Profound Medical 2025 Q2 Earnings Deepening Losses Amid 126.8% Net Loss Increase

Profound Medical (PROF) reported its fiscal 2025 Q2 earnings on August 14, 2025, with results underscoring ongoing financial challenges. The company delivered slightly below-expected revenue and significantly wider losses year-over-year, with no upward revision to its full-year guidance.

Profound Medical’s Q2 revenue declined modestly by 1.0% to $2.21 million, compared to $2.23 million in the same period in 2024. The company maintained its revenue structure, with recurring non-capital revenue accounting for the majority at $1.56 million. Capital equipment sales contributed $650,000, reflecting ongoing efforts to shift its business model toward capital-based sales. Despite this, recurring revenue remained the dominant component of total revenue.

The earnings report highlighted a significant deterioration in profitability. The company’s net loss widened to $15.70 million in 2025 Q2, representing a 126.8% increase from the $6.92 million loss in the prior-year quarter. On a per-share basis, the loss expanded to $0.52, a 85.7% increase from $0.28 in 2024 Q2. These figures underscore the persistent financial headwinds that Profound Medical has faced for the past six years.

Post-earnings price action revealed mixed signals for investors. Over the latest trading day, the stock rose 4.33%, but fell 2.29% for the week and 2.81% month-to-date. Despite the short-term volatility, a historical strategy of purchasing shares on the day of the earnings announcement and holding for 30 days has historically yielded an average gain of 12.5% per quarter, outperforming the SPY ETF’s 2.5% return.

Arun Swarup Menawat, CEO of Profound Medical, expressed cautious optimism during the earnings call, emphasizing the company’s strategic focus on the TULSA-PRO pipeline and its recently launched TULSA-AI volume reduction software for BPH. These innovations aim to improve procedural efficiency and enable more procedures per day. Menawat also highlighted the significance of the upcoming CAPTAIN trial data, expected to be disclosed at major medical conferences in late 2025 and early 2026, which could drive inclusion in treatment guidelines and accelerate adoption. Additionally, he noted progress in reimbursement developments and the transition to a capital equipment sales model, despite near-term delays in capital sales.

For the full year 2025, the CEO reiterated revenue growth guidance of 70% to 75% compared to 2024, with a short-term shift toward capital sales, though recurring revenue is projected to dominate long-term at approximately 70%. The company currently has 80 qualified TULSA-PRO leads in the contracting stage, and Menawat expressed confidence in back-end-loaded performance, citing streamlined sales processes and improved organizational alignment.

The company is also preparing for significant developments in late 2025, including the 1-year CAPTAIN trial data disclosures at RSNA and SUO in December, and full trial results expected at AUA 2026.

Additional News

In recent news from the Nigerian business and political landscape, Nigeria's two dominant political parties, the Peoples Democratic Party (PDP) and the All Progressives Congress (APC), have rejected a Canadian court ruling that labeled them as terrorist organizations. The ruling, issued by a Federal court in Canada, was met with strong condemnation from both parties, who view it as an unjust and politically motivated decision.

Meanwhile, in a significant development related to public security and health, the Dangote Group has pledged full medical support for the injured sister of Big Brother Naija (BBNaija) contestant Phyna. The support was announced following public appeals for aid, reflecting the growing trend of corporate social responsibility among major Nigerian conglomerates.

In another noteworthy incident, the EFCC has launched a new sting operation, this time denying accusations that it was targeting former President Olusẹgun Obasanjo. The agency has announced plans to arraign key suspects in court, signaling continued efforts to combat economic and political corruption in the country.