PROCEPT BioRobotics Corporation (PRCT): Business Model Canvas [Dec-2025 Updated]

You're analyzing PROCEPT BioRobotics Corporation (PRCT) and trying to figure out if this is just another capital equipment story or something stickier. Honestly, the real narrative here, as we map out their Business Model Canvas, is the deliberate pivot from selling the HYDROS system-which fetches about $455,000 per unit-to building a utilization-driven recurring revenue stream. The firm is banking on this shift to drive total revenue toward $325.5 million for the 2025 fiscal year, fueled by those high-margin, single-use handpieces sold at a $3,200 average selling price. With a solid balance sheet showing nearly $297 million in cash as of Q3 2025, the runway is there, but the success hinges on driving procedure volume. Check out the nine building blocks below to see exactly how PROCEPT BioRobotics Corporation is structuring this transition from initial sale to long-term annuity.

PROCEPT BioRobotics Corporation (PRCT) - Canvas Business Model: Key Partnerships

You're looking at the core relationships PROCEPT BioRobotics Corporation relies on to get the HYDROS Robotic System and Aquablation therapy into operating rooms. These aren't just casual agreements; they are essential for scaling the business, especially given the capital nature of the equipment sale.

Strategic alliances with Integrated Delivery Networks (IDNs) for predictable sales

The momentum with IDNs has been described as fantastic. These large systems are key because they streamline the purchasing process, which helps create more predictable sales cycles for the capital equipment. As of the Analyst Day in April 2025, PROCEPT BioRobotics had over 500 system installs across the U.S. The company estimated that this represented about 20% penetration into the total hospital market for BPH resective surgery.

The goal is to drive system placement by engaging key surgeons and decision-makers within these networks. This focus is critical because, as of early 2025, the U.S. market was estimated to have approximately 2,700 hospitals performing these procedures.

Collaboration with urologists and key opinion leaders for clinical validation

Clinical validation and surgeon adoption are non-negotiable for a new surgical technology. PROCEPT BioRobotics continues to deepen relationships with urologists and key opinion leaders (KOLs) through education programs and workshops. The company has built a significant body of clinical evidence, now exceeding 150 peer-reviewed publications supporting Aquablation therapy's benefits.

The target remains the approximately 290,000 annual BPH resective procedures performed in the U.S. The company is actively working to accelerate the adoption curve among the broader urology community. One KOL noted that previous procedures had adoption curves that were incredibly hard, taking 10 years to go from 1 to 2 surgeons, so the partnership strategy here is about overcoming that inertia.

Here are some of the key physicians cited in partnership/presentation roles around mid-2025:

• Dr. Inderbir Gill - USC Urology, Chairman of Urological Cancer Surgery.
• Dr. Brian Helfand - Division Chief of Urology, Endeavor Health.
• Dr. Gerald Park - Partner, Kansas City Urology Care.

Manufacturing and supply chain partners for robotic system components

Unlike some competitors, PROCEPT BioRobotics manufactures the AQUABEAM and HYDROS Robotic Systems themselves. This gives them direct control over the quality and rollout of the next-generation, AI-powered HYDROS system, which began its broader rollout in late 2024.

However, reliance on global supply chains does introduce financial risk. For instance, management noted in their Q1 2025 filings that if global tariff rates remained at current levels, it could create a gross margin headwind of approximately $5.0 million for the full year 2025, mostly impacting the second half of the year. The projected full-year 2025 gross margin was targeted around 64.5%.

Insurance providers to secure broad reimbursement for Aquablation therapy

Securing favorable reimbursement is vital for driving utilization, as it directly impacts the hospital's decision to purchase the system. Aquablation therapy enjoys coverage from Medicare, Medicare Advantage, Tricare, and numerous commercial plans.

A major milestone was the assignment of a Category I Current Procedural Terminology (CPT) code, 52XX1, effective January 1, 2026, replacing the previous Category III code. The proposed Medicare payment rate associated with this new code is approximately $540, which is noted as slightly higher than the payment for traditional Transurethral Resection of the Prostate (TURP) procedures.

To give you a sense of the scale of commercial coverage efforts, as of mid-2022, five regional private insurance plans, including three Blue Cross Blue Shield plans, issued positive coverage policies that, in aggregate, provided coverage for approximately 8.5 million members. This was in addition to coverage from payers like Aetna and Independence BCBS.

Here is a snapshot of key financial and operational metrics related to commercial traction as of mid-2025:

Finance: draft 13-week cash view by Friday.

PROCEPT BioRobotics Corporation (PRCT) - Canvas Business Model: Key Activities

You're looking at the core engine driving PROCEPT BioRobotics Corporation's growth, which centers on manufacturing, clinical validation, and aggressive commercial rollout of their robotic systems. These activities are tightly linked, with clinical proof directly fueling sales execution.

Manufacturing and global distribution of the HYDROS and AquaBeam Robotic Systems.

PROCEPT BioRobotics manufactures the AQUABEAM® and HYDROS® Robotic Systems. The distribution success is reflected in the revenue growth across the quarters of 2025. Total revenue for the third quarter of 2025 hit $83.3 million, marking a 43% increase compared to the third quarter of 2024. The U.S. market remains the primary driver, with U.S. system and rental revenue reaching $24.7 million in the third quarter of 2025, up 26% year-over-year. International revenue showed significant expansion, growing 104% in the first quarter of 2025 to $8.9 million, and then to $9.6 million in the second quarter of 2025, a 69% increase over the prior year period. The company projects full year 2025 total revenue to be approximately $325.5 million, representing 45% growth over 2024 revenue. The gross margin for the second quarter of 2025 stood at 65%.

Here are the system placement and installed base metrics as of late 2025:

Continuous R&D for next-generation AI-powered surgical platforms.

The development pipeline is focused on advancing the AI capabilities within the HYDROS Robotic System, which is the only AI-Powered technology delivering Aquablation therapy. The company is investing heavily here; for instance, operating expenses in the third quarter of 2025 were $77.2 million, which included increased research and development expenses. The projected full year 2025 total operating expense is approximately $302.0 million. The company is focused on improving the software, including the AI algorithms for treatment planning, which is the foundation of their success in imaging. The goal is to make the platform suitable for use by a larger number of surgeons and facilities.

Generating clinical evidence (over 150 peer-reviewed publications) for Aquablation.

The clinical evidence base is substantial, supporting the therapy's benefits for treating Benign Prostatic Hyperplasia (BPH), a condition impacting approximately 40 million men in the United States. The company has developed a significant and growing body of clinical evidence, which includes over 150 peer-reviewed publications supporting the benefits and clinical advantages of Aquablation therapy. This body of work includes randomized clinical studies like WATER, WATER II, and the recently presented WATER III trial results at the European Association of Urology 2025 Annual Congress. The WATER III trial compared Aquablation therapy to laser enucleation in large prostates.

• Clinical evidence includes results from the WATER study (prostates 30-80 mL) with five-year data.
• Clinical evidence includes results from the WATER II study (large prostates 80-150 mL) with five-year data.
• The WATER III trial involved 186 men and reported three-month endpoints.
• The therapy is designed to deliver outcomes independent of prostate size and shape or surgeon experience.

Commercial execution and driving procedure utilization in new accounts.

Commercial execution is characterized by driving utilization in both new and existing accounts, with a focus on consumables revenue, which indicates procedure volume. U.S. handpiece and consumables revenue, which directly tracks utilization, was $38.0 million in the first quarter of 2025 (up 61% YoY), rose to $43.1 million in the second quarter of 2025 (up 58% YoY), and was $44.4 million in the third quarter of 2025 (up 50% YoY). The strategy includes targeting high-volume BPH hospitals, though the company is seeing a shift toward penetrating low and medium-volume hospitals with the HYDROS system. In the first quarter of 2025, approximately 45% of U.S. system placements came from corporate Integrated Delivery Network (IDN) multi-unit orders, showing success in securing large strategic accounts. The company projects a full year 2025 Adjusted EBITDA loss of approximately ($35.0) million.

PROCEPT BioRobotics Corporation (PRCT) - Canvas Business Model: Key Resources

You're looking at the core assets PROCEPT BioRobotics Corporation is relying on to drive its business forward, which are primarily rooted in its technology and financial standing as of late 2025. These resources are what make their value proposition possible.

The foundation of PROCEPT BioRobotics Corporation's key resources is its proprietary technology suite. This includes the Aquablation therapy, which is designed for treating Benign Prostatic Hyperplasia (BPH), and the HYDROS Robotic System, which is the delivery platform for this therapy and is noted as being AI-Powered. The company also has a significant body of clinical evidence supporting the therapy, with over 150 peer-reviewed publications.

Intellectual property forms a critical, defensible layer around this technology. The company maintains a robust intellectual property portfolio, which the outline specifies includes 37 issued patents. Evidence of this ongoing protection includes several United States patents granted in 2025, such as those dated June 17, 2025, September 23, 2025, October 7, 2025, and May 6, 2025, covering various aspects of the systems and methods.

The physical deployment of the core technology reflects market adoption and future revenue potential. The U.S. installed base of robotic systems is a tangible asset showing market penetration. Management has projected this base to reach an estimated 715 systems by the end of 2025. For context on recent growth, the installed base stood at 653 systems as of September 30, 2025, having added 58 systems in the third quarter of 2025 alone.

Financially, PROCEPT BioRobotics Corporation is well-capitalized to support its commercial expansion and R&D efforts. As of the close of the third quarter on September 30, 2025, the company reported cash, cash equivalents, and restricted cash balances totaling approximately $297.3 million. This provides a runway to execute on its 2025 full-year revenue guidance of approximately $325.5 million.

Here's a quick look at the key quantifiable resources as of late 2025:

The operational strength is also visible in the consumables side of the business, which is a direct measure of system utilization:

• U.S. handpiece and consumables revenue for Q3 2025 was $44.4 million.
• This Q3 2025 revenue represented a 50% increase year-over-year.
• Full-year 2025 handpiece unit volume is expected to be approximately 52,000 units.

Finance: review the current cash burn rate against the $297.3 million balance by next Tuesday.

PROCEPT BioRobotics Corporation (PRCT) - Canvas Business Model: Value Propositions

You're looking at the core reasons why urologists and patients choose the Aquablation therapy delivered by the HYDROS Robotic System over alternatives. The value proposition centers on delivering superior, long-term functional outcomes.

Minimally invasive BPH treatment with durable symptom relief.

The therapy is clinically proven to provide significant, long-lasting symptom relief for men suffering from lower urinary tract symptoms (LUTS) due to benign prostatic hyperplasia (BPH).

• Symptom relief durability is supported by data out to 5 years.
• The average International Prostate Symptom Score (IPSS) improved from 22.6 at baseline to 6.8 at 5 years follow-up in the WATER study.
• Average maximum urinary flow rate improved from 8.6 mL/s at baseline to 17.1 mL/s at 5 years.

Preserved sexual function and continence, a key advantage over heat-based therapies.

A major differentiator is the preservation of critical quality of life factors, specifically sexual function and continence, which is a key advantage over heat-based therapies like laser enucleation.

The WATER III trial demonstrated that Aquablation therapy significantly reduced rates of ejaculatory dysfunction and stress incontinence when compared to laser enucleation.

Predictable, automated, and precise tissue removal independent of surgeon experience.

PROCEPT BioRobotics Corporation designed Aquablation therapy to deliver outcomes that are independent of prostate size and shape or surgeon experience. The system uses computer-assisted treatment planning to maximize tissue resection while preserving important anatomy.

• The U.S. installed base reached 653 systems as of September 30, 2025.
• The company expected to exit 2025 with an installed base of 715 systems.
• The company aims for a procedural share of only 20% in the hospital market, highlighting significant room for expansion.

HYDROS system's FirstAssist AI feature for enhanced procedural efficiency.

The HYDROS Robotic System is the only AI-powered platform delivering Aquablation therapy, using its FirstAssist AI feature as a digital co-pilot for surgeons. This feature interprets ultrasound images to tailor treatment plans, which helps standardize procedures across diverse surgeon skill levels.

• FirstAssist AI is built on data from over 50,000 real-world Aquablation procedures.
• The system integrates ultrasound and cystoscopy images for individualized treatment planning.
• The system sales momentum is clear: 43 units were sold in Q1 2025, contributing $18.7 million in U.S. system and rental revenue, a 31% year-over-year jump.
• U.S. system revenue for Q3 2025 was $24.7 million from 57 new HYDROS systems sold.

PROCEPT BioRobotics Corporation (PRCT) - Canvas Business Model: Customer Relationships

You're looking at how PROCEPT BioRobotics Corporation keeps its hospital and urologist customers engaged and satisfied post-sale. This is critical because, in surgical robotics, the system sale is just the start; the real value comes from recurring use and system uptime.

The relationship management is clearly structured around high-touch support, which is necessary given the complexity of the HYDROS™ Robotic System and Aquablation therapy. The company explicitly structures its commercial organization to support this, as evidenced by operating expenses increasing to fund the expansion of this very commercial organization across Q1 and Q2 2025, which includes sales and marketing expenses.

The core of the relationship involves dedicated, on-the-ground support for the clinical staff. PROCEPT BioRobotics uses a team structure that includes:

• Regional clinical representatives providing training and troubleshooting.
• Clinical specialists and professional education team members.
• Regional sales teams focused on establishing Aquablation therapy as the treatment of choice.

This structure supports the growing installed base, which reached 653 robotic systems in the U.S. as of September 30, 2025.

While a specific surgeon retention rate exceeding 90% as of mid-2025 isn't publicly confirmed in the latest filings, the company's focus on driving demand through awareness campaigns and clinical evidence suggests a strong existing user base. The fact that Aquablation therapy is designed to deliver durable outcomes independent of prostate size or surgeon experience is a key factor supporting long-term adoption and minimizing surgeon frustration. The company's Q3 2025 revenue growth of 43% year-over-year, driven by system sales and increased handpiece revenue, reflects this successful relationship management translating into utilization.

Demand generation is a key part of the relationship strategy, moving beyond just the surgeon to the patient. PROCEPT BioRobotics remains focused on expanding awareness of Aquablation therapy and driving patient activation. This is supported by significant engagement at major industry events, such as the extensive lineup of scientific presentations and workshops at the 2025 American Urological Association (AUA) Annual Meeting.

Post-sale service and maintenance are quantified through specific revenue targets and operational roles. The company projects full-year 2025 U.S. service and other revenue to be approximately $17 million. This revenue stream is supported by roles like the Senior Customer Service and Sales Support Representative, who supports the global commercial team throughout the customer lifecycle, managing orders for capital equipment, disposables, and service.

Here's a look at the financial scale supporting the installed base and service relationship as of late 2025:

The customer relationship is clearly tied to recurring revenue from consumables, which saw U.S. handpiece and consumables revenue hit $44.4 million in Q3 2025 alone. That's where the daily engagement happens.

Finance: draft 13-week cash view by Friday.

PROCEPT BioRobotics Corporation (PRCT) - Canvas Business Model: Channels

You're looking at how PROCEPT BioRobotics Corporation gets its systems and consumables to the market, and how they support the adoption of the AQUABEAM and HYDROS systems. This is all about getting the technology into the operating room and ensuring surgeons can use it effectively.

Direct sales force targeting hospitals and ambulatory surgical centers in the U.S.

The U.S. commercial execution is the primary channel for system placement and recurring revenue from handpieces and consumables. The installed base growth shows the direct sales force's success in placing capital equipment.

As of September 30, 2025, the install base of robotic systems in the U.S. stood at 653 systems. This followed an increase of 58 robotic systems added to the U.S. base in the third quarter of 2025 alone. The company projected it would exit 2025 with an estimated installed base of 715 systems. For the full year 2025, the company planned to install over 200 robots.

The revenue generated directly reflects this channel's performance:

The Average Selling Price (ASP) for U.S. systems in Q2 2025 was reported at $455,000. This is up from the Q1 2025 range of $430,000 - $440,000.

International distribution networks for global market expansion.

Global market penetration relies on establishing international distribution networks, which showed strong growth through Q3 2025. International revenue growth outpaced U.S. growth in several periods.

Here's a look at the international revenue stream:

• International revenue for Q3 2025 was $9.4 million.
• International revenue for Q2 2025 was $9.6 million, marking a 69% increase year-over-year.
• International revenue for Q1 2025 was $8.9 million, a 104% increase compared to the prior year period.

The full year 2025 total revenue guidance was reiterated at approximately $325.5 million.

Clinical training programs for urologists on the AquaBeam/HYDROS systems.

The channel strategy heavily involves clinical education to drive utilization, which feeds the recurring revenue stream. The adoption of the new HYDROS system features is a key metric here.

PROCEPT BioRobotics supports adoption through evidence and feature utilization:

• Surgeon retention rates exceed 90%.
• The HYDROS system's FirstAssist AI feature is utilized by 95% of users.
• The AI planning feature is built on data from over 50,000 real-world Aquablation procedures.
• The company maintains a body of clinical evidence with over 150 peer-reviewed publications.

The company is also progressing in prostate cancer treatment, aiming for commercialization by early 2028.

Investor Relations website for transparent financial and clinical data.

The Investor Relations website serves as a critical channel for communicating performance to financial stakeholders, including analysts and investors. Key financial updates are delivered through this platform.

Recent communications via the Investor Relations channel include:

• Q3 2025 Financial Results reported on November 4, 2025.
• Full Year 2025 total revenue guidance reiterated at approximately $325.5 million.
• Full Year 2025 projected gross margin in the range of 64.0% to 64.5%.
• Full Year 2025 projected total operating expense of approximately $302.0 million.
• Full Year 2025 projected Adjusted EBITDA loss to be approximately ($35.0) million.

Cash, cash equivalents and restricted cash balances as of September 30, 2025, totaled $297.3 million.

PROCEPT BioRobotics Corporation (PRCT) - Canvas Business Model: Customer Segments

PROCEPT BioRobotics Corporation targets distinct customer groups for its Aquablation therapy, primarily centered around the treatment of Benign Prostatic Hyperplasia (BPH) and expanding into prostate cancer treatment.

Hospitals and Ambulatory Surgical Centers Purchasing or Renting the Robotic System

This segment represents the institutional buyers and users of the HYDROS Robotic System. The installed base growth is a key metric here, showing market penetration in facilities.

• U.S. robotic system install base as of June 30, 2025, was 595 systems.
• The U.S. installed base reached 653 systems after adding 58 systems in the third quarter of 2025.
• The company projected selling approximately 210 new robotic systems in the United States for the full year 2025.
• The hospitals segment contributed the highest market share of 65% in the U.S. BPH treatment market in 2024.

The financial performance reflects this segment's activity:

Urologists Seeking a Safe, Effective, and Reproducible BPH Treatment Option

These are the clinical professionals who drive procedural volume and adoption. The company focuses on making the technology easier to adopt and use.

• Over 1,300 surgeons performed an Aquablation therapy procedure during the second quarter of 2025.
• The next-generation HYDROS system, launched in late 2024, was designed to support mass-market adoption and improve room turnover efficiency.
• The company aims to accelerate adoption to reach the majority of surgeons with the new platform.

Procedural volume translates directly into consumable revenue, which is a significant driver of the business model:

Males Suffering from Benign Prostatic Hyperplasia (BPH) and LUTS

This is the ultimate patient population, defined by the prevalence of the condition they suffer from. The market size reflects the total addressable opportunity.

• BPH impacts approximately 40 million men in the United States.
• Prevalence among men aged 51-60 is around 50%, rising to 80% among men over 80.
• The U.S. BPH treatment market size was $3.06 billion in 2024.
• The global BPH treatment market size was calculated at $13.18 billion in 2025.

The overall market context shows significant scale:

Future Segment: Patients Requiring Prostate Cancer Treatment (via WATER IV Trial)

PROCEPT BioRobotics is actively pursuing prostate cancer patients as a future, high-value segment through clinical trials comparing Aquablation Therapy to radical prostatectomy.

• The WATER IV PCa trial is a randomized study aiming to enroll an estimated 280 patients.
• The trial started on February 3, 2025, with an estimated primary completion date of July 1, 2027.
• The study compares Aquablation Therapy against radical prostatectomy for men with localized prostate cancer, Grade Group 1 to 3.

PROCEPT BioRobotics Corporation (PRCT) - Canvas Business Model: Cost Structure

You're managing the P&L for a high-growth medical device company; the cost structure is dominated by scaling operations to meet demand for the HYDROS platform. Here's how the major cost buckets are shaping up for PROCEPT BioRobotics Corporation (PRCT) as of late 2025.

Cost of Goods Sold and Gross Margin

The cost of sales remains a significant factor, but efficiency gains are helping to offset the inherent costs of complex medical device manufacturing and supply chain logistics. PROCEPT BioRobotics is targeting a full year 2025 gross margin in the tight range of 64.0% to 64.5%. For context, the third quarter of 2025 saw a gross margin of 65%, or 64.8% depending on the reporting source, which was an expansion year-over-year driven by greater organizational effectiveness and improved overhead absorption.

Total Operating Expenses Projection

The overall investment in growth is captured in the total operating expenses. The company has reiterated its projection for full year 2025 total operating expense to be approximately $302.0 million. This is a substantial increase from the $233.7 million in operating expenses recorded for the full year 2024, reflecting the aggressive commercial build-out.

Here's a look at the recent quarterly spend versus the full-year guidance context:

Investment in Research and Development (R&D)

A core cost driver is the continued investment in the HYDROS platform, which includes expanding its utility beyond the initial indication. This R&D spend fuels the development pipeline for new indications, such as prostate cancer applications. The increase in operating expenses throughout 2025 was explicitly attributed, in part, to increased research and development expenses.

Sales and Marketing Costs for Expansion

Commercial expansion is a heavy lift, requiring significant upfront investment. A major component of the rising operating expenses is the cost associated with scaling the commercial organization and driving patient activation for the Aquablation® therapy. This is reflected in the selling, general and administrative expenses (SG&A) category, which, along with R&D, was cited as a primary reason for the OpEx increase.

• The increase in operating expenses was primarily due to expenses to expand the commercial organization.
• This spending supports driving patient activation.
• It also covers increased general and administrative expenses.

Tariff-Related Headwinds

External factors introduce specific, non-operational costs that impact the gross margin directly. For the final quarter of 2025, PROCEPT BioRobotics estimates a specific gross margin headwind of approximately $2.0 million, which is directly attributable to tariff-related costs. This estimate was based on global tariff rates remaining at their current levels.

Finance: draft 13-week cash view by Friday.

PROCEPT BioRobotics Corporation (PRCT) - Canvas Business Model: Revenue Streams

You're looking at how PROCEPT BioRobotics Corporation brings in its money, which is a classic razor-and-blades model mixed with capital equipment sales. The revenue streams are clearly segmented between the initial system purchase and the ongoing need for disposables.

The company reiterates its full year 2025 total revenue guidance to be approximately $325.5 million, representing 45% growth over the prior year revenue.

The streams break down into a few key areas:

• Capital sales of the AquaBeam/HYDROS Robotic Systems (ASP around $455,000).
• Recurring revenue from single-use disposable handpieces and consumables.
• Handpiece revenue from approximately 52,000 units sold in 2025 at a $3,200 ASP.
• Service and maintenance contract revenue.

To give you a sense of the recurring revenue component, for the third quarter of 2025 alone, U.S. handpiece and consumable revenue hit $44.4 million, which was up 50% compared to the prior year period.

Here's a look at the system side, based on the Q3 2025 results, which feed into the full-year guidance:

The recurring revenue from disposables is defintely the engine for long-term value capture. The stated average selling price for the handpieces is $3,200, and these account for nearly 95% of consumable sales for Q1-2025. The company exited Q3 2025 with an installed base of 653 robotic systems in the U.S.

You can see the revenue mix clearly in the quarterly performance, which underpins that full-year projection:

• Total revenue for Q3 2025 was $83.3 million, a 43% increase year-over-year.
• U.S. revenue for Q3 2025 was $73.9 million.
• The company sold approximately 13,225 handpieces in Q3 2025.

Finance: draft 13-week cash view by Friday.