PROCEPT BioRobotics Corp. reported fourth‑quarter 2025 financial results on February 25, 2026. Total revenue was $76.4 million, a 12 % year‑over‑year increase, but still $17 million below consensus estimates of roughly $94 million. Earnings per share were –$0.53, missing the consensus of –$0.32. Gross margin fell to 60.6 % from 64 % in the same quarter of 2024. U.S. procedure volume rose 69 % year‑over‑year to 12,200 procedures, and the company sold 65 new systems, bringing its installed base to 718 systems, a 42 % increase from year‑end 2024.
The revenue shortfall was driven by lower U.S. consumable revenue and the costs associated with a voluntary field action that the company undertook to address a product issue. In addition, the elimination of end‑of‑quarter purchasing incentives and a disciplined handpiece pricing strategy reduced the average selling price by about 5 %, further compressing revenue. These pricing and inventory decisions were intended to strengthen long‑term margins but had an immediate impact on top line performance.
EPS fell short of expectations because the combined effect of lower revenue and a contraction in gross margin left the company with a larger operating loss. The company’s net loss widened to $0.53 per share, reflecting the higher cost of the field action and the reduced pricing power in the U.S. consumable segment. The margin decline from 64 % to 60.6 % underscores the pressure on profitability as the company balances pricing discipline with revenue generation.
Management guided 2026 revenue to $390 million to $410 million, a downward revision from the prior consensus of about $430 million. The company’s cash, cash equivalents, and restricted cash totaled $289.5 million as of December 31, 2025, and a $52 million loan is due in the fourth quarter of 2027. The lower guidance signals caution about near‑term growth, while the cash position provides a buffer for ongoing commercial initiatives.
CEO Larry Wood said, "In the fourth quarter, we delivered our highest procedure volume to date—approximately 12,200 and sold 65 new systems, marking our strongest capital quarter." He added, "At the same time, we took meaningful steps to position the Company for its next phase of growth. To sharpen our focus on delivering durable procedure growth, we realigned our commercial organization, established a dedicated launch team to reduce activation variability, and implemented a more disciplined handpiece pricing strategy." CFO Kevin Waters noted, "Total revenue for the fourth quarter of 2025 was $76.4 million, representing 12 % year‑over‑year growth." He also said, "U.S. procedure growth of approximately 69 % year‑over‑year, a 5 % sequential increase in average handpiece selling price to $3,340..." and "At the end of 2025, we had an installed base of 718 systems, representing a 42 % increase compared to year‑end 2024."
The company is pursuing a commercial reorganization that includes a regional sales structure and a dedicated launch team to accelerate procedure adoption. It is also advancing the WATER IV prostate cancer trial, expected to complete all procedures by mid‑2026. These initiatives aim to increase procedure volume, improve margins, and move the company toward profitability, but the short‑term revenue impact of pricing discipline and inventory reductions has weighed on the quarter’s results.
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