Procept Biorobotics Reports Strong Q2 Growth Amid Challenges

Procept Biorobotics Corp. ((PRCT)) has held its Q2 earnings call. Read on for the main highlights of the call.

Procept Biorobotics Corp. recently held its earnings call, revealing a generally positive sentiment. The company reported strong revenue growth, increased handpiece sales, improved gross margins, and favorable Medicare updates, all of which indicate positive operational momentum. Despite challenges such as the timing of system sales, increased operating expenses, continued net loss, and leadership transitions, the overall sentiment remains optimistic due to significant achievements and potential for future growth.

Strong Quarterly Revenue Growth

Procept Biorobotics Corp. reported total revenue of $79.2 million for the second quarter of 2025, marking a 48% increase compared to the same period in 2024. U.S. revenue grew by 46%, while international revenue surged by 69%, highlighting the company’s robust market expansion.

Increased Handpiece Sales

The company achieved a remarkable 58% growth in handpiece and other consumable revenue, totaling $43.1 million for the second quarter of 2025. This was driven by the sale of 12,750 handpieces, representing a 59% year-over-year unit growth, showcasing strong demand for their products.

Improved Gross Margins

Procept Biorobotics reported a gross margin of 65.4% for the second quarter of 2025, an increase of 640 basis points from the previous year. This improvement was attributed to enhanced operational efficiencies and higher average selling prices.

Favorable Tariff Developments

The company benefited from a reduction in Chinese tariff rates to approximately 55%, which is expected to reduce cost of goods sold headwinds in the latter half of 2025 to between $1 million and $2 million, down from the previously estimated $5 million.

Positive Medicare Updates

Aquablation therapy received a Category I CPT code effective January 1, 2026, with a proposed payment of 16.14 total RVUs. This milestone underscores the clinical value and growing adoption of Aquablation therapy, reinforcing its market potential.

System Sales Timing

The timing of system sales shifted slightly, with certain sales moving from June into the third quarter. This affected the quarterly cadence of revenue, highlighting the importance of timing in revenue recognition.

Operating Expenses Increase

Operating expenses rose to $74 million in the second quarter of 2025, a 29% increase from the prior year. This increase reflects the company’s investment in growth and expansion efforts.

Continued Net Loss

Procept Biorobotics reported a net loss of $19.6 million for the second quarter of 2025, an improvement from the $25.6 million loss in the same period of the previous year. Despite ongoing financial challenges, this indicates some progress in reducing losses.

CEO and CCO Transition

The company announced the retirement of CEO Reza Zadno and the departure of CCO Sham Shiblaq effective September 1. This leadership transition may pose challenges but also presents opportunities for new strategic directions.

Forward-Looking Guidance

Looking ahead, Procept Biorobotics expects full-year 2025 total revenue to reach approximately $325.5 million, representing a 45% growth compared to 2024. The company anticipates selling around 210 new robotic systems in the U.S. and approximately 53,000 handpieces, marking a 64% increase in unit volume. International revenue is projected to grow by 50%, reaching about $36 million. The company aims for a full-year gross margin of approximately 64.5% and expects operating expenses of around $302 million, with an adjusted EBITDA loss nearing breakeven in the fourth quarter.

In summary, Procept Biorobotics Corp.’s earnings call highlighted strong revenue growth and operational achievements, despite some challenges. The company’s positive outlook for future growth, driven by increased sales and favorable market conditions, reinforces its potential in the medical technology sector.