Profound Medical (PROF) investor relations material

Executive summary

• Q2 2025 revenue was $2.2M, flat year-over-year, with $1.6M from recurring revenue and $650K from capital equipment sales; six-month revenue rose 32% to $4.8M, driven by recurring and overseas capital sales.

• Gross margin improved to 73% for the quarter, up from 64% in Q2 2024, reflecting higher manufacturing efficiency and favorable product mix.

• Net loss widened to $15.7M ($0.52/share) for the quarter, up from $6.9M ($0.28/share) year-over-year, mainly due to higher operating expenses.

• Cash balance at June 30, 2025, was $35.2M, with 30.1M shares outstanding.

• Sales pipeline remains robust, with 80 qualified leads in advanced stages and 10% sequential growth in procedure volumes.

Financial highlights

• Recurring non-capital revenue for Q2 2025 was $1.6M, up from $1.5M year-over-year; capital equipment sales were $650K, down from $773K.

• Gross profit for the quarter was $1.6M, up 14% year-over-year; for the six months, gross profit was $3.5M, up 52%.

• Operating expenses rose to $15.4M from $9.3M year-over-year, driven by R&D and SG&A.

• Net cash used in operating activities for the first half of 2025 was $22.0M, compared to $10.7M in the prior year.

• Cash position at quarter-end was $35.2M, down from $54.9M at year-end 2024.

Outlook and guidance

• Management reiterated full-year 2025 revenue growth guidance of 70–75% over 2024, supported by a strong sales pipeline and new product launches.

• Revenue mix expected to shift toward capital sales in the near term, with recurring revenue dominating long-term.

• Cash burn expected to decrease in the second half as working capital converts to cash.

• Existing cash and sales are expected to fund operations for at least the next 12 months, but additional financing may be needed by Q3 2026.

• Full launch of the TULSA-AI Volume Reduction Module and sales of the combined TULSA-PRO and Siemens MR scanner solution are targeted before year-end 2025.