Profound Medical (NASDAQ:PROF) Issues Earnings Results, Misses Expectations By $0.02 EPS

Key Points

• Profound Medical reported third-quarter revenue of $9.83 million, up 86% year over year and above analyst expectations, but its loss of $0.21 per share missed the $0.19-per-share consensus. Gross margin improved to 78%, and operating cash use declined.
• Management forecast at least $25 million in 2026 revenue and said available cash and sales should fund operations and capital needs for at least 12 months; it has no immediate fundraising plans.
• The TULSA-PRO installed base reached 98 systems, with a qualified pipeline of about $79.2 million. A Cook Medical distribution agreement is intended to expand sales, though management cautioned that pipeline conversion timing is uncertain.

Profound Medical (NASDAQ:PROF - Get Free Report) posted its quarterly earnings data on Thursday. The company reported ($0.21) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.19) by ($0.02), Zacks reports. The business had revenue of $9.83 million for the quarter, compared to analysts' expectations of $8.82 million. Profound Medical had a negative net margin of 171.57% and a negative return on equity of 63.03%.

Here are the key takeaways from Profound Medical's conference call:

• Third-quarter revenue rose 86% year over year to $9.8 million, and gross margin improved to 78% from 74%. Net loss narrowed slightly to $7.7 million, while operating cash use fell to $5.0 million; operating expenses nevertheless increased 21% to $15.5 million.
• Profound expects 2026 revenue of at least $25 million and gross margin of 70% or higher, and says cash on hand and sales should fund operations and capital needs for at least 12 months. The company has no immediate fundraising plans, but says it may evaluate financing options.
• The TULSA-PRO installed base reached 98 systems, and the company reported its 5,000th procedure in October; its qualified pipeline totaled about $79.2 million. Management cautioned that pipeline opportunities may not convert on a predictable timeline and said improving customer utilization remains a priority.
• A new Cook Medical distribution agreement is intended to broaden system sales, while Profound will continue selling disposables and service directly to customers. Management expects the TULSA Plus program to begin contributing in the second half of 2027 and forecasts overall gross margins of 70%–75% under the agreement.
• Richard Fabian will become CEO on January 14, 2027, with Arun Menawat moving to executive chair and continuing to support strategy. Fabian identified pipeline conversion, customer utilization, and operational efficiency as key execution priorities as the company scales.

Profound Medical Trading Up 4.8%

Profound Medical stock traded up $0.33 on Friday, reaching $7.21. 322,372 shares of the stock were exchanged, compared to its average volume of 358,158. The firm has a fifty day moving average price of $6.24 and a two-hundred day moving average price of $6.66. Profound Medical has a twelve month low of $4.80 and a twelve month high of $8.95. The stock has a market cap of $263.60 million, a PE ratio of -7.75 and a beta of 0.79.

More Profound Medical News

Here are the key news stories impacting Profound Medical this week:

• Positive Sentiment: Profound Medical forecast at least $25 million in 2026 revenue and expects its Cook Medical distribution channel to ramp up in 2027. The outlook and expanded U.S. distribution could support future growth. Article: Profound Medical projects at least $25M 2026 revenue as Cook Medical channel ramps in 2027
• Positive Sentiment: Third-quarter revenue was $9.83 million, above the $8.82 million analyst consensus. The quarterly loss narrowed to $0.21 per share from $0.26 a year earlier. Article: Profound Medical Reports Strong Third Quarter 2026 Results
• Negative Sentiment: The quarterly loss of $0.21 per share was slightly larger than the $0.19 loss analysts expected, and the company remains unprofitable. This could temper the positive reaction to the revenue beat and growth outlook. Article: Profound Medical Reports Q3 Loss, Beats Revenue Estimates

Wall Street Analysts Forecast Growth

PROF has been the subject of several recent research reports. Wall Street Zen raised Profound Medical from a "sell" rating to a "hold" rating in a research note on Saturday, October 10th. Weiss Ratings downgraded shares of Profound Medical from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Friday, October 23rd. Finally, Raymond James Financial raised Profound Medical from an "outperform" rating to a "strong-buy" rating and set a $11.00 price objective for the company in a research note on Monday, July 27th. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $11.50.

Profound Medical Company Profile

Profound Medical Corp. is a medical-technology company focused on developing and commercializing minimally invasive, incision-free treatments for prostate disease. The company's flagship platform, TULSA-PRO, combines magnetic resonance imaging (MRI) with robotic-controlled transurethral ultrasound to ablate targeted prostate tissue while enabling physicians to monitor treatment in real time.

TULSA-PRO is primarily used for the treatment of localized prostate cancer and other prostate conditions, including benign prostatic hyperplasia.

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