Profound Medical Reports 82% Revenue Increase to $2.621 Million in Q1 2025

Profound Medical Corp. reported a significant increase in revenue for the first quarter of 2025, totaling $2.621 million, compared to $1.439 million in the same period of 2024, marking an 82% increase. This growth was driven by higher recurring revenue in the United States and capital equipment sales overseas. The company's gross profit also saw a substantial rise, reaching $1.853 million, which reflects a gross margin of 71%, up from 60% in the previous year. However, the company reported a net loss of $10.724 million for the quarter, compared to a loss of $6.585 million in the first quarter of 2024, resulting in a basic and diluted loss per share of $0.36, up from $0.27.

Operating expenses increased significantly, totaling $13.019 million, a 49% rise from $8.743 million in the prior year. This increase was primarily attributed to higher research and development (R&D) costs, which rose by 22% to $4.808 million, and selling, general, and administrative (SG&A) expenses, which surged by 71% to $8.211 million. The increase in R&D expenses was largely due to expanded headcount and increased clinical trial activities, while the rise in SG&A expenses was driven by a larger sales force and marketing initiatives.

In terms of operational developments, Profound Medical's customer base and product adoption rates appear to be on the rise, although specific customer counts were not disclosed. The company continues to focus on the commercialization of its TULSA-PRO system, which utilizes MRI-guided technology for prostate tissue ablation, and the Sonalleve platform for treating uterine fibroids and palliative pain. The TULSA-PRO system is now CE marked, Health Canada approved, and has received FDA clearance, indicating a strong regulatory position for market expansion.

As of March 31, 2025, Profound Medical had cash and cash equivalents of $46.433 million, down from $54.912 million at the end of 2024. The company has indicated that it expects its existing cash and product sales to fund operations for at least the next 12 months, although it anticipates increased expenses related to the ongoing commercialization of its products. The company has also entered into an amended credit agreement with CIBC, which provides a revolving line of credit to support its financial needs and growth strategies.

Looking ahead, Profound Medical aims to continue expanding its market presence and product offerings, particularly in the United States and international markets. The company is actively working to enhance its internal controls and financial reporting processes following a material weakness identified in its revenue recognition practices. Management is optimistic about the potential for growth and is committed to addressing the challenges that may arise as it seeks to capitalize on its innovative medical technologies.