Profound Medical 2025 Q1 Earnings Net Loss Widens 62.9%

Profound Medical (PROF) reported its fiscal 2025 Q1 earnings on May 08th, 2025. The company's financial performance fell short of market expectations, as losses deepened both in terms of earnings per share and net income. Despite a significant revenue increase, Profound Medical's net loss widened by 62.9% from the previous year, reflecting ongoing challenges in aligning financial results with market forecasts. The company remains optimistic about future growth, anticipating a boost from new product launches later in the year.

Revenue

Profound Medical experienced an 82.1% increase in total revenue during the first quarter of 2025, reaching $2.62 million, compared to $1.44 million in the same period in 2024. The recurring non-capital segment contributed $1.80 million, while capital equipment sales added $820,000, culminating in a total revenue of $2.62 million for the quarter.

Earnings/Net Income

Profound Medical's losses widened to $0.36 per share in Q1 2025, up from a loss of $0.27 per share in Q1 2024. The company's net loss increased significantly to $10.72 million from $6.58 million a year earlier, indicating a challenging quarter for earnings performance.

Price Action

The stock price of Profound Medical has climbed 3.32% during the latest trading day, has climbed 3.11% during the most recent full trading week, and has climbed 6.18% month-to-date.

Post-Earnings Price Action Review

Over the past five years, investing in PROF shares following a quarterly revenue drop and holding for 30 days yielded a 9.16% annual return, with 66.88% of months showing positive results. However, this strategy slightly underperformed against the benchmark, which achieved a 13.81% annual return and 69.38% of months in positive territory. The portfolio's strongest year was 2019, delivering a 24.02% return, while 2022 was its weakest year, with a -17.95% return. The maximum drawdown reached 23.55% from January to September 2022, with a recovery time of 18 months.

CEO Commentary

"Revenue growth trajectory in the first quarter compared to last year was in-line with our internal expectations, gross margin continued to be strong, and AUA 2025 was a very successful meeting for us across the board," said Arun Menawat, CEO and Chairman of Profound Medical. He emphasized that TULSA’s precision, flexibility, and unrivaled market potential in prostate disease provide a significant competitive advantage. Menawat noted that the new Urology APC Level 7 codes will facilitate a broader application of TULSA technology across various treatment settings, which is expected to support the rollout of the TULSA-AI module for BPH and the TULSA+ solution later this year.

Guidance

Profound Medical expects continued revenue growth in the second half of 2025, driven by the launch of the TULSA-AI module and TULSA+ offerings. The company anticipates maintaining strong gross margins at approximately 71% while continuing to invest in expanding its commercial operations and R&D efforts. Specific quantitative targets were not disclosed; however, the leadership remains optimistic about achieving internal growth expectations despite recent challenges in meeting market estimates.

Additional News

In recent developments, Profound Medical announced the appointment of Tom Tamberrino as the new Chief Commercial Officer, effective immediately, to drive growth initiatives. Additionally, the company has entered a collaboration with Siemens Healthineers to expand TULSA access, aiming to enhance physician and patient reach. Furthermore, Profound Medical has been part of ongoing investigations by Bronstein, Gewirtz & Grossman, focusing on potential claims surrounding securities issues, which could affect investor sentiment moving forward.