Education
About Us
Working with TipRanks
Follow Us
PROCEPT BioRobotics (PRCT)
NASDAQ:PRCT
Top Page
PROCEPT BioRobotics
(NASDAQ:PRCT)
Select Model
Select Model
Rating:50Neutral
Price Target:
$39.00
▲(6.38% Upside)
The overall stock score is primarily influenced by financial performance challenges, including negative profitability and cash flow issues. Technical analysis indicates a bearish trend, further weighing on the score. While the earnings call provided positive revenue growth and guidance, concerns over leadership changes and ongoing losses remain. Valuation metrics are weak due to negative earnings and lack of dividends.
Positive Factors
Revenue Growth
Strong revenue growth indicates robust demand for PROCEPT's products, enhancing market position and future financial stability.
Gross Margin Expansion
Improved gross margins suggest better cost management and pricing power, contributing to long-term profitability potential.
New CEO Appointment
The new CEO brings extensive industry experience, potentially driving strategic growth and enhancing leadership stability.
Negative Factors
Negative Profitability
Ongoing losses highlight challenges in achieving profitability, which could impact long-term financial health and investor confidence.
Cash Flow Challenges
Negative cash flows indicate liquidity issues, potentially affecting the company's ability to fund operations and growth initiatives.
Leadership Changes
Leadership restructuring may cause short-term disruptions, impacting strategic execution and operational continuity.
PROCEPT BioRobotics (PRCT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.04B
Dividend YieldN/A
Average Volume (3M)959.48K
Price to Earnings (P/E)―
Beta (1Y)1.24
Revenue Growth55.71%
EPS Growth24.37%
CountryUS
Employees756
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.35
Shares Outstanding55,635,940
10 Day Avg. Volume976,172
30 Day Avg. Volume959,481
Financial Highlights & Ratios
PEG Ratio2.10
Price to Book (P/B)10.43
Price to Sales (P/S)18.70
P/FCF Ratio-40.50
Enterprise Value/Market Cap1.46
Enterprise Value/Revenue10.80
Enterprise Value/Gross Profit16.83
Enterprise Value/Ebitda-36.68
Forecast
1Y Price Target
$69.00Price Target Upside88.22% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
PROCEPT BioRobotics Business Overview & Revenue Model
Company DescriptionPROCEPT BioRobotics Corporation, a surgical robotics company, develops transformative solutions in urology. It develops, manufactures, and sells AquaBeam Robotic System, an image-guided, surgical robotic system for use in minimally-invasive urologic surgery with a focus on treating benign prostatic hyperplasia (BPH). The company also designs Aquablation therapy for males suffering from lower urinary tract symptoms due to BPH. As of December 31, 2021, it had an install base of 130 AquaBeam Robotic Systems worldwide comprising 78 in the United States. PROCEPT BioRobotics Corporation was incorporated in 2007 and is headquartered in Redwood City, California.
How the Company Makes MoneyPROCEPT BioRobotics generates revenue primarily through the sale and leasing of its AquaBeam Robotic System to healthcare providers and hospitals. The company also earns income from the sale of disposable handpieces and accessories used in conjunction with the system during procedures. In addition, service and maintenance contracts provide a recurring revenue stream, as customers require ongoing support and system upkeep. Partnerships with healthcare organizations and collaborations with medical professionals further bolster the company's market presence and contribute to its financial growth by driving adoption and expanding its customer base.
PROCEPT BioRobotics Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong performance in revenue growth, both domestically and internationally, and improvements in gross margins and tariff conditions. The company has increased its financial guidance for the year and received a positive update on Medicare reimbursement. However, there are concerns over leadership changes and financial metrics like net loss and adjusted EBITDA, although these are improving. Overall, the positive aspects outweigh the challenges.Q2-2025 Updates
Positive Updates
Strong Quarterly Revenue Growth
Total revenue for the second quarter of 2025 was $79.2 million, representing growth of 48% compared to the second quarter of 2024. U.S. revenue for the second quarter was $69.6 million, representing growth of 46% compared to the prior year period.
Record International Revenue Performance
International revenue in the second quarter of 2025 was $9.6 million, representing growth of 69% compared to the prior year period, driven primarily by strong sales momentum in the United Kingdom, Japan, and Korea.
Gross Margin Expansion
Gross margin for the second quarter of 2025 was 65.4%, representing an increase of 640 basis points year-over-year.
Positive Outlook on Medicare Reimbursement
CMS announced Aquablation therapy was assigned a Category I code effective January 1, 2026, with a proposed payment higher than TURP, marking a significant milestone for PROCEPT.
Improved Tariff Situation
Chinese tariff rates have declined from 1045% to approximately 55%, reducing the estimated cost of goods sold headwinds in the second half of 2025 from approximately $5 million to $1 million to $2 million.
Increased Financial Guidance
Full year 2025 total revenue is now expected to be approximately $325.5 million, up from previous guidance, representing growth of approximately 45% compared to 2024.
Negative Updates
Executive Leadership Changes
The role of the Chief Commercial Officer is being eliminated, and the company is searching for new leadership positions, SVP of Sales and SVP of Marketing, which may cause temporary disruption.
Net Loss and Adjusted EBITDA
Net loss for the second quarter of 2025 was $19.6 million, compared to $25.6 million in the same period of the prior year. Adjusted EBITDA was a loss of $8 million compared to a loss of $18 million in the second quarter of 2024.
Reduced System Replacement Sales
Expectations for replacement system sales in the third and fourth quarters have been revised to be immaterial, suggesting slower replacement cycle uptake than anticipated.
Company Guidance
During the call, PROCEPT BioRobotics provided several metrics and guidance for 2025. The company expects to exit the year with an installed base of 715 systems and a procedural share of 20% in the hospital market. They anticipate full-year revenue to be approximately $325.5 million, reflecting a growth of 45% compared to 2024. U.S. system sales are projected to reach 210 units, with handpiece sales expected at around 53,000 units. The gross margin is anticipated to be about 64.5%, and the adjusted EBITDA loss is forecasted at approximately $35 million, with the fourth quarter nearing breakeven. International revenue is expected to grow by 50% to $36 million. The new CPT Category I code for Aquablation therapy, effective January 1, 2026, is expected to support broader adoption and secure reimbursement stability.PROCEPT BioRobotics Financial Statement Overview
Summary
PROCEPT BioRobotics shows strong revenue growth and a robust equity position, indicative of potential long-term stability. However, persistent operating losses and negative cash flows highlight ongoing challenges in profitability and cash management. Continued focus on reducing operational costs and improving cash flow is essential for future sustainability.Income Statement
The company exhibits strong revenue growth with a TTM increase of 10.96% from the previous year. However, it is still operating at a loss with a negative net profit margin of -36.20% and negative EBIT and EBITDA margins, indicating challenges in achieving profitability. The gross profit margin of 62.19% suggests good product pricing but is offset by high operating expenses.45
Neutral
Balance Sheet
The balance sheet shows a healthy equity position with a substantial equity ratio of 74.93%, indicating low leverage and strong capital structure. The debt-to-equity ratio is 0.20, reflecting modest debt levels compared to equity, which enhances financial stability. However, the company has not yet achieved positive returns on equity due to ongoing net losses.55
Neutral
Cash Flow
The company has a negative free cash flow, although there is a slight improvement with a growth rate of 14.74% in TTM. Operating cash flow remains negative and the operating cash flow to net income ratio is unfavorable, indicating ongoing cash flow challenges. Despite these issues, the company secured significant financing, enhancing liquidity.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 274.95M | 224.50M | 136.19M | 75.01M | 34.47M | 7.72M |
| Gross Profit | 176.49M | 137.10M | 71.05M | 37.09M | 15.87M | -1.25M |
| EBITDA | -80.99M | -82.00M | -98.09M | -77.65M | -51.06M | -45.05M |
| Net Income | -84.14M | -91.41M | -105.90M | -93.58M | -62.38M | -58.26M |
Balance Sheet | ||||||
| Total Assets | 513.05M | 534.02M | 404.72M | 309.33M | 337.02M | 125.97M |
| Cash, Cash Equivalents and Short-Term Investments | 302.72M | 333.73M | 257.22M | 221.86M | 304.32M | 100.13M |
| Total Debt | 79.37M | 80.25M | 79.20M | 77.32M | 54.10M | 54.76M |
| Total Liabilities | 127.26M | 131.80M | 123.97M | 112.26M | 69.93M | 308.87M |
| Stockholders Equity | 385.80M | 402.22M | 280.75M | 197.07M | 267.09M | -182.89M |
Cash Flow | ||||||
| Free Cash Flow | -89.27M | -103.62M | -133.21M | -83.03M | -57.93M | -48.58M |
| Operating Cash Flow | -83.21M | -99.21M | -108.00M | -80.38M | -57.33M | -48.34M |
| Investing Cash Flow | -6.06M | -4.41M | -25.21M | -2.65M | -592.00K | -233.00K |
| Financing Cash Flow | 177.92M | 180.13M | 167.79M | 3.61M | 262.12M | 106.77M |
PROCEPT BioRobotics Technical Analysis
Negative
36.66
Price Trends
43.12
Negative
50.71
Negative
59.10
Negative
Market Momentum
-1.47
Negative
39.92
Neutral
28.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRCT, the sentiment is Negative. The current price of 36.66 is below the 20-day moving average (MA) of 38.38, below the 50-day MA of 43.12, and below the 200-day MA of 59.10, indicating a bearish trend. The MACD of -1.47 indicates Negative momentum. The RSI at 39.92 is Neutral, neither overbought nor oversold. The STOCH value of 28.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PRCT.
PROCEPT BioRobotics Risk Analysis
PROCEPT BioRobotics disclosed 77 risk factors in its most recent earnings report. PROCEPT BioRobotics reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
PROCEPT BioRobotics Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $2.92B | -13.73 | -18.82% | ― | 8.57% | -1154.64% | |
58 Neutral | $2.28B | 44.75 | 7.84% | ― | 22.05% | 785.52% | |
58 Neutral | $2.22B | -13.24 | -350.40% | ― | 26.27% | 15.58% | |
55 Neutral | $1.94B | -95.53 | -4.27% | ― | 7.44% | -109.83% | |
50 Neutral | $2.04B | ― | -26.40% | ― | 55.71% | 24.37% | |
49 Neutral | $1.08B | -87.84 | -46.43% | ― | 135.60% | 66.47% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
PRCT
PROCEPT BioRobotics
36.66
-43.46
-54.24%
ATEC
Alphatec Holdings
15.02
9.46
170.14%
AORT
Artivion
41.06
14.44
54.24%
LIVN
LivaNova
53.44
0.90
1.71%
INSP
Inspire Medical Systems
77.24
-133.81
-63.40%
SSII
SS Innovations International
5.56
1.56
39.00%
PROCEPT BioRobotics Corporate Events
Executive/Board ChangesFinancial Disclosures
PROCEPT BioRobotics Appoints New CEO Larry L. Wood
Positive
Jul 25, 2025
On July 23, 2025, PROCEPT BioRobotics announced the appointment of Larry L. Wood as President and CEO, effective September 2, 2025, succeeding Dr. Reza Zadno, who will retire on September 1, 2025. Dr. Zadno will transition to a consulting role, having led the company through significant growth, including the adoption of Aquablation therapy and a successful public offering. Mr. Wood, with over 40 years of experience in the medical technology industry, joins from Edwards Lifesciences and has been a member of PROCEPT BioRobotics’ board since 2024. The company also pre-announced second-quarter 2025 revenue of approximately $79.2 million, representing an annual growth of 48%.
Executive/Board ChangesShareholder Meetings
PROCEPT BioRobotics Elects Board at Annual Meeting
Neutral
Jun 11, 2025
On June 10, 2025, PROCEPT BioRobotics held its annual stockholders meeting where all director nominees were elected to the board until 2028. Additionally, the selection of PricewaterhouseCoopers LLP as the independent accounting firm for 2025 was ratified, and the executive compensation package was approved.
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.