Profound Medical Corp (TSX:PRN)

Q2 2026 Profound Medical Corp Earnings Call Transcript

Aug 6, 2026 / 08:30 PM GMT

Release Date Price: C$11.1 (-0.98%)

Transcript 10-Q8-K

Key Points

Positve

Profound Medical Corp (PROF) reported strong underlying Q2 2026 performance, with revenue growing 153% year-over-year to approximately $5.6 million when excluding a $3.1 million shipment timing issue, and the company reiterated its full-year 2026 revenue guidance of approximately $25 million, representing 56% growth.
The company's gross margin improved to 78% in Q2 2026, up from 73% in the prior year period, and management remains confident in sustaining gross margins above its stated 70% target over the long term.
Profound Medical Corp (PROF) is seeing accelerating commercial momentum, evidenced by a record month for new orders in July, a qualified sales pipeline of approximately $70 million, and over 160 qualified leads generated at the SRS 2026 conference.
Reimbursement tailwinds are strengthening, with the CMS proposed 2027 OPPS rule showing a 14.9% increase in Tulsa's payment to $15,494 per procedure, which is 44% higher than Haifu and 26% higher than robotic prostatectomy, expanding the economic premium for hospitals.
Clinical evidence continues to build, with CAPTAIN trial data demonstrating statistically superior quality of life outcomes, including better preservation of urinary continence, erectile function, and penile length compared to robotic radical prostatectomy, which is expected to support broader payer coverage decisions.
Payer coverage is expanding rapidly, with approximately 18.3 million covered lives added in Q2 2026, including the first-ever employer-owned health plans (Johns Hopkins and Theme Healthcare) listing the Tulsa procedure as a covered service, bringing total covered lives to nearly 30 million (excluding Medicare).

Negative

Profound Medical Corp (PROF) experienced a $3.1 million revenue recognition timing issue in Q2 2026, as Tulsa product shipments originally anticipated in June were completed in July, causing reported revenue to only increase 12% year-over-year to $2.5 million, which does not fully reflect the company's sales performance.
The company's same-store sequential quarterly growth, as measured by its new index 20, declined by 12% in Q2 2026, primarily due to five sites not realizing expected growth because of short-term issues, including one site that paused treatments during a transition from a placement to a capital model.
The proposed CMS 2027 rule for Ambulatory Surgical Centers (ASCs) would reduce Tulsa's payment to $6,866, a decrease that the company attributes to hospital cost reporting issues, and it currently has no active ASC sites, limiting near-term growth in this channel.
The company continues to incur significant net losses, reporting a net loss of $9.5 million in Q2 2026, although this is an improvement from the $15.7 million loss in the prior year period, and the path to profitability remains dependent on continued revenue growth and expense management.
There is a notable gap between product shipments and installations, with the installed base only increasing by 4 systems in Q2 2026 to 84, as sites typically take 60 to 120 days to become fully operational after receiving a system, which can delay revenue recognition and utilization growth.
The company faces ongoing competitive and operational hurdles, including the need to correct hospital cost reporting that drove the proposed ASC payment reduction, and management acknowledges that the timing of converting its $70 million pipeline into recognized revenue is uncertain and can vary significantly.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

PRN.TO - Profound Medical Corp
Q2 2026 Profound Medical Corp Earnings Call
Aug 06, 2026 / 08:30PM GMT

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Presentation
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Unidentified_1 [1]
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Good day and thank you for standing by.

Welcome to profound Medical second quarter 2026 financial results conference call.

At this time, all participants are in listen-only mode after the speaker's presentation, there will be a question-and-answer session.

To ask a question during the session, you will need to press star 11 on your telephone.

You will then hear an automated message advising your hand is raised.

To withdraw your question, please press 11 again.

Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your first speaker today, Stephen Kilmer, Investor Relations.

Thank you.

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