Edap Tms S.A. (EDAP)
NASDAQ:EDAP
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EDAP TMS
(NASDAQ:EDAP)
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Rating:50Neutral
Price Target:
$3.50
▲(3.86% Upside)
Action:ReiteratedDate:04/03/26
The score is held back primarily by weak financial performance—deepening losses, persistent negative free cash flow, and declining equity—despite low leverage. This is partially offset by constructive earnings-call signals, including reiterated 2026 HIFU growth guidance and strong core commercial momentum, while technicals remain soft with negative MACD and the stock below key short-term moving averages.
Positive Factors
HIFU Revenue Growth & Placements
Sustained double-digit HIFU revenue growth and record system placements demonstrate durable product-market fit for Focal One. Capital sales expand the recurring consumables/service base, creating scalable high-margin revenue as installed units and procedure volumes rise globally, supporting multi-quarter to multi-year growth.
Negative Factors
Persistent Negative Cash Flow
Multi-year negative OCF/FCF signals the business consumes cash to grow and operate, raising reliance on external financing. Continued cash burn can constrain investments, force dilutive financing or limit marketing/clinical programs, undermining long-term strategy unless core HIFU margins convert to sustainable positive cash generation.
Read all positive and negative factors
Positive Factors
Negative Factors
HIFU Revenue Growth & Placements
Sustained double-digit HIFU revenue growth and record system placements demonstrate durable product-market fit for Focal One. Capital sales expand the recurring consumables/service base, creating scalable high-margin revenue as installed units and procedure volumes rise globally, supporting multi-quarter to multi-year growth.
Read all positive factors
EDAP TMS (EDAP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$126.31M
Dividend YieldN/A
Average Volume (3M)43.63K
Price to Earnings (P/E)―
Beta (1Y)0.98
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees310
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.26
Shares Outstanding37,481,987
10 Day Avg. Volume39,524
30 Day Avg. Volume43,630
Financial Highlights & Ratios
PEG Ratio-0.08
Price to Book (P/B)6.35
Price to Sales (P/S)1.74
P/FCF Ratio-6.55
Enterprise Value/Market Cap0.94
Enterprise Value/Revenue1.82
Enterprise Value/Gross Profit3.94
Enterprise Value/Ebitda-5.45
Forecast
1Y Price Target
$6.25Price Target Upside85.46% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.65
Revenue Forecast (FY)$65.45M
EDAP TMS Business Overview & Revenue Model
Company Description
EDAP TMS S.A., together with its subsidiaries, develops, produces, markets, distributes, and maintains a portfolio of minimally invasive medical devices for the treatment of urological diseases in Asia, France, the United States, and international...
How the Company Makes Money
EDAP makes money by selling capital equipment (medical devices) and generating recurring revenue tied to the installed base. A primary revenue stream is the sale of its HIFU systems (e.g., urology therapeutic ultrasound platforms) to healthcare pr...
EDAP TMS Earnings Call Summary
Earnings Call Date:Mar 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 20, 2026
Earnings Call Sentiment Positive
The call highlights a strong and accelerating commercial performance in the core Focal One HIFU business—record placements, double-digit procedure growth, expanded academic penetration, regulatory clearance, favorable reimbursement, clear international expansion and confident 2026 guidance. These positive operational and market developments are tempered by company-level challenges: total revenue declined modestly due to legacy noncore segment contraction, gross margin compression from tariffs and inventory reserves, increased operating and net losses driven by noncash charges, interest and currency effects, and ongoing seasonality/lumpiness of capital sales. Overall, the momentum in the high-margin HIFU franchise and reiterated growth guidance outweigh the near-term financial headwinds, supporting a constructive outlook as the company transitions toward being evaluated more on HIFU metrics.Positive Updates
Strong Core HIFU Revenue Growth
Full-year HIFU revenue of EUR 33.1M in 2025, up 39% versus EUR 23.8M in 2024; Q4 HIFU revenue EUR 11.7M, up 34% year-over-year.
Negative Updates
Total Revenue Decline
Total revenue for full-year 2025 was EUR 62.4M, down 3% versus EUR 64.1M in 2024, as growth in HIFU was more than offset by declines in legacy segments.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Core HIFU Revenue Growth
Full-year HIFU revenue of EUR 33.1M in 2025, up 39% versus EUR 23.8M in 2024; Q4 HIFU revenue EUR 11.7M, up 34% year-over-year.
Read all positive updates
Company Guidance
EDAP reiterated 2026 guidance for core HIFU revenue of $50–$54 million (implying 34%–45% growth vs. 2025) and combined noncore revenue of $22–$26 million, noting seasonality with slightly under 50% of revenue expected in H1, Q4 as the strongest quarter and Q3 the weakest; management budgeted roughly $2.5 million for Section 232 tariffs in 2026. For context, full‑year 2025 HIFU revenue was €33.1 million (+39% YoY) on a 59% increase in Focal One units sold (35 systems sold in 2025; installed base 165 units), total 2025 revenue was €62.4 million (‑3% YoY), Q4 HIFU was €11.7 million (+34% YoY) with U.S. procedure volumes +28% YoY, treatment‑driven revenue +19% for the year (+22% in Q4), Q4 gross margin 42.6% (vs. 44.8% prior; normalized cited ~46.9%), Q4 operating loss €5.2 million, Q4 net loss €8.2 million (€0.22/share), cash €17.4 million and inventory €10.9 million at quarter end.EDAP TMS Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
52
Neutral
Cash Flow
22
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 70.75M | 64.11M | 60.42M | 55.11M | 44.07M |
| Gross Profit | 30.09M | 26.56M | 24.41M | 24.19M | 18.42M |
| EBITDA | -21.78M | -15.93M | -18.39M | -319.50K | 309.00K |
| Net Income | -29.34M | -19.02M | -21.18M | -2.93M | 700.00K |
Balance Sheet | |||||
| Total Assets | 79.00M | 86.06M | 91.55M | 101.12M | 77.23M |
| Cash, Cash Equivalents and Short-Term Investments | 17.41M | 29.84M | 43.47M | 63.14M | 47.18M |
| Total Debt | 27.68M | 13.92M | 8.42M | 9.38M | 10.01M |
| Total Liabilities | 59.58M | 45.17M | 34.63M | 29.49M | 27.17M |
| Stockholders Equity | 19.41M | 40.90M | 56.92M | 71.63M | 50.05M |
Cash Flow | |||||
| Free Cash Flow | -18.81M | -17.68M | -18.97M | -5.21M | 2.80M |
| Operating Cash Flow | -13.95M | -13.58M | -14.68M | -3.02M | 4.45M |
| Investing Cash Flow | -4.86M | -4.12M | -4.34M | -2.38M | -1.64M |
| Financing Cash Flow | 7.32M | 4.63M | -911.00K | 21.74M | 20.27M |
EDAP TMS Technical Analysis
Negative
3.37
Price Trends
4.15
Negative
3.56
Negative
2.74
Positive
Market Momentum
-0.20
Positive
35.81
Neutral
31.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EDAP, the sentiment is Negative. The current price of 3.37 is below the 20-day moving average (MA) of 3.74, below the 50-day MA of 4.15, and above the 200-day MA of 2.74, indicating a neutral trend. The MACD of -0.20 indicates Positive momentum. The RSI at 35.81 is Neutral, neither overbought nor oversold. The STOCH value of 31.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EDAP.
EDAP TMS Risk Analysis
EDAP TMS disclosed 37 risk factors in its most recent earnings report. EDAP TMS reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
Our by-laws and French corporate law contain provisions that may delay or discourage a takeover attempt. Q4, 2023
2.
The rights of shareholders in companies subject to French corporate law differ in material respects from the rights of shareholders of corporations incorporated in the United States. Q4, 2023
3.
If securities or industry analysts do not publish research, or publish inaccurate or unfavorable research, about our business, our ADS price and trading volume could decline. Q4, 2023
EDAP TMS Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $116.92M | 14.16 | 4.34% | ― | 3.36% | -21.15% | |
61 Neutral | $65.86M | 22.00 | 10.27% | ― | 16.88% | ― | |
52 Neutral | $159.37M | -13.16 | -117.54% | ― | -1.32% | 55.62% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $126.31M | -4.20 | -114.91% | ― | ― | ― | |
49 Neutral | $64.12M | -2.68 | -116.22% | ― | 14.04% | -0.65% | |
46 Neutral | $23.19M | -2.58 | -221.04% | ― | -18.96% | 8.98% |
* Healthcare Sector Average
EDAP
EDAP TMS
3.37
1.85
121.71%
APYX
Apyx Medical
3.81
2.91
323.33%
FONR
Fonar
18.62
6.06
48.25%
NSPR
InspireMD
1.37
-1.23
-47.31%
XTNT
Xtant Medical Holdings
0.47
0.07
17.79%
ICCM
Icecure Medical
0.34
-0.78
-69.91%
EDAP TMS Corporate Events
Private Placements and Financing
EDAP TMS Draws EIB Tranche, Issues New Warrants
Positive
Apr 2, 2026
EDAP TMS S.A. has drawn a €12.0 million second tranche under its previously announced €36.0 million credit facility with the European Investment Bank, after satisfying the required conditions, with the funds requested on April 1, 2026 ...
Business Operations and StrategyProduct-Related Announcements
EDAP TMS Showcases Focal One HIFU at Oppenheimer Conference
Positive
Mar 18, 2026
On March 18, 2026, EDAP TMS will present at the Oppenheimer 36th Annual Healthcare MedTech Services Conference, highlighting its Focal One robotic HIFU technology as a best-in-class, image-guided focal therapy for prostate cancer within a roughly...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
EDAP TMS Appoints David Horn to Board, Committees
Positive
Feb 12, 2026
On February 10, 2026, EDAP TMS director Glen French resigned from the Board of Directors and its audit, compensation and nominations committees, with the company stating his departure did not stem from any dispute with management or the board. The...
Business Operations and StrategyFinancial Disclosures
EDAP TMS Announces Record 2025 HIFU Revenue, 2026 Outlook
Positive
Jan 12, 2026
On January 12, 2026, EDAP TMS reported select preliminary unaudited results indicating record high-intensity focused ultrasound (HIFU) revenue for both the fourth quarter and full year 2025, driven by strong global demand for its Focal One systems...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.