Profound Medical Corp. (PROF): History, Ownership, Mission, How It Works & Makes Money

Profound Medical Corp. (PROF) is defintely revolutionizing prostate care, but can a niche medical device company with a market capitalization of $195 million truly disrupt a multi-billion-dollar industry dominated by giants? This commercial-stage company is anchored by its TULSA-PRO system, an incision-free, MRI-guided ultrasound ablation technology that drove Q3 2025 revenue to $5.29 million, an 86.8% surge year-over-year, demonstrating clear market traction for precision medicine. With an installed base of 70 systems and a mission to provide incision-free solutions for prostate conditions, Profound Medical is aggressively scaling its footprint, but what does their $7.98 million quarterly net loss tell us about the long-term viability of their strategy and how exactly do they make money from this innovative technology?

Profound Medical Corp. (PROF) History

Given Company's Founding Timeline

You need to know where Profound Medical Corp. started to understand its current focus on incision-free therapy. The company didn't begin as a commercial entity; it was spun out of significant academic research into focused ultrasound technology.

Year established

Profound Medical Corp. was established on June 13, 2008.

Original location

The company was founded in Mississauga, Ontario, Canada, leveraging technology developed at Sunnybrook Hospital in Toronto.

Founding team members

The initial founding team included Boudino de Jong, Joseph DeJonge, and Rajiv Chopra. The company was created and seed-funded by the venture fund Genesys Capital, with Dr. Arun Menawat, PhD, later becoming the Chief Executive Officer and Chairman of the Board.

Initial capital/funding

The company's first funding round in 2008 was a Seed round of $2.36 million. Total funding raised to date stands at $37.7 million over 11 rounds. A critical infusion of capital came on December 5, 2024, with a $35.00 million Private Investment in Public Equity (PIPE) funding round, which was earmarked to accelerate the commercialization of its core products.

Given Company's Evolution Milestones

Here's the quick math on how a research-based idea became a commercial-stage medical device company, focusing on the key pivot points that drove its growth.

Given Company's Transformative Moments

The biggest shifts for Profound Medical Corp. center on expanding its technology platform and aggressively commercializing TULSA-PRO (Transurethral Ultrasound Ablation). You can see the real-world impact in the 2025 numbers.

• Platform Expansion via Acquisition: Acquiring the Sonalleve® MR-Guided HIFU system from Philips in 2017 was a major strategic move. It immediately positioned the company as a broader player in the incision-free therapeutic ultrasound space, moving beyond just prostate treatment.

• Commercial Scale and Efficiency: In the third quarter of 2025, the company's gross margin expanded by 1,119 basis points to 74.3%, showing that the business model is getting much more efficient as the installed base grows. The installed base of TULSA-PRO systems reached 70 by September 30, 2025, with a goal of at least 75 by year-end.

• Tripling the Addressable Market: The full launch of the TULSA-AI Volume Reduction module for Benign Prostatic Hyperplasia (BPH) in late 2025 is a game-changer. This BPH application has the potential to add 400,000 patients to the annual Total Addressable Market (TAM), essentially tripling the previous market size.

• Financial Health Improvement: While still reporting a net loss, the third quarter 2025 net loss improved to approximately $8.0 million (or $0.26 per common share), a 15% improvement from the prior year, showing a clear trajectory towards profitability. For a deeper dive into the financials, you should read Breaking Down Profound Medical Corp. (PROF) Financial Health: Key Insights for Investors.

The focus now is on converting the qualified sales pipeline of 93 new systems into installations and securing national payer coverage, which is defintely the next big hurdle for sustained growth.

Profound Medical Corp. (PROF) Ownership Structure

Profound Medical Corp. is a publicly traded medical device company, and its ownership structure is a blend of institutional conviction and significant insider alignment, which is common for a commercial-stage firm in the medical technology (MedTech) space.

The company's strategy and governance are primarily influenced by institutional investors who hold the largest block of shares, but the substantial stake held by company insiders ensures management's interests are defintely tied to shareholder returns.

Profound Medical Corp.'s Current Status

Profound Medical Corp. (PROF) operates as a publicly held company, listed on both the NASDAQ Stock Market under the ticker PROF and the Toronto Stock Exchange (TSX) under the ticker PRN. This dual listing provides access to a broad base of US and Canadian capital, which is crucial for a commercial-stage company focused on global expansion.

As of November 2025, the company's market capitalization stands at approximately $181.47 million, with 30,193,592 common shares issued and outstanding. The company is a commercial-stage medical device company, meaning it's past the initial R&D phase but still in the growth stage, which is why institutions are keenly watching its revenue growth-it hit a record 2025 Q3 revenue of $5.3 million.

Profound Medical Corp.'s Ownership Breakdown

The ownership profile reveals a controlling interest by institutional funds, indicating professional investor confidence in the TULSA-PRO technology's market adoption. The insider ownership percentage is also a strong signal of management's commitment to the long-term success of the business.

Here's the quick math: With a float of approximately 24.84 million shares, a large portion of the daily trading volume is driven by institutional buying and selling. The high institutional ownership means you should pay close attention to 13F filings (quarterly reports of institutional holdings) for shifts in sentiment.

Profound Medical Corp.'s Leadership

The company is steered by a seasoned executive team with deep experience in the medical device sector, particularly in commercializing new ablation technologies. This experience is vital for navigating the complex regulatory and adoption pathways for a novel treatment like TULSA-PRO.

The key executive and board members as of November 2025 include:

• Dr. Arun Menawat, Chairman and CEO: A long-standing leader in MedTech, he has been with Profound since 2016 and previously led Novadaq Technologies Inc.
• Rashed Dewan, Chief Financial Officer: Brings over two decades of finance and accounting experience, with a focus on public and private medical device companies.
• Mathieu Burtnyk, President: Responsible for the overall operational execution and commercial strategy.
• Board of Directors: Includes experienced executives like Kris Shah, former President of Baylis Medical Technologies, and a diverse group of financial and clinical experts.

The leadership team's background in commercialization is a critical asset as Profound Medical Corp. works to convert its qualified sales pipeline of 93 new TULSA-PRO systems into installed base, which stood at 70 systems as of September 30, 2025. If you want a deeper dive into the company's long-term goals, you can check out their Mission Statement, Vision, & Core Values of Profound Medical Corp. (PROF).

Profound Medical Corp. (PROF) Mission and Values

Profound Medical Corp. aims to fundamentally redefine prostate care by moving away from invasive procedures, focusing instead on incision-free therapies that prioritize a patient's quality of life. This mission drives its technological development, which is why the TULSA-PRO system is designed for precision and functional preservation.

Given Company's Core Purpose

The company's core purpose goes beyond simply selling its TULSA-PRO system; it's about establishing a new, less-damaging standard of care in urology. You see this in the design of their technology, which merges real-time Magnetic Resonance Imaging (MRI) with directional ultrasound to ablate diseased tissue with surgical precision, but without the incisions or radiation of older methods.

To be fair, this patient-centric approach is also a smart business strategy. With the national average facility payment for the TULSA procedure (CPT code 5x008) set at around $9,208.50 for a Hospital Outpatient setting in the 2025 fiscal year, the value proposition for both the patient and the healthcare system is clear. For a deeper dive into the financial health supporting this mission, you should read Breaking Down Profound Medical Corp. (PROF) Financial Health: Key Insights for Investors.

Official mission statement

The mission is to 'Profoundly change the standard of care' by creating a future where clinicians can treat tissue with confidence and patients can quickly return to their daily lives after safe, effective treatment. It's a commitment to delivering precise, customizable treatments that target disease while preserving what patients value most-their quality of life. This is defintely a high-bar goal.

• Provide innovative, incision-free solutions for precise and effective treatment.
• Improve patient outcomes and quality of life through functional preservation.
• Redefine prostate care by establishing a new, less-invasive standard.

Vision statement

Profound Medical Corp.'s vision is to be the platform company for MR-guided therapeutic ultrasound, expanding its technology beyond prostate cancer and benign prostatic hyperplasia (BPH) to other areas like uterine fibroids and abdominal cancers. Their near-term, concrete goal for 2025 shows this ambition: they are actively working to expand their TULSA-PRO installed base from the current 67 sites to a target of 75 sites by year-end. That's a clear, actionable metric.

Here's the quick math on potential: the company estimates that at 200 installed sites, they could generate roughly $55 million in recurring revenue per year, plus revenue from system sales. This is the long-term vision they are building toward, even as they navigate a Q2 2025 net loss of $15.7 million from scaling costs.

Given Company slogan/tagline

While Profound Medical Corp. doesn't use a single, short-form slogan in the way a consumer brand might, their core message is consistently communicated through their product's benefit. It's all about the intersection of technology and patient well-being.

• Precision Prostate Care: Incision-Free, MRI-Guided.
• Transforming Prostate Care with TULSA-PRO.
• Ablating Disease, Preserving Function.

Profound Medical Corp. (PROF) How It Works

Profound Medical Corp. is a commercial-stage medical device company that creates incision-free therapeutic systems, combining Magnetic Resonance (MR) imaging with thermal ultrasound to precisely destroy diseased tissue without radiation or surgery. Their core value proposition is delivering customizable, real-time-monitored tissue ablation, which helps preserve patient quality of life by minimizing side effects, a crucial factor in prostate and women's health.

Given Company's Product/Service Portfolio

Given Company's Operational Framework

The company's operational framework is transitioning to a capital-equipment-driven model, which is a big shift from the prior focus on recurring revenue. This pivot is designed to accelerate the adoption of the TULSA-PRO system in major hospital networks and specialized centers. Honestly, this is a delicate balancing act-you need the capital sales to scale, but you need the recurring revenue for stability.

• Revenue Streams: Profound Medical generates revenue from two primary sources. For the third quarter of 2025, total revenue hit a record of approximately $5.3 million, an 87% year-over-year increase.
  • Recurring Non-Capital: This includes the sale of TULSA-PRO consumables, system leases, and extended warranty services. This stream contributed $4.1 million in Q3 2025.
  • Capital Equipment Sales: This is the one-time sale of the TULSA-PRO system itself. This contributed $1.2 million in Q3 2025.
• Installed Base and Pipeline: The company is focused on expanding its footprint. The installed base reached 70 systems as of September 30, 2025, and management is targeting at least 75 installations by year-end. The qualified sales pipeline stands at 93 new systems in the negotiation or contracting phases.
• Value Creation: The core value is created by selling a high-margin procedure platform. The gross margin expanded to 74.3% in Q3 2025, a significant jump, driven by manufacturing efficiencies and higher utilization of the installed systems.

The company is still loss-making, with a Q3 2025 net loss of $8.0 million, but the improved gross margin shows the underlying business model is becoming more efficient as they scale. You can dig deeper into the shareholder structure in Exploring Profound Medical Corp. (PROF) Investor Profile: Who's Buying and Why?

Given Company's Strategic Advantages

Profound Medical's competitive edge comes from combining three distinct, powerful technologies into a single, less-invasive treatment platform. This is a classic 'moat' strategy-integrating multiple proprietary steps to create a superior user experience and clinical outcome.

• Proprietary Technology Integration: They are the only company combining real-time Magnetic Resonance Imaging (MRI) with AI-powered, robotically-driven transurethral ultrasound ablation. This allows for precise, predictable tissue destruction while protecting critical surrounding structures like the urethra and rectum.
• Clinical Differentiation: The TULSA Procedure is incision-free and radiation-free, offering men an alternative to surgery or external beam radiation with durable five-year outcomes-nearly 80% of patients remain free from additional treatment. This focus on preserving quality of life (urinary and sexual function) is defintely a key selling point.
• Reimbursement and Market Access: TULSA-PRO is Medicare-covered in the U.S., which is a massive win for market access and patient adoption. Plus, the strategic partnership with Siemens Healthineers to integrate TULSA-PRO with their Magnetom Free.Max MR scanner simplifies the hospital adoption process, which should accelerate capital sales before the end of 2025.
• Expanding Addressable Market: The launch of the TULSA-AI Volume Reduction module for BPH treatment broadens the target market beyond prostate cancer, leveraging the same capital equipment to treat a much larger patient population.

Profound Medical Corp. (PROF) How It Makes Money

Profound Medical Corp. generates revenue primarily through a razor-and-blade model centered on its TULSA-PRO system, selling the capital equipment (the razor) and then earning recurring revenue from the single-use procedure kits (the blades), along with service contracts and leases.

Profound Medical Corp.'s Revenue Breakdown

In the third quarter of 2025 (Q3 2025), Profound Medical Corp. reported total revenue of approximately $5.3 million, representing a significant 87% increase year-over-year. The company's business model is strategically shifting toward a higher mix of capital sales to expand the installed base, which in turn fuels the high-margin recurring revenue stream.

Here's the quick math: Recurring revenue was $4.1 million, and capital sales were $1.2 million in Q3 2025. The goal is to drive the installed base, so the recurring revenue stream keeps growing.

Business Economics

The core of Profound Medical Corp.'s financial engine is the TULSA-PRO system, which uses a high-margin consumable per procedure. This is a classic medical device strategy: sell the machine to get the annuity of the disposable kits.

• Recurring Revenue: This stream, which was 77.4% of Q3 2025 revenue, includes the sale of TULSA-PRO consumables, equipment leases, and extended warranties. This is the most valuable revenue because it is predictable and boasts a high margin.
• Capital Sales: The one-time sale of the TULSA-PRO capital equipment to hospitals and clinics drives initial revenue and, more importantly, expands the installed base. The company had an installed base of 70 systems as of September 30, 2025, and expects to reach at least 75 installs by year-end.
• Pricing Strategy: The pricing for the TULSA-PRO system is designed to justify the capital expenditure (CapEx) for hospitals through long-term procedural savings and improved patient outcomes. The recurring consumable cost is a key component of the total cost per procedure, ensuring a steady revenue flow once a system is installed.
• Pipeline Strength: The qualified sales pipeline stood at 93 new systems in the 'Verify, Negotiate and Contracting' stages as of Q3 2025, a strong indicator of future capital and recurring revenue growth.

What this estimate hides is the sales cycle for a major capital purchase in a hospital system-it can be long, which is why capital sales can be lumpy, leading to short-term revenue delays, as seen in earlier quarters of 2025. Still, the overall trend is defintely positive.

Profound Medical Corp.'s Financial Performance

While Profound Medical Corp. is a growth-stage company focused on market penetration, its Q3 2025 results show significant improvement in operational efficiency and top-line growth, even as it continues to invest heavily in commercial expansion and R&D.

• Gross Margin Expansion: The gross margin for Q3 2025 expanded by 1,119 basis points year-over-year to a robust 74.3%. This expansion is a critical sign of manufacturing efficiency and the inherent profitability of the recurring revenue stream.
• Operating Expenses: Total operating expenses for Q3 2025 were $12.8 million, an increase driven primarily by expanded headcount, sales force commission payments, and the infrastructure costs necessary to support the 87% revenue growth.
• Net Loss: The company reported a net loss of approximately $8.0 million (or $0.26 per share) in Q3 2025, an improvement from the $9.4 million loss reported in the prior year period. This narrowing loss shows progress in the path to profitability, even with aggressive growth investment.
• Liquidity: As of September 30, 2025, the company had cash of approximately $24.8 million. While this provides working capital, the ongoing net loss means cash burn must be monitored closely against the expected 70% to 75% full-year revenue growth target.

For a deeper dive into the balance sheet and cash flow, you should read Breaking Down Profound Medical Corp. (PROF) Financial Health: Key Insights for Investors. Profound Medical Corp. is in a crucial phase: scaling its high-margin revenue base while managing its cash position to reach a sustainable operating level.

Profound Medical Corp. (PROF) Market Position & Future Outlook

Profound Medical Corp. is a high-growth, commercial-stage medical device company that is carving out a significant niche in the non-invasive prostate treatment market with its TULSA-PRO system. The company's trajectory is defined by a rapid increase in system adoption and a strategic shift toward a capital sales model, aiming to meet its full-year 2025 revenue growth target of 70% to 75% over 2024.

You can see the tension here: strong operational growth against a need for sustained financial health, which is a common challenge for innovative MedTech firms. For the twelve months ending Q3 2025, Profound's revenue stood at $14.30 million, reflecting its current scale in a market it aims to disrupt. You can dive deeper into the financial mechanics in Breaking Down Profound Medical Corp. (PROF) Financial Health: Key Insights for Investors.

Competitive Landscape

Profound is positioned in the focused ultrasound system market, competing directly with other non-invasive ablation technologies for prostate disease. While the company is not the largest player, its MRI-guided Transurethral Ultrasound Ablation (TULSA) technology offers a distinct, incision-free advantage over traditional surgical and radiation methods. Its market share is growing, but it remains a mid-tier contender against established names.

Here's the quick math: Profound's estimated market share of 14% places it as a major technology provider in the focused ultrasound systems market, but it's still behind the market leader.

Opportunities & Challenges

The company's future hinges on converting its robust sales pipeline and leveraging its technological edge in new market segments. However, like any scaling MedTech firm, it faces significant financial hurdles. In Q3 2025, the company reported a net loss of approximately $8.0 million, which highlights the ongoing cash burn.

Industry Position

Profound Medical Corp. is a technology leader in the niche of MRI-guided thermal ablation, a critical distinction from competitors using ultrasound-only guidance. This integration with MRI is its core competitive advantage, offering real-time imaging for precise, customizable treatment.

• TULSA-PRO's gross margin expanded to a strong 74.3% in Q3 2025, demonstrating manufacturing efficiency and pricing power for the system's consumables.
• The TULSA-PRO installed base reached 70 systems by Q3 2025, a key metric for future recurring revenue from consumables and service contracts.
• The launch of TULSA-AI is a strategic move, positioning the company to address the massive BPH market, which is significantly larger than the prostate cancer market alone.
• Analyst consensus forecasts a high revenue growth rate of over 80% for 2025, significantly outpacing the US Medical Devices industry average of roughly 7%.

The company is defintely a growth story, but it's still a story of execution and capital management.