Profound(PROF) - 2025 Q4 - Annual Results

Revenue Performance - Q4 2025 revenue reached a record $6.0 million, growing 43% year-over-year and 13% sequentially[2] - Full year 2025 revenue was approximately $16.1 million, up from $10.7 million in 2024, with $9.7 million from recurring non-capital revenue[10] - Total revenue for the year ended December 31, 2025, was $16,098,000, representing a 50.5% increase from $10,680,000 in 2024[28] Gross Margin and Profitability - Gross margin for Q4 2025 was 67%, down from 71% in the prior year, primarily due to product mix and introductory pricing[7] - Full year 2025 gross margin improved to 71%, compared to 66% in the prior year, driven by increased selling prices and capital system sales[11] - Gross profit for the year ended December 31, 2025, was $11,393,000, up from $7,037,000 in 2024, indicating a gross margin improvement[28] Operating Expenses - Total operating expenses for Q4 2025 were approximately $11.4 million, slightly up from $11.3 million in the prior year[8] - Total operating expenses for the full year 2025 were approximately $52.6 million, up from $40.1 million in 2024, due to increased headcount and trial-related costs[12] - Operating expenses for the year increased to $52,647,000 in 2025 from $40,099,000 in 2024, primarily driven by higher research and development costs[28] Net Loss - The net loss for Q4 2025 was approximately $8.2 million, or $0.27 per share, compared to a net loss of $4.9 million, or $0.20 per share, in Q4 2024[9] - The net loss attributed to shareholders for the year was $42,570,000, compared to $27,816,000 in 2024, reflecting increased investment in growth initiatives[29] Cash and Assets - The company had cash of approximately $59.7 million as of December 31, 2025[14] - Cash and cash equivalents at the end of 2025 were $59,723,000, an increase from $54,912,000 at the end of 2024[30] - Total current assets rose to $76,089,000 in 2025, up from $69,065,000 in 2024, driven by increases in cash and inventory[26] Liabilities and Financing - Total liabilities increased to $11,041,000 in 2025 from $9,812,000 in 2024, with long-term debt rising to $4,499,000[27] - The company issued common shares worth $42,436,000 in 2025, compared to $62,106,000 in 2024, indicating a decrease in financing activities[31] Research and Development - Research and development expenses for the year were $20,596,000, up from $16,965,000 in 2024, reflecting ongoing investment in product development[28] Market and Product Outlook - The TULSA-PRO installed base increased to 78 systems, with expectations to reach approximately 120 installs by the end of 2026[2] - 67% of patients treated with TULSA-PRO in Q4 2025 were for prostate cancer only, with a diverse patient profile including hybrid and salvage cases[2] - The company anticipates continued growth in revenues from its TULSA-PRO and Sonalleve systems, although specific future revenue expectations were not disclosed[25]