The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the unaudited condensed consolidated financial statements and the related notes thereto included elsewhere in this Quarterly Report on Form 10-Q and the audited consolidated financial statements and notes thereto and management’s discussion and analysis of financial condition and results of operations for the year ended December 31, 2025, included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 25, 2026. This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). In some cases, you can identify these statements by forward-looking words such as “may,” “will,” “expect,” “believe,” “anticipate,” “intend,” “could,” “should,” “estimate,” or “continue,” and similar expressions or variations, but these words are not the exclusive means for identifying such statements. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results and the timing of certain events to differ materially from future results and timing expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those identified below, and those discussed in the section titled “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025. The forward-looking statements in this Quarterly Report on Form 10-Q represent our views as of the date of this Quarterly Report on Form 10-Q. Except as may be required by law, we assume no obligation to update these forward-looking statements or the reasons that results could differ from these forward-looking statements. You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this Quarterly Report on Form 10-Q. Overview References herein to “we,” “us,” “our,” the “Company,” and “Penumbra,” refer to Penumbra, Inc. and its consolidated subsidiaries unless expressly indicated or the context requires otherwise. Penumbra, the world’s leading thrombectomy company, is 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. Our broad portfolio, which includes computer assisted vacuum thrombectomy (CAVT), centers on removing blood clots from head-to-toe with speed, safety, and simplicity. Our team focuses on developing, manufacturing and marketing novel products for use by specialist physicians and other healthcare providers to drive improved clinical and health outcomes. We believe that the cost-effectiveness of our products is attractive to our customers. Since our founding in 2004, we have invested heavily in our product development and commercial expansion that has established the foundation of our global organization. We have successfully developed, obtained regulatory clearance or approval for, and introduced products into the thrombectomy market since 2007, access market since 2008, embolization market since 2011, and neurosurgical market since 2014. We expect to continue to develop and build our portfolio of products, including our thrombectomy, embolization, and access technologies, while iterating on our currently available products. Generally, when we introduce a next generation product or a new product designed to replace a current product, sales of the earlier generation product or the product replaced decline. Our research and development activities are centered around the development of new products and clinical activities designed to support our regulatory submissions and demonstrate the effectiveness of our products. To address the challenging and significant clinical needs of our key markets, we have developed products that fall into the following broad product families: Our thrombectomy products fall into two broad product families: •Peripheral thrombectomy - INDIGO System, including Lightning, Flash, Bolt and CAT RX, designed for continuous or modulated aspiration, computer assisted vacuum thrombectomy, including aspiration catheters, microprocessor-controlled software algorithms that orchestrate the interaction of our pump and catheters, separators, aspiration pump and accessories, including delivery catheters used in peripheral thrombectomy procedures •Neuro thrombectomy - Penumbra System, including Penumbra RED, SENDit, JET, ACE, BMX, and MAX catheters and the 3D Revascularization Device, Penumbra ENGINE and other components and accessories, and THUNDERBOLT 22 Table of Contents Our embolization and access products fall into four broad product families: •Peripheral embolization - Ruby, Ruby LP and Ruby XL Embolization Platforms, LANTERN Delivery Microcatheter and the POD System (POD and POD Packing Coil) •Neuro embolization - Penumbra SMART COIL, Penumbra Coil 400, POD400, PAC400, SwiftPAC Coil, SwiftSET and SwiftMATCH •Access - delivery catheters, consisting of Neuron, Neuron MAX, BENCHMARK, BMX, DDC, PX SLIM, MIDWAY, and Access25 •Neurosurgical - Artemis Neuro Evacuation Device By pioneering these innovations, we support healthcare providers, hospitals and clinics in more than 100 countries, working to improve patient outcomes and quality of life. In the three months ended June 30, 2026 and 2025, 21.7% and 23.2% of our revenue, respectively, was generated from customers located outside of the United States. In the six months ended June 30, 2026 and 2025, 21.3% and 22.0% of our revenue, respectively, was generated from customers located outside of the United States. Our sales outside of the United States are denominated principally in the euro, with some sales being denominated in other currencies. As a result, we have foreign exchange exposure but do not currently engage in hedging. We generated revenue of $390.0 million and $339.5 million for the three months ended June 30, 2026 and 2025, respectively, an increase of $50.6 million, and revenue of $764.8 million and $663.6 million for the six months ended June 30, 2026 and 2025, respectively, an increase of $101.2 million. We generated income from operations of $41.0 million and $40.8 million for the three months ended June 30, 2026 and 2025, respectively, and income from operations of $79.3 million and $81.2 million for the six months ended June 30, 2026 and 2025, respectively. On January 14, 2026, we entered into the Merger Agreement with Boston Scientific Corporation and Merger Sub, pursuant to which Boston Scientific Corporation has agreed to acquire us in the Merger at an enterprise value of approximately $14.5 billion. Under the terms of the Merger Agreement, which has been approved by the board of directors of each of the Company and Boston Scientific Corporation, the transaction values each share of our common stock at $374 per share, with our stockholders having the right to elect, for each share of our common stock held by them, to receive $374 in cash or 3.8721 shares of Boston Scientific Corporation’s common stock (valued at $374 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% in cash and approximately 27% in shares of Boston Scientific’s common stock. The Merger is expected to close by the end of 2026, subject to customary closing conditions, including regulatory approvals. Refer to Note “1. Organization and Description of Business” to our condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for more information. Factors Affecting Our Performance There are a number of factors that have impacted, and we believe will continue to impact, our results of operations and growth. These factors include: •The rate at which we grow our salesforce and the speed at which newly hired salespeople become fully effective can impact our revenue growth or our costs incurred in anticipation of such growth. •Our industry is intensely competitive and, in particular, we compete with a number of large, well-capitalized companies. We must continue to successfully compete in light of our competitors’ existing and future products and their resources to successfully market to the specialist physicians who use our products. •We must continue to successfully introduce new products that gain acceptance with specialist physicians and other healthcare providers and successfully transition from existing products to new products, ensuring adequate supply. In addition, as we introduce new products and expand our production capacity, we anticipate additional personnel will be hired and trained to build our inventory of components and finished goods in advance of sales, which may cause quarterly fluctuations in our operating results and financial condition. •Publications of clinical results by us, our competitors and other third parties can have a significant influence on whether, and the degree to which, our products are used by specialist physicians and the procedures and treatments those physicians choose to administer for a given condition. 23 Table of Contents •The specialist physicians who use our interventional products may not perform procedures during certain times of the year, such as those periods when they are at major medical conferences or are away from their practices for other reasons, the timing of which occurs irregularly during the year and from year to year. •Most of our sales outside of the United States are denominated in the local currency of the country in which we sell our products. As a result, our revenue from international sales can be significantly impacted by fluctuations in foreign currency exchange rates. •The availability and levels of reimbursement within the relevant healthcare payment system for healthcare providers for procedures in which our products are used. In addition, we have experienced and expect to continue to experience meaningful variability in our quarterly revenue, gross profit and gross margin percentage as a result of a number of factors, including, but not limited to: the number of available selling days, which can be impacted by holidays; the mix of products sold; the geographic mix of where products are sold; the demand for our products and the products of our competitors; the timing of or failure to obtain regulatory approvals or clearances for products; increased competition; the timing of customer orders; inventory or other asset write-offs or write-downs; costs, benefits and timing of new product introductions; costs, benefits and timing of the acquisition and integration of businesses and product lines we may acquire; the availability and cost of components and raw materials; and fluctuations in foreign currency exchange rates. We may experience quarters in which we have significant revenue growth sequentially followed by quarters of moderate or no revenue growth. Additionally, we may experience quarters in which operating expenses, in particular research and development expenses, fluctuate depending on the stage and timing of product development. Components of Results of Operations Revenue. We sell our 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. We sell our products through purchase orders, and we do not have long term purchase commitments from our customers. 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 we consign to hospitals, which primarily consist of coils, we recognize revenue at the time hospitals utilize products in a procedure. Revenue also includes shipping and handling costs that we charge to customers. Cost of Revenue. Cost of revenue consists primarily of the cost of raw materials and components, personnel costs, including stock-based compensation, inbound freight charges, receiving costs, inspection and testing costs, warehousing costs, royalty expense, handling costs, which are costs incurred to handle products by a third-party shipper to the customers, and other labor and overhead costs incurred in the manufacturing of products. We manufacture substantially all of our products in our manufacturing facilities in Alameda and Roseville, California. Operating Expenses Research and Development (“R&D”). R&D expenses primarily consist of product development, clinical and regulatory expenses, materials, depreciation and other costs associated with the development of our products. R&D expenses also include salaries, benefits and other related costs, including stock-based compensation, for personnel and consultants. We expense R&D costs as they are incurred. Sales, General and Administrative (“SG&A”). SG&A expenses primarily consist of salaries, benefits and other related costs, including stock-based compensation, for personnel and consultants engaged in sales, marketing, finance, legal, compliance, administrative, facilities and information technology and human resource activities. Our SG&A expenses also include marketing trials, medical education, training, commissions, generally based on sales, to direct sales representatives, amortization of acquired intangible assets and acquisition-related costs. Income Taxes. We are taxed at the rates applicable within each jurisdiction in which we operate. The composite income tax rate, tax provisions, deferred tax assets (“DTAs”) and deferred tax liabilities will vary according to the jurisdiction in which profits arise. Tax laws are complex and subject to different interpretations by management and the respective governmental taxing authorities, and require us to exercise judgment in determining our income tax provision, our deferred tax assets and deferred tax liabilities and the potential valuation allowance recorded against our net DTAs. Deferred tax assets and liabilities are determined using the enacted tax rates in effect for the years in which those tax assets are expected to be realized. A valuation allowance is established when it is more likely than not that the future realization of all or some of the DTAs will not be achieved. 24 Table of Contents Results of Operations The following table sets forth the components of our condensed consolidated statements of operations in dollars and as a percentage of revenue for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in thousands, except for percentages) (in thousands, except for percentages) Revenue $ 390,046 100.0 % $ 339,455 100.0 % $ 764,804 100.0 % $ 663,595 100.0 % Cost of revenue 125,102 32.1 115,445 34.0 246,449 32.2 223,702 33.7 Gross profit 264,944 67.9 224,010 66.0 518,355 67.8 439,893 66.3 Operating expenses: Research and development 25,396 6.5 23,218 6.8 47,778 6.2 45,295 6.8 Sales, general and administrative 198,509 50.9 159,964 47.2 391,304 51.2 313,420 47.3 Total operating expenses 223,905 57.4 183,182 54.0 439,082 57.4 358,715 54.1 Income from operations 41,039 10.5 40,828 12.0 79,273 10.4 81,178 12.2 Interest and other income, net 5,148 1.3 4,482 1.3 8,602 1.1 7,990 1.2 Income before income taxes 46,187 11.8 45,310 13.3 87,875 11.5 89,168 13.4 Provision for income taxes 11,376 2.9 40 — 20,480 2.7 4,675 0.7 Net income $ 34,811 8.9 % $ 45,270 13.3 % $ 67,395 8.8 % $ 84,493 12.7 % Three Months Ended June 30, 2026 Compared to the Three Months Ended June 30, 2025 Revenue Three Months Ended June 30, Change 2026 2025 $ % (in thousands, except for percentages) Thrombectomy $ 258,981 $ 230,256 $ 28,725 12.5 % Embolization and Access 131,065 109,199 21,866 20.0 % Total $ 390,046 $ 339,455 $ 50,591 14.9 % Revenue increased $50.6 million, or 14.9%, to $390.0 million in the three months ended June 30, 2026, from $339.5 million in the three months ended June 30, 2025. Overall revenue growth was primarily due to an increase in sales of our existing thrombectomy products and new and existing embolization and access products. Revenue from our global thrombectomy products increased $28.7 million, or 12.5%, to $259.0 million in the three months ended June 30, 2026, from $230.3 million in the three months ended June 30, 2025. The increase in our global thrombectomy products was primarily attributable to higher sales volume in the United States as a result of further market penetration of our existing products. Prices for our thrombectomy products remained substantially unchanged during the period. Revenue from our global embolization and access products increased $21.9 million, or 20.0%, to $131.1 million in the three months ended June 30, 2026, from $109.2 million in the three months ended June 30, 2025. The increase in our global embolization and access products was primarily attributable to higher sales volume in the United States as a result of further market penetration of our new and existing products. Prices for our embolization and access products remained substantially unchanged during the period. Revenue by Geographic Area The following table presents revenue by geographic area, based on our customers’ shipping destinations, for the three months ended June 30, 2026 and 2025: 25 Table of Contents Three Months Ended June 30, Change 2026 2025 $ % (in thousands, except for percentages) United States $ 305,445 78.3 % $ 260,818 76.8 % $ 44,627 17.1 % International 84,601 21.7 % 78,637 23.2 % 5,964 7.6 % Total $ 390,046 100.0 % $ 339,455 100.0 % $ 50,591 14.9 % Revenue from sales in international markets increased $6.0 million, or 7.6%, to $84.6 million in the three months ended June 30, 2026, from $78.6 million in the three months ended June 30, 2025. Revenue from international sales represented 21.7% and 23.2% of our total revenue for the three months ended June 30, 2026 and 2025, respectively. Gross Margin Three Months Ended June 30, Change 2026 2025 $ % (in thousands, except for percentages) Cost of revenue $ 125,102 $ 115,445 $ 9,657 8.4 % Gross profit $ 264,944 $ 224,010 $ 40,934 18.3 % Gross margin % 67.9 % 66.0 % Gross margin increased by 1.9 percentage points to 67.9% in the three months ended June 30, 2026, from 66.0% in the three months ended June 30, 2025, primarily driven by favorable product mix across our regions. Gross margin is impacted by product mix, regional mix, and production initiatives to support demand and create future efficiencies. As such, with favorable product mix, improvement in productivity, and by leveraging our fixed costs on higher volume of new product sales during the year, our gross margin may be positively impacted in the future. Research and Development (“R&D”) Three Months Ended June 30, Change 2026 2025 $ % (in thousands, except for percentages) R&D $ 25,396 $ 23,218 $ 2,178 9.4 % R&D as a percentage of revenue 6.5 % 6.8 % R&D expenses increased by $2.2 million, or 9.4%, to $25.4 million in the three months ended June 30, 2026, from $23.2 million in the three months ended June 30, 2025. The increase was primarily due to a $1.8 million increase in product development and testing costs and a $1.3 million increase in personnel-related expenses, partially offset by a $0.9 million decrease in other research and development activities due to the timing of planned investments. We have continued to make investments, and plan to continue to make investments, in the development of our products. As part of our ongoing investment in the development of our products, we may incur additional expenses related to research and development milestones. In addition, we have 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. Sales, General and Administrative (“SG&A”) Three Months Ended June 30, Change 2026 2025 $ % (in thousands, except for percentages) SG&A $ 198,509 $ 159,964 $ 38,545 24.1 % SG&A as a percentage of revenue 50.9 % 47.2 % SG&A expenses increased by $38.5 million, or 24.1%, to $198.5 million in the three months ended June 30, 2026, from $160.0 million in the three months ended June 30, 2025. The increase was primarily due to a $11.7 million increase in personnel-related expenses driven by an increase in headcount and related expenses to support our growth, a $6.9 million increase in acquisition-related expenses primarily attributable to professional services associated with the pending acquisition of our Company by Boston Scientific Corporation, a $6.8 million increase in costs related to marketing events, and a $2.7 million increase in in travel-related expenses. 26 Table of Contents As we continue to invest in our growth, we have expanded and may continue to expand our sales, marketing, and general and administrative teams through the hiring of additional employees in critical roles that support our strategic initiatives. In addition, we have experienced in the past, and may continue to experience in the future, variability in expenses incurred due to the timing and costs of investments to support the business. Provision for income taxes Three Months Ended June 30, Change 2026 2025 $ % (in thousands, except for percentages) Provision for income taxes $ 11,376 $ 40 $ 11,336 28,340.0 % Effective tax rate 24.6 % 0.1 % Our income tax expense was $11.4 million or 24.6% of income before taxes for the three months ended June 30, 2026, compared to an immaterial amount or 0.1% of income before taxes for the three months ended June 30, 2025. The change in effective tax rate was primarily due to a decrease in excess tax benefits from stock-based compensation attributable to our U.S. jurisdiction in the current period. Prospectively, our effective tax rate will likely be driven by (1) permanent differences in taxable income for tax and financial reporting purposes, (2) tax expense or benefit attributable to our worldwide financial result, and (3) discrete tax adjustments such as excess tax benefits or deficiencies related to stock-based compensation. Our income tax provision is subject to volatility as the amount of excess tax benefits or deficiencies can fluctuate from period to period based on the price of our stock, the volume of share-based grants settled or vested, and the fair value assigned to equity awards under U.S. GAAP. In addition, changes in tax law or our interpretation thereof, and changes to our valuation allowance could result in fluctuations in our effective tax rate. 27 Table of Contents Six Months Ended June 30, 2026 Compared to the Six Months Ended June 30, 2025 Revenue Six Months Ended June 30, Change 2026 2025 $ % (in thousands, except for percentages) Thrombectomy $ 512,898 $ 456,800 $ 56,098 12.3 % Embolization and Access 251,906 206,795 45,111 21.8 % Total $ 764,804 $ 663,595 $ 101,209 15.3 % Revenue increased $101.2 million, or 15.3%, to $764.8 million in the six months ended June 30, 2026, from $663.6 million in the six months ended June 30, 2025. Overall revenue growth was primarily due to an increase in sales of our existing thrombectomy products and new and existing embolization and access products. Revenue from our global thrombectomy products increased $56.1 million, or 12.3%, to $512.9 million in the six months ended June 30, 2026, from $456.8 million in the six months ended June 30, 2025. The increase in our global thrombectomy products was primarily attributable to higher sales volume in the United States as a result of further market penetration of our existing products. Prices for our thrombectomy products remained substantially unchanged during the period. Revenue from our global embolization and access products increased $45.1 million, or 21.8%, to $251.9 million in the six months ended June 30, 2026, from $206.8 million in the six months ended June 30, 2025. The increase in our global embolization and access products was primarily attributable to higher sales volume in the United States as a result of sales of new products and further market penetration of our existing products. Prices for our embolization and access products remained substantially unchanged during the period. Revenue by Geographic Area The following table presents revenue by geographic area, based on our customer’s shipping destination, for the six months ended June 30, 2026 and 2025: Six Months Ended June 30, Change 2026 2025 $ % (in thousands, except for percentages) United States $ 601,832 78.7 % $ 517,678 78.0 % $ 84,154 16.3 % International 162,972 21.3 % 145,917 22.0 % 17,055 11.7 % Total $ 764,804 100.0 % $ 663,595 100.0 % $ 101,209 15.3 % Revenue from sales in international markets increased $17.1 million, or 11.7%, to $163.0 million in the six months ended June 30, 2026, from $145.9 million in the six months ended June 30, 2025. Revenue from international sales represented 21.3% and 22.0% of our total revenue for the six months ended June 30, 2026 and 2025, respectively. Gross Margin Six Months Ended June 30, Change 2026 2025 $ % (in thousands, except for percentages) Cost of revenue $ 246,449 $ 223,702 $ 22,747 10.2 % Gross profit $ 518,355 $ 439,893 $ 78,462 17.8 % Gross margin % 67.8 % 66.3 % Gross margin increased by 1.5 percentage points to 67.8% in the six months ended June 30, 2026, from 66.3% in the six months ended June 30, 2025, primarily driven by favorable product mix across our regions. Gross margin is impacted by product mix, regional mix, and production initiatives to support demand and create future efficiencies. As such, with favorable product mix, improvement in productivity, and by leveraging our fixed costs on higher volume of new product sales during the year, our gross margin may be positively impacted in the future. Research and Development (“R&D”) 28 Table of Contents Six Months Ended June 30, Change 2026 2025 $ % (in thousands, except for percentages) R&D $ 47,778 $ 45,295 $ 2,483 5.5 % R&D as a percentage of revenue 6.2 % 6.8 % R&D expenses increased by $2.5 million, or 5.5%, to $47.8 million in the six months ended June 30, 2026, from $45.3 million in the six months ended June 30, 2025. The increase was primarily due to a $3.0 million increase in personnel-related expenses driven by an increase in headcount and related expenses to support our growth, partially offset by a $0.5 million decrease in other research and development activities due to the timing of planned investments. We have continued to make investments, and plan to continue to make investments, in the development of our products. As part of our ongoing investment in the development of our products, we may incur additional expenses related to research and development milestones. In addition, we have 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. Sales, General and Administrative (SG&A) Six Months Ended June 30, Change 2026 2025 $ % (in thousands, except for percentages) SG&A $ 391,304 $ 313,420 $ 77,884 24.8 % SG&A as a percentage of revenue 51.2 % 47.3 % SG&A expenses increased by $77.9 million, or 24.8%, to $391.3 million in the six months ended June 30, 2026, from $313.4 million in the six months ended June 30, 2025. The increase was primarily due to a $28.9 million increase in personnel-related expenses driven by an increase in headcount and related expenses to support our growth, a $16.4 million increase in acquisition-related expenses primarily attributable to professional services associated with the pending acquisition of our Company by Boston Scientific Corporation, a $9.8 million increase in costs related to marketing events, and a $5.5 million increase in travel-related expenses. As we continue to invest in our growth, we have expanded and may continue to expand our sales, marketing, and general and administrative teams through the hiring of additional employees in critical roles that support our strategic initiatives. In addition, we have experienced in the past, and may continue to experience in the future, variability in expenses incurred due to the timing and costs of investments to support the business. Provision for income taxes Six Months Ended June 30, Change 2026 2025 $ % (in thousands, except for percentages) Provision for income taxes $ 20,480 $ 4,675 $ 15,805 338.1 % Effective tax rate 23.3 % 5.2 % Our income tax expense was $20.5 million or 23.3% of income before taxes for the six months ended June 30, 2026, compared to $4.7 million or 5.2% of income before taxes for the six months ended June 30, 2025. The change in effective tax rate was primarily due to a decrease in excess tax benefits from stock-based compensation attributable to our U.S. jurisdiction in the current period. Prospectively, our effective tax rate will likely be driven by (1) permanent differences in taxable income for tax and financial reporting purposes, (2) tax expense or benefit attributable to our worldwide financial result, and (3) discrete tax adjustments such as excess tax benefits or deficiencies related to stock-based compensation. Our income tax provision is subject to volatility as the amount of excess tax benefits or deficiencies can fluctuate from period to period based on the price of our stock, the volume of share-based grants settled or vested, and the fair value assigned to equity awards under U.S. GAAP. In addition, changes in tax law or our interpretation thereof, and changes to our valuation allowance could result in fluctuations in our effective tax rate. 29 Table of Contents Liquidity and Capital Resources As of June 30, 2026, we had $1,110.3 million in working capital, which included $205.3 million in cash and cash equivalents and $453.5 million in marketable investments. As of June 30, 2026, we held approximately 11.9% of our cash and cash equivalents in foreign entities. We believe our current sources of liquidity will be sufficient to meet our liquidity requirements for at least the next 12 months. Our principal liquidity requirements are to fund our operations, expand manufacturing operations which includes, but is not limited to, maintaining sufficient levels of inventory to meet the anticipated demand of our customers, fund research and development activities and fund our capital expenditures. We may also lease or purchase additional facilities to facilitate our growth. For example, during the year ended December 31, 2025, we entered into agreements to acquire property in Costa Rica and construct a manufacturing facility and warehouse for the production of medical devices. See Note “4. Balance Sheet Components” to the condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for more information. We expect to continue to make investments as we launch new products, expand our manufacturing operations and information technology infrastructures and further expand into international markets. We may, however, require or elect to secure additional financing as we continue to execute our business strategy. If we require or elect to raise additional funds, we may do so through equity or debt financing, which may not be available on favorable terms, could result in dilution to our stockholders, and could require us to agree to covenants that limit our operating flexibility. Share Repurchase Program On August 5, 2024, the Company’s Board of Directors approved a share repurchase authorization in the amount of up to $200.0 million, allowing the Company to repurchase its common stock from time to time at such prices as it deems appropriate through open market purchases, block transactions, privately negotiated transactions, including accelerated share repurchase transactions, or otherwise. The repurchase authorization originally expired on July 31, 2025. Under this authorization, the Company entered into an accelerated share repurchase agreement (“ASR”) with JPMorgan Chase Bank, National Association to repurchase $100.0 million of the Company’s 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 shares under the ASR at an aggregate cost of $100.4 million, including legal and financial advisor fees of $0.4 million 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 to December 31, 2025 and December 31, 2026, respectively. As of June 30, 2026, the Company had remaining authority to purchase $100.0 million of its common stock under the share repurchase authorization. The following table summarizes our cash and cash equivalents, marketable investments and selected working capital data as of June 30, 2026 and December 31, 2025: June 30, 2026 December 31, 2025 (in thousands) Cash and cash equivalents $ 205,271 $ 186,897 Marketable investments 453,524 357,919 Accounts receivable, net 190,407 190,021 Accounts payable 44,728 34,736 Accrued liabilities 172,270 132,163 Working capital(1) 1,110,346 1,033,551 (1)Working capital consists of total current assets less total current liabilities. 30 Table of Contents The following table sets forth, for the periods indicated, our beginning balance of cash and cash equivalents, net cash flows provided by (used in) operating, investing and financing activities and our ending balance of cash and cash equivalents: Six Months Ended June 30, 2026 2025 (in thousands) Cash and cash equivalents at beginning of period $ 186,897 $ 324,404 Net cash provided by operating activities 133,055 93,916 Net cash used in investing activities (121,724) (16,082) Net cash provided by financing activities 7,118 17,525 Effect of foreign exchange rate changes on cash and cash equivalents (75) 2,005 Cash and cash equivalents at end of period 205,271 421,768 Net Cash Provided By Operating Activities Net cash provided by operating activities consists primarily of net income adjusted for certain non-cash items (including depreciation and amortization, stock-based compensation expense, inventory write-offs and write-downs, and changes in deferred tax balances), and the effect of changes in working capital and other activities. Net cash provided by operating activities was $133.1 million during the six months ended June 30, 2026 and consisted of consolidated net income of $67.4 million, non-cash items of $38.5 million, and net changes in operating assets and liabilities of $27.2 million. The change in operating assets and liabilities primarily relates to an increase in accrued expenses and other non-current liabilities of $34.8 million and an increase in accounts payable of $10.4 million. This was partially offset by an increase in inventories of $14.3 million to support our growth, an increase in accounts receivables of $2.5 million, and an increase in prepaid expenses and other current and non-current assets of $1.1 million. Net cash provided by operating activities was $93.9 million during the six months ended June 30, 2025 and consisted of consolidated net income of $84.5 million and non-cash items of $33.7 million, offset by net changes in operating assets and liabilities of $24.3 million. The change in operating assets and liabilities primarily relates to an increase in inventories of $22.1 million to support our growth, an increase in accounts receivables of $4.2 million, and a decrease in accounts payable of $3.5 million. This was partially offset by an increase in accrued expenses and other non-current liabilities of $5.5 million. Net Cash Used In Investing Activities Net cash used in investing activities relates primarily to purchases of marketable investments, partially offset by proceeds from maturities and sales of marketable investments, and capital expenditures. Net cash used in investing activities was $121.7 million during the six months ended June 30, 2026 and primarily consisted of purchases of marketable investments, net of proceeds from maturities and sales of marketable investments, of $93.5 million and capital expenditures of $27.2 million including investments related to the construction of our Costa Rica manufacturing facility. Net cash used in investing activities was $16.1 million during the six months ended June 30, 2025 and primarily consisted of capital expenditures of $29.0 million, partially offset by $13.0 million in proceeds from maturities of marketable investments. Net Cash Provided By Financing Activities Net cash provided by financing activities primarily relates to proceeds from the issuance of common stock under our employee stock purchase plan and exercises of stock options, partially offset by payments of employee taxes related to vested restricted stock units and payments towards the reduction of our finance lease obligations. 31 Table of Contents Net cash provided by financing activities was $7.1 million during the six months ended June 30, 2026 and primarily consisted of $9.7 million in proceeds from the issuance of common stock under our employee stock purchase plan, partially offset by $1.3 million in payments of employee taxes related to vested restricted stock units and $1.2 million in payments towards finance leases. Net cash provided by financing activities was $17.5 million during the six months ended June 30, 2025 and primarily consisted of $10.7 million in proceeds from exercises of stock options and proceeds from the issuance of common stock under our employee stock purchase plan of $8.9 million, partially offset by $1.3 million in payments towards finance leases and $0.5 million of payments of employee taxes related to vested restricted stock units. Contractual Obligations and Commitments During the three months ended March 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. During the six months ended June 30, 2026, the estimated cost of the project increased by approximately $28 million, primarily attributable to scope and budget refinements associated with evolving design requirements. Refer to Note “4. Balance Sheet Components” to our condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for more information. During six months ended June 30, 2026, the Company entered into an Agreement and Plan of Merger among the Company, Boston Scientific Corporation, a Delaware corporation (“Parent”), and Pinehurst Merger Sub, Inc., a Delaware corporation and a wholly owned subsidiary of Parent (“Merger Sub”), pursuant to which Merger Sub will merge with and into the Company, with the Company surviving as a wholly owned subsidiary of Parent. Refer to Note “1. Organization and Description of Business” to our condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for more information. There have been no other material changes to our contractual obligations and commitments as of June 30, 2026 from those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025. Critical Accounting Policies and Estimates We have prepared our financial statements in accordance with U.S. GAAP. Our preparation of these financial statements requires us to make estimates, assumptions, and judgments that affect the reported amounts of assets, liabilities, expenses, and related disclosures at the date of the financial statements, as well as revenue and expenses recorded during the reporting periods. We evaluate our estimates and judgments on an ongoing basis. We base our estimates on historical experience and on various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results could therefore differ materially from these estimates under different assumptions or conditions. There have been no material changes to our critical accounting policies from those described in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our Annual Report on Form 10-K for the year ended December 31, 2025. Recently Issued Accounting Standards For information with respect to recently issued accounting standards and the impact of these standards on our consolidated financial statements, refer to Note “2. Summary of Significant Accounting Policies” to our condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q. 32 Table of Contents