PROCEPT BioRobotics (NASDAQ:PRCT) used its 2026 Analyst Day to outline what management characterized as a large, underpenetrated opportunity in benign prostatic hyperplasia (BPH), a developing adjacent opportunity in prostate cancer, and a set of commercial and financial initiatives aimed at accelerating procedure growth while improving margins and advancing toward profitability.
Market opportunity and positioning
CEO Larry Wood said roughly 400,000 patients per year currently undergo a prostate procedure, with Aquablation penetration at about 10% of that treated market. Wood also pointed to a larger population of men seeking BPH therapy, including roughly eight million men on drug therapy and more than one million men who discontinue BPH medications each year due to side effects or lack of efficacy. He described a broader prevalence pool of tens of millions of men with the condition that could “feed the funnel” over time.
Pricing and ordering changes: ending quarter-end discounting
Wood detailed a shift away from end-of-quarter volume discounts and incentives that encouraged customers to “stock up,” which he said created lumpy revenue and pressured average selling prices (ASPs). He said PROCEPT eliminated those quarter-end rebates in Q4, which contributed to a change in customer ordering patterns as sites reduced inventory to targeted levels.
Management said the change boosted ASP and is intended to support the company’s path to profitability, emphasizing that “price matters” and margins will be critical to long-term financial performance. Wood said the company expects in 2026 that handpiece sales and procedures will “fly in formation,” rather than handpiece units exceeding procedure volume by the historical 110%–115% range. He said the company is modeling that relationship at roughly one-to-one and called that approach conservative, given the expected addition of 200+ systems that will require initial stocking orders.
Wood said PROCEPT expects handpiece ASP to rise to about $3,500 in 2026, roughly a $300 increase versus historical levels, and described the handpiece/procedure alignment as the largest factor behind year-over-year guidance changes. CFO Kevin Waters later said the $3,500 ASP assumption represents a meaningful tailwind and that management was not seeing customer pushback, framing the change primarily as discontinuing discounts rather than renegotiating contracted pricing.
Commercial reorganization and capital placement strategy
Wood also described changes to the sales organization intended to improve execution. He said the company previously operated with separate clinical procedure support, sales support, and capital teams with independent leadership and incentives, which he said contributed to misalignment. PROCEPT has integrated clinical and sales support under a single regional leader to better direct training, referral education, and site-level support.
On capital execution, Wood said PROCEPT moved launch teams under the capital organization to reduce handoffs and improve ramp times at new sites. He said a pilot showed a 50% reduction in time from purchase order to completion of a center’s first 10 cases, a metric the company uses to assess launch quality.
For 2026, Wood said most placements are expected to be greenfield, at roughly a similar level to 2025, with an added emphasis on more targeted system replacements. He said replacement activity has not occurred organically because AquaBeam systems remain functional and many have not been fully depreciated, so PROCEPT plans to be more purposeful by offering trade-in credits based on system age. He also said the company will begin exploring leasing pilot programs, though he does not expect leasing to be a major part of 2026.
Marketing focus: care-team belief and targeted patient education
Chief Marketing Officer Pooja Sharma, who joined three months prior to the event, said PROCEPT’s near-term growth focus includes share capture and increasing patient awareness in a “targeted and disciplined” manner. Sharma said internal research indicates unaided patient awareness of Aquablation is currently about 1%–2%, reflecting limited historical investment in this area.
Sharma outlined a strategy that begins with “bottom-of-funnel” patients already deciding among surgical options, using in-practice education tools, comparison guides, consult-room videos, and patient testimonials. She also described a mid-funnel opportunity among medically managed patients, citing the large number of men on BPH medications and the significant annual discontinuation rate. For those patients, she described targeted digital engagement (including SEO, social media, and educational emails) with geographic focus rather than broad national spending.
Both Wood and Sharma emphasized an intended shift toward messaging that aligns with what they said matters most to patients, including preserving urinary function, minimizing the need for a second procedure, symptom relief, and preserving sexual function.
Prostate cancer: whole-gland approach and WATER IV progress
CTO Barry Templin provided an update on the company’s prostate cancer program and said PROCEPT chose a whole-gland treatment strategy rather than focal therapy, citing published findings that a substantial portion of men can have contralateral disease not detected by MRI or biopsy. Templin described multiple studies leading up to the pivotal WATER IV trial and discussed data from an expanded PRCT001 series (version B) that has enrolled 124 procedures, with 90 patients reaching six-month follow-up and 37 reaching 12-month follow-up.
Templin highlighted several comparisons presented during the session, including quality-of-life metrics such as erectile function (SHIM score) and pad-use incontinence versus published radical prostatectomy outcomes, and he described prostate cancer efficacy as measured by the need for additional therapy. He also referenced an Endeavor Health series in men on active surveillance that found fewer upgrades over five years among those who underwent Aquablation for BPH versus active surveillance alone.
On the pivotal randomized trial, Templin said WATER IV is a 280-patient global study randomized against radical prostatectomy for Grade Group 1–3 patients with follow-up planned for 10 years. He said the study began treating patients about a year prior and that the company is on track to finish procedures by mid-year. In Q&A, Wood said PROCEPT expects to present results at AUA in 2027 and that future labeling and reimbursement strategy will depend on the strength of the data.
Financial guidance: procedure growth, margins, and profitability targets
Waters reviewed the company’s guidance and longer-term targets, emphasizing the shift toward a more procedure-driven revenue mix. He said systems represented over 50% of revenue in 2021 but are expected to be less than 25% in 2026, with disposables/procedures driving a larger share and supporting gross margin expansion.
- 2026 revenue guidance: $390–$410 million, representing 27%–33% growth.
- 2026 procedure guidance: 60,000–64,000 procedures.
- 2026 gross margin guide: 65%.
- 2026 adjusted EBITDA guide: loss of $30 million to $17 million, with EBITDA expected to be positive in Q4.
- 2027 outlook: revenue growth of 25%–30% (a business “north of $500 million”), gross margin potentially as high as 70%, and adjusted EBITDA of $25–$30 million positive.
Waters said none of the financial metrics presented assume any contribution from prostate cancer. He also said PROCEPT expects to be cash flow positive around Q4 2027 and does not expect cash to fall below $175 million. He noted $52 million of debt matures in 2027 and said the company has no plans to refinance it.
On costs, Waters said R&D spending has been elevated due to the WATER IV trial and that the majority of that spend “ceases” in 2026, allowing R&D as a percentage of revenue to trend toward the mid-teens over time. He also discussed potential sales force leverage from a “hybrid” support model, where PROCEPT would not need to be present in every case once centers are trained, while maintaining high-touch support as needed.
Waters also addressed tariffs, saying the company’s 2026 guide assumes tariff expense of approximately $5 million to $6 million, with exposure primarily tied to an ultrasound supplier in China, and that the guide does not incorporate additional impacts from announcements made roughly 48 hours prior to the event.
About PROCEPT BioRobotics (NASDAQ:PRCT)
PROCEPT BioRobotics, Inc is a medical device company specializing in the development and commercialization of robotic systems for the treatment of benign prostatic hyperplasia (BPH). The company’s technology leverages precision robotics and real-time imaging to perform minimally invasive procedures, aiming to reduce patient recovery time and improve clinical outcomes compared to traditional surgical approaches.
The company’s flagship product, the AquaBeam Robotic System, uses a high-velocity waterjet to selectively remove prostate tissue while preserving surrounding healthy structures.
