Profound Medical ((TSE:PRN)) has held its Q3 earnings call. Read on for the main highlights of the call.
TipRanks Black Friday Sale
- Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Profound Medical’s recent earnings call conveyed a generally positive sentiment, highlighting notable revenue growth and successful product launches. The company is experiencing increased adoption of its TULSA-PRO technology, although it continues to face challenges with operating losses and high expenses. Despite these hurdles, Profound Medical is making strides toward profitability, supported by a robust sales pipeline, though future financing remains a point of uncertainty.
Significant Revenue Growth
Profound Medical reported a remarkable 87% increase in revenue for Q3 2025, reaching $5.3 million compared to $2.8 million in Q3 2024. This growth was accompanied by an improvement in gross margins, which rose to 74.3% from 63.1% in the previous year.
TULSA-AI Volume Reduction Software Launch
The company is set to launch its TULSA-AI Volume Reduction software at the RSNA annual meeting. This product leverages AI to enhance workflows in BPH treatment, marking a significant step in Profound Medical’s product innovation.
Growing TULSA-PRO Adoption and Pipeline
The adoption of TULSA-PRO technology is on the rise, with the number of sites increasing to 70. Additionally, there are 93 new systems in various stages of the sales process, indicating a strong pipeline for future growth.
Commercial Success of TULSA-PRO
TULSA-PRO continues to gain traction, driven by positive clinical outcomes and strategic partnerships. This success is facilitating broader adoption across hospitals, contributing to the company’s growth.
Positive Reimbursement Developments
Reimbursement for TULSA-PRO procedures is improving, with Medicare and some commercial payers offering coverage. Commercial payments for these procedures range from $25,000 to $65,000 per patient, enhancing the financial viability of the technology.
Continued Operating Loss
Despite the positive revenue growth, Profound Medical recorded a net loss of $8 million in Q3 2025. However, this is an improvement from the $9.4 million loss reported in Q3 2024, indicating progress toward financial stability.
High Operating Expenses
Operating expenses increased to $12.8 million in Q3 2025, up from $10.8 million in the previous year. This rise was primarily due to investments in R&D and SG&A, reflecting the company’s commitment to growth and innovation.
Uncertainty in Future Financing
While Profound Medical has no immediate financing plans, the company intends to file an S-3 registration statement as a precautionary measure. This move suggests potential future financing needs, although the company aims to minimize shareholder dilution.
Forward-Looking Guidance
Profound Medical is optimistic about its path to profitable growth, expecting cash burn to decrease as revenues increase and margins remain high. The company reported $24.8 million in cash as of September 30, 2025, and plans to keep its financing options open to support future growth initiatives.
In conclusion, Profound Medical’s earnings call reflects a positive trajectory, with significant revenue growth and successful product developments. While challenges such as operating losses and high expenses persist, the company’s strategic initiatives and growing adoption of its technologies indicate a promising future. Investors should remain attentive to the company’s financing strategies and continued efforts toward achieving profitability.