PROCEPT BioRobotics Corporation (PRCT): History, Ownership, Mission, How It Works & Makes Money

When you look at the surgical robotics space, does PROCEPT BioRobotics Corporation (PRCT), with its unique Aquablation therapy, really stand out as a long-term winner, or is it just another flash in the pan? Honestly, the numbers suggest something more durable: the company is on track for a fiscal year 2025 total revenue of approximately $325.5 million, which is a massive 45% growth over last year, fueled by the adoption of its AI-powered HYDROS Robotic System. This kind of momentum, plus the recent positive WATER III trial results showing reduced complications for patients, defintely makes you want to understand the history, mission, and mechanics behind their impressive financial performance.

PROCEPT BioRobotics Corporation (PRCT) History

You're looking for the foundational story of PROCEPT BioRobotics Corporation, the company that's disrupting urology with waterjet robotics, and the short answer is it's a story of patient, capital-intensive development. The company's trajectory is a classic example of a medical device firm that spent years in R&D and clinical validation before hitting its high-growth commercial phase, culminating in a projected $325.5 million in revenue for the 2025 fiscal year. That's a 45% jump over 2024, so they're defintely moving fast now. [cite: 4, 6, 7 in first search]

Given Company's Founding Timeline

Year established

While the company was initially incorporated in California in 2007, the operational founding is generally cited as 2009.

Original location

The original base of operations was in Redwood City, California, a hub for medical device innovation, before the company eventually moved its headquarters to San Jose, California.

Founding team members

The company was founded by Nikolai Aljuri, who helped launch the vision of using robotics and a high-velocity saline stream for prostate tissue removal.

Initial capital/funding

The initial funding phase was long, but crucial. The company's first major capital injection was a $6.05 million Series A round in October 2013, and it raised a total of approximately $349 million in private funding before its Initial Public Offering (IPO).

Given Company's Evolution Milestones

Given Company's Transformative Moments

The biggest inflection points for PROCEPT BioRobotics Corporation weren't just the funding rounds, but the strategic moves that validated the technology and set up the massive growth seen in 2025.

• The AI Leap: The August 2024 FDA clearance of the HYDROS Robotic System was a game-changer. This next-generation platform, which is the only AI-powered robotic technology delivering Aquablation therapy, was designed to simplify the procedure, making it easier for new surgeons to adopt.
• The Public Market Validation: The September 2021 IPO was a huge moment, transitioning the company from a venture-backed entity to a publicly scrutinized growth stock. This capital infusion, plus the subsequent $172 million post-IPO funding in late 2023, signaled strong investor confidence in their long-term growth story. [cite: 3 in first search, 3]
• The Profitability Signal: The operational improvements are clear: gross margin expanded to 65% in the third quarter of 2025, up from 63% in the prior year period. That margin expansion, driven by improved efficiencies and higher system prices, is what separates a high-potential company from a sustainable one. [cite: 4, 6 in first search]

This history shows a firm that invested heavily in clinical evidence-over 150 peer-reviewed publications now support Aquablation-and is now seeing the commercial payoff. If you want a deeper dive into who is betting on this growth, you should check out Exploring PROCEPT BioRobotics Corporation (PRCT) Investor Profile: Who's Buying and Why?

PROCEPT BioRobotics Corporation (PRCT) Ownership Structure

PROCEPT BioRobotics Corporation's ownership structure is heavily weighted toward institutional investors, which is typical for a medical technology company with a market capitalization of approximately $1.66 Billion USD as of November 2025. This dominance by large funds means the company's strategic direction is largely influenced by the investment theses of major asset managers like BlackRock and Vanguard.

PROCEPT BioRobotics Corporation's Current Status

PROCEPT BioRobotics Corporation (PRCT) is a publicly traded, commercial-stage surgical robotics company. You can find its shares listed on the NASDAQ Global Market (NasdaqGM) under the ticker symbol PRCT. The company's public status means its financials, including its full-year 2025 revenue guidance of about $325.5 million, are transparently reported via Securities and Exchange Commission (SEC) filings. Transparency is defintely a key factor for investors tracking the company's path to profitability, especially with an expected full-year 2025 adjusted EBITDA loss of approximately $35 million.

PROCEPT BioRobotics Corporation's Ownership Breakdown

The company's stock is primarily held by institutional players, giving them significant voting power over corporate governance matters. This concentration of ownership can lead to more stable stock performance, but it also means a few large decisions can move the price dramatically. For a deeper dive into the numbers, you should read Breaking Down PROCEPT BioRobotics Corporation (PRCT) Financial Health: Key Insights for Investors.

Here's the quick math: Institutional investors hold the vast majority of the shares, translating to a strong mandate for the current management team, provided they continue to deliver on growth targets like the expected 213 new U.S. system sales in 2025.

PROCEPT BioRobotics Corporation's Leadership

The company is steered by a seasoned executive team with deep experience in the medical device and life sciences sectors. The leadership team has seen some recent, key appointments that signal a focus on commercial execution and strategic market expansion.

• Larry Wood: President and Chief Executive Officer (CEO), appointed in September 2025, bringing over 35 years of medical technology experience.
• Kevin Waters: Executive VP, Chief Financial Officer (CFO), who has been in his role since January 2022 and previously served as SVP, CFO since 2018.
• Alaleh Nouri: Executive VP, Chief Legal Officer (CLO) & Corporate Secretary, in her role since January 2022.
• Pooja Sharma: Chief Marketing and Strategy Officer, a key new hire as of November 2025, focused on driving category leadership and therapy development.

The average tenure for the management team is two years, which suggests a mix of stability and fresh perspectives, especially with the recent CEO and Chief Marketing and Strategy Officer changes. You want to see a leadership team that can navigate the transition from a high-growth, pre-profit company to a sustainable market leader.

PROCEPT BioRobotics Corporation (PRCT) Mission and Values

PROCEPT BioRobotics Corporation's core purpose centers on transforming the standard of care for urological conditions, moving treatment from traditional, invasive procedures to precise, robotically-controlled, water-jet therapy. This commitment to patient-centric innovation is the defintely the driving force behind their financial growth.

Given Company's Core Purpose

The company's cultural DNA is built around clinical efficacy and technological precision. They aim to solve a massive patient problem-Benign Prostatic Hyperplasia (BPH)-with a solution that minimizes side effects and recovery time. Honestly, it's a classic MedTech story: better patient outcomes lead to better business.

Official mission statement

The mission is to revolutionize the treatment of BPH and other urological diseases by developing and commercializing the Aquablation therapy system. This means pushing for wider adoption of the technology, which, by the end of the 2025 fiscal year, is projected to have treated over 100,000 patients globally.

• Advance patient care through robotic precision and minimally invasive technology.
• Establish Aquablation as the gold standard for BPH treatment.
• Maintain a relentless focus on clinical data and long-term patient results.

Vision statement

PROCEPT BioRobotics Corporation envisions a future where their robotic platform is the foundation for treating a broad spectrum of urological conditions, not just BPH. They are investing heavily to make this happen, with R&D spending projected to hit nearly $65 million in the 2025 fiscal year, up from previous years.

• Expand the Aquablation platform to new urological indications.
• Achieve global market leadership in robotic urology.
• Create a sustainable, high-growth business model driven by recurring consumable revenue.

You can see the direct impact of this vision on their investor profile. Exploring PROCEPT BioRobotics Corporation (PRCT) Investor Profile: Who's Buying and Why?

Given Company slogan/tagline

While they don't use a single, catchy consumer-facing slogan, their internal and clinical messaging is clear and action-oriented. Their focus is on the core benefit of their technology: Precision, Powered by Water.

This is a simple, powerful message. It translates the complex robotic-assisted, heat-free waterjet ablation (Aquablation) into plain English, so surgeons and patients understand the core advantage-precision without the thermal damage risk of older methods. Their total revenue for the 2025 fiscal year is projected to reach approximately $225 million, showing that this clear value proposition is resonating in the market.

PROCEPT BioRobotics Corporation (PRCT) How It Works

PROCEPT BioRobotics operates on a classic razor-and-blade model, generating revenue primarily by placing its robotic systems in hospitals and then driving high-margin, recurring sales of disposable handpieces used in each Aquablation procedure. This strategy is expected to deliver a total revenue of approximately $325.5 million for the 2025 fiscal year, up about 45% from 2024, despite an anticipated Adjusted EBITDA loss of around $35.0 million as the company aggressively expands its commercial footprint.

Given Company's Product/Service Portfolio

Given Company's Operational Framework

The company's operational framework is built on a high-capital system sale that locks in a long-term, annuity-like revenue stream from disposables. This is a very smart approach.

• System Placement (The Razor): A dedicated direct sales force targets hospitals and urology practices to drive the initial placement of the robotic system, which is expected to total approximately 210 new systems in the U.S. in 2025. U.S. system revenue is projected to be about $93.5 million for the year.
• Utilization and Recurring Revenue (The Blades): Once a system is installed-the U.S. base reached 653 systems as of Q3 2025-the focus shifts to converting high-volume urologists from traditional resective procedures to Aquablation therapy. This drives the sale of the disposable handpieces, which are the core of the recurring revenue model.
• Clinical and Commercial Support: Highly trained clinical specialists provide on-site education and training to ensure optimal user experiences and procedural volume growth. If onboarding takes 14+ days, churn risk defintely rises, so this support is crucial.
• Manufacturing and Supply Chain: The company manufactures its own systems and consumables, which helps maintain a strong gross margin, which expanded to 65% in Q2 2025.

Given Company's Strategic Advantages

PROCEPT BioRobotics' market success hinges on clinical differentiation and a favorable economic model for providers. The key is that their technology solves a major problem-treating BPH effectively regardless of prostate size, which is a significant patient population impacting approximately 40 million men in the United States.

• Clinical Evidence and Differentiation: Aquablation therapy is backed by a robust body of over 150 peer-reviewed publications, demonstrating superior efficacy and safety compared to older surgical methods. The heat-free nature of the waterjet minimizes thermal injury risks.
• AI-Powered Precision: The HYDROS Robotic System incorporates Artificial Intelligence to automate the procedure, making the outcome less dependent on the individual surgeon's experience. This standardization is a huge selling point for hospitals.
• Favorable Reimbursement Landscape: The company benefits from positive local coverage determinations by all U.S. Medicare Administrative Contractors (MACs), providing access for 100% of eligible Medicare patients, which is essential for broad adoption.
• High-Margin Recurring Revenue: The business model is inherently scalable; every new system placement expands the footprint for high-margin consumable sales, which is the engine of long-term value creation.

To understand the long-term strategic direction, you should review the Mission Statement, Vision, & Core Values of PROCEPT BioRobotics Corporation (PRCT).

PROCEPT BioRobotics Corporation (PRCT) How It Makes Money

PROCEPT BioRobotics Corporation generates revenue primarily through a classic razor-and-razor-blade model, selling its capital equipment-the AquaBeam or HYDROS Robotic System-to hospitals and then earning a high-margin, recurring revenue stream from the specialized, single-use handpieces and consumables required for each Aquablation therapy procedure. This dual-stream approach ensures revenue from both the initial system placement and the subsequent utilization of the technology, which is the real financial engine.

Given Company's Revenue Breakdown

The company's financial health is increasingly reliant on its recurring consumable sales, a strong indicator of both market adoption and system utilization. For the full fiscal year 2025, PROCEPT BioRobotics expects total revenue of approximately $325.5 million, representing roughly a 45% increase over 2024.

Here's the quick math: Based on the full-year 2025 guidance of $325.5 million, the recurring U.S. Handpiece and Consumables revenue is projected to be around $196.0 million, which is the largest and most defintely the most crucial component.

Business Economics

The core business economics of PROCEPT BioRobotics center on driving the adoption of its robotic systems to create a captive, high-margin consumables market. This model shifts the focus from one-time sales to long-term procedural volume.

• Capital Sales as an Enabler: The average selling price (ASP) for a U.S. HYDROS Robotic System was around $435,000 in the third quarter of 2025, which generates immediate, albeit lumpy, revenue.
• High-Margin Recurring Revenue: Once a system is installed, the hospital must purchase a new, single-use handpiece for every Aquablation procedure. This is the 'razor blade' part of the model, providing a predictable, high-margin revenue stream that grows as the U.S. installed base reached 653 systems by September 30, 2025.
• Gross Margin Expansion: The company is seeing significant operating leverage. Gross margin expanded to 65% in Q3 2025, up from 63% in the prior year, reflecting better operational efficiencies and the growing mix of high-margin consumable sales.
• Competitive Cost Structure: While the robotic system is a premium product, the average cost of an Aquablation procedure is often competitive with, or even lower than, traditional surgical interventions for benign prostatic hyperplasia (BPH), which helps drive hospital adoption.

The real value is in the stickiness of the installed base; once a hospital invests in the system and trains its surgeons, it's highly likely to continue using the proprietary consumables.

Given Company's Financial Performance

While the top-line growth is robust, the company is still in a high-growth, pre-profitability phase, which is typical for MedTech companies focused on market penetration. You need to watch the losses, but also the rate at which they are improving.

• Revenue Growth: Total revenue for Q3 2025 was $83.3 million, a 43% increase year-over-year, which is a strong signal of market adoption.
• Profitability Path: The company continues to operate at a loss due to heavy investment in commercial expansion and R&D. The net loss for Q3 2025 was $21.4 million.
• Adjusted EBITDA Improvement: A key metric to track is the Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) loss, which improved to $7.4 million in Q3 2025, down from a $12.4 million loss in the prior year period.
• Liquidity: The balance sheet remains strong, with cash and equivalents totaling $297.3 million as of September 30, 2025, providing a significant buffer to fund operations until profitability.
• Operating Expenses: Full-year 2025 operating expenses are expected to be approximately $302.0 million, a necessary investment to support the global sales force and clinical studies.

The financial story here is one of aggressive, investment-fueled revenue growth with a clear path toward breakeven Adjusted EBITDA expected in the near future. For a deeper dive into their balance sheet and cash flow, check out Breaking Down PROCEPT BioRobotics Corporation (PRCT) Financial Health: Key Insights for Investors.

PROCEPT BioRobotics Corporation (PRCT) Market Position & Future Outlook

PROCEPT BioRobotics Corporation is a high-growth disruptor in the surgical urology market, leveraging its Aquablation therapy to carve out a significant niche, especially for larger prostate sizes in Benign Prostatic Hyperplasia (BPH) treatment. The company is poised to generate approximately $325.5 million in revenue for the full fiscal year 2025, representing a robust 45% growth over the prior year, a clear sign of accelerating adoption and strong commercial execution.

Still, the company is in a heavy investment phase, projecting an Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) loss of around ($35.0) million for 2025, which is typical for a company aggressively expanding its commercial footprint and R&D pipeline.

Competitive Landscape

The BPH device market is consolidating, but PROCEPT BioRobotics' core technology, Aquablation, offers a unique robotic waterjet solution that differentiates it from the established players. While Transurethral Resection of the Prostate (TURP) remains a gold standard procedure, minimally invasive surgical therapies (MISTs) like UroLift and Rezūm are the primary direct competitors for patient volume. The total BPH device market is estimated to be around $1.81 billion in 2025, and this table focuses on the key MIST players.

Opportunities & Challenges

You need to look past the current net loss and focus on the catalysts that will drive future revenue per system, which is the heart of the razor-and-blade model (system sales fund the razor, handpiece sales are the recurring revenue blade). The biggest near-term opportunity is expanding the clinical indications. Honestly, the biggest risk is always the competition's ability to match your clinical data or, defintely, an unexpected supply chain shock.

Industry Position

PROCEPT BioRobotics holds a powerful position as the technology leader in robotic waterjet ablation, which is a key sub-segment of the rapidly growing minimally invasive BPH treatment market. The market is projected to grow from $13.18 billion in 2025 to over $21.46 billion by 2034, so there is plenty of room for multiple winners.

• Dominant in the robotic resection space, uniquely offering a treatment independent of prostate size.
• Clinical evidence is strong, with over 150 peer-reviewed publications supporting Aquablation therapy.
• The launch of the HYDROS Robotic System, an AI-powered platform, reinforces its technological moat against simpler devices like Rezūm and UroLift.
• Strategic expansion into the prostate cancer market via the WATER IV trial could open up a significantly larger total addressable market (TAM) beyond BPH.

To understand the capital behind this growth story, you should read Exploring PROCEPT BioRobotics Corporation (PRCT) Investor Profile: Who's Buying and Why?, which details the institutional support driving this expansion.

The company's ability to maintain a gross margin in the 64.0% to 64.5% range for 2025, even while scaling, shows solid operational efficiency, but the path to profitability hinges on accelerating handpiece utilization in the existing installed base of systems.