Profound Medical ((TSE:PRN)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Profound Medical’s recent earnings call presented a mixed sentiment, highlighting both positive developments and financial challenges. While the company celebrated improved gross margins, the completion of the CAPTAIN trial, and the introduction of the TULSA-AI software, it also faced stagnant revenue, increased operating expenses, and sales delays. Despite these challenges, Profound Medical remains optimistic about future growth, particularly with its sales pipeline and new software introduction.
Gross Margin Improvement
Profound Medical reported a significant improvement in gross margins, with Q2 2025 margins at 73%, up from 64% in Q2 2024. This improvement indicates enhanced profitability and operational efficiency, providing a positive outlook for the company’s financial health.
Completion of CAPTAIN Trial
The company announced the successful completion of the CAPTAIN trial, with all patient treatments finalized. This milestone is crucial for securing professional society treatment guidelines and positive reimbursement coverage, which could enhance the company’s market position.
Introduction of TULSA-AI Volume Reduction Software
Profound Medical successfully piloted its new TULSA-AI volume reduction software. This innovation allows for faster procedures in BPH treatments, improving efficiency and potentially increasing the adoption of TULSA technology.
Increased TULSA-PRO Pipeline
The TULSA-PRO sales pipeline is robust, with 500 prospects and 80 in advanced stages. This strong pipeline supports expectations for improved performance in the latter half of the year, indicating potential revenue growth.
Revenue Shortfall
Despite the positive developments, Profound Medical faced a revenue shortfall in Q2 2025, with revenue remaining essentially unchanged from the previous year. The company recorded a net loss of $15.7 million, a significant increase from the $6.9 million loss in Q2 2024.
Increased Operating Expenses
Operating expenses rose to $15.4 million in Q2 2025, up from $9.3 million in Q2 2024. This increase contributed to the higher net loss, posing a challenge for the company’s financial management.
Delays in TULSA-PRO Capital Sales
Short-term delays in completing TULSA-PRO capital sales were identified as a key reason for the lower-than-expected Q2 revenues. Addressing these delays is crucial for meeting future revenue targets.
Forward-Looking Guidance
Despite the current revenue shortfall, Profound Medical remains confident in achieving 70% to 75% revenue growth in 2025 compared to 2024. The company plans to expand its installed base in the U.S., aiming to increase active TULSA sites from 60 to at least 75 by year-end. This growth strategy, coupled with a strong sales pipeline, underpins the company’s optimistic outlook.
In conclusion, Profound Medical’s earnings call reflected a balanced sentiment, with notable achievements in technology and trials offset by financial challenges. The company’s forward-looking guidance suggests optimism for substantial growth, driven by its strategic initiatives and robust sales pipeline.