EDAP TMS (EDAP) AI Stock Analysis

• Market Cap: $97.59M
• Dividend Yield: N/A
• Average Volume (3M): 141.30K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.93
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 310
• Sector: Healthcare
• Sector Strength: 51
• Industry: Medical - Devices
• EPS (TTM): -0.18
• Shares Outstanding: 37,392,086
• 10 Day Avg. Volume: 257,752
• 30 Day Avg. Volume: 141,297
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.60
• Enterprise Value/Revenue: 0.91
• Enterprise Value/Gross Profit: 2.20
• Enterprise Value/Ebitda: -3.33
• 1Y Price Target: $8.25
• Price Target Upside: 236.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 58 Neutral
• Price Target: $2.50 ▲(2.04% Upside)

EDAP's overall stock score is driven by strong growth prospects in its core HIFU business and positive technical indicators. However, financial performance challenges, particularly in profitability and cash flow, along with valuation concerns, weigh down the score. Strategic investments and positive earnings call sentiment provide a counterbalance, suggesting potential for future improvement.

Positive Factors

Revenue Growth

The significant increase in HIFU revenues indicates strong market adoption and potential for sustained growth, enhancing EDAP's market position in the medical devices sector.

Positive Reimbursement Developments

Improved reimbursement rates enhance the financial attractiveness of EDAP's offerings, likely boosting demand and supporting long-term revenue growth.

Strategic Financing

Securing a significant financing facility provides EDAP with the capital needed for expansion and innovation, supporting long-term growth and competitive positioning.

Negative Factors

Profitability Challenges

Rising operating losses highlight ongoing profitability challenges, which could strain financial resources and hinder future investment in growth initiatives.

Cash Flow Issues

Decreasing cash reserves indicate potential liquidity issues, which may impact EDAP's ability to fund operations and strategic initiatives without external financing.

Rising Debt Levels

Increasing leverage could pose financial risks, limiting flexibility and increasing vulnerability to economic downturns if profitability does not improve.

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 internationally. It operates in three segments: High Intensity Focused Ultrasound (HIFU), Extracorporeal ShockWave Lithotripsy (ESWL), and Distribution Services (DIST). The HIFU segment develops, manufactures, and markets medical devices based on HIFU technology for the minimally invasive treatment of urological and other clinical indications. This segment also offers Ablatherm, an ultrasound guided robotic HIFU device for the treatment of organ-confined prostate cancer; Ablatherm Fusion that incorporates the company's proprietary fusion software, which merges MRI and ultrasound images; and the Focal One, a HIFU robotic device dedicated to the focal therapy of prostate cancer, as well as disposables, and leasing and treatment related services; and maintenance services. The ESWL division manufactures, markets, and services lithotripter for the treatment of urinary tract stones by means of ESWL technology; and offers Sonolith i-move, an extracorporeal shockwave lithotripter to small and mid-size hospitals, as well as sells disposable parts for lithotripters and electrodes. The Distribution division markets, distributes, and services lasers, micro-ultrasound systems, and other medical products from third parties, as well as leases devices; sells disposables and spare parts; and offers maintenance services. The company markets and sells its products through its direct marketing, sales organization, and service platform, as well as through third-party distributors and agents. Its customers include hospitals, urology clinics, and research institutions. The company was incorporated in 1979 and is headquartered in Lyon, France.

How the Company Makes Money

EDAP TMS generates revenue through multiple channels, primarily by selling its proprietary HIFU devices and related consumables to hospitals and clinics. The company also earns income from providing services associated with the operation of these devices, including training and support for medical professionals. Additionally, EDAP has established partnerships with various healthcare institutions to facilitate the adoption of its technology, which can lead to long-term revenue through contracts and service agreements. The company may also benefit from reimbursement policies in healthcare systems that cover the use of its technologies, further contributing to its financial performance.

EDAP TMS Financial Statement Overview

Summary

EDAP TMS shows potential in revenue growth but struggles with profitability and cash flow generation. The balance sheet is stable, but increasing leverage is a concern. The company needs to improve operational efficiencies and manage its debt better.

Income Statement

EDAP TMS has shown consistent revenue growth over the years, with a 6% increase from 2023 to 2024. However, the company has struggled with profitability, evidenced by consistently negative net income and EBIT margins. The gross profit margin has been relatively stable, but the company needs to control its operating expenses to move toward profitability.

Balance Sheet

The balance sheet shows a moderate level of financial health with an equity ratio of 47.5% in 2024, indicative of a balanced capital structure. However, the debt-to-equity ratio has slightly increased over the years, suggesting a rising leverage risk, which could be problematic if profitability doesn't improve.

Cash Flow

The cash flow statement highlights challenges in generating positive free cash flow, with negative figures in recent years. Operating cash flow to net income ratio is negative, reflecting operational inefficiencies. The company needs to improve cash flow generation to support its operations and future growth.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	64.11M	60.42M	55.11M	44.07M	41.66M
Gross Profit	26.56M	24.41M	24.19M	18.42M	18.38M
EBITDA	-15.93M	-18.39M	-323.00K	309.00K	2.37M
Net Income	-19.02M	-21.18M	-2.93M	700.00K	-1.70M
Balance Sheet
Total Assets	86.06M	91.55M	101.12M	77.23M	55.19M
Cash, Cash Equivalents and Short-Term Investments	29.84M	43.47M	63.14M	47.18M	24.70M
Total Debt	13.92M	8.42M	6.66M	8.16M	5.43M
Total Liabilities	45.17M	34.63M	29.49M	27.17M	28.95M
Stockholders Equity	40.90M	56.92M	71.63M	50.05M	26.25M
Cash Flow
Free Cash Flow	-17.68M	-18.63M	-5.21M	2.89M	107.00K
Operating Cash Flow	-13.58M	-14.68M	-3.02M	4.45M	1.98M
Investing Cash Flow	-4.12M	-4.34M	-2.38M	-1.64M	-2.01M
Financing Cash Flow	4.63M	-911.00K	21.74M	20.27M	3.20M

EDAP TMS Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 2.45 is above the 20-day moving average (MA) of 2.04, above the 50-day MA of 1.67, and above the 200-day MA of 2.00, indicating a bullish trend. The MACD of 0.32 indicates Negative momentum. The RSI at 63.15 is Neutral, neither overbought nor oversold. The STOCH value of 54.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EDAP.

EDAP TMS Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ICAD	60 Neutral		―		―	-4.15%	3.49%
EDAP	58 Neutral	$97.59M	―	-51.63%	―	―	―
HYPR	57 Neutral	$106.08M	―	-77.26%	―	-9.59%	8.78%
XTNT	52 Neutral	$80.94M	―	-9.80%	―	15.16%	-39.18%
Sector *	51 Neutral	$8.02B	-0.31	-43.38%	2.24%	22.31%	-2.14%
ECOR	51 Neutral	$38.07M	―	-210.58%	―	30.16%	22.51%
OWLT	46 Neutral	$120.33M	―	60.56%	―	36.81%	-74.26%

EDAP TMS Corporate Events

EDAP TMS Focuses on Robotic HIFU Leadership in Prostate Cancer

EDAP TMS S.A. has announced its strategic focus on becoming the global market leader in robotic HIFU focal therapy for prostate cancer, a move supported by compelling clinical evidence and increasing demand. The company’s Focal One technology is highlighted as a superior treatment option, offering better functional outcomes compared to traditional methods like radical prostatectomy, and is positioned to drive a paradigm shift in prostate cancer treatment.

EDAP TMS Secures HIFU Reimbursement for Prostate Cancer in France

On September 8, 2025, EDAP TMS announced that the French Ministry of Health has approved reimbursement for the High Intensity Focused Ultrasound (HIFU) procedure for prostate cancer treatment in France. This reimbursement milestone allows broader patient access to the Focal One Robotic HIFU procedure, marking a significant commercial achievement for EDAP TMS. The decision is expected to enhance the company’s market position in Europe and potentially accelerate similar approvals in other countries, benefiting stakeholders by expanding treatment options for prostate cancer.

EDAP TMS Reports Record Q2 2025 HIFU Growth and Strategic Expansion Plans

EDAP TMS reported a strong performance in the second quarter of 2025, highlighted by a 140% year-over-year growth in net placements of its Focal One Robotic HIFU Systems and a 76.8% increase in HIFU revenue. The company also executed a letter of intent for a 36 million Euro credit facility with the European Investment Bank to support further growth and strategic expansion of its HIFU business. EDAP raised its 2025 HIFU revenue growth guidance to a range of 26% to 34%, reflecting the increasing demand for its Focal One platform. Despite a decline in its non-core business revenue, the company continues to focus on expanding its HIFU operations, supported by significant clinical evidence and growing adoption in the urology community.

EDAP TMS Secures EUR 36 Million Credit Facility for Growth

On August 26, 2025, EDAP TMS announced a letter of intent for a EUR 36 million credit facility with the European Investment Bank. This funding aims to support the expansion of Focal One® Robotic HIFU in prostate cancer treatment and the development of new clinical indications. The credit facility is expected to close by the end of 2025, enhancing EDAP’s financial position and enabling broader access to its innovative technologies.

EDAP TMS Announces Transition to U.S. Domestic Filer Status

On July 1, 2025, EDAP TMS announced its transition from a foreign private issuer to a U.S. domestic filer, effective January 1, 2026. This change signifies a major milestone for the company, highlighting its commitment to transparency and regulatory best practices, and is expected to enhance its relationship with shareholders and attract new institutional investors.