Procept BioRobotics Posts Strong Q1 Growth, Signals Momentum in Urology Robotics

Procept BioRobotics Corporation (NASDAQ: ROBOT) delivered a robust first-quarter performance, with revenue surging 55% year-over-year to $69.2 million, far exceeding analyst expectations. The results highlight the company’s progress in establishing its Aquablation therapy as a leading robotic solution for prostate-related conditions, while also revealing strategic challenges it must navigate.

Ask Aime: "Is Procept BioRobotics' 55% revenue growth sustainable in the long term? Could this impact its stock valuation?"

Revenue Surge Driven by U.S. and Global Expansion

The quarter’s standout achievement was the 55% revenue growth, fueled by strong performance in both the U.S. and international markets. U.S. revenue rose 50% to $60.3 million, driven by 43 new Hydros robotic system installations—a record for the company. Notably, 45% of these placements came from multi-unit orders by large healthcare networks, signaling a shift toward institutional adoption of the technology.

International revenue more than doubled, climbing 104% to $8.9 million. This reflects Procept’s aggressive expansion into markets like the UK and Japan, where demand for minimally invasive alternatives to traditional prostate surgery is growing. The company’s focus on clinical education and partnerships with key healthcare providers appears to be paying off, as demonstrated by the 61% jump in U.S. consumables revenue to $38.0 million.

Margins Expand, but Losses Persist

While Procept’s net loss narrowed to $24.7 million from $26.0 million in Q1 2024, the company remains unprofitable. However, adjusted EBITDA improved significantly, narrowing to a loss of $15.8 million from $20.4 million a year earlier. This was largely due to a gross margin expansion to 64%, up from 56% in 2024. Improved pricing power for U.S. robotic systems and better production efficiencies played key roles in this margin boost.

The company’s updated full-year guidance reflects this momentum. Procept now expects $323 million in revenue for 2025, a 44% increase over 2024, and a slight upward revision from its prior $320 million target. However, it cautioned that tariffs could cost $5 million in the second half, primarily impacting international shipments.

Strategic Strengths and Ongoing Risks

Procept’s Q1 results underscore two critical advantages:
1. System Installations as a Growth Engine: The 547 Hydros systems now installed in the U.S. create a recurring revenue stream through consumables and rentals. With multi-unit orders rising, hospitals are likely viewing Aquablation as a long-term solution, not a one-off purchase.
2. International Scalability: The 104% jump in international revenue suggests the company’s strategy to build local partnerships is working. The UK’s NHS and Japan’s expanding private healthcare sector could be key markets for future growth.

Yet risks remain. Tariffs threaten margins, and Procept must manage competition from traditional surgical methods and emerging robotics players. Additionally, while the Hydros system is FDA-cleared for benign prostatic hyperplasia (BPH), its adoption for more complex cases—such as prostate cancer—remains limited.

Ask Aime: What's behind Procept BioRobotics' revenue surge?

Cash Position and Investor Sentiment

Procept’s cash reserves of $319 million, paired with $52 million in long-term debt, provide a solid financial buffer. The stock’s modest 0.92% pre-market rise after earnings reflects cautious optimism, but investors will demand sustained profitability.

CEO Reza Zadno emphasized overcoming prior hurdles like saline supply disruptions, but the company’s path to profitability hinges on scaling revenue faster than operating expenses. Full-year operating expenses are projected at $300 million, unchanged from prior guidance, suggesting Procept is prioritizing growth over near-term cost-cutting.

Conclusion: A High-Growth Story, but Challenges Loom

Procept’s Q1 results are a clear win, with revenue growth and margin expansion signaling strong execution. The strategic focus on institutional partnerships and international markets positions it well for future scaling. However, the company must mitigate tariff risks and prove that Aquablation’s clinical benefits can outpace competitive threats.

With $323 million in guided revenue and a gross margin target of 64.5%, Procept is on track to solidify its place in urology robotics. Yet investors should monitor procedural adoption rates and the company’s ability to convert installed systems into consistent consumables revenue. For now, the momentum is undeniable—but the path to sustained profitability remains unproven.

This quarter’s results are a critical step forward for Procept, but the real test lies in the quarters ahead.