PEN

Penumbra is a fast-growing maker of surgical and medical instruments (notably thrombectomy and vascular devices) that just crossed a major profitability inflection. FY2025 revenue grew 17.5% to $1.40B, but the operating leverage is the story: gross margin reached 67.1%, operating income surged to $189M (from a near-breakeven prior year) and net income jumped to $178M with diluted EPS of $4.52. Operating cash flow rose 41.7% to $239M, and the balance sheet is pristine — liabilities/equity of just 0.28x, equity up 24.0% to $1.43B and effectively no debt burden.

The multi-year picture explains both the excitement and the caution. Revenue has compounded from $748M (2021) to $1.40B while net income whipsawed from $5.28M to a small loss to $91M to $14M and now $178M — FY2025 is the first year the model has shown durable, scaled profitability. The 1,939% jump in operating income and 1,168% in net income are off a tiny prior-year base, so the percentages overstate the run-rate change even as the absolute margins (13.5% operating, 12.7% net) are now genuinely healthy.