Profound Medical (NASDAQ:PROF) Issues Quarterly Earnings Results, Beats Expectations By $0.05 EPS

Key Points

• Profound Medical beat quarterly expectations, reporting EPS of -$0.19 versus the -$0.24 consensus estimate and revenue of $5.34 million, ahead of forecasts of $4.85 million.
• The company said Q1 revenue rose 104% year over year to CAD 5.3 million, with gross margin at 72% and a narrower net loss, while it reiterated a path toward profitable growth.
• Commercial and clinical progress included strong CAPTAIN trial results for TULSA, an 80-system install base, and improving reimbursement coverage, though management noted execution risks and a conservative outlook tied to installation timing and MRI availability.

Profound Medical (NASDAQ:PROF - Get Free Report) posted its quarterly earnings data on Thursday. The company reported ($0.19) EPS for the quarter, beating the consensus estimate of ($0.24) by $0.05, Zacks reports. The business had revenue of $5.34 million for the quarter, compared to analysts' expectations of $4.85 million. Profound Medical had a negative net margin of 206.76% and a negative return on equity of 84.67%.

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

• Q1 financials and outlook: Revenue was CAD 5.3M (up 104% YoY) with a 72% gross margin, operating expenses down 9%, net loss narrowed to CAD 7M, cash of CAD 50.3M, and management guiding to ~CAD 25M revenue and 70%+ gross margin for 2026 while reiterating a path to profitable growth.
• Strong clinical validation from CAPTAIN: The level‑1 CAPTAIN trial showed TULSA delivered statistically superior quality‑of‑life and safety versus robotic prostatectomy (better urinary/erectile function preservation at 6 months) and complements a >70‑paper evidence base demonstrating broad, durable efficacy.
• Commercial traction and reimbursement progress: Install base was 80 systems at quarter end (8 systems sold, 6 shipped but not yet installed), a triple‑digit sales pipeline, new TULSA Index and patient‑mix reporting (91% whole or >50% ablations), plus Humana coverage and private‑payer reimbursements generally ~1.5–2.5x Medicare with ~80% success on appeals.
• Milestones and execution risks remain: Management expects FDA clearance for integration with new interventional MRI by year‑end and targets 200 sites at 50 cases/year for profitability, but growth depends on MR availability, radiology/urology coordination, and the lag between system shipments and installations, so near‑term guidance is deliberately conservative.

Profound Medical Stock Down 4.3%

NASDAQ:PROF traded down $0.31 on Friday, hitting $6.85. 189,347 shares of the company's stock were exchanged, compared to its average volume of 94,559. The firm has a 50-day moving average price of $6.40 and a 200-day moving average price of $6.76. The company has a debt-to-equity ratio of 0.07, a current ratio of 12.52 and a quick ratio of 11.17. Profound Medical has a 52 week low of $3.76 and a 52 week high of $8.95. The company has a market cap of $248.93 million, a P/E ratio of -5.52 and a beta of 0.73.

Institutional Investors Weigh In On Profound Medical

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Goldman Sachs Group Inc. lifted its position in 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 in the last quarter. Corsair Capital Management L.P. bought a new stake in Profound Medical during the 4th quarter worth about $208,000. Millennium Management LLC bought a new stake in shares of Profound Medical in the 4th quarter valued at about $211,000. Quadrature Capital Ltd bought a new stake in shares of Profound Medical in the 4th quarter valued at about $256,000. Finally, Hohimer Wealth Management LLC bought a new stake in shares of Profound Medical in the 4th quarter valued at about $394,000. 47.86% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

Separately, Weiss Ratings cut shares of Profound Medical from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Thursday. One investment analyst has rated the stock with a Buy rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Profound Medical currently has an average rating of "Hold" and a consensus price target of $12.00.

About Profound Medical

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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