Profound Medical Corp. reported third‑quarter 2025 revenue of $5.3 million, an 87% increase from $2.8 million a year earlier. The growth was driven by a $4.1 million rise in recurring revenue and a $1.2 million increase in one‑time capital equipment sales, reflecting a growing installed base of its TULSA‑PRO system.
Gross margin expanded to 74.3% from 63.1% a year earlier, a lift of 11.2 percentage points. The margin improvement was largely due to the higher‑margin capital sales and a 4% reduction in manufacturing costs per unit, which offset the impact of higher raw‑material prices in the recurring revenue segment.
Operating expenses rose to $12.8 million, up from $10.8 million a year earlier, driven by a $2.0 million increase in headcount, sales‑force expansion, and travel costs associated with the company’s growth strategy. The higher operating costs were partially offset by the margin expansion, leaving net loss at $8.0 million, or $0.26 per share, a 15% improvement over the $9.4 million loss ($0.38 per share) reported for the same period in 2024.
The company’s earnings per share of $0.26 beat the consensus estimate of $-0.38 by $0.64, a 168% upside. The beat was driven by disciplined cost management and a favorable revenue mix that shifted toward higher‑margin capital sales. Revenue of $5.3 million also exceeded the lower end of analyst consensus estimates ($4.76 million to $4.98 million) but fell short of the higher estimate of $7.08 million, creating a mixed picture for revenue expectations.
Profound Medical disclosed that it faces “substantial doubt about the company’s ability to continue as a going concern” due to liquidity risks and a projected covenant breach by June 30 2026. The company’s cash on hand of $24.8 million, while sufficient for current operations, is insufficient to cover the projected cash burn over the next 12 months. Management indicated that additional financing is likely required to maintain operations and support ongoing commercialization and R&D initiatives.
CEO Arun Menawat emphasized that the company’s momentum has continued into the fourth quarter, stating, “The theme of my presentation at the Stifel Healthcare Conference earlier this week was ‘It’s Happening!’ Our record results in Q3‑2025 demonstrate the strength of our TULSA‑PRO platform and the growing demand for incision‑free prostate therapies.” The CEO’s optimism is tempered by the liquidity warning, underscoring the need for strategic financing to sustain growth.
The market reaction was muted, with the stock declining 2.04% in recent sessions. Analysts cited the going‑concern disclosure and the mixed revenue estimate performance as key factors dampening enthusiasm, despite the strong EPS beat and margin expansion.
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