Profound Medical (NASDAQ:PROF) Posts Quarterly Earnings Results, Misses Expectations By $0.02 EPS

Profound Medical (NASDAQ:PROF) issued its earnings results on Thursday. The company reported ($0.21) EPS for the quarter, missing analysts’ consensus estimates of ($0.19) by ($0.02), Zacks reports. Profound Medical had a negative net margin of 171.57% and a negative return on equity of 63.03%. The firm had revenue of $9.83 million during the quarter, compared to the consensus estimate of $8.82 million.

Here are the key takeaways from Profound Medical’s conference call:

• Third-quarter revenue rose 86% year over year to $9.8 million, and gross margin improved to 78% from 74%. Net loss narrowed slightly to $7.7 million, while operating cash use fell to $5.0 million; operating expenses nevertheless increased 21% to $15.5 million.
• Profound expects 2026 revenue of at least $25 million and gross margin of 70% or higher, and says cash on hand and sales should fund operations and capital needs for at least 12 months. The company has no immediate fundraising plans, but says it may evaluate financing options.
• The TULSA-PRO installed base reached 98 systems, and the company reported its 5,000th procedure in October; its qualified pipeline totaled about $79.2 million. Management cautioned that pipeline opportunities may not convert on a predictable timeline and said improving customer utilization remains a priority.
• A new Cook Medical distribution agreement is intended to broaden system sales, while Profound will continue selling disposables and service directly to customers. Management expects the TULSA Plus program to begin contributing in the second half of 2027 and forecasts overall gross margins of 70%–75% under the agreement.
• Richard Fabian will become CEO on January 14, 2027, with Arun Menawat moving to executive chair and continuing to support strategy. Fabian identified pipeline conversion, customer utilization, and operational efficiency as key execution priorities as the company scales.

Profound Medical Stock Up 4.8%

Shares of PROF traded up $0.33 during trading hours on Friday, reaching $7.21. 322,372 shares of the company traded hands, compared to its average volume of 358,158. The company has a market capitalization of $263.60 million, a price-to-earnings ratio of -7.75 and a beta of 0.79. The company’s fifty day moving average price is $6.24 and its two-hundred day moving average price is $6.66. Profound Medical has a 12 month low of $4.80 and a 12 month high of $8.95.

Analysts Set New Price Targets

A number of research analysts have weighed in on PROF shares. Raymond James Financial raised shares of Profound Medical from an “outperform” rating to a “strong-buy” rating and set a $11.00 price objective on the stock in a research note on Monday, July 27th. Wall Street Zen upgraded Profound Medical from a “sell” rating to a “hold” rating in a research note on Saturday, October 10th. Finally, Weiss Ratings lowered Profound Medical from a “sell (d-)” rating to a “sell (e+)” rating in a report on Friday, October 23rd. One equities research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Profound Medical has a consensus rating of “Moderate Buy” and a consensus price target of $11.50.

Key Stories Impacting Profound Medical

Here are the key news stories impacting Profound Medical this week:

• Positive Sentiment: Profound Medical forecast at least $25 million in 2026 revenue and expects its Cook Medical distribution channel to ramp up in 2027. The outlook and expanded U.S. distribution could support future growth. Article: Profound Medical projects at least $25M 2026 revenue as Cook Medical channel ramps in 2027
• Positive Sentiment: Third-quarter revenue was $9.83 million, above the $8.82 million analyst consensus. The quarterly loss narrowed to $0.21 per share from $0.26 a year earlier. Article: Profound Medical Reports Strong Third Quarter 2026 Results
• Negative Sentiment: The quarterly loss of $0.21 per share was slightly larger than the $0.19 loss analysts expected, and the company remains unprofitable. This could temper the positive reaction to the revenue beat and growth outlook. Article: Profound Medical Reports Q3 Loss, Beats Revenue Estimates

Profound Medical Company Profile

Profound Medical Corp. is a medical-technology company focused on developing and commercializing minimally invasive, incision-free treatments for prostate disease. The company’s flagship platform, TULSA-PRO, combines magnetic resonance imaging (MRI) with robotic-controlled transurethral ultrasound to ablate targeted prostate tissue while enabling physicians to monitor treatment in real time.

TULSA-PRO is primarily used for the treatment of localized prostate cancer and other prostate conditions, including benign prostatic hyperplasia.