Profound Medical NASDAQ: PROF reported sharply higher first-quarter revenue and reiterated its view that adoption of its TULSA prostate treatment platform is moving toward broader commercial use, supported by new clinical data, payer progress and a growing installed base.
For the three months ended March 31, 2026, Chief Financial Officer Rashed Dewan said the company recorded revenue of approximately CAD 5.3 million, up 104% from CAD 2.6 million in the same period a year earlier. Recurring revenue accounted for CAD 2.5 million, while CAD 2.9 million came from one-time sales of capital equipment.
Gross margin was 72%, compared with 71% in the prior-year quarter. Dewan said the increase was primarily due to product mix, as capital equipment sales carry higher margins. Operating expenses fell 9% to CAD 11.8 million from CAD 13 million a year earlier. Profound posted a net loss of CAD 7 million, or CAD 0.19 per share, compared with a net loss of CAD 10.7 million, or CAD 0.36 per share, in the first quarter of 2025.
The company ended the quarter with CAD 50.3 million in cash. Dewan said Profound expects cash burn to decline as revenue grows and margins remain high, adding that the company continues to expect full-year 2026 gross margin of 70% or better.
Company Sets 2026 Revenue Outlook
Chief Executive Officer Dr. Arun Menawat said Profound is projecting total 2026 revenue of approximately CAD 25 million, representing 56% growth compared with 2025, with gross margin of at least 70%.
During the question-and-answer session, Menawat described the forecast as the company’s first “proper guidance” and said management remains bullish on the business. He said the figure should be viewed as a starting point that could be adjusted as the year progresses.
Profound also said its TULSA-PRO installed base reached 80 systems at the end of the first quarter. The company sold eight systems during the quarter, two of which were installed. Six additional systems were shipped but had not yet been installed, and the company said revenue is recognized when systems are shipped.
Management said there is no change to its previously discussed target of reaching approximately 120 installations by the end of 2026. The company also reiterated a longer-term profitability framework of 200 TULSA sites performing an average of at least 50 procedures per year.
CAPTAIN Trial Adds to TULSA Clinical Evidence
President Dr. Mathieu Burtnyk reviewed recent results from the CAPTAIN trial, a level 1 post-market study comparing the TULSA procedure with robotic radical prostatectomy in men with localized prostate cancer. He said the trial showed TULSA achieved its primary safety endpoint, with statistically higher preservation of a composite measure of urinary incontinence and erectile function at six months.
Burtnyk also said TULSA patients experienced superior perioperative outcomes, including no blood loss, no overnight hospital stay, less pain, faster recovery, statistically significantly fewer serious complications and a faster return to normal activities and paid employment.
He said TULSA is supported by more than 70 peer-reviewed publications and more than 200 scientific conference presentations, spanning whole gland treatment, partial gland treatment, large prostates, salvage settings, cancer and benign prostatic hyperplasia combinations, and BPH alone.
“TULSA is not a niche solution,” Burtnyk said, describing it as a platform that can be applied across multiple prostate disease settings.
Management Highlights Adoption Metrics
Menawat said commercial data show that about 91% of TULSA patient prostates are treated as whole gland procedures or ablations of more than 50% of the prostate. The remaining 9% are focal therapy cases. He said the data support management’s view that TULSA gives urologists flexibility to personalize treatment rather than select only patients suited to a narrower modality.
The company said it will begin publishing additional tables in quarterly releases to help investors track adoption. One table will detail the variety of patients treated with TULSA, while another, called the TULSA Index, will track same-store sales trends.
Menawat said the initial TULSA Index includes 20 sites that have used TULSA for at least one year and represent a mix of large hospitals, smaller hospitals and private practices. He said the company plans to show rolling five-quarter trends and may expand the index over time.
Chief Commercial Officer Tom Tamberrino said Profound’s commercial pipeline remains “north of triple digits” across verified, negotiation and contracting stages. He said pipeline accounts have attributes similar to those in the company’s initial 20-site index.
Reimbursement Progress Includes Humana Coverage
On reimbursement, Tamberrino discussed the company’s recent announcement that Humana has begun covering TULSA. He said the decision was driven not by one specific study but by the overall body of clinical evidence, including the company’s 70-plus publications.
Tamberrino said private insurer payment rates that Profound is seeing are generally about 1.5 to 2.5 times Medicare rates, depending on geographic adjustments. Menawat said management is pleased with that range and views Humana’s coverage as an important step because it is one of the top five payers.
Tamberrino also said Profound’s patient access team has been successful in case-by-case appeals with private insurers, winning approximately 80% of cases in which it is involved. He said that compares with an industry standard he understands to be roughly 50% to 60%.
Interventional MRI Seen as Growth Driver
Menawat also addressed the role of MRI systems in TULSA adoption. He said TULSA is compatible with an installed base of about 4,000 MRI systems in the United States, with more available globally, and that the number continues to grow.
He said MRI systems designed specifically for interventional procedures are becoming commercially available and are smaller, lighter, easier to use and less costly to acquire and maintain than traditional MRI systems. Menawat pointed to the Siemens Free Series as an example and said Cook Medical is partnering with Siemens to provide a turnkey interventional MRI solution to hospitals.
Profound expects, if all goes well, to receive FDA clearance by year-end for integration of TULSA with the new interventional MRI system. Menawat said the company believes that integration could meaningfully contribute to growth in 2027.
Burtnyk said TULSA is already named in NCCN guidelines under clinical trial or registry use, and he said the company expects continued publication of CAPTAIN data and broader evidence to support further guideline recognition over time.
About Profound Medical NASDAQ: PROF
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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