Profound Medical Corp.

PROF

$6.88

+1.10%

N/A+$0.08

Healthcare

Medical - Devices

NASDAQ

Active Trading

Profound Medical Corp., through its subsidiaries, is a commercial-stage medical technology firm specializing in the development of magnetic resonance (MR)-guided ablation solutions. ...

Fundamental Analysis of PROF

Key Strengths

MR-guided, closed-loop temperature feedback technology that targets precision in incision-free ablation (TULSA-PRO differentiation)

Commercial-stage platform with installed-market exposure across multiple geographies (Canada, Germany, United States, Finland)

Risk Factors

Severe and persistent losses (net/operating/EBITDA margins all deeply negative in TTM), indicating weak or unproven scalability

Negative operating cash flow and materially negative free cash flow, raising the possibility of future funding needs

Profitability

Net Margin-170.92%

Operating Margin-184.35%

Valuation

P/E Ratio-6.86x

Current Ratio6.46

Efficiency

ROE-62.45%

ROA-52.05%

Fundamental Analysis of PROF

Profound Medical Corp. (PROF) is a commercial-stage medical device company developing MR-guided, incision-free ablation solutions. Its flagship system, TULSA-PRO, integrates MRI guidance with thermal ultrasound and closed-loop temperature feedback, targeting prostate conditions (and, via its therapeutic platform Sonalleve, uterine fibroids and palliative pain for certain cancer-related pain). This technology positioning can be a real differentiator in procedural oncology/urology because it emphasizes precision and real-time visualization, which may improve clinical outcomes versus less guided alternatives—supporting adoption when clinical evidence and reimbursement are favorable. Fundamentally, however, the current financial profile is clearly distressed. Using the provided latest TTM metrics, profitability is deeply negative: net margin is approximately -171% (netProfitMarginTTM -1.709), with operating margin around -184% (operatingProfitMarginTTM -1.843) and EBITDA margin about -176% (ebitdaMarginTTM -1.763). Returns are also substantially negative (ROA about -52% and ROE about -63% in TTM), consistent with significant operating losses and likely heavy operating expenses relative to revenue. Cash flow indicators also weaken the case for near-term earnings power: free cash flow to equity and firm are materially negative (FCF-to-equity and FCF-to-firm both negative) and operating cash flow is negative (operatingCashFlowSalesRatioTTM -1.878). On valuation, profitability metrics imply limited earnings power today: P/E (TTM) is negative (priceToEarningsRatioTTM -6.981). Price-to-sales is high at ~12.97, while price-to-book is ~4.95, which suggests the market may be pricing future growth or technology adoption rather than current fundamentals. Balance-sheet liquidity appears strong (current ratio ~6.46 and quick ratio ~5.31), and debt is modest by debt-to-equity (~0.148), which reduces immediate solvency risk. Still, liquidity does not eliminate the key risk: the business must scale revenue and control costs to reach sustainable margins. Given the combination of strong liquidity but weak profitability/cash generation, PROF is best viewed as a high-risk, execution-dependent growth story. A prudent long-term thesis would require demonstrable commercial traction, improving margins, and evidence that reimbursement and procedure adoption are scaling—otherwise dilution/financing risk may remain even with current ratios elevated.

Key Strengths of PROF

MR-guided, closed-loop temperature feedback technology that targets precision in incision-free ablation (TULSA-PRO differentiation)
Commercial-stage platform with installed-market exposure across multiple geographies (Canada, Germany, United States, Finland)
Multiple addressable clinical applications via the therapeutic platform (prostate, uterine fibroids, palliative pain use cases)
Strong reported liquidity (TTM current ratio ~6.46; quick ratio ~5.31) that can help fund operations through development/commercial ramp
Low leverage relative to equity (debt-to-equity ~0.148; debt-to-market-cap ~0.019), lowering immediate solvency pressure
High gross margin (grossProfitMarginTTM ~0.717), implying gross profitability potential if operating costs normalize

Risk Factors of PROF

Severe and persistent losses (net/operating/EBITDA margins all deeply negative in TTM), indicating weak or unproven scalability
Negative operating cash flow and materially negative free cash flow, raising the possibility of future funding needs
Valuation is difficult to support with earnings today (negative P/E), increasing sensitivity to execution and future expectations
Long operating cycle and cash conversion challenges (large cash conversion cycle and very high days of sales outstanding shown in TTM metrics)
Medical device industry risks: regulatory approvals, clinical evidence requirements, manufacturing/quality system compliance
Adoption and reimbursement risk—procedure volumes and payer coverage may evolve slower than expected
Customer and geographic credit/collection risk (implied by risk factor disclosures referencing country risk and credit limits)
Working capital dynamics (very high receivables turnover issues and prolonged inventory/DSO signals) could pressure cash if not managed

Market Cap vs Revenue & Earnings

Earnings

n/a

Revenue

n/a

Market cap

$249.82M

-6.9x

P/E Ratio

12.8x

P/S Ratio

Earnings & Revenue

Last Reportedn/a

Earnings per share (EPS)n/a

Gross Margin71.73%

Net Profit Margin-170.92%

Debt/Equity Ratio0.15

Profitability Bridge (Current vs YoY)

How gross, operating and net margins shifted versus last year.

Revenue / Net Income / FCF History (USD B)

Growth Signals of PROF

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
Revenue	—	—	—	—	Flat
Diluted EPS	—	—	—	—	Flat
Free Cash Flow	—	—	—	—	Flat

Profitability of PROF

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
Net Margin	—	-384.21%	—	—	Flat
Operating Margin	—	-445.67%	—	—	Flat
ROE	—	—	—	—	Flat

Financial Health of PROF

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
Current Ratio	—	6.454	—	—	Flat
Quick Ratio	—	5.308	—	—	Flat
Debt / Equity	—	0.146	—	—	Flat

Valuation of PROF

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
P/E	—	-6.39x	—	—	Flat
P/B	—	4.86x	—	—	Flat

Supply Chain of PROF

RELATIONS

Upstream

Koninklijke Philips N.V. (Royal Philips)NYSE:PHGSiemens Healthineers AGXETR:SHLGE HealthCare Technologies Inc.NASDAQ:GEHCBaylis Medical Technologies Inc.Sunnybrook Health Sciences CentreVarious Single-Source Component Suppliers (Undisclosed)Component sub-suppliers to Philips/Siemens (Undisclosed)

Downstream

Koninklijke Philips N.V. (Royal Philips)NYSE:PHGSiemens Healthineers AGXETR:SHLGetz Healthcare Pty LtdAl Faisaliah Medical Systems Co. (subsidiary of Tibbiyah)SASE:9530Knight Therapeutics Inc.TSX:GUDVituro HealthHospitals and Treatment Centers (US, Europe, Canada, Middle East, Asia-Pacific)

Proxies

Koninklijke Philips N.V.NYSE:PHGSiemens Healthineers AGXETR:SHLGE HealthCare Technologies Inc.NASDAQ:GEHC Boston Scientific CorporationNYSE:BSX

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