Profound Medical (NASDAQ:PROF) Issues Earnings Results

Profound Medical (NASDAQ:PROF) announced its quarterly earnings results on Thursday. The company reported $0.26 EPS for the quarter, beating analysts’ consensus estimates of ($0.22) by $0.48, Zacks reports. Profound Medical had a negative net margin of 66.62% and a negative return on equity of 24.14%. The firm had revenue of $2.48 million during the quarter, compared to analysts’ expectations of $4.75 million.

Here are the key takeaways from Profound Medical’s conference call:

• Full-year outlook maintained: Profound reported Q2 revenue of 2.5 million, up 12% year over year, but said approximately 3.1 million of shipments slipped into July. Excluding the timing issue, revenue would have been about 5.6 million, and management reiterated its 25 million 2026 revenue target, representing 56% growth.
• Commercial momentum and reimbursement are expanding: The qualified sales pipeline for TULSA-PRO and Sonalleve reached approximately 70 million, with roughly 90% attributed to TULSA-PRO. Proposed 2027 Medicare reimbursement would pay hospitals 15,494 per TULSA procedure, a growing premium over HIFU, Aquablation, and robotic prostatectomy, while other payer coverage expanded by approximately 18.3 million lives in Q2.
• Clinical evidence continues to support TULSA: Management highlighted CAPTAIN trial results showing statistically better quality-of-life outcomes than robotic prostatectomy, including preservation of urinary continence and erectile function, fewer serious complications, faster recovery, and no overnight stay. New data also indicated no median penile-length reduction after TULSA versus a 0.65-centimeter reduction after robotic surgery at one month.
• Execution and utilization remain uneven: The company experienced shipment-recognition delays because delivery receipts were not received before quarter-end, while five sites underperformed expectations and sequential utilization declined 12%. Profound said it is adding logistics and operating personnel, and that installations typically require 60–120 days after shipment to begin treating patients.
• Financial position and growth investments: Profound ended Q2 with 38.3 million in cash and reduced its net loss to 9.5 million from 15.7 million a year earlier, while maintaining gross margin of at least 70%. Management expects operating expenses to rise as it expands its teams, but continues to target a path toward profitable growth.

Profound Medical Trading Down 6.7%

Shares of NASDAQ:PROF traded down $0.53 on Friday, hitting $7.41. The company had a trading volume of 129,260 shares, compared to its average volume of 114,965. Profound Medical has a 1-year low of $3.76 and a 1-year high of $8.95. The stock has a market cap of $269.28 million, a price-to-earnings ratio of -16.11 and a beta of 0.73. The stock has a 50 day moving average price of $6.98 and a 200 day moving average price of $6.81.

Institutional Trading of Profound Medical

Hedge funds and other institutional investors have recently modified their holdings of the stock. Royal Bank of Canada raised its holdings in Profound Medical by 3.5% in the 1st quarter. Royal Bank of Canada now owns 435,997 shares of the company’s stock valued at $2,537,000 after acquiring an additional 14,795 shares during the period. Raymond James Financial Inc. boosted its holdings in shares of Profound Medical by 5.5% during the second quarter. Raymond James Financial Inc. now owns 941,879 shares of the company’s stock worth $5,557,000 after acquiring an additional 49,000 shares during the period. Bank of America Corp DE grew its position in shares of Profound Medical by 14.3% in the third quarter. Bank of America Corp DE now owns 200,160 shares of the company’s stock valued at $979,000 after purchasing an additional 24,974 shares during the last quarter. National Bank of Canada FI grew its position in shares of Profound Medical by 7.3% in the third quarter. National Bank of Canada FI now owns 172,883 shares of the company’s stock valued at $845,000 after purchasing an additional 11,704 shares during the last quarter. Finally, Goldman Sachs Group Inc. increased its stake in shares of Profound Medical by 56.8% during the fourth quarter. Goldman Sachs Group Inc. now owns 18,727 shares of the company’s stock worth $147,000 after purchasing an additional 6,787 shares during the period. Institutional investors own 47.86% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on PROF. Raymond James Financial raised shares of Profound Medical from an “outperform” rating to a “strong-buy” rating and set a $11.00 target price on the stock in a report on Monday, July 27th. Weiss Ratings upgraded Profound Medical from a “sell (e+)” rating to a “sell (d-)” rating in a report on Wednesday, July 29th. One investment analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $11.50.

About Profound Medical

Profound Medical Corp is a medical technology company headquartered in Toronto, Canada, that specializes in the development and commercialization of minimally invasive therapeutic solutions using magnetic resonance–guided ultrasound ablation. The company’s proprietary platform delivers focused ultrasound energy to targeted tissue under real-time MR imaging, offering a non-incisional alternative to traditional surgical approaches.

The company’s lead product, the TULSA-PRO system, is designed for the treatment of prostate conditions, including localized prostate cancer and benign prostatic hyperplasia.