PEN Q2 Deep Dive: Sales Force Expansion and Clinical Milestones Drive Outperformance

Medical device company Penumbra (NYSE:PEN) reported Q2 CY2025 results beating Wall Street’s revenue expectations, 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.

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StockStory’s Take

Penumbra’s second quarter saw strong momentum, with management attributing outperformance to robust adoption in its U.S. thrombectomy business and the successful rollout of new products like RUBY XL in embolization. CEO Adam Elsesser highlighted the company’s focus on expanding its commercial infrastructure and noted, “Our U.S. thrombectomy business led overall growth... reflecting strong continued adoption and ramping utilization of our CAVT portfolio.” Management also pointed to improved operational execution following the buildout of specialized sales teams, supporting growth across both the thrombectomy and embolization franchises.

Looking ahead, Penumbra’s updated guidance is underpinned by expectations for continued U.S. thrombectomy expansion, ramping contributions from its new embolization sales force, and the anticipated impact of upcoming clinical trial data. Management emphasized the value of the soon-to-be-released STORM-PE study results, which could influence treatment standards in pulmonary embolism. CFO Maggie Yuen stated, “We expect positive operating cash flow trends to continue in 2025 and beyond,” while also noting that investments in commercialization and product development are set to support long-term profitability.

Key Insights from Management’s Remarks

Management emphasized that the quarter’s results were driven by focused commercial execution, new product adoption, and investments in sales force specialization, with clinical trials and international recovery also contributing.

• Thrombectomy momentum: Penumbra’s U.S. thrombectomy franchise delivered significant growth, driven largely by increased use of the CAVT (computer-assisted vacuum thrombectomy) portfolio. The company reported strong adoption of Flash 2.0 and Bolt 12, enabling continued market share gains and competitive conversions from traditional therapies.
• Specialized sales forces: The company completed the buildout of separate sales teams for thrombectomy and embolization, adding over 50 embolization reps and 40 vascular clinical specialists. Management believes this structure will allow for greater focus and accelerate growth in both segments, particularly following the launch of RUBY XL.
• RUBY XL launch impact: The introduction of the RUBY XL coil enabled Penumbra to enter a previously untapped portion of the embolization market. Early field feedback was positive, and management expects growing contributions from this product as the dedicated team ramps up.
• Clinical trial progress: The company completed enrollment in the STORM-PE randomized trial, which compares mechanical thrombectomy plus anticoagulation to anticoagulation alone in pulmonary embolism. Results, expected in the fall, could support broader adoption of Penumbra’s CAVT technology if positive.
• International recovery: While international revenues had faced headwinds, management cited easing challenges in China and new product launches in other regions as reasons for improved international performance, with expectations for this trend to continue through the year.

Drivers of Future Performance

Management expects that product innovation, sales force expansion, and pivotal clinical trial outcomes will be the main factors shaping performance in the next several quarters.

• STORM-PE data and market impact: The release of STORM-PE trial results is anticipated to influence physician treatment patterns in pulmonary embolism, potentially accelerating adoption of Penumbra’s mechanical thrombectomy devices if the data are positive. Management noted that the trial “could have a significant impact” on clinical decision-making and referrals.
• Sales force ramp and operational leverage: The newly separated and expanded sales teams are expected to drive product penetration and support sustainable revenue growth, while management believes this structure will ultimately enhance operating margins as scale is achieved. However, month-to-month variability in product mix may occur as teams ramp up.
• China and international trends: Management expects recent easing of headwinds in China and ongoing investments in international markets to support broader revenue growth globally. The company is monitoring recovery and product uptake in these regions as key contributors to future performance.

Catalysts in Upcoming Quarters

Going forward, the StockStory team will be watching (1) the impact of STORM-PE clinical trial results on U.S. thrombectomy adoption, (2) the effectiveness of the newly separated sales forces in driving growth for both thrombectomy and embolization, and (3) continued recovery and contribution from international markets, especially as China headwinds subside. Progress on the Thunderbolt device’s regulatory pathway will also be a key signpost.

Penumbra currently trades at $235.75, up from $227.22 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).

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