Profound Medical Corp. (PROF): Business Model Canvas [Dec-2025 Updated]

You're digging into Profound Medical Corp. right now, and honestly, the story as of late 2025 is a classic pivot: the TULSA-PRO system is finally driving the recurring revenue engine we've been waiting for. Forget just selling the machine; look at the Q3 2025 numbers: total revenue hit a record $5.3 million, but the recurring consumables and service fees were the real star, clocking in at $4.1 million, all while maintaining a fantastic gross margin of 74.3%. This Business Model Canvas breaks down exactly how their key partnerships and focused U.S. sales teams are turning proprietary ablation technology into a sticky, high-margin business-keep reading to see the full structure.

Profound Medical Corp. (PROF) - Canvas Business Model: Key Partnerships

You're looking at the network of relationships Profound Medical Corp. relies on to get its TULSA-PRO system into operating rooms and keep the growth engine running. This isn't just about selling a device; it's about deep integration with imaging giants and building out a global sales footprint through specialized partners. The numbers here show where the commercial focus is right now.

MRI System Manufacturers for TULSA-PRO Compatibility

The TULSA-PRO system requires a specific MRI environment to function, making partnerships with scanner manufacturers essential for compatibility and co-marketing. While Profound Medical Corp. has a history with several major players, the most recent definitive commercial agreement highlights a key integration strategy.

The TULSA-PRO system is the only AI-powered, MR-guided robotic system for prostate treatment, using real-time MRI thermography.

Strategic International Distributors

To expand beyond its North American direct sales focus, Profound Medical Corp. relies on strategic distribution partners for international markets. These agreements secure access to significant patient populations.

• Getz Healthcare: Entered into an exclusive distribution and supply agreement for TULSA-PRO in Australia and New Zealand (ANZ) in November 2025.
• Getz Healthcare is recognized as the leading distributor of medical equipment, devices, and consumables in Asia Pacific.
• Profound Medical Corp. is actively pursuing opportunities to expand this partnership with Getz Healthcare into additional key Asia Pacific markets.

Exclusive Distribution in Saudi Arabia

Penetrating the Middle East healthcare market is being handled through a dedicated, exclusive arrangement.

• Al Faisaliah Medical Systems Co. (FMS): Entered into an exclusive distribution and supply agreement for both TULSA-PRO and Sonalleve technologies in Saudi Arabia in November 2025.
• All required regulatory approvals to import and sell the technologies in Saudi Arabia were already in place as of the announcement date.

Clinical Research Organizations and Trial Data

Clinical validation, especially against the standard of care like Robotic Radical Prostatectomy (RP), is a critical partnership function, often involving academic medical centers and research organizations.

• The CAPTAIN trial is a prospective, multi-center randomized controlled trial comparing the TULSA Procedure with RP for intermediate-risk prostate cancer.
• Recruitment for CAPTAIN started in 2022 across 20 sites in the United States, two in Canada, and one in Europe.
• As of January 2025, 210 patients were randomized (69% TULSA, 31% RP) in this post-market study.
• The last patient treatment occurred in August 2025.
• Perioperative data from the trial received a Cum Laude award (top 5% of posters) at the December 2025 RSNA Annual Meeting.

Hospitals and Private-Pay Practices Adoption

The adoption rate, measured by installed systems and total procedures, reflects the success of the commercial strategy, which pivoted to prioritize capital sales in 2025.

Here's a snapshot of the installed base and procedure volume as of late 2025:

The growing demand led to the launch of a TULSA-PROgram by Texas Prostate and Dallas Medical Center in September 2025 to meet this demand. The U.S. reimbursement for the TULSA procedure was established at Urology Level 7 Ambulatory Payment Classification (APC), effective January 1, 2025.

Profound Medical Corp. (PROF) - Canvas Business Model: Key Activities

You're looking at the core engine driving Profound Medical Corp. as of late 2025. This is where the rubber meets the road-the actual work that generates revenue and validates the technology. It's a mix of selling hardware, managing the recurring supply stream, pushing clinical boundaries, and fighting for reimbursement codes.

U.S. commercialization and direct sales of the TULSA-PRO system

Profound Medical Corp. is actively executing its U.S. commercialization strategy, which involves a pivot toward prioritizing capital equipment sales to scale the TULSA-PRO system adoption. This is evident in the revenue mix reported through the first half of 2025. For the first quarter ended March 31, 2025, total revenue hit $2.6 million, which was an 82% increase year-over-year from $1.4 million in Q1 2024. That Q1 revenue broke down into $1.8 million from recurring non-capital sources and $820,000 from one-time capital equipment sales. By the second quarter ended June 30, 2025, total revenue was $2.2 million, with $1.6 million coming from recurring revenue and $650,000 from capital equipment sales. The company has a substantial pipeline to convert, holding nearly 500 TULSA-PRO prospects, with 80 systems in the 'Verify, Negotiate and Contracting' stages as of Q2 2025. Honestly, the shift to a capital model means the second half of 2025 needs to see significant conversion of those leads to hit the reaffirmed full-year revenue growth target of 70% to 75% over 2024.

Manufacturing and supply chain management for capital equipment and consumables

The operational side involves managing the supply chain for both the capital equipment and the necessary consumables that drive recurring revenue. The gross margin performance shows efficiency gains here; it improved to 71% in Q1 2025 and further to 73% in Q2 2025, up from 60% in Q1 2024. Recurring revenue, which covers consumables, leases, and warranties, made up the majority of revenue in both reported quarters of 2025: $1.8 million out of $2.6 million in Q1, and $1.6 million out of $2.2 million in Q2. The TULSA-PRO system itself can treat almost any size prostate, up to 250cc, which speaks to the flexibility in manufacturing and system capability.

Research and development (R&D) for TULSA-PRO AI modules and Sonalleve

R&D is a significant cost center, with operating expenses increasing to $13.0 million in Q1 2025 and $15.4 million in Q2 2025, partly due to accelerated R&D investments. A key R&D activity is the integration of artificial intelligence, highlighted by the pilot release of the TULSA-AI volume reduction software module for BPH. Beyond TULSA-PRO, Profound Medical Corp. is actively exploring additional markets for its Sonalleve platform, including non-invasive ablation of abdominal cancers and hyperthermia for cancer therapy.

Executing the clinical strategy, including the CAPTAIN trial

Clinical validation remains paramount, centered on the CAPTAIN trial, a Level 1 post-market randomized controlled trial (RCT) comparing TULSA to Robotic Radical Prostatectomy (RP). The trial successfully recruited to target, with the last patient treated in August 2025. Initial perioperative data presented at the AUA Annual Meeting on April 29, 2025, showed statistically significant improvements for TULSA. More recently, data presented at RSNA on December 4, 2025, received a Cum Laude award.

Here are the key perioperative data points from the CAPTAIN trial:

The clinical focus also covers a wide range of prostate disease applications:

• Prostate Cancer Only: 79% of Q2 2025 procedures
• Hybrid Cases (Cancer + BPH): 17% of Q2 2025 procedures
• Salvage Cases: 3% of Q2 2025 procedures
• GG2 Disease: 53% of Q2 2025 cases

Securing national and regional commercial payer coverage for procedures

Securing favorable reimbursement is a critical activity, directly impacting U.S. commercialization. Effective January 1, 2025, the Transurethral Ultrasound Ablation (TULSA) procedure received a Category 1 CPT code from CMS, with the facility reimbursement categorized as Urology APC Level 7 under the OPPS Final Rule. This created three specific codes depending on physician involvement.

For procedures performed in a facility setting (Outpatient Hospital or ASC), the Medicare payment structure includes:

• CPT 55882 (TULSA Complete Procedure): Medicare payment rate of $10,728.00
• CPT 55882 (TULSA Complete Procedure): RVU-based value of $12,992.42

The company also expanded its commercial reach through distribution agreements in Saudi Arabia and Australasia in late 2025.

Profound Medical Corp. (PROF) - Canvas Business Model: Key Resources

You're looking at the core assets Profound Medical Corp. relies on to execute its strategy, which is heavily weighted toward capital equipment sales in 2025. These resources are what make their value proposition possible.

The foundational resource is the proprietary TULSA-PRO and Sonalleve AI-powered ablation technology. TULSA-PRO itself is a system that combines real-time MRI, AI-enhanced planning, robotically-driven transurethral ultrasound, and closed-loop temperature feedback control. The company is also exploring additional potential treatment markets for Sonalleve, including non-invasive ablation of abdominal cancers and hyperthermia for cancer therapy. The TULSA-AI® module specifically aims to expand the addressable patient population from an estimated 200,000 to 600,000 patients annually.

The tangible evidence of market penetration is the installed base of TULSA-PRO systems. As of the close of the third quarter on September 30, 2025, Profound Medical Corp. reported an installed base of exactly 70 TULSA-PRO systems. Management has guided that they expect to reach at least 75 installs by the end of the year.

Underpinning the technology is the intellectual property and regulatory clearances. While specific clearance dates aren't in the latest reports, the company's commercial operations rely on having secured necessary regulatory hurdles, such as the FDA 510(k) and CE Mark, to market its incision-free therapies. The technology is described as customizable and AI-powered.

Financially, liquidity is a key resource. As of September 30, 2025, Profound Medical Corp. held a cash balance of approximately $24.8 million. This cash position supports ongoing operations and commercial expansion efforts.

To drive adoption, Profound Medical Corp. maintains specialized direct sales and clinical support teams in North America. The investment in these teams is clear in the operating expenses; for instance, Q1 2025 operating expenses reached $13 million, which reflected investment in commercial team expansion. Increased headcount and increased sales force were cited as reasons for increased operating expenses in Q3 2025 as well.

Here's a quick look at the key operational and financial metrics defining these resources as of late 2025:

The company's resources are also supported by its commercial pipeline activity, which is a leading indicator of future resource utilization:

• TULSA-PRO qualified sales pipeline stood at 93 new systems in 'Verify, Negotiate and Contracting' stages as of Q3 2025.
• Recurring revenue for Q3 2025 was $4.1 million.
• Capital equipment revenue for Q3 2025 was $1.2 million.

Finance: draft 13-week cash view by Friday.

Profound Medical Corp. (PROF) - Canvas Business Model: Value Propositions

You're looking at the core value Profound Medical Corp. (PROF) delivers to its customers-the physicians and, ultimately, the patients. It's all about offering a superior, less invasive alternative to established procedures, backed by compelling financial and clinical metrics as of late 2025.

The primary value proposition centers on Incision-free, MRI-guided prostate tissue ablation (TULSA-PRO). This technology allows for precise targeting of diseased prostate tissue using sound energy, all while the physician monitors the process in real-time via MRI. This is a significant shift from traditional surgery or radiation.

This precision translates directly into a value proposition of Precise, customizable treatment that protects nerves and functional abilities. The clinical data supports this claim strongly. For instance, perioperative data from the CAPTAIN randomized controlled trial showed that patients treated with robotic radical prostatectomy (RP) took almost three weeks to recover to the same state TULSA Procedure patients reached the very next day. Also, the TULSA Procedure has no associated blood loss and requires no overnight hospital stay.

The customization aspect is evident in how the procedures are being performed across the installed base. Looking at the third quarter of 2025 data, the treatment approach varied significantly:

• 79% were treated for prostate cancer only.
• 14% were hybrid patients (prostate cancer and BPH).
• 4.5% were salvage cases.
• 2.5% were men with BPH only.

Furthermore, the extent of the ablation was highly tailored:

From a financial perspective for Profound Medical Corp., the technology demonstrates a High gross margin of 74.3% on procedures, showing cost-effectiveness for the company. This figure was achieved in the third quarter of 2025, a notable improvement from the 71% gross margin seen in the first quarter of 2025. This high margin is driven by the recurring revenue from consumables used during each TULSA-PRO procedure.

The value proposition extends beyond prostate care to other indications via the Sonalleve platform, offering a Non-invasive treatment for uterine fibroids and palliative pain. Sonalleve is CE marked for treating uterine fibroids and for palliative pain treatment of bone metastases. For specific, localized bone issues, it even holds FDA approval under a Humanitarian Device Exemption for the treatment of osteoid osteoma.

Finally, a key component of the value is the Potential for a single-session, one-and-done procedure. The TULSA Procedure is designed as an incision- and radiation-free treatment performed entirely in a single session that takes just a few hours. This efficiency is also reflected in the reimbursement structure established for 2025. For instance, the Medicare National Average facility payment for CPT 55882 in a Hospital Outpatient setting was set at $12,992, which is 25% higher than the 2025 payment classification for robotic radical proctectomy.

Here's a quick look at the platform's adoption and the resulting revenue quality as of the third quarter of 2025:

• TULSA-PRO Installed Base: 70 systems, with an expectation to reach at least 75 by the end of the year.
• Recurring Revenue (Q3 2025): $4.1 million out of $5.3 million total revenue.
• Procedure Heat Target: Tissue is gently heated to a kill temperature of 55-57°C.

Finance: draft 13-week cash view by Friday.

Profound Medical Corp. (PROF) - Canvas Business Model: Customer Relationships

Direct, high-touch sales and negotiation for capital equipment placement.

The TULSA-PRO installed base reached 70 systems as of September 30, 2025, with an expectation to reach at least 75 installs by the end of the year. Profound Medical Corp. is actively managing a qualified sales pipeline that stood at 93 new systems in the "Verify, Negotiate and Contracting" stages as of Q3 2025. This follows a pipeline of 80 new systems in similar stages in Q2 2025, built upon nearly 500 prospects and over 100 engaged leads reported in that quarter. Capital equipment sales contributed $820,000 in Q1 2025, which dipped to $650,000 in Q2 2025, before increasing to $1.2 million in Q3 2025.

Dedicated clinical support and training for hospital staff.

Support infrastructure is reflected in operating expenses, which were $13.0 million in Q1 2025, rising to $15.4 million in Q2 2025, and settling at approximately $12.8 million in Q3 2025. These expenses cover an enlarged sales force and increased headcount necessary to support commercial expansion. Educational efforts included hosting the Pro-Talk Live! event in February 2025.

Long-term service contracts and consumable supply for recurring revenue.

Recurring revenue streams, which consist of TULSA-PRO® consumables, lease of capital equipment, and extended warranty services, are a key component of customer retention.

The gross margin for Profound Medical Corp. improved to 74.3% in Q3 2025, up from 71% in Q1 2025.

Collaborative programs with medical centers to accelerate adoption.

Profound Medical Corp. launched a first-of-its-kind TULSA-PROgram in September 2025 in partnership with Texas Prostate and Dallas Medical Center. This model is designed to bridge private-pay practices and Medicare-participating hospitals. The company is also expanding its market presence through strategic distribution agreements in Canada, Saudi Arabia, Australia, and New Zealand.

Investor relations and public communication on clinical progress.

Public communication highlights clinical milestones and financial health to stakeholders. The company reported its cash position as of March 31, 2025, was $46.4 million, which decreased to $35.2 million by June 30, 2025, and further to approximately $24.8 million as of September 30, 2025. The net loss for Q3 2025 was approximately $8.0 million, or $0.26 per common share, an improvement from the Q3 2024 net loss of approximately $9.4 million. The company is anticipating published data from the CAPTAIN trial in December 2025, which management expects will lead to new guidelines. CEO Arun Menawat presented at the Stifel Healthcare Conference in early November 2025.

• TULSA-PRO treatment applications in Q3 2025:
• 79% for prostate cancer only.
• 14% were hybrid patients (cancer and BPH).
• 4.5% were salvage procedures.
• 2.5% were for BPH only.

Profound Medical Corp. (PROF) - Canvas Business Model: Channels

You're looking at how Profound Medical Corp. gets its TULSA-PRO and Sonalleve systems and services in front of the right clinicians and stakeholders as of late 2025. The strategy clearly splits between direct control in North America and leveraging established partners elsewhere.

Direct sales force focused on North American hospitals and medical centers.

Profound Medical Corp. is deploying its own direct sales team across North America, which they streamlined in the second quarter of 2025 to refine sales processes as they pivot to prioritize capital equipment sales. The company confirmed its sales team was stabilized as of the second quarter of 2025 earnings call. This direct approach is key for managing the TULSA-PRO system adoption in the U.S., where the system has 510(k) clearance from the U.S. Food and Drug Administration (FDA). The company noted a robust TULSA-PRO qualified sales pipeline, which stood at 80 new systems in the Verify, Negotiate, and Contracting stages as of June 30, 2025. This pipeline execution is central to their guidance of achieving 70% to 75% total year-over-year revenue growth for 2025 over 2024 figures.

Exclusive distribution agreements for international markets.

For markets outside North America, Profound Medical Corp. relies on select strategic distribution partners to support the business potential and customer base. This approach was recently reinforced with several key agreements:

• Secured an exclusive distribution and supply agreement with Getz Healthcare for Australia and New Zealand, announced on November 12, 2025.
• Entered into an exclusive distribution agreement with Al Faisaliah Medical Systems in Saudi Arabia, announced on November 11, 2025.
• Regained exclusive distribution rights for Canada from Knight Therapeutics Inc. on November 10, 2025, in exchange for a one-time cash payment of CDN$90,000 (US$64,000) and a 5% royalty on Canadian Net Sales for 15 years.

The company is also exploring expanding the partnership with Getz Healthcare to include additional key markets across Asia Pacific. The Sonalleve platform, which is CE marked for uterine fibroids, also has approval from the China National Medical Products Administration for the non-invasive treatment of uterine fibroids.

Clinical presentations at major medical conferences (e.g., RSNA, SUO).

Major medical conferences serve as critical channels for clinical validation and product launches. Profound Medical Corp. actively presented at several key events in late 2025:

• Showcased innovations at the Radiological Society of North America (RSNA) meeting in Chicago (November 30-December 4, 2025) and the Society for Urologic Oncology (SUO) meeting in Phoenix (December 2-5, 2025).
• Launched the TULSA-AI Volume Reduction module for benign prostatic hyperplasia (BPH) at RSNA.
• Presented new clinical data on the TULSA-PRO procedure for prostate cancer at both RSNA and SUO.
• Hosted an investor event during the American Urological Association's (AUA) Annual Meeting in Las Vegas in April 2025.

These presentations feature data, such as the CAPTAIN perioperative trial results, which are intended to drive adoption and potentially influence new clinical guidelines. The company also noted increased travel and conference costs in its operating expenses to support this growth.

Company website and investor relations for defintely reaching stakeholders.

The company utilizes its corporate website, www.profoundmedical.com, for investor relations and to host archived webcasts of calls and events. The website is the source for filings under SEDAR+ and the SEC. The company reported preliminary unaudited total revenues for the third quarter ended September 30, 2025, to be in the range of $5.2 million to $5.3 million USD. This performance reflects the utilization of the installed base, which grew to 67 TULSA-PRO systems as of September 30, 2025, with an expectation to reach at least 75 by the end of the year.

Here's a quick look at the key operational and financial metrics relevant to channel performance as of the third quarter of 2025:

The company's cash position as of June 30, 2025, was $35.2 million, which supports the operating expenses associated with expanding the commercial organization and travel for conferences. Finance: draft 13-week cash view by Friday.

Profound Medical Corp. (PROF) - Canvas Business Model: Customer Segments

You're looking at the customer base for Profound Medical Corp. as of late 2025, primarily driven by the TULSA-PRO system utilization following their strong third quarter results.

Hospitals and specialized medical centers acquiring capital equipment.

These institutions are the direct purchasers of the durable TULSA-PRO system, which is used in conjunction with their existing MRI scanner. The installed base, which is key to recurring revenue from consumables, stood at 70 systems as of September 30, 2025. Management reiterated confidence in reaching at least 75 installs by the end of the year. The qualified sales pipeline for new systems was robust, standing at 93 new systems in the Verify, Negotiate, and Contracting stages in Q3 2025. Revenue from the one-time sale of capital equipment in Q3 2025 was $1.2 million out of total revenue of approximately $5.3 million for the quarter.

Urologists and interventional radiologists performing the procedures.

These are the key users who drive the recurring revenue stream, which was $4.1 million in Q3 2025 from consumables, leases, and warranties. The TULSA Procedure is an incision- and radiation-free, one-and-done procedure. The company is focused on U.S. commercialization with a direct sales team. The new TULSA-AI Volume Reduction module, which debuted in late 2025, is specifically designed to streamline workflow and compress procedure times, allowing sites to schedule multiple cases in a single day. This efficiency push targets the same operational arguments used by high-volume BPH alternatives.

Prostate cancer patients (the majority, 79% of Q3 2025 procedures).

This group represents the core utilization base for the TULSA-PRO system. The procedure treats the entire prostate disease spectrum. Here's the quick math on the patient mix from Q3 2025 procedures:

For the cancer-only segment, the breakdown by Gleason Grade Group (GG) was:

• GG1: 10%
• GG2: 53%
• GG3: 28%
• GG4 & GG5: 9%

Patients with Benign Prostatic Hyperplasia (BPH) and hybrid cases.

The introduction of the TULSA-AI Volume Reduction module in late 2025 is a strategic move to capture this larger market. Profound projects this module could expand its annual addressable patient pool to roughly 600,000 patients. In Q3 2025, patients with BPH only accounted for 2.5% of procedures, while hybrid cases (cancer and BPH) made up 14%.

Patients requiring salvage therapy for radio-recurrent cancer.

This is a specific, high-need niche within the overall patient population. In the third quarter of 2025, patients requiring salvage therapy for radio-recurrent cancer represented 4.5% of the TULSA Procedures performed. The TULSA Procedure offers an incision- and radiation-free option for these patients.

Profound Medical Corp. (PROF) - Canvas Business Model: Cost Structure

You're looking at the expenses Profound Medical Corp. is incurring to drive its commercial growth and clinical milestones as of late 2025. Honestly, the cost structure is heavily weighted toward expansion and development right now, which is typical for a commercial-stage medical device company scaling its footprint.

High Selling, General, and Administrative (SG&A) expenses from sales force expansion

The push to grow the TULSA-PRO installed base is a major cost driver. You see this reflected in the operating expenses rising year-over-year. For the third quarter of 2025, total operating expenses were approximately $12.8 million, up from $10.8 million in the third quarter of 2024. This increase was explicitly tied to several factors supporting the commercial ramp.

The key components driving this higher SG&A include:

• Increased headcount and increased sales force size.
• Higher commission payments tied to sales performance.
• Increased travel and infrastructure costs to support the growing business.

The second quarter of 2025 showed even higher operating expenses at approximately $15.4 million, which also pointed to higher headcount and sales force expansion.

Significant R&D investment, totaling $10.9 million for the nine months of 2025

Profound Medical Corp. continues to fund future innovation and clinical validation. You are required to note the significant R&D spend dedicated to advancing the platform. The investment in Research and Development for the first nine months of 2025 totaled $10.9 million.

This investment supports pipeline development, including the TULSA-AI Volume Reduction software, which soft-launched in Q4 2025, and the integration with Siemens Free.Max.

Costs of goods sold for TULSA-PRO systems and consumables

The Cost of Goods Sold (COGS) is the direct cost associated with generating revenue. Profound Medical Corp. achieved a gross margin of 74.3% in the third quarter of 2025. Given the Q3 2025 revenue was $5.3 million, the implied COGS for that quarter was approximately $1.35 million ($5.3 million (1 - 0.743)).

Revenue generation in Q3 2025 broke down as follows:

The recurring revenue stream, which is tied to consumables used in the TULSA Procedure, is key to margin stability, as evidenced by the 1,119 basis point year-over-year improvement in gross margin.

Clinical trial costs, particularly for the CAPTAIN trial enrollment

Clinical validation is a necessary, non-recurring cost that impacts quarterly expenses. The pivotal CAPTAIN trial, which compared TULSA to robotic radical prostatectomy, was a significant cost factor, particularly in the first half of 2025.

The increased operating expenses in the second quarter of 2025, which reached $15.4 million, were directly attributed to:

• Increased enrolment for the CAPTAIN trial.
• Associated treatments and recruitment efforts.

Management announced that the recruitment for the CAPTAIN trial was completed as of August 2025.

General corporate overhead and public company compliance costs

This category covers the fixed and semi-fixed costs of running a publicly traded entity. While not broken out separately, these costs are embedded within the total operating expenses, which totaled $12.8 million in Q3 2025.

These overhead costs cover necessary functions such as:

• General corporate administration.
• Public company compliance, including SEC filings and investor relations.
• Base salaries for non-sales/R&D personnel.

The company's net loss for Q3 2025 was approximately $8.0 million, reflecting these operating costs against the $5.3 million in revenue.

Profound Medical Corp. (PROF) - Canvas Business Model: Revenue Streams

You're looking at the core ways Profound Medical Corp. (PROF) brings in cash as of late 2025, which is heavily weighted toward repeat business, a good sign for a medical device company.

The revenue structure is clearly bifurcated between the initial sale of the high-value TULSA-PRO capital equipment and the ongoing revenue generated from using that equipment. For the third quarter of 2025, the total revenue hit a record $5.3 million. This performance showed an 87% increase year-over-year from $2.8 million in Q3 2024.

The real engine for the business, however, is the recurring side. Recurring revenue, which covers consumables, leases, and service contracts, was $4.1 million in Q3 2025, making it the majority of the sales generated that quarter. This recurring stream is essential because it provides a more predictable financial base than relying solely on large, lumpy capital sales.

Here is the quick math on how the Q3 2025 revenue broke down:

The recurring revenue component is explicitly tied to the installed base of the TULSA-PRO system, which stood at 70 systems as of the end of Q3 2025, with management expecting to reach at least 75 installs by the end of the year. This recurring revenue from TULSA-PRO consumables, leases, and service contracts is the foundation of the business model.

Beyond the primary TULSA-PRO revenue, Profound Medical Corp. also generates revenue from its other platform:

• Revenue from Sonalleve system sales and related consumables/services.
• The recurring revenue stream also incorporates service contracts and leases for both TULSA-PRO and Sonalleve platforms.
• The company is actively expanding market access for both TULSA-PRO and Sonalleve through new distribution agreements in regions like Saudi Arabia.

To be fair, the $1.2 million from capital equipment sales represents a significant, though less predictable, portion of the total revenue. The gross margin on this total revenue was strong at 74.3% for the quarter.

Finance: draft 13-week cash view by Friday.