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Procept BioRobotics Surpasses Q1 Estimates: A Growth Story in Surgical Robotics

Philip CarterThursday, Apr 24, 2025 7:27 am ET

3min read

Procept BioRobotics (NASDAQ: PRCT) delivered a strong first-quarter 2025 performance, exceeding revenue expectations and showcasing momentum in its mission to revolutionize minimally invasive urology procedures. The company’s Q1 results, released on April 24, 2025, highlight robust demand for its robotic systems and consumables, even as it navigates challenges like rising operating costs. Here’s a deep dive into the numbers and their implications for investors.

Revenue Soars Amid Global Expansion

Procept reported $69.2 million in Q1 revenue, a 55% year-over-year (YoY) increase and a clear beat of the $66.8 million consensus estimate. This growth was driven by:
- U.S. sales: Handpiece and consumables revenue jumped 61% to $38.0 million, fueled by strong adoption of the HYDROS Robotic System, which the FDA cleared in 2024.
- International markets: Revenue surged 104% to $8.9 million, reflecting expanding presence in Europe, Japan, and the UK.

The company sold 43 new robotic systems in the U.S. during the quarter, a critical metric for future consumables sales, which carry higher margins.

Gross Margin Strengthens, but Costs Remain a Headwind

Gross margin expanded to 64% in Q1, up from 56% in Q1 2024, due to operational efficiencies and higher pricing for U.S. systems. However, operating expenses rose 36% to $71.6 million, driven by investments in commercial teams, R&D, and global expansion. This led to a net loss of $24.7 million, a slight improvement from $26.0 million in Q1 2024.

Strategic Momentum and Risks

Positive trends:
- HYDROS adoption: The system’s AI-driven precision is resonating with urologists, with the U.S. install base growing to 505 units by Q1 2025.
- Clinical pipeline: The WATER4 PCA trial for prostate cancer patients is progressing, addressing a broader market opportunity.
- Cash reserves: With $333.7 million in cash (as of end-2024), Procept has flexibility to fund growth while pursuing profitability.

Risks:
- Expense management: Operating expenses are projected to hit $300 million in 2025, a 28% increase. Analysts like Morgan Stanley have flagged this as a concern, lowering their price target to $95.
- Supply chain: While the saline shortage from 2024 appears resolved, Procept’s reliance on single suppliers (e.g., Baxter) remains a vulnerability.

Full-Year Guidance Raises the Stakes

Procept raised its 2025 revenue guidance to $323 million, a 44% increase over 2024, reflecting confidence in its go-to-market strategy. The company also projects 64.5% gross margins for the year, suggesting scalability. If achieved, this could accelerate the path to profitability.

Analyst and Market Sentiment

Bulls: The revenue beat and margin expansion validate Procept’s execution. Jefferies noted the U.S. handpiece sales surge as a positive sign of procedural adoption.
Bears: Critics argue that losses remain large, and the stock’s valuation (trading at ~10x 2025 sales) may be too optimistic given the cash burn.

Conclusion: A High-Growth, High-Reward Play

Procept’s Q1 results underscore its position as a fast-growing leader in robotic urology, with a product (HYDROS) that is both clinically compelling and commercially scalable. The 55% YoY revenue growth and 104% international expansion are particularly encouraging, as they signal global demand for minimally invasive solutions.

However, investors must weigh this growth against the $300 million operating expense target and the path to profitability. If Procept can continue to narrow losses while hitting its $323 million revenue goal, its $323.7 million cash balance could provide a buffer to weather short-term pressures.

The stock’s post-earnings price reaction (to be monitored via the visual query) will be key. For now, Procept’s Q1 outperformance validates its growth narrative, making it a high-risk, high-reward bet for investors willing to bet on the future of surgical robotics.

Final stats to remember:
- Q1 revenue beat: $69.2M vs. $66.8M estimate.
- International growth: 104% YoY, indicating untapped markets.
- Gross margin: 64%, up 800 basis points in a year.

This is a company to watch closely as it balances rapid scaling with the discipline needed to turn profits.

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