Profound Medical (TSE:PRN)
TSX:PRN
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Profound Medical
(TSX:PRN)
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Rating:54Neutral
Price Target:
C$9.50
▲(24.51% Upside)
Action:Reiterated
Date:05/09/26
The score is held back primarily by weak financial performance—large ongoing losses and significant cash burn despite strong gross margins and revenue growth. Offsetting this, the latest earnings call provided constructive guidance with a specific profitability roadmap and improving cash-burn trajectory, while technical indicators show modest, neutral-to-positive momentum. Valuation remains constrained by negative earnings and the absence of dividend support.
Positive Factors
High gross margins and recurring per‑procedure revenue
Durable product economics: a high per‑procedure price and management's target for a majority recurring revenue mix support margin sustainability and predictable cash flow as installed sites scale, making per‑procedure revenue a lasting driver of unit economics.
Negative Factors
Large ongoing losses and negative cash flow
Sustained deep operating and net losses translate into persistent cash burn and negative free cash flow. Until scale materially improves cash generation, the business remains reliant on external funding, increasing financial and execution risk over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins and recurring per‑procedure revenue
Durable product economics: a high per‑procedure price and management's target for a majority recurring revenue mix support margin sustainability and predictable cash flow as installed sites scale, making per‑procedure revenue a lasting driver of unit economics.
Read all positive factors
Profound Medical (PRN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$345.57M
Dividend YieldN/A
Average Volume (3M)24.45K
Price to Earnings (P/E)―
Beta (1Y)1.64
Revenue Growth57.39%
EPS Growth-2.20%
CountryCA
Employees142
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)-1.34
Shares Outstanding36,337,640
10 Day Avg. Volume21,380
30 Day Avg. Volume24,453
Financial Highlights & Ratios
PEG Ratio-0.27
Price to Book (P/B)4.91
Price to Sales (P/S)19.88
P/FCF Ratio-8.34
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$15.13Price Target Upside98.33% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.94
Revenue Forecast (FY)C$30.54M
Profound Medical Business Overview & Revenue Model
Company Description
Profound Medical Corp., together with its subsidiaries, operates as a commercial-stage medical device company that develops magnetic resonance guided ablation procedures for treatment of prostate disease, uterine fibroids, and palliative pain trea...
How the Company Makes Money
Profound Medical makes money primarily by commercializing its TULSA-PRO platform and associated procedure-related products and services. Key revenue streams include: (1) System sales (capital equipment): sales of the TULSA-PRO hardware and related...
Profound Medical Earnings Call Summary
Earnings Call Date:Mar 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call highlighted several strong positives — 43% YoY revenue growth, growing install base and pipeline, favorable Medicare reimbursement shifts, imminent Level‑1 CAPTAIN data readout, a quantified path to profitability (~$85M revenue target with 70%+ gross margins), and improving cash burn with $59.7M cash on hand. Offsetting these are a widened Q4 net loss, modest gross margin compression driven by product mix and international introductory pricing, high operating expenses, near‑term capital/recurring revenue mix volatility, and current utilization per site below the company’s modeled targets. Taken together, the positives (notably clinical validation, reimbursement tailwinds, pipeline growth and a clear profitability plan) outweigh the near‑term financial and execution challenges.Positive Updates
Strong Revenue Growth
Q4 2025 revenue of $6.0M, up 43% year-over-year from $4.2M; recurring revenue of $2.3M and one-time capital sales of $3.7M.
Negative Updates
Widening Net Loss
Q4 2025 net loss of $8.2M ($0.27/share) versus a net loss of $4.9M ($0.20/share) in Q4 2024 — an increase in absolute net loss of ~$3.3M (≈67% increase year-over-year).
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Revenue Growth
Q4 2025 revenue of $6.0M, up 43% year-over-year from $4.2M; recurring revenue of $2.3M and one-time capital sales of $3.7M.
Read all positive updates
Company Guidance
Management guided to “profitable growth,” targeting high double‑digit to low‑triple‑digit revenue growth in 2026 and saying profitability is achievable around $80–85M of revenue with 70%+ gross margin; their illustrative model assumes ~200 TULSA sites averaging 50 procedures/year → $55M procedural revenue (at $5,500 per procedure) + $10M service revenue + ~$20M capital sales (40 systems × $500k) = ≈$85M. Key operational metrics: cash of $59.7M as of 12/31/25, Q4 revenue $6M (recurring $2.3M, capital $3.7M), Q4 gross margin 67% (vs 71% LY), Q4 net loss $8.2M ($0.27/sh), operating expense Q4 $11.4M; cash burn has trended down from ~>$10M/quarter in H1 to ~ $8M in Q3 and ~<$6.5M in Q4 and is expected to continue declining to cash‑flow positive as revenue scales. Commercial targets and timing: 78 TULSA‑PRO sites at year‑end, pipeline ~110 systems (up from 97), expected ~120 installs by end‑2026 (management cited at least ~42 new sites this year), BPH AI module in ~10 sites now (30–40 by mid‑2026) and could add ~400,000 patients to TAM, and management expects private payer coverage decisions in H2 2026 (private payments ~1.5×–2.5× Medicare; coverage reversals tracking >90%). Additional reimbursement context: MR in‑bore biopsy ~$5,500 vs ~$3,500 for MR‑US (≈57% higher); Medicare hospital payment estimates: TULSA $13,479 vs robotic $10,860 vs focal therapies $9,672.Profound Medical Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
61
Positive
Cash Flow
24
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 21.02M | 16.38M | 10.68M | 7.20M | 6.68M | 6.87M |
| Gross Profit | 14.84M | 11.59M | 7.04M | 4.38M | 3.02M | 2.95M |
| EBITDA | -39.20M | -41.41M | -32.13M | -27.00M | -34.63M | -28.65M |
| Net Income | -41.92M | -43.32M | -27.82M | -28.57M | -28.67M | -30.70M |
Balance Sheet | ||||||
| Total Assets | 73.51M | 140.62M | 70.23M | 43.91M | 64.42M | 86.78M |
| Cash, Cash Equivalents and Short-Term Investments | 50.33M | 59.61M | 54.91M | 26.21M | 46.52M | 67.15M |
| Total Debt | 7.47M | 4.70M | 5.12M | 7.87M | 8.23M | 1.38M |
| Total Liabilities | 14.04M | 74.30M | 9.81M | 12.73M | 12.42M | 6.16M |
| Stockholders Equity | 59.47M | 66.31M | 60.42M | 31.18M | 52.00M | 80.62M |
Cash Flow | ||||||
| Free Cash Flow | -41.06M | -39.05M | -23.45M | -22.30M | -25.80M | -22.95M |
| Operating Cash Flow | -40.81M | -38.88M | -23.45M | -22.30M | -25.80M | -22.36M |
| Investing Cash Flow | -338.14K | -246.24K | 0.00 | 0.00 | 0.00 | -593.00K |
| Financing Cash Flow | 57.89M | 41.86M | 54.70M | 1.46M | 7.03M | 5.95M |
Profound Medical Technical Analysis
Positive
7.63
Price Trends
8.69
Positive
9.47
Negative
8.48
Positive
Market Momentum
0.12
Negative
55.60
Neutral
76.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PRN, the sentiment is Positive. The current price of 7.63 is below the 20-day moving average (MA) of 8.54, below the 50-day MA of 8.69, and below the 200-day MA of 8.48, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 55.60 is Neutral, neither overbought nor oversold. The STOCH value of 76.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:PRN.
Profound Medical Risk Analysis
Profound Medical disclosed 68 risk factors in its most recent earnings report. Profound Medical reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Profound Medical Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
54 Neutral | C$345.57M | -11.64 | -72.79% | ― | 57.39% | -2.20% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | C$38.46M | -5.70 | -258.64% | ― | 176.72% | 30.90% | |
49 Neutral | C$27.21M | -7.24 | 106.68% | ― | 89.06% | 37.62% | |
47 Neutral | C$18.73M | -20.58 | -31.12% | ― | 6.64% | 26.26% | |
42 Neutral | C$59.12M | -10.14 | -314.74% | ― | -20.99% | 9.39% |
* Healthcare Sector Average
TSE:PRN
Profound Medical
9.51
2.55
36.64%
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Profound Medical Corporate Events
Business Operations and StrategyProduct-Related Announcements
Profound Medical Showcases TULSA-PRO at Key Radiology Meeting
Positive
Apr 1, 2026
Profound Medical’s TULSA-PRO platform and its incision-free, MRI-guided TULSA Procedure for treating prostate cancer and benign prostatic hyperplasia will be prominently featured at the 2026 Society of Interventional Radiology Annual Scienti...
Business Operations and Strategy
Profound Medical Marks Key TULSA Milestone as Texas Prostate Tops 100 Procedures
Positive
Mar 27, 2026
Profound Medical Corp., a commercial-stage medical device maker of AI-powered, MRI-guided, incision-free therapies, is expanding its footprint in prostate care with its TULSA-PRO platform for prostate cancer and benign prostatic hyperplasia, and i...
Business Operations and Strategy
Profound Medical to Present First CAPTAIN Trial Results and Steps Up Investor Outreach
Positive
Mar 9, 2026
Profound Medical will unveil the first clinical outcomes from its Level 1 post-market CAPTAIN trial, which compares the safety and efficacy of the TULSA Procedure with robotic radical prostatectomy in localized prostate cancer, at the European Ass...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Profound Medical Posts Record Q4 Revenue as TULSA-PRO Adoption and Global Expansion Accelerate
Positive
Mar 5, 2026
Profound Medical reported record fourth-quarter 2025 revenue of $6.0 million, up 43% year over year, driven by growing adoption of its TULSA-PRO system, which now has an installed base of 78 sites and a qualified pipeline of 110 additional 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.