Profound Medical Corp. Q4 FY2025 earnings call

Clinical and development activities: Last year, completed recruitment in CAPTEN, the first multicenter randomized controlled trial comparing a new technology to robotic radical prostatectomy for men with localized prostate cancer, which validates TELSA as a new platform for prostate disease management. Commercial updates: As of December 31, 2025, there were 78 Tulsa Pro sites. The company's Tulsa Pro qualified sales pipeline is 110. The global commercial leadership team is strong. Recent distribution agreements in Saudi Arabia and Australia have started to bear fruit. Technical advantages: TELSA Pro uses real - time MR imaging, enabling continuous visualization and autonomous temperature adjustment; incorporates an AI - based treatment plan; enables real - time temperature monitoring; and AI enables cleaner margins. BPH treatment module: Tulsa AI Volume Reduction is changing the BPH treatment paradigm, streamlining workflow and reducing procedure time to 60 - 90 minutes.

For the three - month period ended December 31, 2025, the company recorded revenue of $6 million. Recurring revenue was $2.3 million, accounting for approximately 38.3% of total revenue, and one - time sale of capital equipment was $3.7 million, accounting for approximately 61.7% of total revenue. Fourth quarter 2025 revenue was up 43% from $4.2 million in the same period a year ago. Close margin in Q4 2025 was 67%, compared to 71% in Q4 2024. Total operating expenses in the 2025 fourth quarter were $11.4 million compared with $11.3 million in the fourth quarter of 2024. The company recorded a fourth quarter 2025 net loss of $8.2 million or 27 cents per common share compared to a net loss of approximately $4.9 million or 20 cents per common share in the same period of 2024. As of December 31, 2025, Profound had cash of $59.7 million.

Expect cash flow to decline and eventually turn cash flow positive as revenues continue to grow and margin remains high. Expect high double - digit to low triple - digit revenue growth. Anticipate BPH module usage to increase, with at least 30 - 40 sites using it by mid - 2026.

Q: For private payers, commentary on commercial insurers paying for it and reversal of rejections.

A: Number of patients going through private is increasing, typical payments between 1.5 to 2.5x of Medicare, tracking better than 90% on coverage and reversals from rejections.

Q: Dynamics of utilization and non - capital revenue sequential decline.

A: Trend of increasing usage continues, rate of usage to increase faster in 2026, ratio of capital versus recurring in product mix will be more capital heavy in next couple of years but long - term primarily recurring revenue.

Q: Installs for 2026 and bottlenecks.

A: Shipping in double digits in Q4, increasing logistics and operations, looking to put a warehouse in US to streamline shipments.

Q: Recurring revenue question.

A: 20% growth was year - over - year, no discounting on disposable price, recurring revenue quarter - over - quarter not directly correlate to usage.

Q: 2026 growth expectations.

A: Feel confident in number of sites, in range of high double - digit to low triple - digit growth.

Q: CAPTN trial data release.

A: Early data release won't compromise trial, is level one trial, expects early data to accelerate reimbursement timelines for private payers.

Q: Cash flow positivity threshold.

A: Cash burn is decreasing with revenue increase, projecting towards cash flow positive as revenue grows.

Q: TOLTA installation progress and pacing.

A: Trying to standardize announcing numbers, generally increasing quarter - over - quarter.

Q: BPH module usage and international expansion.

A: At least 10 sites using BPH module, by mid - 2026 at least 30 - 40 sites; international market has distributors, US is main focus but seeing good interest in Asian markets.

Q: Utilization per site.

A: Think 50 procedures per site per year is reasonable, ultimate number expected to be higher, average utilization per site to increase materially in second half of 2026