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Profound Medical
(TSX:PRN)
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Rating:50Neutral
Price Target:
C$8.00
▼(-19.19% Downside)
Action:Reiterated
Date:10/09/26
The score is held back primarily by weak financial quality—deep losses and significant negative free cash flow—despite strong revenue growth and high gross margins. Earnings-call commentary is comparatively constructive (reiterated guidance, improving expense discipline, expanding coverage and pipeline), but technicals remain soft with the stock still below key longer-term moving averages. Valuation provides limited support due to negative earnings and no dividend.
Positive Factors
Rapid growth with strong gross margins
Rapid revenue growth combined with gross margins above 70% supports a potentially attractive long-term business model. If growth continues, strong unit economics can provide operating leverage as the installed base expands and recurring procedure revenue becomes more meaningful.
Negative Factors
Deep losses and substantial cash burn
Large ongoing losses and negative free cash flow show that current revenue is not yet sufficient to fund operations. Continued cash burn may require external financing before scale benefits arrive, reducing financial flexibility and increasing execution pressure over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Rapid growth with strong gross margins
Rapid revenue growth combined with gross margins above 70% supports a potentially attractive long-term business model. If growth continues, strong unit economics can provide operating leverage as the installed base expands and recurring procedure revenue becomes more meaningful.
Read all positive factors
Profound Medical (PRN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$299.93M
Dividend YieldN/A
Average Volume (3M)12.41K
Price to Earnings (P/E)―
Beta (1Y)1.73
Revenue Growth59.60%
EPS Growth32.53%
CountryCA
Employees162
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.97
Shares Outstanding36,532,593
10 Day Avg. Volume12,710
30 Day Avg. Volume12,408
Financial Highlights & Ratios
PEG Ratio-0.20
Price to Book (P/B)3.58
Price to Sales (P/S)14.48
P/FCF Ratio-6.07
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$15.83Price Target Upside59.86% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)-0.82
Revenue Forecast (FY)C$25.75M
Profound Medical Business Overview & Revenue Model
Company Description
Profound Medical Corp., along with its subsidiaries, operates as a commercial-stage medical technology firm. The company specializes in creating magnetic resonance (MR) guided ablation therapies designed to address prostate conditions, uterine fib...
How the Company Makes Money
Profound Medical primarily makes money by selling its capital equipment platform (the TULSA-PRO system) to hospitals and healthcare centers, and by generating recurring revenue from disposable and procedure-related consumables used each time a tre...
Profound Medical Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call conveyed strong commercial and clinical momentum: improving revenue trends (when adjusted for a one-time shipment timing shift), high gross margins, declining operating expenses, a growing $70M qualified sales pipeline, expanding payer coverage (Q1+Q2 added ~26.8M covered lives and Medicare tailwinds), and compelling randomized clinical evidence (CAPTAIN) that differentiates TULSA on quality-of-life outcomes. Challenges include a $3.1M revenue recognition timing slip, short-term utilization dips at a few sites during model transitions, installation/logistics lags, a proposed ASC reimbursement reduction to monitor, and continued net losses though improving. On balance, the positives — notably the sizable pipeline, reimbursement tailwinds, high margins, and strengthening clinical data — materially outweigh the operational and timing headwinds.Positive Updates
Revenue Growth (Reported and Adjusted)
Reported Q2 FY26 revenue of $2.5M (recurring $1.6M; capital equipment $0.871M), a 12% increase versus $2.2M in Q2 FY25. Excluding a $3.1M shipment timing shift, Q2 revenue would have been ~$5.6M, representing ~153% year-over-year growth.
Negative Updates
Revenue Recognition Timing Issue
A consolidated shipment (~$3.1M of TULSA product) anticipated in late June shipped in July due to missing delivery receipts, shifting revenue recognition from Q2 into Q3 and materially reducing reported Q2 revenue versus expected.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth (Reported and Adjusted)
Reported Q2 FY26 revenue of $2.5M (recurring $1.6M; capital equipment $0.871M), a 12% increase versus $2.2M in Q2 FY25. Excluding a $3.1M shipment timing shift, Q2 revenue would have been ~$5.6M, representing ~153% year-over-year growth.
Read all positive updates
Company Guidance
The company reiterated full‑year 2026 revenue guidance of approximately $25.0M (≈56% growth vs. 2025) and expects full‑year gross margin to remain at 70%+; Q2 revenue was $2.5M (recurring $1.6M; capital $0.871M), up 12% YoY (but would have been ≈$5.6M, +153% YoY, excluding a $3.1M shipment timing shift), Q2 gross margin ~78% (vs. ~73% prior year), total operating expenses $13.0M (down 16% from $15.4M), net loss $9.5M or $0.26/share (vs. ~$15.7M or $0.52/share), and cash of $38.3M at June 30, 2026; installs totaled 84 TULSA PRO systems at quarter end, the qualified sales pipeline is ≈$70M (≈90% TULSA/10% Sonalleve; ~70% U.S./30% international), Index‑20 utilization was -12% sequential but +39% H1‑2026 vs H1‑2025 (+22% YoY), July set a monthly orders record and SRS generated ~160 qualified leads, coverage expanded by ~18.3M lives in Q2 (≈8.5M in Q1; ~30M total covered lives excluding Medicare), and CMS’s proposed 2027 OPPS would pay $15.5K/procedure for TULSA (+14.9%), versus $10.8K for HIFU and $12.3K for Aquablation (TULSA +44% vs HIFU/Aquablation; +26% or ~$3.19K vs robotic RP); ASC proposed payment is $6.87K and physician payment ~$880 for TULSA (vs $865 HIFU, $1,060 robotic RP, $539 Aquablation).Profound Medical Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
58
Neutral
Cash Flow
27
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 18.97M | 16.38M | 10.68M | 7.20M | 6.68M | 6.87M |
| Gross Profit | 13.61M | 11.59M | 7.04M | 4.38M | 3.02M | 2.95M |
| EBITDA | -33.43M | -41.41M | -32.13M | -27.00M | -26.60M | -28.65M |
| Net Income | -32.42M | -43.32M | -27.82M | -28.57M | -28.67M | -30.70M |
Balance Sheet | ||||||
| Total Assets | 62.28M | 140.62M | 70.23M | 43.91M | 64.42M | 86.78M |
| Cash, Cash Equivalents and Short-Term Investments | 38.21M | 59.61M | 54.91M | 26.21M | 46.52M | 67.15M |
| Total Debt | 7.37M | 4.70M | 5.12M | 7.87M | 8.30M | 1.38M |
| Total Liabilities | 12.56M | 74.30M | 9.81M | 12.73M | 12.42M | 6.16M |
| Stockholders Equity | 49.73M | 66.31M | 60.42M | 31.18M | 52.00M | 80.62M |
Cash Flow | ||||||
| Free Cash Flow | -35.79M | -39.05M | -23.45M | -22.61M | -25.80M | -22.95M |
| Operating Cash Flow | -35.61M | -38.88M | -23.45M | -22.61M | -25.80M | -22.36M |
| Investing Cash Flow | -246.24K | -246.24K | 0.00 | 0.00 | 0.00 | -583.04K |
| Financing Cash Flow | 41.43M | 41.86M | 54.70M | 1.76M | 7.03M | 5.95M |
Profound Medical Technical Analysis
Neutral
9.90
Price Trends
8.73
Negative
9.29
Negative
9.27
Negative
Market Momentum
-0.21
Positive
45.83
Neutral
23.32
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PRN, the sentiment is Neutral. The current price of 9.9 is above the 20-day moving average (MA) of 8.56, above the 50-day MA of 8.73, and above the 200-day MA of 9.27, indicating a bearish trend. The MACD of -0.21 indicates Positive momentum. The RSI at 45.83 is Neutral, neither overbought nor oversold. The STOCH value of 23.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:PRN.
Profound Medical Risk Analysis
Profound Medical disclosed 68 risk factors in its most recent earnings report. Profound Medical reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Profound Medical Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | C$299.93M | -6.06 | -62.45% | ― | 59.60% | 32.53% | |
47 Neutral | C$9.37M | -5.57 | -34.32% | ― | -5.42% | -5.37% | |
46 Neutral | C$20.71M | -1.06 | -303.05% | ― | 35.27% | 58.34% | |
46 Neutral | C$15.43M | -6.13 | 56.40% | ― | 89.06% | 37.62% | |
43 Neutral | C$62.10M | -14.08 | -130.04% | ― | -24.86% | 18.29% |
* Healthcare Sector Average
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Profound Medical Corporate Events
Business Operations and StrategyProduct-Related Announcements
Profound Medical Taps Cook iMRI Partnership to Expand TULSA-PRO Reach in U.S.
Positive
Oct 30, 2026
Profound Medical has signed a U.S. supply and distribution agreement with Cook Medical’s iMRI Division to add its TULSA-PRO prostate ablation system to Cook’s Copernicus program and iMRI Suite offering. The deal creates a new capital e...
Business Operations and StrategyProduct-Related Announcements
Profound Medical Enlists Montel Williams to Amplify Prostate Care Advocacy
Positive
Oct 22, 2026
Profound Medical is expanding its patient advocacy initiative, Let’s Huddle, by featuring Emmy Award-winning television host and health advocate Montel Williams in a November 5 webinar. The program, led by Global Patient Ambassador Leonard W...
Business Operations and StrategyProduct-Related Announcements
Profound Medical, Telix Join Forces to Advance PSMA-Guided Prostate Care
Positive
Oct 9, 2026
Profound Medical has entered into a co-education agreement with Telix Pharmaceuticals to jointly educate urologists, radiologists, nuclear medicine physicians and prostate cancer centers on integrating PSMA-PET imaging with MRI-guided TULSA-PRO th...
Business Operations and StrategyFinancial Disclosures
Profound Medical Forecasts Record Q3 Revenue, Far Exceeds Street Estimates
Positive
Oct 7, 2026
Profound Medical expects to report record preliminary third-quarter 2026 revenue of between $9.8 million and $10.0 million, far ahead of Wall Street forecasts. The company estimates year-over-year growth of roughly 85% to 89% and a sequential jump...
Business Operations and StrategyExecutive/Board Changes
Profound Medical Taps Industry Veteran Richard Fabian as President in Leadership Realignment
Positive
Sep 1, 2026
Profound Medical has appointed industry veteran Richard Fabian as president, reinforcing its executive bench as it scales its interventional MRI-based platforms in prostate care and non-invasive oncology applications. Fabian, a former CEO of FUJIF...
Business Operations and StrategyExecutive/Board Changes
Profound Medical Names Industry Veteran Richard Fabian as President in Leadership Realignment
Positive
Sep 1, 2026
Profound Medical has appointed veteran healthcare executive Richard Fabian as its new President, while former President Mathieu Burtnyk transitions to the newly created role of Chief Technology Officer. Fabian brings nearly three decades of experi...
Business Operations and StrategyFinancial Disclosures
Profound Medical Boosts Orders, Narrows Loss as TULSA Adoption and Coverage Expand
Positive
Aug 6, 2026
Profound Medical reported second-quarter 2026 results marked by strong order intake, high margins and tighter cost control, even as some revenue was pushed into early third quarter due to shipment timing. New purchase orders exceeded $7.0 million,...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.