Profound Medical (NASDAQ:PROF) Announces Earnings Results

Key Points

• Profound Medical beat quarterly expectations: The company reported EPS of $0.26 versus the consensus estimate of a $0.22 loss. Q2 revenue rose 12% year over year to CAD 2.5 million, although about CAD 3.1 million of shipments were delayed into July.
• Management maintained its growth outlook: Profound reiterated its CAD 25 million 2026 revenue target, while its qualified sales pipeline reached approximately CAD 70 million. Reimbursement coverage is also expanding, including a proposed 2027 Medicare payment of CAD 15,494 per TULSA procedure.
• Execution remains a challenge despite clinical momentum: Five sites underperformed and sequential utilization fell 12%, while installations typically take 60–120 days to begin treating patients. The company ended Q2 with CAD 38.3 million in cash and reduced its net loss year over year.

Profound Medical (NASDAQ:PROF - Get Free Report) posted its quarterly earnings results on Thursday. The company reported $0.26 EPS for the quarter, beating the consensus estimate of ($0.22) by $0.48, Zacks reports. Profound Medical had a negative return on equity of 78.88% and a negative net margin of 206.76%.

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

• Full-year outlook maintained: Profound reported Q2 revenue of CAD 2.5 million, up 12% year over year, but said approximately CAD 3.1 million of shipments slipped into July. Excluding the timing issue, revenue would have been about CAD 5.6 million, and management reiterated its CAD 25 million 2026 revenue target, representing 56% growth.
• Commercial momentum and reimbursement are expanding: The qualified sales pipeline for TULSA-PRO and Sonalleve reached approximately CAD 70 million, with roughly 90% attributed to TULSA-PRO. Proposed 2027 Medicare reimbursement would pay hospitals CAD 15,494 per TULSA procedure, a growing premium over HIFU, Aquablation, and robotic prostatectomy, while other payer coverage expanded by approximately 18.3 million lives in Q2.
• Clinical evidence continues to support TULSA: Management highlighted CAPTAIN trial results showing statistically better quality-of-life outcomes than robotic prostatectomy, including preservation of urinary continence and erectile function, fewer serious complications, faster recovery, and no overnight stay. New data also indicated no median penile-length reduction after TULSA versus a 0.65-centimeter reduction after robotic surgery at one month.
• Execution and utilization remain uneven: The company experienced shipment-recognition delays because delivery receipts were not received before quarter-end, while five sites underperformed expectations and sequential utilization declined 12%. Profound said it is adding logistics and operating personnel, and that installations typically require 60–120 days after shipment to begin treating patients.
• Financial position and growth investments: Profound ended Q2 with CAD 38.3 million in cash and reduced its net loss to CAD 9.5 million from CAD 15.7 million a year earlier, while maintaining gross margin of at least 70%. Management expects operating expenses to rise as it expands its teams, but continues to target a path toward profitable growth.

Profound Medical Stock Down 0.6%

NASDAQ PROF traded down $0.05 during trading hours on Thursday, hitting $7.94. 87,851 shares of the stock were exchanged, compared to its average volume of 121,187. The stock has a 50-day moving average of $6.97 and a 200 day moving average of $6.80. The company has a market cap of $288.54 million, a price-to-earnings ratio of -6.40 and a beta of 0.73. Profound Medical has a 12-month low of $3.76 and a 12-month high of $8.95.

Analyst Upgrades and Downgrades

PROF has been the topic of a number of analyst reports. Weiss Ratings raised shares of Profound Medical from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Wednesday, July 29th. Raymond James Financial upgraded Profound Medical from an "outperform" rating to a "strong-buy" rating and set a $11.00 target price for the company in a report on Monday, July 27th. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $11.50.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Goldman Sachs Group Inc. raised its stake in shares of Profound Medical by 56.8% during the 4th quarter. Goldman Sachs Group Inc. now owns 18,727 shares of the company's stock worth $147,000 after buying an additional 6,787 shares during the last quarter. Corsair Capital Management L.P. purchased a new stake in Profound Medical in the 4th quarter worth approximately $208,000. Millennium Management LLC acquired a new position in Profound Medical in the 4th quarter valued at $211,000. Quadrature Capital Ltd acquired a new position in Profound Medical in the fourth quarter valued at $256,000. Finally, Hohimer Wealth Management LLC acquired a new position in shares of Profound Medical during the 4th quarter valued at about $394,000. 47.86% of the stock is currently owned by institutional investors and hedge funds.

Profound Medical Company Profile

Profound Medical Corp is a medical technology company headquartered in Toronto, Canada, that specializes in the development and commercialization of minimally invasive therapeutic solutions using magnetic resonance–guided ultrasound ablation. The company's proprietary platform delivers focused ultrasound energy to targeted tissue under real-time MR imaging, offering a non-incisional alternative to traditional surgical approaches.

The company's lead product, the TULSA-PRO system, is designed for the treatment of prostate conditions, including localized prostate cancer and benign prostatic hyperplasia.

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