GET DAILY SIGNALSProfound Medical (PROF) Posts Strong 86% Revenue Growth in Q3 2026
Key Takeaways
- Third-quarter 2026 revenue rose 86% year over year to $9.8 million, led by capital equipment sales of its TULSA-PRO platform.
- Net loss narrowed to $7.7 million, or $0.21 per share, compared with $8.0 million, or $0.26 per share, a year earlier — but came in slightly wider than the $0.19 consensus loss.
- Gross margin expanded to 78% from 74% in the prior-year quarter, reflecting favorable product mix and price discipline.
- Cash used in operating activities fell 56% sequentially to $5.0 million, with the company ending September with roughly $33.3 million in cash.
- Management raised its full-year 2026 revenue outlook to "at least $25 million" and reaffirmed a gross margin of 70% or higher.
- New distribution and partnership agreements with Cook Medical and Telix, plus a planned CEO transition in January 2027, set the stage for the next phase of growth.
- For more detail, explore Profound Medical's Major News, Today's Price Move, Price Targets, and Forecast pages.
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Why These Results Matter in Context
Profound Medical is a commercial-stage medical device company focused on interventional MRI procedures, with its flagship TULSA-PRO platform enabling MRI-guided, incision-free prostate ablation. As a pre-profitability company, its quarterly results are closely watched less for earnings than for evidence of commercial traction: revenue growth, installed-base expansion, procedure utilization, and the pace of cash consumption. The third quarter of 2026 marks an important inflection point as management works to convert a growing pipeline and broader payer coverage into system placements and recurring procedure revenue, while a leadership transition looms on the horizon. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Breaking Down the Reported Figures
For the three months ended September 30, 2026, Profound Medical reported total revenue of $9.8 million, up 86% from $5.29 million in the third quarter of 2025 and slightly above the roughly $9.8 million consensus estimate. Revenue comprised $5.7 million from capital equipment sales and $4.1 million in recurring non-capital revenue from single-use devices and extended-warranty services.
Gross margin improved to 78% from 74% a year earlier, while operating expenses increased 21% to $15.5 million, driven by higher headcount, commissions, travel, and consulting costs, partly offset by lower clinical-trial spending after completion of CAPTAIN trial enrollment.
The net loss narrowed 3% to approximately $7.7 million, or $0.21 per common share, compared with approximately $8.0 million, or $0.26 per share, in the prior-year quarter. The per-share loss was slightly wider than the $0.19 consensus expectation. Cash used in operating activities fell to $5.0 million from $11.3 million in the second quarter of 2026.
The company ended the quarter with 98 TULSA-PRO systems installed, a qualified sales pipeline of about $79.2 million, and approximately $33.3 million in cash. Management raised its 2026 revenue outlook to "at least $25 million" and reiterated a full-year gross margin of 70% or higher.
Investor Reaction to the Quarter
Investor reaction to Profound Medical's third-quarter results was shaped by a tension between strong top-line momentum and a bottom line that still fell short of expectations. The record revenue and improved gross margin underscored accelerating adoption of TULSA-PRO, but the slightly wider-than-expected per-share loss and a roughly $3.1 million portion of revenue that management said reflected shipments slipping from the prior quarter prompted closer scrutiny of the underlying growth trajectory. Sentiment also centered on the retirement of the company's "Index 20" utilization metric, which reduced transparency around procedure-volume trends just as utilization becomes a key proof point, and on the outlook for the Cook Medical and Telix partnerships.
What to Watch in the Months Ahead
Looking ahead, investors will be watching several catalysts tied to Profound Medical's push toward sustainable, profitable growth.
The newly signed supply and distribution agreement with Cook Medical, which adds TULSA-PRO to Cook's Copernicus iMRI offering, is a central focus. Management has indicated the material revenue contribution from this channel is not expected until the second half of 2027, making near-term execution still dependent on the company's direct sales team. A co-education partnership with Telix is expected to expand physician outreach, though its commercial impact will take time to develop.
Reimbursement remains another key factor. Management highlighted the CMS 2027 final rule, which set ambulatory surgery center reimbursement for the TULSA procedure at roughly $11,400 — a level management views as competitive with robotic surgery in hospital settings. Progress on payer coverage, including the addition of about 10.7 million covered lives during the quarter, will also be important to watch.
Finally, a leadership transition adds a layer of execution risk to monitor. Richard Fabian is set to become CEO on January 14, 2027, with current CEO Arun Menawat moving to executive chairman. Investors will likely focus on how the new leadership converts the company's expanding pipeline and installed base into accelerating recurring revenue while preserving the improving gross-margin profile and moderating cash burn.
Enhancing Research with AI Tools
In my own work, I regularly turn to Tickeron’s AI Screener when evaluating companies like this one. The tool lets me quickly filter for technical patterns, fundamentals, and performance metrics across the sector, which helps surface relevant comparisons and potential setups without spending hours on manual analysis. It has become a practical part of how I prepare for earnings reviews and portfolio reviews.
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
PROF's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for PROF turned positive on October 30, 2026. Looking at past instances where PROF's MACD turned positive, the stock continued to rise in 35 of 42 cases over the following month. The odds of a continued upward trend are 83%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 30, 2026. You may want to consider a long position or call options on PROF as a result. In 63 of 91 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 69%.
PROF moved above its 50-day moving average on October 30, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for PROF crossed bullishly above the 50-day moving average on November 05, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 12 of 19 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 63%.
Following a +6.95% 3-day Advance, the price is estimated to grow further. Considering data from situations where PROF advanced for three days, in 198 of 258 cases, the price rose further within the following month. The odds of a continued upward trend are 77%.
The Aroon Indicator entered an Uptrend today. In 106 of 149 cases where PROF Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 71%.
Bearish Trend Analysis
The 10-day RSI Indicator for PROF moved out of overbought territory on November 12, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 36 similar instances where the indicator moved out of overbought territory. In 30 of the 36 cases, the stock moved lower in the following days. This puts the odds of a move lower at 83%.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 9 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where PROF declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 80%.
PROF broke above its upper Bollinger Band on November 03, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is 44 (best 1 - 100 worst), indicating steady price growth. PROF’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 45 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (5.289) is normal, around the industry mean (4.142). P/E Ratio (-7.283) is within average values for comparable stocks, (3.291). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (11.253). Dividend Yield (0.000) settles around the average of (0.011) among similar stocks. P/S Ratio (10.194) is also within normal values, averaging (40.124).
The Tickeron PE Growth Rating for this company is 51 (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of 85 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is 98 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. PROF’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 94, placing this stock worse than average.
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General Information
a developer and manufacturee of therapeutic platforms that combine real-time magnetic resonance imaging with directional and focused ultrasound technology
Industry MedicalNursingServices
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