Profound Medical Reports Strong Third Quarter 2025 Financial Results

Executive Summary

• Profound Medical reported Q3 2025 unaudited results with record revenue of $5.3 M, an 87% YoY increase.
• Gross margin expanded to 74.3% (up 1,119 bps YoY) and net loss narrowed to $8.0 M ($0.26 per share), a 15% improvement versus Q3 2024.
• The company announced several strategic distribution agreements (Canada, Saudi Arabia, Australia/New Zealand) and the launch of a new TULSA‑PRO program in Texas, underscoring accelerating commercial adoption.

Key Details

• Revenue: $5.3 M total; $4.1 M recurring non‑capital (consumables, leases, warranties), $1.2 M one‑time capital equipment sales.
• YoY Revenue Growth: +87% vs. $2.8 M in Q3 2024.
• Gross Margin: 74.3% (up from 63.1% YoY); margin expansion of 1,119 bps driven by higher manufacturing efficiency.
• Operating Expenses: $12.8 M (↑ $2.0 M YoY) – primarily due to headcount increase, expanded sales force, commissions, travel and infrastructure costs.
• Net Loss: $8.0 M, or $0.26 per share (improved 15% from $9.4 M loss, $0.38 per share in Q3 2024).
• Cash Position: $24.8 M as of Sept 30 2025.
• Installed Base: 70 TULSA‑PRO systems; target ≥75 installations by year‑end.
• Qualified Sales Pipeline: 93 new systems in “Verify, Negotiate and Contracting” stages.

Clinical/Commercial Highlights

• Procedure Mix (Q3 2025): 79% prostate cancer only, 14% hybrid (cancer + BPH), 4.5% salvage, 2.5% BPH only.
• Cancer Grade Distribution: GG1 10%, GG2 53%, GG3 28%, GG4/5 9%.
• Treatment Types (Intention‑to‑Treat): Whole gland 45%, subtotal 22%, hemi‑ablations 26%, focal 7%.
• Prostate Size Treated: <20 cc 11%, 20‑40 cc 39%, 40‑60 cc 29%, 60‑100 cc 18%, >100 cc 3%.

Strategic Partnerships & Distribution Agreements

• Texas Prostate & Dallas Medical Center: Launched first “TULSA‑PROgram” to deliver procedures in a private‑pay/hospital hybrid model.
• Busch Center Real‑World Data: Reached 500 completed TULSA Procedures, demonstrating broad disease‑spectrum efficacy.
• Canada: Regained exclusive distribution rights for TULSA‑PRO.
• Saudi Arabia: Exclusive distribution and supply agreement with Al Faisaliah Medical Systems Co. (FMS).
• Australia & New Zealand: Strategic distribution agreement with Getz Healthcare.

Guidance / Outlook

• Management expects installed base to reach at least 75 systems by year‑end, supporting continued revenue acceleration into Q4 2025.

Notable Quotes

“As demonstrated by our strong revenue and TULSA Procedure volume growth… we were not only able to successfully navigate through an unusually challenging second quarter, but also delivered record results in Q3‑2025.” – Arun Menawat, CEO & Chairman

All figures are unaudited and presented in U.S. dollars.