Edap Tms S.A. (EDAP)
NASDAQ:EDAP
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EDAP TMS
(NASDAQ:EDAP)
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Rating:57Neutral
Price Target:
$4.50
▲(28.94% Upside)
Action:Reiterated
Date:05/10/26
The score is held back primarily by ongoing operating losses and persistent cash burn despite solid revenue growth and low leverage. Technicals are supportive with the stock trading above major moving averages, and the earnings call reinforced strong HIFU momentum and reiterated 2026 guidance, but elevated operating expenses and liquidity drawdown limit the overall rating.
Positive Factors
Robust HIFU Commercial Momentum
A 78% YoY increase in HIFU revenue and double-digit net placements indicate durable clinical adoption and expanding installed base. As more sites deploy systems and procedures rise, recurring consumables, service and software revenue should scale, underpinning sustainable organic growth.
Negative Factors
Sustained Cash Burn
Material negative operating and free cash flow signals persistent cash consumption from operations and growth investments. Continued cash burn raises the likelihood of additional financings within months, which can dilute shareholders or constrain reinvestment if not reversed by improved operating cash generation.
Read all positive and negative factors
Positive Factors
Negative Factors
Robust HIFU Commercial Momentum
A 78% YoY increase in HIFU revenue and double-digit net placements indicate durable clinical adoption and expanding installed base. As more sites deploy systems and procedures rise, recurring consumables, service and software revenue should scale, underpinning sustainable organic growth.
Read all positive factors
EDAP TMS (EDAP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$159.30M
Dividend YieldN/A
Average Volume (3M)36.57K
Price to Earnings (P/E)―
Beta (1Y)1.04
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees310
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.83
Shares Outstanding37,481,987
10 Day Avg. Volume28,395
30 Day Avg. Volume36,573
Financial Highlights & Ratios
PEG Ratio-0.08
Price to Book (P/B)6.35
Price to Sales (P/S)1.74
P/FCF Ratio-5.56
Enterprise Value/Market Cap0.92
Enterprise Value/Revenue2.04
Enterprise Value/Gross Profit4.69
Enterprise Value/Ebitda-6.27
Forecast
1Y Price Target
$10.00Price Target Upside186.53% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.89
Revenue Forecast (FY)$74.99M
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:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 26, 2026
Earnings Call Sentiment Positive
The call presented strong commercial and clinical momentum centered on Focal One Robotic HIFU: record total and HIFU revenue, large YoY increases in procedures and capital sales, improved gross margins, meaningful clinical validation (HIFI-2) and international expansion across multiple indications. Offsetting these positives are near-term financial pressures from higher operating expenses, a wider operating and net loss, cash drawdown and inventory build as the company invests to support growth. The firm mitigated liquidity concerns with an approx. $14M EIB tranche and reiterated 2026 guidance, signaling confidence in continued HIFU growth.Positive Updates
Record Quarterly Revenue
Total revenue of $17.8M in Q1 2026, up 25% year-over-year from $14.3M in Q1 2025, driven by strong HIFU performance.
Negative Updates
Decline in Noncore Businesses
Noncore distribution and ESWL revenue declined 20% year-over-year in Q1 2026 versus Q1 2025, partially offsetting HIFU growth.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Quarterly Revenue
Total revenue of $17.8M in Q1 2026, up 25% year-over-year from $14.3M in Q1 2025, driven by strong HIFU performance.
Read all positive updates
Company Guidance
EDAP reiterated full‑year 2026 guidance calling for core HIFU revenue of $50.0–$54.0 million (implying 34%–45% growth over 2025) and combined non‑core revenue of $22.0–$26.0 million. The company pointed to a strong Q1 that supports this outlook: total revenue $17.8M (+25% YoY vs. $14.3M), HIFU revenue $11.6M (+78% YoY vs. $6.5M) driven by 11 capital sales (10 net placements), a 30% increase in treatment‑driven revenue and U.S. procedure volumes up 53% YoY; gross profit was $8.1M (gross margin 45.7%, +370 bps YoY) with HIFU gross margin 51.4% (vs. 48.6%). Management also disclosed Q1 operating expenses of $15.5M, an operating loss of $7.4M, net loss $9.1M ($0.24/share), inventory of $13.3M (vs. $12.8M at Q4 end), cash $15.0M (vs. $20.5M at Q4 end) and a subsequent ~ $14M EIB tranche received April 20; tariff impact on Q1 was ~ $400k.EDAP TMS Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
55
Neutral
Cash Flow
24
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 72.00M | 70.75M | 64.11M | 60.42M | 55.11M | 44.07M |
| Gross Profit | 31.28M | 30.09M | 26.56M | 24.41M | 24.19M | 18.42M |
| EBITDA | -23.39M | -21.78M | -15.93M | -18.39M | -319.50K | 309.00K |
| Net Income | -30.02M | -29.34M | -19.02M | -21.18M | -2.93M | 700.00K |
Balance Sheet | ||||||
| Total Assets | 72.06M | 79.00M | 86.06M | 91.55M | 101.12M | 77.23M |
| Cash, Cash Equivalents and Short-Term Investments | 15.01M | 17.41M | 29.84M | 43.47M | 63.14M | 47.18M |
| Total Debt | 2.35M | 27.68M | 13.92M | 8.42M | 9.38M | 10.01M |
| Total Liabilities | 61.96M | 59.58M | 45.17M | 34.63M | 29.49M | 27.17M |
| Stockholders Equity | 10.10M | 19.41M | 40.90M | 56.92M | 71.63M | 50.05M |
Cash Flow | ||||||
| Free Cash Flow | -19.27M | -22.17M | -17.68M | -18.97M | -5.21M | 2.80M |
| Operating Cash Flow | -14.08M | -16.41M | -13.58M | -14.68M | -3.02M | 4.45M |
| Investing Cash Flow | -5.18M | -5.71M | -4.12M | -4.34M | -2.38M | -1.64M |
| Financing Cash Flow | 8.51M | 8.61M | 4.63M | -911.00K | 21.74M | 20.27M |
EDAP TMS Technical Analysis
Positive
3.49
Price Trends
3.69
Positive
3.91
Positive
3.06
Positive
Market Momentum
0.20
Negative
64.29
Neutral
78.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EDAP, the sentiment is Positive. The current price of 3.49 is below the 20-day moving average (MA) of 3.77, below the 50-day MA of 3.69, and above the 200-day MA of 3.06, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 64.29 is Neutral, neither overbought nor oversold. The STOCH value of 78.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EDAP.
EDAP TMS Risk Analysis
EDAP TMS disclosed 42 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 0 New Risks
EDAP TMS Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $118.62M | 17.44 | 4.34% | ― | 2.25% | -19.05% | |
62 Neutral | $158.70M | -18.45 | -90.62% | ― | 18.22% | 59.78% | |
57 Neutral | $159.30M | -3.82 | -148.90% | ― | ― | ― | |
56 Neutral | $65.24M | -6.31 | 3.68% | ― | -0.32% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
47 Neutral | $16.18M | -1.30 | -211.73% | ― | 8.92% | 17.49% | |
41 Neutral | $46.84M | 103.59 | -81.52% | ― | 54.38% | 7.25% |
* Healthcare Sector Average
EDAP
EDAP TMS
4.25
2.51
144.25%
APYX
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3.79
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156.08%
FONR
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18.89
5.19
37.88%
NSPR
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1.00
-1.23
-55.06%
XTNT
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0.47
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ICCM
Icecure Medical
0.24
-0.78
-76.73%
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...
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.