development of new products and clinical activities designed to support its regulatory submissions and demonstrate the effectiveness of its products. The company believes there are substantial additional market opportunities for its thrombectomy and embolization and access products throughout the world. The company estimates there are approximately 800,000 ⁴⁶ annual PEs outside the U.S. and approximately 350,000 ⁴⁷ of them are high- or intermediate-risk, making them eligible for thrombectomy. The company estimates there are approximately 2 million ⁴⁸ annual DVTs outside the U.S. that are eligible for thrombectomy. The company estimates there are approximately 2.25 million ⁴⁹ annual ALIs outside the U.S. that are eligible for thrombectomy. Outside of the United States, the company estimates, based on published sources, that there are approximately 9.7 million ⁵⁰ ischemic strokes annually and that 1.9 million ⁵¹ of these patients are treatable with mechanical thrombectomy. The company estimates there are approximately 8 million ⁵² annual AMIs outside the U.S. that are eligible for mechanical thrombectomy. The company expects to continue to make investments as it launches new products, expands its manufacturing operations and information technology infrastructures and further expands into international markets.

The company expects to continue to make investments as it launches new products, expands its manufacturing operations and information technology infrastructures and further expands into international markets. Gross margin is impacted by product mix, regional mix, and production initiatives to support demand and create future efficiencies. With favorable product mix, improvement in productivity, and by leveraging fixed costs on higher volume of new product sales, the company’s gross margin may be positively impacted in the future. The company has continued to make investments, and plans to continue to make investments, in the development of its products. As part of its ongoing investment in the development of its products, the company may incur additional expenses related to research and development milestones. The company has experienced in the past, and may continue to experience in the future, variability in expenses incurred due to the timing and costs of clinical trials and product development, which may include additional personnel-related expenses in conjunction with the launch of new products. As the company continues to invest in its growth, it has expanded and may continue to expand its sales, marketing, and general and administrative teams through the hiring of additional employees in critical roles that support its strategic initiatives.

The company currently maintains its manufacturing facilities in Alameda and Roseville, California and currently produces substantially all of its products in-house. The company’s manufacturing facilities are ISO 13485 compliant. The company received ISO 13485:2016 certification of its Alameda facility in 2018 and successfully completed its most recent surveillance audit in 2025. The company received ISO 13485:2016 certification of its Roseville facility in 2020 and successfully completed its most recent surveillance audit in 2025. In 2021, the company’s Quality Management System was first audited to the European Union Medical Devices Regulation in support of product CE marking, and the company successfully completed its most recent surveillance audit in 2025. The company participates in the Medical Device Single Audit Program (MDSAP) which allows for certification and review of compliance to standards and regulations required in the United States, Canada, Brazil, Australia, and Japan by a single auditing organization. The company received its first MDSAP certification in 2018 and successfully completed its most recent surveillance audit in 2025. The company uses annual internal audits to ensure strong quality control practices. During the year ended December 31, 2025, the company entered into agreements to acquire property in Costa Rica and construct a manufacturing facility and warehouse for the production of medical devices. The total capital project is expected to cost approximately $58 million ⁵³. During the year ended December 31, 2025, the company made payments of $37.3 million ⁵⁴ related to the Costa Rica capital project. In addition, during the year ended December 31, 2025, the company entered into an agreement to lease approximately 46,000 ⁵⁵ square feet of manufacturing and warehouse facilities in Costa Rica. The lease will commence upon the completion of certain improvements to the premises, which are expected to be completed in 2026, and will expire five years after commencement, subject to the company’s option to renew the lease for an additional three years. The company believes it has adequate supplies or sources of availability of raw materials necessary to meet its needs. The company also utilizes long-term supply contracts with some suppliers to help maintain continuity of supply and manage the risk of price increases. Where possible, the company seeks second-source suppliers or suppliers that have alternate manufacturing sites at which they could manufacture parts. As of December 31, 2025, the company had approximately 4,700 ⁵⁶ employees worldwide.

Research and development expenses were $89.8 million ⁵⁷ for the year ended December 31, 2025, compared to $94.8 million ⁵⁸ in 2024. The decrease was primarily due to a $14.2 million ⁵⁹ decrease in expenses associated with the immersive healthcare business. Excluding these costs, R&D expenses increased by $9.2 million ⁶⁰ in 2025 to support continued growth. Net cash used in investing activities was $404.6 million ⁶¹ in 2025 and primarily consisted of purchases of marketable investments, net of proceeds from maturities and sales of marketable investments, of $340.9 million ⁶² and capital expenditures of $63.7 million ⁶³ primarily driven by investments related to the construction of the Costa Rica manufacturing facility. As of December 31, 2025, the company had remaining authority to purchase $100.0 million ⁶⁴ of its common stock under the share repurchase authorization. The company has never declared or paid cash dividends on its capital stock and does not anticipate paying any cash dividends in the foreseeable future.

The company faces significant competition from large, well-capitalized companies with longer operating histories and greater resources. The company’s most notable competitors are Boston Scientific, Medtronic, Stryker (now including Inari Medical), Terumo and several private companies. The company may not be able to achieve or maintain satisfactory pricing and margins for its products. Manufacturers of medical devices have a history of price competition, and the company can give no assurance that it will be able to achieve satisfactory prices for its products or maintain prices at the levels it has historically achieved. Events beyond the company’s control, such as pandemics, war or geopolitical instability, can impact global supply chains, resulting in an increase in the cost of certain raw materials and components used in its products. The company’s future growth depends, in part, on its ability to further penetrate its current customer base and increase the frequency of use of its products by its customers as well as expand its user base to include additional specialist physicians and other healthcare providers in both its existing and future target end markets. The company’s ability to commercialize new products successfully in both the United States and international markets depends in part on the availability of, and hospitals’ and other customers’ ability to obtain, adequate levels of third-party reimbursement for the procedures or sessions in which its products are used. The company has generated a significant portion of its revenue and revenue growth from a limited number of product families. The company’s dependence on key suppliers puts it at risk of interruptions in the availability of its products. The company is required to maintain high levels of inventory, which consume a significant amount of its working capital and could lead to permanent write-downs or write-offs of its inventory. The company is subject to stringent domestic and foreign medical device regulations, which may impede the approval or clearance process for its products, hinder its development activities and manufacturing processes and, in some cases, result in the recall or seizure of previously approved or cleared products. For the years ended December 31, 2025, 2024 and 2023, the company derived 22.2% ⁶⁵, 24.5% ⁶⁶ and 28.5% ⁶⁷, respectively, of its revenue from international sales. The company is exposed to the effects of changes in foreign currency exchange rates, and has not historically hedged its foreign currency exposure. Approximately 22.2% ⁶⁸, 24.5% ⁶⁹, and 28.5% ⁷⁰ of the company’s revenue for the years ended December 31, 2025, 2024 and 2023, respectively, were derived from sales in non-U.S. markets.

The company faces significant risks related to its proposed merger with Boston Scientific Corporation, including uncertainty about the effect of the Merger Agreement on customers, employees, suppliers, and business partners, and the potential failure to complete the Merger, which could adversely affect the business. Under circumstances defined in the Merger Agreement, the company may be required to pay Boston Scientific Corporation a termination fee of $525.0 million ⁷¹ if the Merger is not completed. The company’s existing products may be rendered obsolete and the company may be unable to effectively introduce and market new products or may fail to keep pace with advances in technology. The company faces significant competition from large, well-capitalized companies including Boston Scientific, Medtronic, Stryker (now including Inari Medical), and Terumo. The company may not be able to achieve or maintain satisfactory pricing and margins for its products. Third-party reimbursement may not be available or adequate for the procedures for which the company’s products are used. The company has generated a significant portion of its revenue and revenue growth from a limited number of product families. The company’s dependence on key suppliers puts it at risk of interruptions in the availability of its products. The company is required to maintain high levels of inventory, which consume a significant amount of its working capital and could lead to permanent write-downs or write-offs. During the three months ended June 30, 2024, the company recorded a $33.4 million ⁷² write-down of immersive healthcare inventory. The company is subject to stringent domestic and foreign medical device regulations, which may impede the approval or clearance process for its products. The company relies on a variety of intellectual property rights, and if unable to maintain or protect its intellectual property, its business and results of operations will be harmed. As of December 31, 2025, the company owned and/or had rights to 125 ⁷³ issued patents globally, of which 66 ⁷⁴ were U.S. patents.

Management’s message emphasizes the company’s position as the world’s leading thrombectomy company, focused on developing the most innovative technologies for challenging medical conditions such as ischemic stroke, venous thromboembolism such as pulmonary embolism, and acute limb ischemia. The company attributes its success to its culture built on cooperation, its highly efficient product innovation process, its disciplined approach to product and commercial development, its deep understanding of its target end markets and its relationships with specialist physicians and other healthcare providers. Management believes these factors have enabled the company to rapidly innovate in a highly efficient manner. The company expects to continue to develop and build its portfolio of products, including its thrombectomy, embolization, and access technologies, while iterating on its currently available products. The company’s research and development activities are centered around the development of new products and clinical activities designed to support its regulatory submissions and demonstrate the effectiveness of its products. On January 14, 2026, the company entered into the Merger Agreement with Boston Scientific Corporation, reflecting an enterprise value of approximately $14.5 billion ⁷⁵, with each share valued at $374 ⁷⁶ per share. The Merger is expected to close by the end of 2026, subject to customary closing conditions. The company’s strategic priorities include continuing to develop and build its portfolio of products, further penetrating its current customer base, expanding its user base to include additional specialist physicians and other healthcare providers, and expanding into international markets.