Profound Medical Q2 Earnings Call Highlights

Profound Medical (NASDAQ:PROF) reported second-quarter 2026 revenue of CAD 2.5 million, up 12% from CAD 2.2 million a year earlier, as the company said the reported figure was affected by the timing of TULSA product shipments completed in July rather than June.

Corporate Controller Matthew Sobczyk said approximately CAD 3.1 million of shipments anticipated during the final weeks of June were completed in July, affecting revenue recognition for the quarter. Excluding the timing effect, second-quarter revenue would have totaled approximately CAD 5.6 million, representing 153% year-over-year growth, according to the company.

Profound recorded CAD 1.6 million in recurring revenue and CAD 871,000 in capital-equipment sales during the quarter. Gross margin increased to 78% from 73% in the year-earlier period. The company reported a net loss of CAD 9.5 million, or CAD 0.26 per share, compared with a net loss of about CAD 15.7 million, or CAD 0.52 per share, in the second quarter of 2025. Cash totaled CAD 38.3 million as of June 30.

Guidance Maintained Despite Shipment Timing

Chief Executive Officer and Chairman Arun Menawat said the company continues to expect approximately CAD 25 million in total revenue for full-year 2026, which would represent 56% growth from 2025. Profound also reiterated its expectation for full-year gross margin of at least 70%.

Menawat said the CAD 3.1 million shipment delay was a logistics and documentation issue involving a consolidated shipment from Canada, rather than an issue with demand. The company has increased logistics and operations staffing and is in the process of hiring an experienced vice president-level operations executive, he said.

During the question-and-answer session, Menawat said the delayed revenue “most likely will be recognized in Q3.” He also distinguished the revenue-recognition matter from the time required for shipped systems to become operating treatment sites. Following shipment, hospitals must install the equipment, complete training, schedule patients and establish reimbursement processes. That process generally takes 60 to 120 days, he said.

The company ended the second quarter with a TULSA-PRO install base of 84 systems. Menawat said Profound shipped six systems in the first quarter, four of which had been installed by the end of that period, while two remained in the installation process. He said the company shipped a similar number during the second quarter and expects the install base to increase again in the third quarter.

Pipeline and Utilization Trends

Chief Commercial Officer Tom Tamberrino said Profound’s qualified sales pipeline for TULSA-PRO and Sonalleve was approximately CAD 70 million. The pipeline includes opportunities in the company’s verify, negotiate and contracting stages. Tamberrino said the figure was roughly split 70% in the U.S. and 30% internationally, while TULSA-PRO represented approximately 90% of the pipeline and Sonalleve accounted for about 10%.

Profound moved away from reporting its pipeline primarily in units because management wants to focus on revenue, gross margin and the growth of treatment programs rather than system installations alone, Tamberrino said. He added that July set a monthly record for new orders, excluding the orders shifted from the second quarter.

The company’s Index 20 measure of same-store sequential quarterly growth declined 12% in the second quarter, which management attributed mainly to temporary issues at five sites. One site paused treatments while transitioning from a placement model to a capital-purchase model, but has since resumed operations. Tamberrino said the Index 20 rose 39% in the first half of 2026 compared with the same period of 2025 and increased 22% year over year in the second quarter.

At the Society of Robotic Surgery meeting, the company generated more than 160 qualified leads over four days, Tamberrino said. He cautioned that the timing and extent to which those leads become revenue cannot be predicted, though some have already progressed into negotiation and contracting stages.

Reimbursement and Clinical Updates

Tamberrino said CMS’ proposed 2027 hospital outpatient rule would keep TULSA at Urology APC Level 7 and raise the proposed payment 14.9% to $15,494 per procedure. Under the proposal, he said, the payment would exceed proposed amounts for HIFU and Aquablation of $10,797 and robotic radical prostatectomy of $12,300. The proposal remains subject to a final rule.

Coverage for TULSA expanded by approximately 18.3 million covered lives in the second quarter, mostly through state Medicaid, managed Medicaid and veterans programs, according to the company. This followed 8.5 million covered lives added in the first quarter, including 6.9 million associated with Humana. Menawat said the company was close to 30 million covered lives excluding Medicare. Profound also announced that Johns Hopkins and Prime Healthcare employee health plans, covering more than 105,000 employees, medical staff and family members, had listed TULSA as a covered service.

President Mathieu Burtnyk highlighted additional data from the CAPTAIN trial comparing whole-gland TULSA with robotic radical prostatectomy. He said TULSA showed statistically superior preservation of a composite endpoint involving urinary continence and erectile function at six months, as well as favorable perioperative outcomes including no blood loss, no overnight stay, less pain and faster recovery.

At the Society of Robotic Surgery meeting, Profound presented data showing no median change in penile length one month after TULSA, compared with a median 0.65-centimeter reduction following robotic prostatectomy. Burtnyk said the company is preparing the findings alongside broader perioperative outcome data. He also said Profound expects to release 12-month biopsy and MRI information from the TULSA arm of CAPTAIN in the fourth quarter.

Technology Development

Menawat said Profound expects, if development proceeds as planned, to receive FDA clearance for integration of TULSA with Siemens’ MAGNETOM Free.Max MRI system by early 2027. He said the company believes the integration could contribute meaningfully to growth in 2027.

The company is also exploring the integration of PSMA PET imaging into TULSA-PRO treatment-planning software through a collaboration announced by Telix Pharmaceuticals in May. Menawat said the effort is intended to help physicians define the extent of prostate ablation, from whole-gland to focal treatments.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

Where Should You Invest $1,000 Right Now?

Before you make your next trade, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.

Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.

They believe these five stocks are the five best companies for investors to buy now...

See The Five Stocks Here

Source MarketBeat