Profound Medical Corp.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 6 August 2026: press release. Guidance figures: 1 new, 2 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue rose 12% in the quarter: Second quarter revenue was about $2.5 million, up 12%. Recurring non-capital revenue was $1.6 million and capital equipment sales were $871,000. Source
• $3.1 million of shipments moved to July: Shipments originally expected in the final week of June were completed in July, moving revenue into the third quarter. The company said this did not reflect any change in customer demand. Source
• Full-year revenue target reiterated: Management reiterated full-year 2026 total revenue of about $25.0 million, which it said represents 56% growth on the prior year. Source
• Record $7.0 million of new orders: New purchase orders in the quarter topped $7.0 million, a quarterly record for the company. Source
• Gross margin rose to 78%: Gross margin was 78% against 73% a year earlier, reflecting product mix including capital systems previously sold under operating leases. Source
• Operating expenses down 16%: Operating expenses fell 16% to about $13.0 million, mainly on lower personnel, commercial, travel, insurance and CAPTAIN trial costs after enrollment completed. Source

“Commercial momentum continued to accelerate during the second quarter,”

Arun Menawat, CEO and Chairman

Guidance

What changed from last quarter

• Guidance kept: Full-year 2026 total revenue projection of about $25.0 million was reiterated. Source
• Guidance kept: Full-year 2026 gross margin of 70% or higher was kept. Source
• New: Two employer-owned health plans now list the TULSA Procedure as a covered service. Source
• New: A new initiative will explore combining PSMA PET imaging with the TULSA Procedure. Source
• New: New penile length preservation data from the CAPTAIN trial was presented in July 2026. Source

Results and growth drivers

• Revenue rose 12% in the quarter: Second quarter revenue was about $2.5 million, up 12%. Recurring non-capital revenue was $1.6 million and capital equipment sales were $871,000. Source
• $3.1 million of shipments moved to July: Shipments originally expected in the final week of June were completed in July, moving revenue into the third quarter. The company said this did not reflect any change in customer demand. Source
• Growth excluding shipment timing: Excluding the shipment timing, second quarter revenue would have been about $5.6 million, which the company said represents 153% year-over-year growth. Source
• First-half revenue and capital sales: Six-month revenue was $7.8 million against $4.8 million a year earlier. Capital equipment revenue was $3.7 million against $1.5 million. Source
• Net loss narrowed 39%: Net loss was $9.5 million, or $0.26 per share, against $15.7 million, or $0.52 per share, a year earlier. Source
• Full-year revenue target reiterated: Management reiterated full-year 2026 total revenue of about $25.0 million, which it said represents 56% growth on the prior year. Source

Installed base and clinical use

• Installed base reached 84 systems: The TULSA-PRO installed base increased to 84 at the end of the second quarter. Source
• Malignant tissue was most ablations: Malignant prostate tissue accounted for 71% of uses, split 12% GG1, 58% GG2, 21% GG3 and 9% GG4&5. Malignant and benign enlarged tissue was 14%, recurrent malignant 11%, benign enlarged 4%. Source
• Whole-gland ablation led regional use: Whole-gland ablation was 43% of uses, subtotal but more than half the gland 24%, hemi-ablation 21% and focal therapy 12%. Source
• Prostate size mix by volume: Prostates under 20 cc were 8% of cases, 20-40 cc 39%, 40-60 cc 31%, 60-100 cc 17% and over 100 cc 5%. Source
• Index site volume declined sequentially: The 20-site TULSA INDEX20 averaged 10.0 procedures in Q2-2026, down 12% from 11.3 in Q1. First-half volume grew 39% over the prior year. Source
• Index tracks a fixed site cohort: The index follows 20 active commercial sites with no changes or substitutions, all performing TULSA Procedures for at least 12 months. 80% are in the U.S. and 20% international. Source

“Based on continued payer coverage expansion, growing clinical validation, and a strengthening sales pipeline, we believe we are now in the”

Arun Menawat, CEO and Chairman

Payer coverage expansion

• 18.3 million covered lives added: Payer coverage expanded by about 18.3 million covered lives in the second quarter, which the company said broadens patient access. Source
• Medicaid drove most new lives: Most of the newly covered lives came through state Medicaid and managed Medicaid programs, including Ambetter. Source
• Employer plans list the procedure: Johns Hopkins and Prime Healthcare employee health plans, covering more than 50,000 and 55,000 people, are the first employer-owned plans to list the procedure. Source
• First-quarter coverage gain for comparison: The first quarter added about 8.5 million covered lives, including 6.9 million from Humana alone.

Demand and order book

• Record $7.0 million of new orders: New purchase orders in the quarter topped $7.0 million, a quarterly record for the company. Source
• Orders recognized and July shipments: About $2.5 million of the quarter's orders were recognized as revenue, while about $3.1 million shipped in July and will be recognized in the third quarter. Source
• July set another order record: Momentum continued into the third quarter, with July setting another monthly record for new order activity. Source
• SRS2026 drew over 160 prospects: Physician engagement at the SRS2026 meeting generated more than 160 qualified commercial prospects over four days, the company said. Source
• Qualified pipeline about $70 million: The qualified sales pipeline for TULSA-PRO and Sonalleve is estimated at about $70.0 million, counting deals in verify, negotiate and contracting stages. Source
• Pipeline conversion not assured: The company stated there can be no assurance about the extent or timing of pipeline converting into recognized revenue. Source

Margins and operating costs

• Gross margin rose to 78%: Gross margin was 78% against 73% a year earlier, reflecting product mix including capital systems previously sold under operating leases. Source
• Operating expenses down 16%: Operating expenses fell 16% to about $13.0 million, mainly on lower personnel, commercial, travel, insurance and CAPTAIN trial costs after enrollment completed. Source
• R&D spending partly offset savings: Higher R&D on product cost reduction, quality and manufacturing efficiency partly offset the savings. The income statement shows R&D of $5.7 million against $6.1 million. Source
• Selling, general and administrative costs fell: Selling, general and administrative expense was $7.4 million against $9.3 million in the second quarter of the prior year. Source

Strategy and clinical programs

• CAPTAIN penile data presented: CAPTAIN Level 1 randomized data continued to show statistically significant advantages over robotic prostatectomy, and penile length data was presented in July. Source
• Physician awareness expanded at meetings: Physician awareness and engagement grew through presentations at the SIR, AUA and SRS meetings in 2026. Source
• PSMA PET integration initiative launched: The company launched an initiative to explore combining PSMA PET molecular imaging with the TULSA Procedure for intention-to-treat decisions and patient monitoring. Source

Cash, balance sheet and shares

• Cash of $38.3 million at June 30: Cash was about $38.3 million at June 30, 2026. Source
• Operating cash use over six months: Net cash used in operating activities was $19.9 million for the six months ended June 30, 2026, against $22.0 million a year earlier. Source
• No financing cash flows this year: Financing cash flows were nil in the first six months of 2026, against $0.3 million of debt repayments in 2025. Source
• Long-term debt shown as current: Long-term debt of $4.5 million is classified as current at June 30, 2026, compared with non-current at December 31, 2025. Source
• Right-of-use assets increased: Right-of-use assets rose to $2.8 million from $0.2 million at December 31, 2025, with lease liabilities of about $2.9 million. Source
• Shares outstanding at August 6: Common shares outstanding were 36,532,594 at August 6, 2026. Source

Coming up, as management said on 6 August 2026

• Third-quarter revenue recognition: About $3.1 million of shipments completed in July will be recognized as revenue in the third quarter. Source

Figures management reported

Risks management discussed

• Operational: Revenue timing depended on shipment logistics; the company said the issue was temporary and has since been resolved. Source
• Demand: Management noted there is no assurance on the extent or timing of pipeline conversion into recognized revenue. Source

Earlier plans management reported on

• Not stated: Management reiterated the $25.0 million total revenue bar it had set earlier for 2026. Source
• Not stated: Shipments planned for the final week of June were completed in July, according to the company. Source

Other quarters

• Q3 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 results
• Q3 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.