Leede Monetary analyst Douglas Loe famous in an August 15 replace that Profound Medical Company (Profound Medical Company Inventory Quote, Chart, Information, Analysts, Financials NASDAQ:PROF) reported lower-than-expected fiscal Q2 2025 income, however he maintained his “Purchase” ranking and one-year value goal of US$15.25.
Profound, an Ontario-based developer of ultrasound tissue ablation units, posted income of $2.2-million for the June quarter, in contrast with $4.2-million in FQ4 2024 and $2.6-million in FQ1 2025. The outcomes included about $0.65-million in capital gross sales, equal to roughly two TULSA-PRO items, and $1.5-million from procedures and repair income.
“FQ225 income was just like many trailing quarters, however nonetheless disappointing when contemplating the extra constructive influence that we anticipated from improved US TULSA-PRO reimbursement standing,” Loe mentioned.
Profound has had particular reimbursement codes in place for TULSA-PRO since January 2025. Loe mentioned this could make it simpler for oncology and urology centres with MRI tools to undertake the know-how, however uptake has remained sluggish. Profound presently has about 60 TULSA-PRO techniques in scientific use worldwide and is concentrating on 75 by the tip of 2026.
Loe famous that the adoption development stays disconnected from the machine’s scientific efficiency. He pointed to outcomes from Profound’s pivotal Section III TACT trial, printed in 2021, and longer-term follow-up knowledge offered in 2023. Early trials confirmed that 96% of sufferers skilled a minimum of a 75% discount in PSA ranges, whereas 79% of sufferers with extra superior illness confirmed no residual most cancers at one 12 months. At 5 years, PSA ranges remained about 90% beneath baseline. About 8% of sufferers skilled extreme urological unwanted side effects, however all had resolved inside one 12 months.
“We thought it instructive to remind traders that long-term advantages (low recurrence charges, low facet impact severity) from TULSA-PRO ablation have lengthy been within the public area, are individually well-documented within the peer-reviewed medical literature & are in our view supportive of the machine’s adoption on its medical deserves alone, impartial of secondary industrial components,” he mentioned.
Wanting forward, Loe is forecasting income of $5.1-million in FQ3 2025 and $5.7-million in FQ4 2025, with full-year income of $15.6-million. He expects that to extend to $33.0-million in fiscal 2026 and $64.1-million in 2027.
“Our valuation stays based mostly on NPV (low cost price of 20%) and multiples of our F2029 Adjusted EBITDA and EPS forecasts of $59.5-million and $1.35 per share, each discounted at 20%. At present share value ranges, our PT corresponds to a one-year return of 175%,” Loe mentioned.
Loe estimates Profound will put up Adjusted EBITDA of adverse $46.6-million on income of $15.6-million in fiscal 2025, enhancing to adverse $36.5-million on income of $33.0-million in fiscal 2026
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