Profound Medical’s Q4 2025 revenue rose 43% year-over-year, driven by higher system sales and recurring service contracts. Gross margin declined to 67% from 71% due to product mix and introductory pricing, while net loss widened to $8.2 million on elevated operating expenses of $11.4 million and a sequential drop in non-capital revenue.

The company completed its Captain trial, establishing Tulsa as a new prostate management platform, and secured distribution agreements in Saudi Arabia and Australia, resulting in multiple system sales. A strong sales pipeline of 110 systems nearing closure underscores growing international demand.

Management expects cash flow positivity as system utilization increases and reimbursement rates improve, with private payers covering procedures at 1.5 to 2.5 times Medicare and over 90% success in overturning denials. New catalysts such as the BPH treatment module and Captain trial data are projected to accelerate recurring revenue growth in 2026 despite scaling and installation challenges.