PROCEPT BioRobotics Corporation Q1 FY2026 earnings call

Over the past six months, the organization was reset with focus on operational excellence, accountability, and commercial discipline. Total revenue of $83.1 million reported, with procedures in U.S. ~12,200. Handpiece field inventory levels and customer purchasing behavior normalized. Sold 49 hydro systems in U.S. with positive customer response to AquaBeam replacement program. Established price discipline with U.S. hydro system average selling price at an all-time high. Realigned commercial team into integrated regional structure and advanced dedicated launch team. Gross margins at 65% in Q1, expecting modest sequential increase. Clinical updates include EAU updating guidelines for aqua ablation therapy, first international launch of hydros in UK, FDA clearance on second generation first assist AI software, and approaching completion of patient enrollment in Water Force study.

Total revenue for the first quarter of 2026 was $83.1 million, representing 20% year-over-year growth. U.S. revenue was $72 million, with approximately 12,200 U.S. procedures completed, representing ~30% year-over-year growth. Handpieces sold were approximately 95% of procedures. Total U.S. handpiece and other consumable revenue was $43 million, up 13% year-over-year. Total U.S. system revenue was $23.4 million, up 25% year-over-year, with 49 hydro systems sold at an average selling price of ~$485,000. International revenue was $11.1 million, up 25% year-over-year.

Full year 2026 total revenue expected in range of ~390 to $410 million, growth ~27 to 33% vs 2025. International revenue expected 50 to $51 million. U.S. procedures expected 60 to 64,000, growth ~39 to 48%. U.S. system pricing expected 450 to $460,000 for remainder of year. Full year gross margin expected ~65%. Adjusted EBITDA loss expected in range of $30 to $17 million. Q2 2026 total revenue expected in range of $91 to $95 million, growth 15 to 20%.

Forward-looking statements subject to risks, uncertainties, assumptions. Non-GAAP financial measures have risks. Market competition risks. Regulatory change risks. External factors like severe weather may impact procedures.

Q: Broader question on Q1 strength on capital side, ASP benefit, and handpiece disruption.

A: Capital quarter broad-based, pricing discipline implemented. Handpiece sales disruption from sales force realignment, transition phase with re-establishing account relationships, expecting procedure momentum to build.

Q: Guidance on Q2, ASP benefit, confidence in back half.

A: Q2 guidance midpoint ~93 million, confidence in full-year guide increased by Q1 performance but prudent to maintain current expectations.

Q: Procedures flat quarter over quarter, quantify disruption from commercial order changes and inventory destocking, underlying demand softening.

A: Q1 procedures flat due to normal seasonality and sales force realignment transition, expecting procedure momentum to build throughout year.

Q: Handpiece sales below one-to-one target, residual stocking impact, future handpiece sales vs procedures.

A: Handpiece sales fluctuate, normalized, confident in full-year one-to-one ratio.

Q: Clarification on system ASP range, full-year average, confidence.

A: System ASP range for remainder of year, full-year average towards upper end, confidence in achieving full-year guide increased by Q1 performance.

Q: New initiatives, proof points show up fastest.

A: Confidence in launch teams, patient awareness pilots with lag between patient awareness and procedure, launch teams building benefit throughout year.

Q: Reimbursement and aqua ablation procedure APC level potential.

A: Not built into modeling, focused on current reimbursement levels and procedure efficiency.

Q: Replacement systems outlook.

A: Encouraged by early start, replacement program to be honed in 2026, bigger part of story in 2027.

Q: Severe weather impact on procedures.

A: Severe weather impact not materially affecting quarter, team focuses on rescheduling.

Q: UK opportunity and international.

A: UK is biggest in Europe, excited about launch, evaluating other European markets, international to become bigger part of story over time.

Q: Q1 procedures light, acceleration in second half.

A: First half slower than second half, seasonality, sales force roles maturing, launch teams contributing in back half.

Q: Q2 guidance midpoint below street, reason.

A: Prudent to keep expectations reasonable, nothing unique in Q2, confident in trajectory.

Q: Utilization in sites, share capture.

A: Sites highly variable, focus on pure procedure growth, map out systems and drive procedure growth.

Q: Water4 readout impact.

A: No data known yet, positive data potential disruptive for prostate cancer, focused on running trial and presenting data.

Q: Procedure utilization segmentation.

A: Early in launch model, confident in launch team model, focus on tracking metrics and driving procedure numbers.

Q: System ASP guide, reconcile Q1 vs remainder.

A: Customer mix, drive price discipline, measured in modeling, bodes well for rest of year.

Q: Sales funnel driven by surgeon champion vs admin.

A: Tighter on ensuring surgeon champion and administrative support, Q1 results had no large IDN sales, view as viable technology across broader network.

Q: Gross margin cadence.

A: Q1 gross margin 65%, modest expansion in Q2-Q3, fourth quarter expected 66+%, full-year margin at 65%.