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]

PROCEPT BioRobotics 2026 Investor Day Summary Company Overview - **Company**: PROCEPT BioRobotics (NasdaqGM:PRCT) - **Industry**: Medical Technology, specifically focused on urology and BPH (Benign Prostatic Hyperplasia) treatment Key Points and Arguments Market Opportunity - Approximately **400,000 patients** undergo prostate procedures annually, with only **10% market penetration** by PROCEPT, indicating significant growth potential [2][3] - There are **8 million men** seeking therapy for BPH, many dissatisfied with current drug treatments [2] - Over **1 million men** discontinue medication annually due to ineffectiveness or side effects, presenting an additional opportunity [3] Technology and Clinical Evidence - PROCEPT has developed a **game-changing technology** for BPH treatment, with over **125,000 patients** treated and **900 instruments** installed globally [4][5] - The company emphasizes the importance of clinical evidence and aims to demonstrate effective execution in the field to drive market share [4] Reimbursement and Pricing Strategy - Transitioned to **Category I reimbursement** on January 1, 2026, which enhances the narrative around reimbursement and reduces previous uncertainties [5] - Handpiece pricing has seen a **$300 increase**, with expectations for **average selling price (ASP)** to reach **$3,500** in 2026 [11] Revenue Management - Eliminated end-of-quarter volume discounts to stabilize revenue and improve ASP, leading to more predictable ordering patterns [8][9] - Anticipates a **1-to-1 ratio** of handpiece sales to procedures, which is a conservative estimate given the addition of **200+ systems** in 2026 [13][14] Sales Organization Changes - Integrated clinical and sales support teams under a single regional leader to optimize resource allocation and improve performance [15][17] - Aimed to reduce the time from purchase order to first procedures by **50%** through better coordination [21] Strategic Focus Areas 1. **Accelerating Procedure Growth**: Targeting the **10% penetration** in the surgical market and increasing awareness of Aquablation therapy [54][56] 2. **Path to Profitability**: Emphasizing the need for a clear path to profitability and improved margins [4][10] 3. **Advancing Evidence and Innovation**: Continuing to invest in clinical evidence and exploring new indications, including prostate cancer treatment [45][46] Patient-Centric Approach - Highlighting the importance of preserving **urinary and sexual function** while providing effective symptom relief [34][42] - Addressing the misalignment between physician assumptions and patient desires regarding BPH treatment [63][64] - Developing targeted patient education initiatives to increase awareness and understanding of Aquablation therapy [68] Competitive Landscape - Positioning Aquablation as a superior alternative to traditional TURP procedures, which have been around for over **100 years** [31] - Emphasizing the unique benefits of Aquablation, including reduced complications and better long-term outcomes compared to other therapies [30][43] Future Growth Opportunities - Exploring leasing pilot programs to attract customers hesitant about capital expenditures [29] - Anticipating significant growth in the prostate cancer treatment market, leveraging existing technology and expertise [45][49] Additional Important Insights - The company is committed to educating both patients and clinicians about the benefits of Aquablation, aiming to shift perceptions and increase adoption [56][67] - The focus on **durability** and **long-term outcomes** is critical, as many contemporary BPH therapies struggle to maintain market momentum due to lack of sustained effectiveness [62] This summary encapsulates the key insights and strategic directions discussed during the PROCEPT BioRobotics 2026 Investor Day, highlighting the company's growth potential, innovative technology, and commitment to patient-centered care.

Welcome to 2026 Analyst Day Matt Bacso VP, Investor Relations © 2026 PROCEPT BioRobotics Corporation. All Rights Reserved. 1 This presentation and the accompanying oral presentation also contain estimates and other statistical data made by independent parties and by us relating to market size and growth and other data about performance and the future performance of the markets in which we compete are necessarily subject to a high degree of uncertainty and risk. Exchange Commission ("SEC"), including the Ann ...

Financial Performance & Guidance - PROCEPT BioRobotics reported Q1 2024 global revenue of $445 million, an 83% year-over-year increase [22] - International revenue in Q1 2024 reached $43 million, a 65% year-over-year increase [22] - The U S installed base grew to 354 systems, an 84% year-over-year increase [22] - U S handpiece sales reached 6800, a 100% year-over-year increase [22] - The company projects total revenue for 2024 to be approximately $2135 million, representing a 57% year-over-year growth [26] - The company anticipates a gross margin of approximately 58% to 59% for 2024 [26] - Adjusted EBITDA loss is projected to be approximately $70 million for 2024 [26] - As of March 31, 2024, the company had a total cash and cash equivalents balance of $226 million and a debt balance of $52 million [27] Commercial Strategy & Market Expansion - The company aims to convert all resective BPH hospital-based procedures to Aquablation Therapy [39] - The company reports that over 95% of U S covered lives are now under signed majority IDN contracts [43] - Aquablation Therapy cases at Georgia Urology have increased 95x since 2019 [67] Prostate Cancer Research & Development - Approximately 1/3 of men with BPH also have prostate cancer, representing 300000 diagnoses per year [89] - Initial Aquablation impressions for prostate cancer show promise, with real-time imaging and surgeon confidence [113, 114] - Early results from a study (n=5) show 0% incontinence and 0% erectile dysfunction, as well as 0% actionable disease and 0% residual tumor on MRI [138, 148]