stockrowWhat it does
Penumbra develops, manufactures and sells medical devices used by specialist physicians and other healthcare providers to treat vascular conditions. Its products include systems for removing blood clots, devices for blocking vessels, and catheters that help physicians reach a treatment site inside a blood vessel.
The company’s main product area is thrombectomy, or clot removal. Its devices are used in procedures for conditions including ischemic stroke, pulmonary embolism, deep vein thrombosis and acute limb ischemia. Its portfolio includes computer assisted vacuum thrombectomy, which combines catheters, a pump and software to help remove clots by suction. The Indigo System addresses clots in peripheral and coronary vessels, while the Penumbra System is used to reopen blocked blood vessels in the brain.
Penumbra also sells embolization products, including detachable coils that physicians can place inside a vessel or aneurysm to block blood flow. Its access products help physicians navigate blood vessels to reach the area being treated. The Artemis Neuro Evacuation Device is used with a neuroendoscope and an aspiration source to remove fluid and tissue from the brain.
Hospitals are the primary purchasers of Penumbra’s products in the United States. Specialist physicians use the devices and influence purchasing decisions. Penumbra was founded in 2004 and is headquartered in Alameda, California. Adam Elsesser is its chief executive officer.
How it makes money
Penumbra operates as one operating segment and earns revenue primarily by selling medical devices. In FY2025, revenue was $1,403.7 million. A quarterly total is not available in the supplied results.
Its thrombectomy category generated $947.9 million in FY2025, representing 67.5% of revenue. The category includes the Indigo System for peripheral and coronary clot removal and the Penumbra System for clot removal in the brain. These systems bring together components such as catheters, separators, tubing and aspiration pumps. Computer assisted vacuum thrombectomy adds software that coordinates the pump and catheter.
Embolization and Other generated $455.7 million in FY2025, or 32.5% of revenue. Products include detachable coils for treating conditions such as aneurysms and bleeding, access catheters, and neurosurgical tools. Some coils are placed at hospitals on consignment; Penumbra recognizes revenue for those products when a hospital uses them in a procedure. Product sales are generally recognized when goods are shipped or received, depending on when control transfers.
The company also licenses technology for certain products to its distribution partner in China. Those arrangements provide fixed payments for technology transfers and related regulatory support and, in certain cases, royalties on downstream product sales.
Revenue is recorded after returns, discounts, administrative fees and sales rebates. In the United States, hospitals generally bill insurers or government programs for the overall treatment rather than receiving a payment tied to the particular device used. Penumbra also introduces replacement products: sales of an earlier generation generally decline when a new generation replaces it. The company does not describe a subscription model for its device business.
| Product or service | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Thrombectomy | $947.9 million | 67.5% | 16.2% |
| Embolization and Other | $455.7 million | 32.5% | 20.2% |
Customers and how it sells
Penumbra sells to healthcare providers, with hospitals the primary purchasers in the United States. The physicians who use its devices include interventional radiologists, vascular surgeons, neurosurgeons, interventional cardiologists and specialists treating neurological conditions. These physicians influence hospital device purchases, and Penumbra trains and educates physicians and other healthcare providers on its products.
The company sells directly in the United States, most of Europe, Canada, Australia and Singapore, subject to required regulatory clearances and approvals. It also uses distributors in international markets where it considers that approach more effective. In 2025, direct sales accounted for approximately 90% of revenue; independent distributors and the China partner arrangements accounted for the balance.
United States revenue was $1.1 billion in FY2025, representing 77.8% of total revenue. International revenue was $311.9 million, or 22.2%. The company’s China partner manufactures and commercializes certain licensed products in China, while also contributing licensing royalty and distribution revenue.
In the United States, hospitals seek payment for patient care from third-party payors, including Medicare, Medicaid and private health insurers. Coverage and payment policies differ among those payors. Medicare reimbursement for inpatient treatment generally depends on the patient’s diagnosis and procedure rather than the particular medical device used.
| Region | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| United States | $1.1 billion | 77.8% | 21.0% |
| International | $311.9 million | 22.2% | 6.62% |
Suppliers and costs
Penumbra produces substantially all of its products in-house at manufacturing facilities in Alameda and Roseville, California. Its research and development work is based substantially at its Alameda campus. In 2025, the company entered into agreements to acquire property in Costa Rica and construct a manufacturing facility and warehouse for medical devices.
The company uses suppliers for raw materials and says supply is subject to uncertainty, particularly when a material comes from a single supplier. It works with suppliers on continuity, uses long-term contracts with some suppliers to manage supply and price increases, and seeks alternative sources or manufacturing sites where possible. The supplied material does not name individual suppliers.
Costs include manufacturing, research and development, sales and marketing, and the personnel and inventory required to support product launches and capacity expansion. Penumbra expects to hire and train additional personnel and build component and finished-goods inventory as it introduces products and expands production. It also expects continued investment in manufacturing, information technology and international expansion. The availability and cost of components and raw materials can affect gross profit and margin.
- Revenue$1.4B
- Cost of revenue−$461.2M
- Research and development−$89.8M
- Selling, general and administrative−$663.4M
- Operating income$189.2M
Competitive position
Penumbra competes with manufacturers and distributors of neurovascular and vascular medical devices. Its notable competitors include Boston Scientific, Medtronic, Stryker, including Inari Medical, and Terumo, as well as private companies. It also faces smaller device companies with individual products or narrower ranges. The company describes its industry as intensely competitive and affected by new product introductions.
Penumbra competes on the ability of its products to treat patients with neuro and vascular diseases safely and effectively. Its continued success depends on product development, regulatory clearances and approvals, clinical evidence, manufacturing and marketing. Some competitors have broader product lines, more established distribution networks, deeper healthcare relationships or greater resources; they can also use bundles and rebates to compete.
Our reading: Penumbra’s integrated thrombectomy systems and proprietary product designs provide a product-development advantage, but its position depends on continuing to introduce devices that physicians adopt. Our reading: Its direct salesforce and physician training support customer relationships, although competitors also have established networks and relationships. Our reading: Regulatory clearance and clinical evidence can support an established device business, but they also require continuing investment and do not prevent other manufacturers from competing.
No competitor-specific market shares are provided.
| Competitor | Where they compete | Threat (our reading) |
|---|---|---|
| Boston Scientific | Neurovascular and vascular medical devices | High |
| Medtronic | Neurovascular and vascular medical devices | High |
| Stryker | Neurovascular and vascular medical devices | High |
| Terumo | Neurovascular and vascular medical devices | High |
Growth opportunities
Penumbra expects to continue developing its thrombectomy, embolization and access portfolio, including new versions of existing products. Its research and development work includes clinical activities intended to support regulatory submissions and demonstrate product effectiveness. Adoption by specialist physicians and the company’s ability to transition customers from older devices to new ones affect new-product performance.
The company launched Lightning Flash 3.0, Lightning Bolt 12 and Lightning Bolt 6X with TraX in 2025. It also launched the Ruby XL Embolization Platform and SwiftSET coil in 2025. These products address clot removal or embolization in different vessels and clinical settings.
Penumbra identifies international expansion and manufacturing capacity as areas for investment. It believes additional opportunities exist for thrombectomy, embolization and access products outside the United States, although it says reliable third-party data is unavailable for many markets there. The company estimates that approximately 200,000 ischemic stroke cases annually in the United States are treatable with mechanical thrombectomy. It also estimates that approximately 1.9 million ischemic stroke patients outside the United States annually are treatable with mechanical thrombectomy.
On January 14, 2026, Boston Scientific agreed to acquire Penumbra, subject to closing conditions. It was reported on 29 October 2026 that Boston Scientific expected the acquisition to close in early 2027, subject to remaining regulatory clearances.
- $747.6MFY2021
- $847.1MFY2022
- $1.1BFY2023
- $1.2BFY2024
- $1.4BFY2025
Structural risks
- Competition and product adoption: Existing products may become obsolete, and new products may not gain acceptance. Alternative treatments, competitors’ pricing and the timing of market entry can affect adoption by physicians and other healthcare providers.
- Regulation and safety: Medical devices are subject to extensive regulation covering development, manufacturing, marketing and post-market surveillance. Regulatory requirements can delay clearance or approval, and noncompliance can lead to recalls, production restrictions or other enforcement actions.
- Supply and production: Raw materials sourced from a single supplier may not be available in sufficient quantities. Production can also be affected by capacity constraints, quality control, equipment availability and shortages of qualified personnel.
- Reimbursement and international operations: Coverage and payment policies influence procedures using Penumbra products. International operations also face currency fluctuations, pricing pressure, regulatory requirements, shipping delays and potential trade restrictions.
- Proposed acquisition: Uncertainty associated with the agreement to be acquired by Boston Scientific could adversely affect Penumbra’s business. Penumbra has incurred transaction costs and expects further costs in satisfying closing conditions, including regulatory and stockholder approvals.
Bottom line
Our reading
Our reading: Penumbra is a device business centered on clot removal, supported by a broader embolization and access portfolio and direct relationships with healthcare providers. Its ability to sustain that business rests on continued physician adoption, product development and regulatory compliance in a competitive market. The proposed Boston Scientific acquisition adds a separate closing uncertainty, while manufacturing and raw-material availability remain important operating exposures.