PRCT — PROCEPT BioRobotics Corporation

PROCEPT BioRobotics Q1 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• Total Revenue: $83.1 million, a 20% increase year-over-year.
• U.S. Revenue: $72 million, reflecting 19% growth compared to the prior year.
• Procedures: Approximately 12,200 U.S. procedures completed, representing 30% year-over-year growth.
• Gross Margin: 65%, up from 61% in Q4 2025 and 64% in Q1 2025.
• Net Loss: $31.6 million, compared to a net loss of $24.7 million in Q1 2025.
• Adjusted EBITDA: Loss of $18.1 million, compared to a loss of $15.8 million in the prior year.
• Cash Position: $249 million in cash, cash equivalents, and restricted cash.

2. Strategic Updates and Business Highlights

• Commercial Realignment: PROCEPT has restructured its commercial team for better accountability and coordination, which is expected to yield benefits in the second half of 2026.
• Pricing Discipline: The company has established pricing discipline, leading to an all-time high average selling price (ASP) for U.S. Hydros systems at approximately $485,000, a 14% increase from Q4 2025.
• International Expansion: Successful launch of Hydros in the U.K., with 7 systems sold at an average price over $400,000, indicating strong market interest.
• Regulatory Updates: Aquablation therapy received a strong recommendation in updated clinical guidelines, enhancing its position as a treatment option for BPH.

3. Forward Guidance and Outlook

• 2026 Total Revenue Guidance: Expected to be between $390 million and $410 million, representing growth of 27% to 33% year-over-year.
• Q2 Revenue Guidance: Projected to be between $91 million and $95 million, indicating growth of 15% to 20%.
• U.S. Procedures Guidance: Anticipated to be between 60,000 and 64,000 for the full year, representing growth of 39% to 48%.
• Gross Margin Outlook: Expected to remain around 65% for the full year, with potential for modest increases in subsequent quarters.

4. Bad News, Challenges, or Points of Concern

• Net Loss Increase: The net loss widened compared to the previous year, raising concerns about profitability timelines.
• Commercial Transition Disruption: The restructuring of the commercial organization caused some short-term disruptions in procedure growth, which may linger into the second quarter.
• Handpiece Sales: Handpiece sales were slightly below the expected 1:1 ratio with procedures, raising questions about future sales alignment.
• Market Competition: Ongoing competitive pressures in the urology space and the impact of reimbursement changes on procedure adoption were noted as potential risks.

5. Notable Q&A Insights

• Procedure Growth: Management attributed the flat quarter-over-quarter procedure growth to normal seasonality and the transitional phase of the sales force.
• ASP Dynamics: The higher ASP in Q1 was not expected to be fully replicated in the remainder of the year due to customer mix considerations.
• Surgeon Champion Dynamics: The company emphasized the importance of having surgeon champions for successful system placements, which is now more integrated into their sales strategy.
• WATER IV Study: Enrollment is ahead of schedule, with results expected to be presented in spring 2027, which could significantly impact market adoption if positive.

Overall, PROCEPT BioRobotics is navigating through a transitional phase with promising revenue growth and strategic initiatives, but faces challenges in profitability and market dynamics that will require careful management moving forward.