Profound Medical Announces Second Quarter 2025 Financial Results

Executive Summary

• Profound Medical reported unaudited financial results for the second quarter ended June 30, 2025, showing revenue essentially unchanged year-over-year at approximately $2.2 million, driven by a mix of recurring non-capital revenue ($1.6 million) and capital equipment sales ($650,000).
• The company reported a net loss of approximately $15.7 million ($0.52 per share), an increase from $6.9 million ($0.28 per share) in the prior year period, primarily due to increased operating expenses related to headcount, sales force expansion, and trial enrollment.
• Gross margin improved significantly to 73% from 64% in the prior year period, attributed to higher manufacturing efficiency, while the company highlighted strong growth in TULSA-PRO® procedure volumes and a growing sales pipeline.

Key Details

• Revenue: Total revenue was approximately $2.2 million for Q2 2025.
  • Recurring non-capital revenue: $1.6 million (includes consumables, equipment leases, and extended warranties).
  • Capital equipment revenue: $650,000.
  • Year-over-year comparison: Revenue was essentially unchanged from the same period in 2024.
• Profitability Metrics:
  • Gross Margin: 73% (up from 64% in Q2 2024).
  • Operating Expenses: Approximately $15.4 million (up from $9.3 million in Q2 2024).
    • Drivers of increase: Increased headcount, CAPTAIN trial enrollment, treatments/recruitment, increased sales force/commissions, and travel/infrastructure costs.
  • Net Loss: Approximately $15.7 million ($0.52 per common share), compared to a net loss of $6.9 million ($0.28 per common share) in Q2 2024.
• Operational Highlights:
  • TULSA-PRO® utilization: "Same store" procedure volumes increased 10% sequentially from Q1 2025.
  • Sales Pipeline: 80 new systems classified in "Verify, Negotiate and Contracting" stages.
  • Patient Demographics (Q2 2025):
    • Disease Type: 79% prostate cancer only, 17% hybrid (cancer + BPH), 3% salvage, 1% BPH only.
    • Cancer Grade: 4% GG1, 53% GG2, 28% GG3, 15% GG4 & GG5.
    • Treatment Intention: 48% whole gland, 26% sub-total, 26% hemi-ablations/focal.
    • Prostate Size: 6% <20cc, 41% 20-40cc, 28% 40-60cc, 23% 60-100cc, 2% >100cc.
• Product & Strategic Updates:
  • TULSA-AI® Volume Reduction Module: Successfully conducted first commercial BPH treatment in June 2025; soft-launched at five sites for data collection; full launch expected in Q4 2025.
  • Siemens Partnership: On track to initiate sales of the combined TULSA-PRO® and Siemens Magnetom Free.Max MR scanner solution before the end of 2025.
  • CAPTAIN Trial Data: Presented initial perioperative data at AUA 2025 showing MRI-guided TULSA provided statistically significant improvement in post-operative experience vs. robotic radical prostatectomy (no blood loss, no overnight stay, reduced pain, rapid recovery).
  • Global Ambassador: Named Leonard Wheeler as Global Ambassador for TULSA-PRO® in June 2025.
• Financial Position:
  • Cash: Approximately $35.2 million as of June 30, 2025.
  • Shares Outstanding: 30,053,142 common shares as of August 14, 2025.
• Guidance: CEO Arun Menawat stated that had capital sales not been delayed, Q2 revenue would have exceeded $3 million. The company continues to target total year-over-year revenue growth of 70% to 75% for 2025.

Notable Quotes

• “The second quarter was characterized by some unfortunate timing, as we experienced what we believe are short-term delays in completing a few TULSA-PRO® capital sales,” said Arun Menawat, Profound’s CEO and Chairman. “Had these occurred in the quarter, total revenues would have been over $3 million. With this, combined with our large and growing TULSA-PRO® system capital sales pipeline, and the strong TULSA procedure volume growth we are seeing, we continue to work towards achieving total year-over-year revenue growth at an approximate range of 70% to 75% in 2025.”