PROCEPT BioRobotics Corporation Q4 FY2025 earnings call

Larry mentioned joining Procept and outlining a near-term plan. The company realigned the commercial team into an integrated regional structure with clinical and sales functions reporting to a common regional leader. Formed a dedicated launch team to drive consistent launches. In Q4, procedures grew ~69% YOY but handpiece unit sales were 80% of procedures, leading to lower than expected revenue but higher average selling price. Kevin walked through financials, noting gross margin details and operating expenses increase. Larry previewed investor day with detailed multi-year financial guidance, path to profitability, and update on Water 4 prostate cancer trial.

In the fourth quarter of 2025, total revenue was $76.4 million, with U.S. revenue at $66.6 million (10% YOY growth) and international revenue at $9.8 million (25% YOY growth). U.S. procedures were approximately 12,200 (69% YOY growth). Handpieces sold totaled 9,400 units with an average selling price of ~$3,340 (5% sequential increase). Other consumable revenue was $2.3 million. U.S. robot placements: 65 new hydro systems sold in Q4, installed base at 718 systems (42% increase YOY). 2026 total revenue guidance is 390 - $410 million (27 - 33% annual growth), U.S. procedures expected to be 60,000 - 64,000 (39 - 48% growth), gross margin expected to be ~65% (including $5 - $6 million tariff expense), operating expenses expected to be $350 million, adjusted EBITDA loss expected to be $30 - $17 million. Q1 2026 U.S. procedures expected 12,000 - 12,800 (29 - 37% growth), total revenues expected $79 - $82 million.

2026 total revenue expected 390 - $410 million (27 - 33% growth YOY). 2026 U.S. procedures expected 60,000 - 64,000 (39 - 48% growth). Q1 2026 U.S. procedures expected 12,000 - 12,800 (29 - 37% growth), total revenues expected $79 - $82 million. Gross margin expected ~65% in 2026 including $5 - $6 million tariff expense. Operating expenses expected $350 million in 2026, adjusted EBITDA loss $30 - $17 million in 2026 with positive EBITDA in Q4 2026 at low and high ends of revenue range.

Forward-looking statements subject to risks, uncertainties, assumptions. Changes in customer ordering behavior and commercial reorganization may cause short-term disruption. Inventory levels and handpiece sales to procedure volume ratio changes could impact revenue. Tariff expenses and potential variability in clinical durability and payer coverage for PAE could affect business. Disruption from sales realignment and launch team formation may cause short-term challenges.

Q: Matthew O'Brien asked about Q4 unfoldment and handpiece inventory drawdown, Larry and Kevin responded.

Q: Chris Pasquale asked about confidence in one-to-one handpiece to procedure ratio, Larry answered.

Q: Josh Jennings asked about customer dissatisfaction and utilization, Larry and Josh had a discussion.

Q: Richard Newwitter asked about system pricing and placement, Larry and Kevin replied.

Q: Brandon Vasquez asked about confidence in growth despite noise, Larry responded.

Q: Suraj Kalia asked about why changes were made now, Larry answered.

Q: Michael Sarcone asked about launch team and procedure growth split, Larry replied.

Q: Mason Torrico asked about IDN strategy and patient activation, Larry answered.

Q: Stephanie Piazzolla asked about procedure walk and ASP uplift, Larry and Kevin responded.

Q: Daniela Taffy asked about market development and ASC capacity, Larry answered.

Q: Mike Kratke asked about handpiece inventory buildup and field action impact, Larry and Kevin replied.

Q: Nathan Trebek asked about utilization and capital funnel, Larry and Kevin answered