EDAP Reports Strong Second Quarter 2025 HIFU Results

Core Insights - EDAP TMS SA reported its strongest second quarter performance in company history, with a net total of 12 Focal One Robotic HIFU Systems placed, driven by increased customer demand from both U.S. and international markets [2][6] - The company executed a letter of intent with the European Investment Bank for a credit facility of 36 million Euros to support the expansion of its Focal One platform and focused ultrasound technologies [2][8] - The company anticipates continued growth in demand for Focal One treatments as more prostate cancer patients recognize its advantages, supported by recent clinical studies [2][6] Financial Performance - Total revenue in the HIFU business for Q2 2025 was EUR 8.5 million (USD 9.7 million), a 76.8% increase from EUR 4.8 million (USD 5.2 million) in Q2 2024 [6][9] - The company recorded a 23.9% year-over-year growth in worldwide disposable revenue, with Focal One procedures growing 4.8% in the U.S. [6][9] - Total worldwide revenue for Q2 2025 was EUR 16.0 million (USD 18.4 million), a slight increase of 1.6% compared to EUR 15.8 million (USD 17.0 million) in Q2 2024 [9] Business Segments - The non-core business (ESWL and Distribution) revenue for Q2 2025 was EUR 7.6 million (USD 8.7 million), down from EUR 11.0 million (USD 11.8 million) in Q2 2024, reflecting a strategic focus on the high-growth HIFU opportunity [7][9] - For the first half of 2025, total revenue in the HIFU business was EUR 14.7 million (USD 16.1 million), a 38.5% increase from EUR 10.6 million (USD 11.4 million) in the same period of 2024 [13] - The non-core business revenue for the first half of 2025 was EUR 15.0 million (USD 16.5 million), a 25.7% decrease compared to EUR 20.1 million (USD 21.7 million) in the first half of 2024 [14] Profitability Metrics - Gross profit for Q2 2025 was EUR 6.8 million (USD 7.8 million), with a gross profit margin of 42.5%, up from 37.5% in Q2 2024 [10] - Operating loss for Q2 2025 was EUR 5.8 million (USD 6.6 million), an improvement from an operating loss of EUR 6.1 million (USD 6.6 million) in Q2 2024 [11] - Net loss for Q2 2025 was EUR 5.6 million (USD 6.4 million), or EUR (0.15) per share, compared to a net loss of EUR 6.1 million (USD 6.6 million), or EUR (0.16) per share in Q2 2024 [12] Future Outlook - The company updated its 2025 financial guidance, expecting core HIFU business revenue growth to be between 26% and 34% year-over-year, up from the previous range of 16% to 25% [5][7] - The combined non-core ESWL and Distribution business revenue is expected to decline between 25% and 30% year-over-year [5][7] - The company will present at the H.C. Wainwright 27th Annual Global Investment Conference in New York City from September 8-10, 2025 [4]