PROCEPT BioRobotics Earnings Call Transcripts
Fiscal Year 2026
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Q1 2026 revenue grew 20% year-over-year to $83.1 million, with gross margin reaching 65% and strong U.S. and international system sales. Commercial realignment and launch teams are expected to drive accelerated procedure growth in the second half, while pricing discipline and innovation support long-term profitability.
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New organizational structures and launch teams are driving faster system adoption and improved utilization. Inventory management has stabilized, and a replacement strategy for legacy systems is being developed. HYDROS systems show higher usage, and market expansion efforts target both procedure conversion and patient awareness.
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Significant growth is targeted through increased procedure volume, higher ASPs, and organizational realignment, with a focus on profitability and leveraging clinical differentiation. Expansion into prostate cancer and targeted marketing are expected to drive future upside, while 2026–2027 guidance projects robust revenue and margin improvement.
Fiscal Year 2025
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Q4 2025 saw 69% procedure growth but lower revenue due to inventory destocking and pricing discipline, with handpiece ASP rising 5%. 2026 guidance calls for 27%-33% revenue growth, higher margins, and positive EBITDA in Q4, despite short-term disruption from commercial realignment.
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Management is prioritizing procedure growth and inventory optimization, with new launch processes and dedicated teams to improve utilization. Strong capital sales and a focus on upgrading to the HYDROS platform are expected to drive future growth, while reimbursement remains favorable and patient-centric messaging is set to expand.
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Q3 2025 revenue grew 43% year-over-year, driven by strong U.S. and international sales, with gross margin expanding to 64.8%. FY2025 guidance remains robust, with continued investments in commercial execution, utilization, and international growth, despite some procedural and inventory headwinds.
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Q2 2025 revenue grew 48% year-over-year, with strong U.S. and international performance, gross margin expansion, and improved net loss. Full-year guidance was raised, leadership transitions are underway, and the HYDROS system launch and CPT code upgrade support future growth.
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Procedure growth remains strong, driven by high surgeon retention and new account launches, with Hydros expected to boost utilization further. Capital sales are robust, ASPs are rising, and IDN relationships are improving predictability. A CPT code change is expected to have minimal impact, and the prostate cancer program targets commercialization by early 2028.
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Aquablation therapy continues to gain traction, with strong utilization trends and resolved supply headwinds. Reimbursement and competitive risks are minimal, while capital equipment demand remains stable. The company is advancing a pivotal prostate cancer trial, targeting a 2028 launch for this new indication.
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Aquablation therapy addresses a large unmet need in BPH by offering a safe, effective, and consistent treatment for all prostate sizes, supported by strong clinical data and broad reimbursement. Rapid adoption and financial growth continue, with expansion into prostate cancer underway.
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Q1 procedures and system sales exceeded expectations, with guidance kept conservative despite strong trends. Tariff impacts have lessened, and reimbursement changes are expected to be neutral. Early clinical data supports a significant prostate cancer opportunity, with profitability and margin expansion on track.
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Aquablation therapy continues rapid adoption in BPH, with over 500 HIDROS systems installed and strong revenue growth. Early prostate cancer trial data show promising safety, functional, and oncologic outcomes, supporting the pivotal Water 4 study.
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Q1 2025 revenue grew 55% year-over-year to $69.2M, driven by robust U.S. and international sales, especially in the U.K. HYDROS system adoption accelerated, and gross margin expanded to 63.9%. Full-year guidance was raised, with tariff risks expected to be offset by operational efficiencies.
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Saline shortages impacted Q4, but procedure volumes rebounded in Q1 with record account launches. 2025 guidance targets 210 U.S. system placements and 40% revenue growth, driven by HYDROS adoption and expanding hospital penetration. Key catalysts include new prostate cancer data and continued international expansion.
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HYDROS system launch drove strong Q4 sales and premium pricing, overcoming prior saline shortages. Utilization and efficiency initiatives are supporting growth, while international expansion and new clinical indications offer future upside. 2025 guidance targets margin expansion and near break-even EBITDA.
Fiscal Year 2024
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Q4 and full-year 2024 saw strong revenue growth, record gross margins, and robust HYDROS system adoption, despite a saline shortage impacting procedures. 2025 guidance projects continued double-digit growth, margin expansion, and international momentum, with strategic investments in clinical trials and commercial scale.
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HYDROS is driving strong sales momentum, higher ASPs, and robust interest from both new and existing customers, with a focus on greenfield opportunities and growing IDN engagement. Margin expansion is led by internal efficiencies, and clinical studies in cancer are advancing, broadening the platform's appeal.
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Q3 2024 revenue grew 66% year-over-year to $58.4M, driven by strong Hydros system demand and higher ASPs. Gross margin hit a record 63.2%, and full-year guidance was raised, with continued focus on greenfield sales and robust international growth.
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HYDROS, a next-gen robotic system with AI Assist and improved workflow, is set for a greenfield-focused launch with stable margins and higher ASPs. Market expansion targets low/medium-volume hospitals and ASCs, while R&D and international growth in the U.K. and Japan remain priorities.
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Hydros, a next-generation robotic system with integrated AI and advanced imaging, is launching in the US with immediate availability and a focus on greenfield opportunities. Financial guidance for 2024 is reaffirmed, with temporary procedural impacts expected during the transition. Hydros is designed to drive broader adoption and future platform expansion.
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Q2 2024 revenue grew 61% year-over-year to $53.4M, with record gross margin of 59% and strong U.S. and international growth. FY 2024 revenue guidance was raised to $217M, with improved profitability metrics and robust commercial execution supporting continued expansion.
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Visibility has improved due to a shift to a consumable model and strategic IDN partnerships, supporting strong top-line growth and margin expansion. Utilization is rising, ASC pilots target market expansion, and new clinical studies could unlock a $500M+ cancer market. Financial leverage and profitability are expected to strengthen through 2024.
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Aquablation is gaining traction as a preferred BPH treatment, supported by strong clinical data, expanding hospital adoption, and robust financial growth. New studies and FDA engagement are opening opportunities in the prostate cancer market, with profitability in focus for 2024.