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Profound Medical (TSE:PRN)
TSX:PRN
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Profound Medical (PRN) AI Stock Analysis

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TSE:PRN

Profound Medical

(TSX:PRN)

Rating:54Neutral
Price Target:
Profound Medical's stock score reflects the company's strong revenue growth and strategic potential, balanced by operational inefficiencies and financial challenges. Technical indicators suggest caution due to bearish trends, while valuation remains a concern with negative earnings. Positive earnings call sentiment and future growth prospects are encouraging, yet immediate operational improvements are necessary for sustained success.
Positive Factors
Growth Guidance
Profound reported Q4 results mostly in line with expectations and guided to 70%-75% growth this year, with the opportunity to reach triple-digit growth rates next year and beyond.
Reimbursement Rates
TULSA received a substantially higher reimbursement rate for 2025 from CMS than RARP, potentially making it more profitable for many institutions.
Tariff and Trade Compliance
Profound is almost certainly unlikely to face any challenges on tariff concerns as the company is USMCA compliant, allowing their products to be traded duty-free.
Negative Factors
Market Competition
Profound is bringing more attention to the BPH opportunity and addressed Procept BioRobotics’ Aquablation, highlighting TULSA's unique versatility.

Profound Medical (PRN) vs. iShares MSCI Canada ETF (EWC)

Profound Medical Business Overview & Revenue Model

Company DescriptionProfound 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 treatment in Canada, Germany, the United States, and Finland. Its lead product TULSA-PRO system used for magnetic resonance imaging scanner in hospitals and treatment facilities. The company also offers Sonalleve, a therapeutic platform for the treatment of uterine fibroids and palliative pain relief associated with metastases in bone, as well as non-invasive treatment of uterine fibroids. Profound Medical Corp. is headquartered in Mississauga, Canada.
How the Company Makes MoneyProfound Medical generates revenue primarily through the sale and leasing of its TULSA-PRO systems to hospitals, clinics, and medical institutions that specialize in urology and prostate cancer treatment. The company also earns money from recurring revenue streams such as service contracts, consumables, and software upgrades related to its technology. Key partnerships with healthcare providers and collaborations with research institutions further enhance its market penetration and revenue potential. Profound Medical may also engage in direct sales efforts and distribution agreements to expand its reach in international markets.

Profound Medical Earnings Call Summary

Earnings Call Date:Aug 14, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
The earnings call highlights several positive developments, such as improved gross margins, completion of the CAPTAIN trial, and the introduction of the TULSA-AI software. However, these are balanced by significant financial challenges, including stagnant revenue, increased operating expenses, and sales delays. The company remains optimistic about future growth, particularly with its sales pipeline and new software introduction.
Q2-2025 Updates
Positive Updates
Gross Margin Improvement
Gross margin in Q2 2025 was 73% compared to 64% in Q2 2024, indicating improved profitability.
Completion of CAPTAIN Trial
The CAPTAIN trial is fully recruited and all patient treatments are complete, which is crucial for gaining professional society treatment guidelines and positive reimbursement coverage.
Introduction of TULSA-AI Volume Reduction Software
The pilot release of the new TULSA-AI volume reduction software was successful, allowing for faster procedures in BPH treatments and improving efficiency.
Increased TULSA-PRO Pipeline
The pipeline for TULSA-PRO sales includes 500 prospects, with 80 in advanced stages, supporting expectations for better second-half performance.
Negative Updates
Revenue Shortfall
Second quarter 2025 revenue was essentially unchanged from the same period in 2024, with a recorded net loss of $15.7 million, a significant increase from the $6.9 million loss in Q2 2024.
Increased Operating Expenses
Total operating expenses in Q2 2025 were $15.4 million compared with $9.3 million in Q2 2024, contributing to the increased net loss.
Delays in TULSA-PRO Capital Sales
Short-term delays in completing TULSA-PRO capital sales were identified as a reason for the lower-than-expected Q2 revenues.
Company Guidance
During the Profound Medical Second Quarter 2025 Financial Results Conference Call, the company provided guidance indicating confidence in achieving 70% to 75% revenue growth in 2025 compared to 2024, despite a current shortfall in Q2 revenues. The company's revenue for Q2 2025 was $2.2 million, with $1.6 million from recurring revenue and $650,000 from a one-time sale of capital equipment. Profound Medical reported a net loss of $15.7 million, or $0.52 per share, for Q2 2025, compared to a net loss of $6.9 million, or $0.28 per share, in Q2 2024. The company had $35.2 million in cash as of June 30, 2025. The transition from a placement model to a capital model is expected to be back-end loaded, with a pipeline of approximately 500 prospects for the TULSA-PRO system, including 80 qualified leads. Profound is also focusing on expanding its installed base in the U.S., with plans to grow the number of active TULSA sites from 60 to at least 75 by the end of the year.

Profound Medical Financial Statement Overview

Summary
Profound Medical shows potential for growth with increasing revenue. However, persistent losses, negative profit margins, and reliance on external financing highlight operational challenges. A strong equity base provides stability, but asset utilization and debt management require strategic focus.
Income Statement
45
Neutral
Profound Medical has shown consistent revenue growth, with a 48.3% increase in 2024. However, the company has faced persistent losses with a negative EBIT and net income, leading to negative profit margins. This indicates operational challenges and a need for strategic restructuring to achieve profitability.
Balance Sheet
55
Neutral
The company maintains a strong equity base with an equity ratio of 86.0% in 2024, reflecting financial stability. However, the negative return on equity and high net debt levels are concerning, indicating that the company needs to improve its asset utilization and manage debt more efficiently.
Cash Flow
50
Neutral
Operating cash flow remains negative, reflecting ongoing operational struggles. While free cash flow increased in 2024 due to higher financing activities, the company's reliance on external financing could pose risks if not managed carefully. The lack of positive cash flow from operations is a critical area for improvement.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue11.37M10.68M7.20M6.68M6.87M7.30M
Gross Profit7.80M7.04M4.38M3.02M2.95M3.47M
EBITDA-42.07M-32.13M-27.72M-34.63M-28.65M-19.50M
Net Income-41.12M-27.82M-28.57M-28.67M-30.70M-21.62M
Balance Sheet
Total Assets49.67M70.23M43.91M64.42M86.78M104.60M
Cash, Cash Equivalents and Short-Term Investments35.20M54.91M26.21M46.52M67.15M83.91M
Total Debt4.81M5.12M7.94M8.23M1.38M1.68M
Total Liabilities10.41M9.81M12.73M12.42M6.16M7.25M
Stockholders Equity39.26M60.42M31.18M52.00M80.62M97.35M
Cash Flow
Free Cash Flow-34.03M-23.45M-22.30M-25.80M-22.95M-20.92M
Operating Cash Flow-34.03M-23.45M-22.30M-25.80M-22.36M-20.57M
Investing Cash Flow0.000.000.000.00-593.00K-350.00K
Financing Cash Flow34.70M54.70M1.46M7.03M5.95M87.43M

Profound Medical Technical Analysis

Technical Analysis Sentiment
Negative
Last Price6.03
Price Trends
50DMA
7.40
Negative
100DMA
7.38
Negative
200DMA
8.63
Negative
Market Momentum
MACD
-0.44
Positive
RSI
26.14
Positive
STOCH
5.43
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PRN, the sentiment is Negative. The current price of 6.03 is below the 20-day moving average (MA) of 6.60, below the 50-day MA of 7.40, and below the 200-day MA of 8.63, indicating a bearish trend. The MACD of -0.44 indicates Positive momentum. The RSI at 26.14 is Positive, neither overbought nor oversold. The STOCH value of 5.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
C$155.53M-9.96%-0.70%-102.48%
60
Neutral
C$20.29M-26.27%17.61%-19.19%
54
Neutral
C$181.22M-106.37%64.42%-21.09%
51
Neutral
$7.92B-0.43-41.69%2.21%22.29%-1.85%
45
Neutral
C$48.84M-291.69%16.00%9.79%
44
Neutral
C$17.61M207.08%88.47%11.88%
43
Neutral
C$26.74M-233.44%219.12%-15.92%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:PRN
Profound Medical
5.75
-5.15
-47.25%
TSE:ASG
Aurora Spine
0.25
-0.02
-7.41%
TSE:PINK
Perimeter Medical Imaging AI
0.21
-0.17
-44.74%
TSE:QIPT
Quipt Home Medical
3.58
-0.10
-2.72%
TSE:TLT
Theralase Technologies
0.20
0.04
25.00%
TSE:VPT
VentriPoint Diagnostics
0.10
-0.07
-41.18%

Profound Medical Corporate Events

Business Operations and Strategy
Profound Medical to Present at 2025 Healthcare Investor Conference
Positive
Apr 30, 2025

Profound Medical Corp. announced its participation in the 2025 Bloom Burton & Co. Healthcare Investor Conference, where management will present a business update. This participation underscores the company’s commitment to advancing its market presence and highlights its innovative technologies, such as TULSA-PRO® and Sonalleve®, which have significant implications for treating prostate diseases and uterine fibroids, respectively.

Spark’s Take on TSE:PRN Stock

According to Spark, TipRanks’ AI Analyst, TSE:PRN is a Neutral.

Profound Medical’s stock reflects mixed performance; strong revenue growth and strategic initiatives are offset by ongoing operational inefficiencies and financial challenges. Technical indicators suggest caution, and the valuation is hindered by sustained losses. Optimistic growth prospects from the earnings call offer potential, but strategic improvements are crucial for future success.

To see Spark’s full report on TSE:PRN stock, click here.

Business Operations and StrategyFinancial Disclosures
Profound Medical to Announce Q1 2025 Financial Results
Neutral
Apr 17, 2025

Profound Medical Corp. is set to release its first quarter 2025 financial results on May 8, 2025, followed by a conference call to discuss the results and business developments. This announcement highlights the company’s ongoing efforts to strengthen its market position with its innovative medical technologies, potentially impacting stakeholders by showcasing its financial health and strategic direction.

Spark’s Take on TSE:PRN Stock

According to Spark, TipRanks’ AI Analyst, TSE:PRN is a Neutral.

Profound Medical’s stock is evaluated at a score of 50, reflecting mixed financial performance with strong revenue growth but persistent losses. Technical indicators suggest caution, while the valuation remains challenging due to negative earnings. The optimistic earnings call provides a positive outlook, but the company must address operational inefficiencies and manage expenses to capitalize on future growth opportunities.

To see Spark’s full report on TSE:PRN stock, click here.

Product-Related AnnouncementsBusiness Operations and Strategy
Profound Medical Unveils Agenda for AUA 2025 Investor Event
Positive
Apr 15, 2025

Profound Medical Corp. announced details of its upcoming hybrid investor event during the American Urological Association’s Annual Meeting. The event will feature presentations on the TULSA procedure, which is a non-invasive treatment for prostate diseases, and new programs like TULSA-AI and TULSA+. These initiatives aim to enhance treatment options for benign prostatic hyperplasia and integrate with Siemens Healthineers’ MRI technology. The event underscores Profound Medical’s commitment to advancing its technology and strengthening its market position in non-invasive medical treatments.

Spark’s Take on TSE:PRN Stock

According to Spark, TipRanks’ AI Analyst, TSE:PRN is a Neutral.

Profound Medical’s stock is evaluated at a score of 50, reflecting mixed financial performance with strong revenue growth but persistent losses. Technical indicators suggest caution, while the valuation remains challenging due to negative earnings. The optimistic earnings call provides a positive outlook, but the company must address operational inefficiencies and manage expenses to capitalize on future growth opportunities.

To see Spark’s full report on TSE:PRN stock, click here.

Product-Related AnnouncementsBusiness Operations and Strategy
Profound Medical to Host Investor Event at AUA 2025
Positive
Mar 26, 2025

Profound Medical Corp. announced it will host a hybrid investor event during the American Urological Association’s Annual Meeting in Las Vegas on April 28, 2025. The event will feature presentations on the TULSA-PRO system, including its application in treating prostate diseases and the progress of the TULSA+ program, which integrates Siemens Healthineers’ MRI technology. This event highlights Profound’s commitment to advancing its medical technologies and enhancing its market position in the treatment of prostate diseases, potentially impacting stakeholders by showcasing the efficacy and versatility of its solutions.

Business Operations and StrategyFinancial Disclosures
Profound Medical to Announce 2024 Financial Results and Host Conference Call
Neutral
Feb 13, 2025

Profound Medical Corp. is set to release its fourth quarter and full year 2024 financial results on March 6, 2025. The announcement is significant as it provides stakeholders with insights into the company’s financial health and strategic developments. The results will be discussed further in a conference call, offering a platform for management to outline business progress and future directions.

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.Date of analysis: May 03, 2025