Profound Medical Corp. Q1 FY2025 earnings call

• TULSA-PRO had a strong presence at medical meetings, including the AUA, where CAPTAIN trial data was presented.
• CAPTAIN trial was a key highlight, showing TULSA's superiority over robotic radical prostatectomy with no blood loss, no overnight stay, less pain, and better health outcomes.
• Introduced TULSA AI volume reduction module for BPH, with limited release in June and full release in Q4 2025, leveraging AI for estimated procedure times.
• Developed TULSA+ program for turnkey solutions with MR devices, targeting various settings and reimbursement, with partnerships with device manufacturers.
• TULSA has Level 7 reimbursement from CMS, applicable in multiple settings, higher than competitors.

For the three months ended March 31, 2025, Profound Medical recorded revenue of $2.6 million. Recurring revenue was $1.8 million (69.23% of total revenue) and onetime sale of capital equipment was $820,000 (30.77% of total revenue). Q1 2025 revenue increased 82% from $1.4 million in Q1 2024. Gross margin in Q1 2025 was 71% compared to 60% in Q1 2024. Total operating expenses in Q1 2025 were $13 million vs. $8.7 million in Q1 2024. Net loss in Q1 2025 was $10.7 million or $0.36 per common share compared to a net loss of $6.6 million or $0.27 per common share in Q1 2024. As of March 31, 2025, ProFound had cash of $46.4 million.

• Q1 2025 revenue increased 82% from 2024, and management remains confident in 70%-75% growth for the year.
• Pipeline is back end loaded, with focus on late 2025 to reach growth goals, driven by commercial efforts and partnerships.

• The FARB trial had limitations like early closure, patient crossover, and endpoint controversy, addressed by the CAPTAIN trial.
• Uncertainties in insurance policy approvals and market adoption speed for TULSA, though efforts are underway to address these.

Q: Feedback on CAPTAIN data post-AUA A: Positive feedback, with physicians eager to use data for mainstream adoption and guidelines.

Q: Commercial insurer conversations A: Conversations ongoing, with private insurers starting to approve treatments, leveraging Medicare reimbursement.

Q: Booth activity at AUA A: High interest in TULSA and the BPH AI module, positive feedback on economic modeling and TULSA+ Q: Pipeline pacing and commercial team A: Sales team, nurse education, and market development teams in place, progressing well with US and OUS efforts.

Q: First quarter revenue and capital sales A: Capital revenue from mostly new sites, with two new sites and one conversion.

Q: TULSA+ timing and agreements A: TULSA+ expected by end of Q3, working on deals, and focused on driving TULSA procedures through partnerships