Profound Medical NASDAQ: PROF reported an 86% increase in third-quarter revenue and raised its full-year revenue outlook, as sales of its TULSA-PRO equipment helped drive growth ahead of a planned leadership transition.
The company recorded revenue of $9.8 million for the three months ended September 30, 2026, up from the year-earlier quarter. It now expects at least $25 million in revenue for 2026, compared with its previous outlook of approximately $25 million, and continues to project a full-year gross margin of 70% or higher.
Profound ended the quarter with 98 TULSA-PRO systems installed globally and reached its 5,000th TULSA procedure in October. Management said expanding system placements and helping customers increase procedure volumes are priorities for the next phase of growth.
Capital sales lead revenue growth
Third-quarter revenue included $5.7 million from capital equipment sales and $4.1 million in recurring non-capital revenue from single-use devices and extended-warranty services. Gross margin rose to 78% from 74% a year earlier, reflecting a favorable product mix and pricing discipline, Chief Financial Officer Matthew Sobczyk said.
Operating expenses increased 21% to $15.5 million, partly because of higher headcount, commissions, travel and consulting expenditures. Lower clinical trial costs following the completion of CAPTAIN trial enrollment partially offset those increases.
Profound’s net loss narrowed to approximately $7.7 million, or $0.21 per common share, from approximately $8 million, or $0.26 per share, a year earlier. Cash used in operating activities fell to $5 million from $11.3 million in the second quarter and $9.6 million in the prior-year period.
The company ended September with approximately $33.3 million in cash. Sobczyk said existing cash and revenue from product and service sales are expected to fund operating and capital expenditure requirements for at least the next 12 months. Profound has no immediate plans to raise capital, he said, but will evaluate both dilutive and non-dilutive financing opportunities.
Cook partnership targets new installations
Chief Commercial Officer Tom Tamberrino said Profound’s qualified pipeline for TULSA-PRO and Sonalleve totaled approximately $79.2 million at quarter end. The figure covers opportunities in the verify, negotiate or contracting stages, and the company cautioned that their conversion into revenue is not assured. Tamberrino said the pipeline is predominantly capital equipment, with some initial consumables included.
Under a recently signed supply and distribution agreement, Cook Medical will purchase TULSA-PRO systems at a predetermined transfer price. Customers purchasing through Cook will obtain disposables and service contracts directly from Profound. The company’s own sales team will continue to focus on systems for existing 1.5 Tesla and three Tesla MRI equipment, which fall outside the agreement.
Chief Executive Officer and Chairman Arun Menawat said Cook’s interventional MRI division will sell a combined MRI and TULSA offering, known as TULSA Plus. He expects the impact of the program to begin appearing in the second half of 2027, while noting that the companies are still developing their market-entry strategy.
Menawat said Profound continues to target gross margins in the 70% to 75% range overall with the distribution agreement. He also said the company had retired its TULSA 20 utilization index as the installed base expanded. Management plans to develop and share a new utilization metric, though it did not provide a reporting timetable.
Coverage, clinical data and leadership
Tamberrino said approximately 10.7 million covered lives were added through commercial and government payers during the third quarter, including approximately 1.8 million through commercial and Medicare Advantage programs. He estimated that 35 million to 40 million lives have been covered since Profound began its health economics and market access efforts.
Menawat said the company is targeting the release of one-year CAPTAIN trial data, including recurrence and side-effect findings, at the RSNA meeting in early December. Profound previously reported that the trial met its primary safety endpoint, showing statistically superior preservation of a composite measure of urinary continence and erectile function at six months compared with robotic radical prostatectomy.
President Richard Fabian will succeed Menawat as CEO on January 14, 2027. Menawat will become executive chair, while Sobczyk has been appointed permanent CFO. Jason Mills will join the board, succeeding Cynthia Lavoie.
Fabian said his priorities include converting sales opportunities into placements, helping customers increase utilization and improving operational efficiency. As Profound plans for 2027, it will assess further investment in customer support and program startup, he said.
About Profound Medical (NASDAQ:PROF)
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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