PROCEPT BioRobotics Investor Day: 2026 growth targets, higher ASPs, and profitability roadmap

Core Insights - PROCEPT BioRobotics is shifting its sales strategy by eliminating end-of-quarter volume discounts to stabilize revenue and improve average selling prices (ASPs) [1][6][8] - The company has treated over 125,000 patients globally and has more than 900 instruments installed, marking a significant milestone with the transition to Category I reimbursement [2][4] - The market for benign prostatic hyperplasia (BPH) presents a large opportunity, with current Aquablation penetration at about 10% of the 400,000 annual prostate procedures [3][4] Financial Targets - For 2026, PROCEPT expects revenue between $390 million and $410 million, representing a growth of 27% to 33%, with a target of 60,000 to 64,000 procedures and a gross margin of 65% [7][26] - The adjusted EBITDA loss is projected to be between $30 million and $17 million, with expectations of positive EBITDA in Q4 2026 [7][26] - The company anticipates over 25% revenue growth in 2027, aiming for a business exceeding $500 million and positive adjusted EBITDA of $25 million to $30 million [7][26] Product and Market Strategy - PROCEPT is pursuing a whole-gland prostate cancer strategy with the pivotal WATER IV trial, which is expected to complete procedures by mid-year and present results at AUA in 2027 [5][19] - The company is focusing on improving handpiece ASP to approximately $3,500 by 2026, which is a $300 increase from historical levels, and aims for a one-to-one alignment of handpiece sales to procedures [9][8] - A commercial reorganization has been implemented to enhance execution by integrating clinical and sales support under a single leadership structure [10][12] Marketing and Patient Engagement - The marketing strategy emphasizes increasing patient awareness and share capture, with current unaided awareness of Aquablation at only 1% to 2% [14][15] - Targeted digital engagement strategies are being developed for medically managed patients, focusing on those who are on BPH medications and have high discontinuation rates [15][16] Operational Improvements - The company has made operational changes to reduce time from purchase order to the completion of initial cases, achieving a 50% reduction in ramp-up time at new sites [12] - PROCEPT plans to offer trade-in credits for older systems to encourage replacements and is exploring leasing pilot programs, although leasing is not expected to be a major part of 2026 [13]