Procept (PRCT) Q2 Revenue Jumps 48%

Procept BioRobotics (PRCT -12.78%), a medical technology company specializing in robotic surgical systems for benign prostatic hyperplasia (BPH) treatment, posted second-quarter 2025 results on August 6, 2025. The company reported GAAP revenue of $79.2 million, surpassing analyst estimates. The quarter highlighted continued growth in both its U.S. and international segments, as well as notable efficiency gains. Overall, the results pointed to steady momentum, with increasing adoption of its Aquablation therapy platform and ongoing investment in growth.

Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q2 2025 earnings report.

Business Overview and Strategic Focus

Procept BioRobotics develops, manufactures, and markets robotic surgical systems for urology, with its core product being the Aquablation therapy platform. Aquablation is a robotic treatment designed to address benign prostatic hyperplasia (BPH), a condition that affects millions of men globally and causes lower urinary tract symptoms due to an enlarged prostate. The company's primary customers are hospitals and physicians specializing in urologic care.

The business has focused on expanding its U.S. installed base, driving increased usage of consumable products associated with each procedure, and broadening international reach. Successful adoption depends on maintaining clinical leadership through evidence-based studies, navigating regulatory and reimbursement landscapes, and increasing procedural volume. Investments in artificial intelligence and machine learning reflect its intent to advance future technologies and applications, keeping the product offering at the leading edge.

Quarter Highlights: Financial and Operational Performance

Procept BioRobotics saw robust revenue growth in the United States and internationally. U.S. revenue rose 46% to $69.6 million (GAAP), making up the vast majority of the total, with 51 new U.S. robotic system placements that brought the installed base to 595 systems as of June 30, 2025. System sales and rentals within the U.S. reached $22.1 million, a 24% rise, while handpieces and consumables, which are used in procedures and drive recurring revenue, increased 58% to $43.1 million. Service revenue in the U.S. increased approximately 69% compared to Q2 2024, reflecting higher utilization and system installations.

Revenue outside the U.S. was up 69% to $9.6 million. International sales of handpieces and consumables increased 164.3% to $6.0 million compared to Q2 2024, while international system placements were flat at $2.9 million.

Profitability metrics improved as the business scaled, as reflected by a reduced net loss and improved adjusted EBITDA. Gross margin (GAAP) rose to 65.0%, up from 59.0% in Q2 2024, attributed to operational efficiencies and higher average selling prices in the U.S. Net loss (GAAP) narrowed to $19.6 million from $25.6 million a year earlier, and Adjusted EBITDA loss was cut by more than half to $8.0 million compared to Q2 2024. However, Total operating expenses were up 27% to $73.9 million compared to Q2 2024. Selling, general, and administrative spending increased 38% compared to Q2 2024, largely for commercial expansion, while research and development costs saw a slight increase.

Balance sheet strength remained a key asset, with $305.8 million in cash, cash equivalents, and restricted cash. This provides ample runway for continued investment despite ongoing losses and a cash usage trend year to date. A noteworthy management change was announced, as Larry Wood will take over as chief executive officer effective September 2, 2025, bringing decades of leadership experience in the medical device industry. The company does not currently pay a dividend.

Product Offerings and Market Environment

The company's principal product, Aquablation, is a robotic surgical system designed for the treatment of BPH. Aquablation therapy uses a water-jet ablation technique, guided by robotics, to remove excess prostate tissue precisely and reduce urinary symptoms. This offers potential advantages over conventional surgical treatments, such as lower risk of irreversible complications and more consistent results regardless of prostate size or surgeon experience.

The business strategy emphasizes capturing a share of the large U.S. hospital market for BPH therapy and leveraging the growing clinical evidence base. Procept BioRobotics also invests in expanding the installed system base internationally, supported by increasing insurance reimbursement in the U.S. and efforts to grow coverage overseas. Over 150 peer-reviewed clinical studies support its technology, with a major ongoing clinical trial, WATER IV, targeting additional validation for use in prostate cancer patients. These efforts seek to ensure continued acceptance of Aquablation as a preferred BPH treatment option.

Outlook and Investor Focus

For FY2025, management increased full-year revenue guidance to $325.5 million, implying about 45% growth compared with the prior year. Full-year gross margin is expected to be approximately 64.5%, with operating expenses targeted at approximately $302.0 million. The company projects an adjusted EBITDA loss of $35.0 million (non-GAAP) and a net loss of $83.5 million (GAAP), citing continuing investment in commercial capabilities and product innovation.

Looking forward, investors should track the pace of new system placements, procedural volumes per installed system, and the extent to which growing operating expenses can be leveraged for greater scale. Factors like expansion in international markets, progress on new indications, and reimbursement trends are central to the next phase of growth. PRCT does not currently pay a dividend.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.