Profound Medical Corp. (NASDAQ:PROF) announced a $40 million equity financing that will be completed through a $36 million registered direct offering of 5,142,857 common shares at $7.00 per share and a $4 million private placement of up to 571,428 shares in Canada. The direct offering is expected to close on or about December 22 2025, while the private placement is slated to close by December 30 2025.
The proceeds will be deployed to accelerate the commercialization of the company’s flagship TULSA‑PRO platform, expand sales and marketing efforts, fund research and development, pursue strategic transactions, and support general corporate purposes. Profound’s cash balance stood at $35.2 million as of June 30 2025, and the infusion is projected to extend the company’s runway beyond the current burn rate of roughly $1.0 million per month, giving management additional flexibility to invest in growth initiatives.
Profound’s recent financial performance underscores the need for this capital. Q3 2025 revenue reached a record $5.3 million, an 87% year‑over‑year increase, while gross margin improved to 74.3% from 70.5% in Q2 2025. However, the company posted a net loss of $8.0 million in Q3 2025, up from a $15.7 million loss in Q2 2025, reflecting ongoing investment in sales, marketing, and product development. The cash balance has declined from $35.2 million in June to $24.8 million in September, highlighting the urgency of additional funding to sustain operations and growth.
CEO Arun Menawat emphasized the strategic importance of the financing, stating, "As demonstrated by our strong revenue and TULSA Procedure volume growth, increased gross margin, and rapidly expanding TULSA‑PRO installed base, we were not only able to successfully navigate through an unusually challenging second quarter, but also delivered record results in Q3‑2025." Menawat added that the capital raise will enable the company to accelerate commercialization and pursue new market opportunities while maintaining a disciplined approach to cost management.
The equity raise positions Profound to capitalize on the growing demand for incision‑free prostate therapies, while providing a buffer against the company’s high operating expenses and the need to sustain a robust sales pipeline. The financing is expected to support the company’s strategic goal of expanding the TULSA‑PRO platform’s market share and accelerating the adoption of its AI‑powered, MRI‑guided system across the United States and internationally.
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