PRCT — PROCEPT BioRobotics Corporation

PROCEPT BioRobotics Q1 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• Total Revenue: $83.1 million, a 20% increase year-over-year.
• U.S. Revenue: $72 million, reflecting 19% growth compared to the prior year.
• Procedures: Approximately 12,200 U.S. procedures completed, a 30% year-over-year growth.
• Gross Margin: 65%, up from 61% in Q4 2025 and 64% in Q1 2025.
• Net Loss: $31.6 million, compared to a net loss of $24.7 million in Q1 2025.
• Adjusted EBITDA: Loss of $18.1 million, worse than the $15.8 million loss in the prior year.
• Cash Position: $249 million as of March 31, 2026.

2. Strategic Updates and Business Highlights

• Commercial Realignment: The company has restructured its commercial team to enhance accountability and coordination between clinical and sales functions.
• Product Launches: The AQUABEAM replacement program is gaining positive customer feedback, and the company launched Hydros systems in the U.K., selling 7 units at an average price over $400,000.
• Regulatory Updates: Aquablation therapy received a strong recommendation in updated clinical guidelines, enhancing its market position.
• Enrollment in WATER IV Study: Enrollment is ahead of schedule, expected to complete by May 2026.

3. Forward Guidance and Outlook

• 2026 Revenue Guidance: Expected to be between $390 million and $410 million, representing 27% to 33% growth year-over-year.
• Q2 Revenue Guidance: Projected to be between $91 million and $95 million, indicating 15% to 20% growth.
• U.S. Procedures Guidance: Anticipated to be between 60,000 and 64,000 for the full year, reflecting growth of 39% to 48%.
• Gross Margin Guidance: Expected to remain around 65% for the full year, with potential for modest increases in Q2 and Q3.

4. Bad News, Challenges, or Points of Concern

• Increased Operating Expenses: Total operating expenses rose to $86.6 million from $71.6 million in the prior year, driven by investments in commercial expansion and clinical trials.
• Net Loss Increase: The net loss widened compared to the previous year, raising concerns about profitability timelines.
• Disruption from Commercial Changes: The realignment caused some short-term disruptions, affecting procedure growth and sales momentum.
• Inventory Management: Handpiece sales fell slightly below the expected 1:1 ratio with procedures, although management remains confident in achieving this ratio for the full year.

5. Notable Q&A Insights

• Procedure Growth: Management attributed Q1 procedure performance to normal seasonality and ongoing adjustments from the commercial realignment, with expectations for improvement throughout the year.
• ASP Dynamics: The average selling price (ASP) for Hydros systems reached $485,000, an all-time high, but the company is cautious about projecting future ASPs due to customer mix variability.
• Surgeon Champion Dynamics: The new launch teams are focused on ensuring that systems are sold only when there is a surgeon champion ready to drive utilization, enhancing long-term adoption.
• Weather Impact: Management downplayed the impact of severe weather on Q1 procedures, emphasizing that operational execution remains a priority regardless of external factors.

Overall, PROCEPT BioRobotics demonstrated strong revenue growth and strategic advancements in Q1 2026, while also facing challenges related to operational disruptions and increasing losses. The company remains optimistic about its future growth trajectory and market positioning.