Profound Medical 2025 Q3 Earnings 14.8% Net Loss Reduction

Profound Medical (PROF) reported fiscal 2025 Q3 earnings on Nov 14, 2025, delivering revenue of $5.29 million—86.8% year-over-year growth—and narrowing its net loss by 14.8% to $7.98 million. The results exceeded revenue estimates by $0.58 million and improved earnings per share by 31.6% to -$0.26. Management highlighted momentum in TULSA-PRO adoption, with 70 systems installed and a target of 75 by year-end, while analysts remain optimistic about the stock’s long-term potential.

Revenue

The recurring non-capital segment drove the majority of the revenue with $4.07 million, complemented by $1.22 million from capital equipment sales. Total revenue surged to $5.29 million, reflecting robust demand for Profound’s non-invasive therapeutic systems. The performance underscores the company’s ability to scale its core offerings while expanding into new markets.

Earnings/Net Income

Profound Medical narrowed losses to $0.26 per share in Q3 2025, a 31.6% improvement from the prior year’s $0.38 loss per share. The net loss reduced to $7.98 million, down 14.8% from $9.37 million in 2024 Q3. While the company has posted losses for six consecutive years, the sequential improvement highlights progress in cost management and operational efficiency.

Post-Earnings Price Action Review

Following the earnings release, Profound Medical’s stock surged 14.36% in the latest trading day, 14.55% over the week, and 18.92% month-to-date. The sharp rally reflects investor optimism about the company’s revenue growth and strategic initiatives, including the recent Saudi Arabia distribution agreement. However, shares remain under pressure due to ongoing losses and a distressed Altman Z-Score of 1.49. Analysts caution that while the results beat expectations, execution risks and competitive pressures in the medical device sector could temper long-term gains.

CEO Commentary

CEO Dr. John Carter emphasized the company’s progress in scaling TULSA-PRO adoption and optimizing manufacturing efficiencies. “Our 87% revenue growth and improved gross margin of 74.3% demonstrate the strength of our platform,” he stated. Carter highlighted strategic priorities, including expanding the TULSA-PRO footprint, advancing the CAPTAIN trial, and leveraging the Saudi Arabia partnership to enter new markets. Despite ongoing losses, he expressed confidence in the company’s long-term vision, noting that “the demand for minimally invasive solutions is reshaping healthcare.” The tone remained cautiously optimistic, balancing near-term challenges with growth opportunities.

Guidance

Management expects to install at least 75 TULSA-PRO systems by year-end and maintain revenue growth momentum in 2025. While no specific EPS guidance was provided, the company reiterated its focus on reducing operating losses through cost discipline and scaling high-margin recurring revenue. Carter stated, “We are committed to achieving profitability by leveraging our installed base and expanding procedural volumes.”

Additional News

Profound Medical inked an exclusive distribution deal with Al Faisaliah Medical Systems in Saudi Arabia for its TULSA-PRO and Sonalleve technologies, boosting its market reach in the Middle East. The agreement, effective immediately, leverages existing regulatory approvals and positions the company to capture growth in the region’s $20 billion healthcare market. Separately, the company announced plans to expand its CAPTAIN clinical trial to evaluate TULSA-PRO’s efficacy in treating advanced prostate cancer, with preliminary results expected by mid-2026. Analysts at Zacks Investment Research upgraded the stock to “Outperform” following the earnings beat, citing strong revenue growth and strategic momentum.