Profound Medical (PROF) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $5.3 million (CAD 5.3 million), up 104% year-over-year, driven by recurring and capital equipment sales in the US and internationally.

• Gross margin improved to 72% from 71% in Q1 2025, attributed to a favorable product mix and higher-margin capital equipment sales.

• Net loss narrowed to $7.0 million (CAD 7 million), or $0.19 per share, from $10.7 million ($0.36/share) a year ago, a 34% improvement.

• Cash position at quarter-end was $50.3 million, supporting ongoing commercialization and development.

• Operating expenses decreased 9% year-over-year, mainly due to lower SG&A and other costs.

Financial highlights

• Recurring revenue was $2.5 million; capital equipment sales were $2.9 million in Q1 2026.

• Eight systems sold in Q1; two installed, six shipped but not yet installed (revenue recognized on shipment).

• Gross profit rose 107% to $3.8 million, with cost of sales at $1.5 million, up 96% year-over-year.

• R&D expenses increased 9% to $5.3 million, while SG&A expenses fell 20% to $6.6 million.

• Net finance income was $0.4 million, and net foreign exchange gain was $0.6 million.

Outlook and guidance

• Full-year 2026 revenue guidance set at $25 million (CAD 25 million), representing 56% growth over the prior year.

• Gross margin for 2026 expected to be 70% or higher.

• Targeting 120 installations by end of 2026, with a long-term goal of 200 sites performing at least 50 cases per year to achieve profitability.

• Existing cash and product sales expected to fund operations and capital needs for at least the next 12 months.

• Management remains bullish on business prospects and will adjust guidance as needed.