Profound Medical (NASDAQ:PROF) Issues Earnings Results

Profound Medical (NASDAQ:PROF) announced its quarterly earnings results on Thursday. The company reported $0.26 EPS for the quarter, topping the consensus estimate of ($0.22) by $0.48, Zacks reports. Profound Medical had a negative return on equity of 78.88% and a negative net margin of 206.76%.

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

• Full-year outlook maintained: Profound reported Q2 revenue of CAD 2.5 million, up 12% year over year, but said approximately CAD 3.1 million of shipments slipped into July. Excluding the timing issue, revenue would have been about CAD 5.6 million, and management reiterated its CAD 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 CAD 70 million, with roughly 90% attributed to TULSA-PRO. Proposed 2027 Medicare reimbursement would pay hospitals CAD 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 CAD 38.3 million in cash and reduced its net loss to CAD 9.5 million from CAD 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

PROF traded down $0.05 during trading on Thursday, reaching $7.94. The company had a trading volume of 87,851 shares, compared to its average volume of 121,187. The firm’s 50-day simple moving average is $6.97 and its 200 day simple moving average is $6.80. The company has a market cap of $288.54 million, a price-to-earnings ratio of -6.40 and a beta of 0.73. Profound Medical has a 12-month low of $3.76 and a 12-month high of $8.95.

Analysts Set New Price Targets

Several research firms recently commented on PROF. Raymond James Financial upgraded Profound Medical from an “outperform” rating to a “strong-buy” rating and set a $11.00 price target on the stock in a research note on Monday, July 27th. Weiss Ratings raised shares of Profound Medical from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Wednesday, July 29th. One equities research 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 stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $11.50.

Institutional Investors Weigh In On Profound Medical

A number of large investors have recently made changes to their positions in the company. Alyeska Investment Group L.P. bought a new position in Profound Medical during the fourth quarter valued at approximately $5,340,000. Rosalind Advisors Inc. lifted its stake in shares of Profound Medical by 54.4% in the 4th quarter. Rosalind Advisors Inc. now owns 1,068,955 shares of the company’s stock valued at $8,413,000 after purchasing an additional 376,770 shares during the last quarter. FIL Ltd boosted its holdings in Profound Medical by 16.7% in the fourth quarter. FIL Ltd now owns 2,200,000 shares of the company’s stock worth $17,270,000 after purchasing an additional 315,000 shares in the last quarter. Essex Investment Management Co. LLC acquired a new position in Profound Medical during the fourth quarter worth $2,437,000. Finally, Velan Capital Investment Management LP acquired a new position in Profound Medical during the fourth quarter worth $2,249,000. Institutional investors and hedge funds own 47.86% of the company’s stock.

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.