Profound Medical (NASDAQ:PROF) Posts Earnings Results, Beats Expectations By $0.48 EPS

Profound Medical (NASDAQ:PROF) released its quarterly earnings data on Thursday. The company reported $0.26 EPS for the quarter, beating analysts’ consensus estimates of ($0.22) by $0.48, Zacks reports. The business had revenue of $2.48 million during the quarter, compared to the consensus estimate of $4.75 million. Profound Medical had a negative return on equity of 24.14% and a negative net margin of 66.62%.

Here are the key takeaways from Profound Medical’s conference call:

• Full-year outlook maintained: Profound reported Q2 revenue of 2.5 million, up 12% year over year, but said approximately 3.1 million of shipments slipped into July. Excluding the timing issue, revenue would have been about 5.6 million, and management reiterated its 25 million 2026 revenue target, representing 56% growth.
• Commercial momentum and reimbursement are expanding: The qualified sales pipeline for TULSA-PRO and Sonalleve reached approximately 70 million, with roughly 90% attributed to TULSA-PRO. Proposed 2027 Medicare reimbursement would pay hospitals 15,494 per TULSA procedure, a growing premium over HIFU, Aquablation, and robotic prostatectomy, while other payer coverage expanded by approximately 18.3 million lives in Q2.
• Clinical evidence continues to support TULSA: Management highlighted CAPTAIN trial results showing statistically better quality-of-life outcomes than robotic prostatectomy, including preservation of urinary continence and erectile function, fewer serious complications, faster recovery, and no overnight stay. New data also indicated no median penile-length reduction after TULSA versus a 0.65-centimeter reduction after robotic surgery at one month.
• Execution and utilization remain uneven: The company experienced shipment-recognition delays because delivery receipts were not received before quarter-end, while five sites underperformed expectations and sequential utilization declined 12%. Profound said it is adding logistics and operating personnel, and that installations typically require 60–120 days after shipment to begin treating patients.
• Financial position and growth investments: Profound ended Q2 with 38.3 million in cash and reduced its net loss to 9.5 million from 15.7 million a year earlier, while maintaining gross margin of at least 70%. Management expects operating expenses to rise as it expands its teams, but continues to target a path toward profitable growth.

Profound Medical Stock Performance

NASDAQ:PROF traded down $0.53 on Friday, reaching $7.41. The company’s stock had a trading volume of 129,260 shares, compared to its average volume of 114,965. Profound Medical has a 1-year low of $3.76 and a 1-year high of $8.95. The business’s 50-day moving average price is $6.98 and its two-hundred day moving average price is $6.81. The firm has a market cap of $269.28 million, a PE ratio of -16.11 and a beta of 0.73.

Hedge Funds Weigh In On Profound Medical

Several institutional investors have recently modified their holdings of PROF. Goldman Sachs Group Inc. lifted its stake in Profound Medical by 56.8% in the fourth quarter. Goldman Sachs Group Inc. now owns 18,727 shares of the company’s stock valued at $147,000 after buying an additional 6,787 shares in the last quarter. Corsair Capital Management L.P. acquired a new stake in shares of Profound Medical during the fourth quarter worth $208,000. Millennium Management LLC acquired a new stake in shares of Profound Medical during the fourth quarter worth $211,000. Quadrature Capital Ltd bought a new stake in Profound Medical in the 4th quarter valued at $256,000. Finally, Hohimer Wealth Management LLC bought a new stake in Profound Medical in the 4th quarter valued at $394,000. Institutional investors own 47.86% of the company’s stock.

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on the stock. Raymond James Financial upgraded shares of Profound Medical from an “outperform” rating to a “strong-buy” rating and set a $11.00 price target on the stock in a research report on Monday, July 27th. Weiss Ratings raised shares of Profound Medical from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Wednesday, July 29th. One investment analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and one has given a Sell rating to the company. According to MarketBeat, Profound Medical currently has an average rating of “Moderate Buy” and a consensus target price of $11.50.

About Profound Medical

Profound Medical Corp is a medical technology company headquartered in Toronto, Canada, that specializes in the development and commercialization of minimally invasive therapeutic solutions using magnetic resonance–guided ultrasound ablation. The company’s proprietary platform delivers focused ultrasound energy to targeted tissue under real-time MR imaging, offering a non-incisional alternative to traditional surgical approaches.

The company’s lead product, the TULSA-PRO system, is designed for the treatment of prostate conditions, including localized prostate cancer and benign prostatic hyperplasia.