PROCEPT BioRobotics (US:PRCT)2025-11-05 22:15Financial Performance - Revenue for Q3 2025 reached $83.3 million, a 42.7% increase from $58.4 million in Q3 2024[15] - Gross profit for Q3 2025 was $54.0 million, compared to $36.9 million in Q3 2024, reflecting a gross margin improvement[15] - Net loss for Q3 2025 was $21.4 million, slightly higher than the net loss of $21.0 million in Q3 2024[15] - The company reported a comprehensive loss of $21.2 million for Q3 2025, compared to a comprehensive loss of $21.0 million in Q3 2024[15] - For the nine months ended September 30, 2025, the net loss was $65.727 million, an improvement from a net loss of $72.557 million in the same period of 2024, representing a decrease of approximately 9.4%[21] - Total revenue for the three months ended September 30, 2025, was $83.3 million, a 42.7% increase from $58.4 million in the same period of 2024[62] - Total revenue for the nine months ended September 30, 2025, reached $231.7 million, up 48.1% from $156.3 million in the prior year[62] Expenses and Costs - Research and development expenses for Q3 2025 were $18.2 million, up from $16.6 million in Q3 2024, indicating continued investment in innovation[15] - Selling, general and administrative expenses increased to $59.0 million in Q3 2025 from $42.7 million in Q3 2024, reflecting higher operational costs[15] - Total stock-based compensation recognized for the three months ended September 30, 2025, was $14.5 million, an increase from $8.5 million in the same period of 2024[50] Assets and Liabilities - Total current assets decreased to $454.8 million as of September 30, 2025, down from $481.8 million at December 31, 2024[13] - Total liabilities remained stable at $131.3 million as of September 30, 2025, compared to $131.7 million at December 31, 2024[13] - Cash and cash equivalents were $294.3 million as of September 30, 2025, down from $333.7 million at December 31, 2024[13] - The total stockholders' equity decreased to $380.3 million as of September 30, 2025, from $402.2 million at December 31, 2024[13] - Total inventory as of September 30, 2025, increased to $66.715 million from $56.168 million as of December 31, 2024, reflecting an increase of approximately 18.7%[35] - The allowance for credit losses increased to $2.266 million as of September 30, 2025, compared to $840,000 at the end of 2024, marking a significant increase of 170.5%[34] Cash Flow - Cash used in operating activities for the nine months ended September 30, 2025, was $38.658 million, compared to $66.822 million in 2024, indicating a reduction of about 42.2%[21] - The Company reported net cash provided by financing activities of $6.753 million for the nine months ended September 30, 2025, compared to $9.597 million in 2024, a decrease of approximately 29.3%[21] - The total cash and cash equivalents as of September 30, 2025, were $294.281 million, down from $333.725 million at the end of 2024, representing a decrease of about 11.8%[32] Regulatory and Compliance - The Company received FDA clearance for its next-generation HYDROS Robotic System on August 20, 2024, enhancing its product offerings in the surgical robotics market[23] - The Company plans to adopt new accounting standards related to income tax disclosures in the year ending December 31, 2025, which are not expected to have a material impact on its financial statements[28] - The company determined that new federal tax legislation enacted in July 2025 did not have a material impact on its financials due to a full valuation allowance on deferred tax assets and liabilities[63] Market and Operational Insights - U.S. revenue for the three months ended September 30, 2025, was $73.9 million, representing a 41.5% increase from $52.2 million in 2024[62] - Revenue from handpieces and other consumables in the U.S. increased by 50% to $44.4 million for the three months ended September 30, 2025, compared to $29.6 million in 2024[62] - The company operates as a single operating segment, with no customers accounting for more than 10% of revenue during the nine months ended September 30, 2025[67] - The company's assets are primarily based in the United States, with 89% of revenue coming from the U.S. for the three months ended September 30, 2025[68] Future Commitments - Future minimum annual operating lease payments total $37.6 million, with a present value of future payments at $27.4 million as of September 30, 2025[47] - The Company’s future minimum annual debt repayments total $52.0 million, with a present value of future payments at $51.6 million[44] - The Company’s minimum cash holdings requirement at CIBC stipulates that if cash and cash equivalents are less than $50.0 million, 100% must be maintained at CIBC[42] Interest Rates and Financial Metrics - The weighted-average interest rate for the Term Loan Facility was 6.7% for the period ending September 30, 2025, down from 7.7% in 2024, indicating a decrease of approximately 13%[40] - The Company had 3.7 million stock options outstanding as of September 30, 2025, with an aggregate pre-tax intrinsic value of $79.8 million[51] - As of September 30, 2025, the Company had $13.9 million of unrecognized stock-based compensation expense related to stock options[52] - Employer contributions to the defined contribution retirement savings plan were $0.7 million for the three months ended September 30, 2025, compared to $0.5 million in 2024[72] - The company's exposure to market risks related to interest rates, credit, and foreign currency exchange rates has not changed materially since December 31, 2024[117]