PROCEPT BioRobotics (PRCT) investor relations material

Strategic initiatives and organizational changes

• Implemented a new launch team structure, reallocating tenured staff and establishing regional leadership to improve system launches and utilization efficiency.

• Launch team model aims to halve the time from purchase order to first 10 cases, with a goal for over half of new systems in 2024 to launch under this model.

• Commercial restructuring separates launch and utilization teams, focusing the latter solely on same-store sales growth.

• Incentive plans simplified to reward productivity, not behaviors, driving higher accountability and performance.

• Organizational changes rolled out in January, with strong internal enthusiasm and stable attrition rates.

Inventory management and sales dynamics

• Achieved near 1-to-1 handpiece inventory to procedure volume ratio, eliminating prior overstocking driven by end-of-quarter incentives.

• Inventory equilibrium reached, with ongoing monitoring and adjustments as 200+ new systems are placed in 2024.

• Discontinued volume-based discounts, returning customers to contracted prices without renegotiation.

• Inventory levels now reflect natural usage patterns, supporting guidance and reducing revenue downside risk.

Capital strategy and forward-looking guidance

• System placements for 2026 modeled to remain flat versus 2025, with pricing stable or slightly up.

• Initiating a replacement strategy for legacy systems, offering trade-in credits to upgrade to HYDROS, with a larger focus expected in 2027–2028.

• Exploring operational leases to expand access, with pilots planned for 2024 and broader rollout in future years.

• 2026 is positioned as a build year to develop capabilities for future replacement and leasing strategies.