Profound Medical Revenue Jumps 86% in Third Quarter; Richard Fabian Named New CEO
Key Facts
The company said increased commercial activity among existing customers and new accounts contributed to the expected revenue growth. Its installed base of TULSA-PRO systems reached 98 at quarter-end, while the 5,000th procedure was performed in October. The company also added about 10.7 million beneficiaries to commercial and government coverage during the quarter, including about 1.8 million through commercial programs and Medicare Advantage.
The revenue jump followed a second quarter in which the company reported $2.5 million, up 12% year over year, saying at the time that about $3.1 million in TULSA-PRO shipments were completed in July after having been expected to ship at the end of June. In its second-quarter results, Profound said operating expenses fell 16% year over year and its net loss improved 39%. It also reiterated its forecast for annual revenue of $25 million in 2026. The comparison provides context for the revenue acceleration reported in the third quarter, after shipment timing affected the previous quarter. At the end of that quarter, the installed base of TULSA-PRO systems stood at 84, and the qualified sales pipeline was about $70 million.
At the end of the third quarter, the qualified sales pipeline for TULSA-PRO and Sonalleve was about $79.2 million, including opportunities in validation, negotiation or contracting stages. The figure indicates the value of commercial opportunities the company is pursuing, while the installed base rose to 98 systems from 84 at the end of the second quarter. Profound said its installed base expanded alongside increased insurance coverage for its product. That coverage added about 10.7 million beneficiaries during the quarter, including about 1.8 million through commercial programs and Medicare Advantage. The 5,000th procedure was performed in October, after the quarter ended.
The company announced a supply and distribution agreement with Cook Medical's iMRI division to expand U.S. sales of TULSA-PRO. Under the agreement, Cook buys the systems from Profound at a specified transfer price and then distributes them in the U.S. market. Customers who buy systems through Cook receive single-use consumables and service contracts directly from Profound. The arrangement gives the company an additional distribution channel for its systems while keeping consumables and services sales with Profound. It is tied to the qualified sales pipeline for the two products, which was about $79.2 million at the end of the third quarter.
The company had about $33.3 million in cash as of September 30, 2026. Profound said cash and revenue from products and services, under its current plans, are expected to be sufficient to fund operating and capital expenditures for at least 12 months. The company expects fiscal 2026 revenue of at least $25 million and a gross margin of 70% or more. It had reaffirmed its forecast for annual revenue of $25 million in its second-quarter results. It also expected operating expenses to decline and its net loss to improve year over year, based on that quarter's results.
In a management change announced as part of the results, Richard Fabian will become chief executive officer on January 14, 2027, succeeding Aron Minow. Minow will become executive chairman as part of the succession plan announced by the company. Upcoming events include the presentation of one-year CAPTAIN clinical results at the Radiological Society of North America's annual scientific meeting in Chicago, scheduled for November 29 to December 3, 2026. The third-quarter results call was scheduled for November 5, 2026, at 4:30 p.m. Eastern time. PROF shares closed at $7.16 on November 4, 2026.