Profound Medical 2025 Q3 Earnings Beats Revenue Estimates with 87% Growth and 31.6% EPS Improvement

Profound Medical (PROF) delivered a standout third quarter, reporting $5.29 million in revenue—a 86.8% year-over-year increase—and narrowing its net loss to $7.98 million. The stock surged post-earnings, with a 14.36% single-day rally, driven by strong revenue performance and strategic progress in its TULSA-PRO platform.

Revenue

Recurring non-capital revenue led the charge with $4.07 million, while capital equipment sales contributed $1.22 million, culminating in a total of $5.29 million. This 86.8% growth exceeded the $5.03 million consensus estimate, reflecting robust adoption of its minimally invasive therapies.

Earnings/Net Income

The company reduced its per-share loss to $0.26 in Q3 2025, a 31.6% improvement from $0.38 in Q3 2024. Despite this progress, the $7.98 million net loss underscores ongoing operational challenges, with losses narrowing by 14.8% compared to $9.37 million in the prior year. The 31.6% reduction in per-share losses highlights progress, though sustained profitability remains a challenge.

Post-Earnings Price Action Review

The stock’s post-earnings momentum was pronounced, with a 14.36% surge in the latest trading day, 14.55% gain over the week, and an 18.92% month-to-date increase. This outperformance was fueled by strong revenue results and optimism around the Saudi Arabia distribution agreement, which expanded market access for its TULSA-PRO and Sonalleve technologies.

CEO Commentary

While the earnings report highlights operational progress, the CEO emphasized the need for continued investment in R&D and market expansion. Strategic priorities include scaling TULSA-PRO installations to 75 units by year-end and leveraging the Saudi deal to enter the Middle East’s largest healthcare market.

Guidance

The company did not issue formal guidance for Q4 2025 but reiterated confidence in its 70–75% revenue growth target for the year, driven by TULSA-AI advancements and the CAPTAIN trial.

Additional News

1. Saudi Distribution Deal: Profound secured an exclusive agreement with Al Faisaliah Medical Systems for TULSA-PRO and Sonalleve in Saudi Arabia, expanding its footprint in the Middle East’s largest healthcare market.

2. Zacks Earnings Analysis: The Zacks Rank upgraded the stock to a #3 (Hold) following improved revenue estimates and mixed earnings revisions, citing potential alignment with market performance.

3. Financial Health Update: Despite a 31.6% EPS improvement, the company’s Altman Z-Score of 1.49 signals financial distress, though strong liquidity ratios (current ratio: 8.53) offset some risk.

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