Profound(PROF) - 2025 Q1 - Quarterly Results

Business Highlights Profound Medical achieved 82% Q1 2025 revenue growth, driven by TULSA procedure flexibility and new Urology APC Level 7 codes, with plans for TULSA-AI and TULSA+ launches in H2 2025 - Q1 2025 revenue grew 82% compared to Q1 2024[4] - The company's new Urology APC Level 7 codes provide a competitive advantage with higher payment levels and applicability in more settings (hospitals, ASCs, imaging centers, offices) compared to peers at Level 6[3] - Profound plans to launch two new offerings in the second half of 2025: the TULSA-AI module for BPH and the TULSA+ total interventional-MRI solution[3] TULSA-PRO Patient Treatment Mix (Q1 2025) | Category | Breakdown | | :--- | :--- | | Indication | 82% Prostate Cancer, 10% Hybrid (Cancer & BPH), 8% Salvage | | Cancer Grade | 11% GG1, 64% GG2, 17% GG3, 8% GG4 & GG5 | | Ablation Type | 33% Whole Gland, 31% Sub-total, 18% Hemi-ablation, 18% Focal | | Prostate Size | 6% <20cc, 38% 20-40cc, 39% 40-60cc, 13% 60-100cc, 4% >100cc | - Initial data from the CAPTAIN trial presented at AUA 2025 showed that MRI-guided TULSA offered statistically significant improvements in post-operative experience versus robotic radical prostatectomy, including no blood loss, no overnight stay, and reduced pain[4] Financial Performance Profound Medical's Q1 2025 revenue reached $2.6 million with 71% gross margin, but increased operating expenses led to a $10.7 million net loss, ending with $46.4 million cash Q1 2025 Financial Summary Profound's Q1 2025 revenue grew 82% to $2.6 million, with gross margin at 71%, but operating expenses rose 49% to $13.0 million, resulting in a $10.7 million net loss Q1 2025 vs Q1 2024 Financial Highlights | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $2.6M | $1.4M | +82% | | - Recurring Revenue | $1.8M | $1.4M | +28% | | - Capital Equipment | $0.8M | $0 | N/A | | Gross Margin | 71% | 60% | +11 p.p. | | Operating Expenses | $13.0M | $8.7M | +49% | | Net Loss | $10.7M | $6.6M | +62% | | Net Loss per Share | $0.36 | $0.27 | +33% | - The increase in operating expenses was driven by investments to expand the commercial organization, increased variable compensation, accelerated R&D, and higher travel and conference costs[7] Liquidity and Share Capital Profound Medical maintained $46.4 million in cash as of March 31, 2025, with 30,053,142 common shares outstanding as of May 8, 2025 Liquidity and Share Capital Overview | Item | Amount | As of Date | | :--- | :--- | :--- | | Cash | $46.4 million | March 31, 2025 | | Common Shares Outstanding | 30,053,142 | May 8, 2025 | Condensed Consolidated Balance Sheets Profound's total assets decreased to $60.9 million by March 31, 2025, primarily due to reduced cash, leading to a decline in shareholders' equity to $50.8 million Balance Sheet Summary (in thousands USD) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash | $46,433 | $54,912 | | Total Current Assets | $59,912 | $69,065 | | Total Assets | $60,864 | $70,234 | | Total Current Liabilities | $5,295 | $6,565 | | Total Liabilities | $10,074 | $9,812 | | Total Shareholders' Equity | $50,790 | $60,422 | Condensed Consolidated Statements of Operations Q1 2025 revenue rose to $2.6 million and gross profit to $1.9 million, but increased operating expenses, especially SG&A, resulted in an $11.2 million operating loss and $10.7 million net loss Statement of Operations (in thousands USD) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Revenue | $2,621 | $1,439 | | Gross Profit | $1,853 | $866 | | Research and development | $4,808 | $3,945 | | Selling, general and administrative | $8,211 | $4,798 | | Total operating expenses | $13,019 | $8,743 | | Operating loss | ($11,166) | ($7,877) | | Net loss | ($10,724) | ($6,585) | | Loss per share | $0.36 | $0.27 | Condensed Consolidated Statements of Cash Flows Q1 2025 saw $8.3 million net cash used in operations, leading to an $8.5 million decrease in cash, ending the quarter with $46.4 million Cash Flow Summary (in thousands USD) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($8,283) | ($4,529) | | Net cash provided by (used in) financing activities | ($290) | $20,456 | | Net increase (decrease) in cash | ($8,573) | $15,927 | | Cash, end of period | $46,433 | $41,180 | Corporate Information and Products Profound Medical is a medical device company focused on incision-free therapies, primarily TULSA-PRO for prostate diseases and Sonalleve for uterine fibroids and bone metastases - TULSA-PRO is the company's primary commercialized technology, combining real-time MRI, AI-enhanced planning, and robotically-driven ultrasound to treat the entire prostate disease spectrum from cancer to BPH[13] - Sonalleve is a therapeutic platform commercialized for uterine fibroids and palliative pain treatment of bone metastases, with potential for expansion into other areas like abdominal cancers[15] - The company will host a conference call at 4:30 pm ET to discuss the financial results, with a live webcast available on its investor relations website[11]