Profound Medical Corp. (NASDAQ:PROF) reported its fourth‑quarter 2025 results, posting earnings per share of $-0.27, exactly in line with the consensus estimate of $-0.27. Revenue totaled $6.0 million, falling short of analyst expectations that ranged from $6.9 million to $10.5 million.
Revenue grew 43 % year‑over‑year to $6.0 million, a record for the company, but still below most consensus estimates. The company generated $2.3 million in recurring revenue and $3.7 million from one‑time capital‑equipment sales, reflecting a mix shift toward higher‑margin capital sales.
Gross margin contracted to 67 % from 71 % a year earlier, largely due to a product‑mix shift and introductory pricing in new international markets such as Saudi Arabia and Australia. Operating expenses rose to $52.6 million from $40.1 million, driven by headcount expansion and increased sales‑force costs.
Management reiterated its outlook for 2026, targeting high‑double‑digit to low‑triple‑digit revenue growth and a decline in cash burn that should eventually lead to positive cash flow. No specific revenue or EPS guidance was disclosed.
CEO Arun Menawat said, “We continued to execute well, delivering record revenues, an expanded TULSA‑PRO installed base, and a stronger capital sales pipeline again in the fourth quarter — validating our belief that Q3‑2025 marked an important inflection point in our business.” He added, “Moving forward, with the strengthening of our balance sheet via the completion of our financing in December, and based on several upcoming potential catalysts, including the clinical outcomes from the Level 1 post‑market CAPTAIN study, we believe that we are on the right path toward driving high double‑digit to low triple‑digit revenue growth and, ultimately, positive cash flows and net profitability.” CFO Rashed Dewan noted, “For the 3 months period ended, December 31, 2025, the company recorded revenue of $6 million, with $2.3 million from recurring revenue and $3.7 million from onetime sales of capital equipment.” He also said the gross margin decline was “primarily to product mix and new market introductory prices tied to international distributors in Saudi Arabia and Australia.” Chief Commercial Officer Thomas Tamberrino highlighted the pipeline, stating, “We have 78 TULSA‑PRO sites and a qualified sales pipeline of 110 new systems. We would be at $55 million in procedural revenue and around $85 million in annual revenue when including service and capital sales, with profitability achieved at this scale.” He added that there was “no discounting at all” on disposables and reiterated the $5,500 disposable price.
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