Profound Medical Reports Wider Loss in Q2, Revenue Misses Expectations

Profound Medical reported Q2 2025 GAAP revenue of $2.2 million, unchanged from the prior year and below consensus estimates of $3.25 million. Net loss widened to $15.7 million, or $0.52 per share, and operating costs increased. Despite these headwinds, management reaffirmed full-year 2025 guidance for 70% to 75% year-over-year revenue growth. Recurring revenue from procedures and disposables grew 6.9%, but capital equipment sales were delayed, contributing to the weaker-than-expected performance.

Profound Medical Corp. (NASDAQ: PROF) reported its Q2 2025 financial results, showing a stagnant revenue of $2.2 million, unchanged from the prior year and below consensus estimates of $3.25 million [1]. The company's net loss widened to $15.7 million, or $0.52 per share, driven by a 65.6% surge in operating expenses to $15.4 million [1]. Despite these headwinds, management reaffirmed its full-year 2025 guidance for 70% to 75% year-over-year revenue growth [1].

Recurring revenue from procedures and disposables grew 6.9%, while capital equipment sales were delayed, contributing to the weaker-than-expected performance [1]. The company's cash position remains a concern, with only $35.2 million in reserves and a quarterly burn rate of $15 million [1]. Profound Medical's operational metrics suggest a foundation for future growth, with a 10% sequential increase in TULSA-PRO® procedure volumes and the TULSA-AI® Volume Reduction Module for BPH treatment preparing for a Q4 2025 launch [1, 2].

However, the company's inability to convert its sales pipeline into completed installations remains a red flag, with delays in capital sales expected to push revenue over $3 million [1]. The CAPTAIN trial demonstrated TULSA-PRO's superiority over robotic radical prostatectomy, but the execution challenges could undermine the company's 70-75% YoY growth guidance for 2025 [1].

For investors, the decision hinges on risk tolerance. If Profound Medical can execute on its pipeline and secure additional financing, it may justify the current valuation. However, the risks of continued losses and potential dilution remain significant. A more conservative approach might involve waiting for clearer signs of revenue traction or a capital raise before committing capital.

References:
[1] https://www.ainvest.com/news/profound-medical-q2-2025-earnings-tale-metrics-means-long-term-investors-2508/
[2] https://www.biospace.com/press-releases/profound-medical-announces-second-quarter-2025-financial-results