Profound Medical Corp. (PROF) AI Stock Analysis
PROF AI stock analysis summary
AI ResearchProfound Medical Corp. (PROF) is a commercial-stage medical device company specializing in magnetic resonance guided ablation therapies. While revenue expanded 61.1% in FY2025 to $16.4M, the company remains unprofitable with a net loss of -$43.3M. As of June 30, 2026, Profound Medical maintains a net cash position of $31.0M.
- Market cap
- $219.6M
- Revenue (TTM)
- $19.1M
- P/E
- —
- 1Y return
- 8.1% S&P 500 16.8%
- Avg. target
- $11.14 85.4% vs last close
Bull case
- Revenue growth reached 61.1% in FY2025, driven by expanding adoption of its magnetic resonance ablation systems.
- Gross margins expanded steadily over five fiscal years, climbing from 43.0% in FY2021 to 70.8% in FY2025.
- Wall Street analysts hold a mean price target of $11.14, reflecting an 85.4% upside over the last close of $6.01.
Bear case
- Profound Medical generated negative free cash flow of -$39.1M in FY2025 alongside a net loss of -$43.3M.
- Ongoing cash burn has contributed to shareholder dilution, evidenced by a 75.0% increase in share count over 5 years.
- The stock carries an elevated price-to-sales ratio of 11.5x compared to the US-listed Healthcare median of 4.1x.
What Profound Medical does
Profound Medical Corp. is a medical device company focused on advancing magnetic resonance guided ablation procedures. Operating across Canada, Germany, the United States, and Finland, the company develops therapies for prostate disease, uterine fibroids, and palliative pain management. Its flagship TULSA-PRO system integrates with magnetic resonance imaging scanners in hospitals to provide precise treatment options. The company also offers the Sonalleve platform, a therapeutic solution designed for the non-invasive treatment of uterine fibroids and palliative pain relief for patients with bone metastases. Profound Medical is headquartered in Mississauga, Canada.
Growth and profitability
Revenue rose from $6.9M in FY2021 to $16.4M in FY2025, supported by a 5-year revenue CAGR of 17.5% from FY2020 to FY2025. Annual top-line growth accelerated to 41.2% in FY2024 and 61.1% in FY2025, alongside gross margin expansion from 43.0% in FY2021 to 70.8% in FY2025. However, net losses widened from -$30.7M in FY2021 to -$43.3M in FY2025, impacted by an operating margin of -256.3% and research and development expenses of $21.0M. For the trailing twelve months ended June 30, 2026, revenue stood at $19.1M, with quarterly revenue growing 12.3% year-over-year and an EPS of -$0.99.
Balance sheet and cash flow
As of June 30, 2026, Profound Medical held $38.3M in cash and short-term investments against $7.3M in total debt, resulting in net cash of $31.0M. Liquidity remains supported by a current ratio of 6.45 and a debt-to-equity ratio of 0.15 on shareholders' equity of $49.8M. Operating cash flow in FY2025 was -$38.9M, and free cash flow was -$39.1M after capital expenditures of $179,084. Dilution occurred over the longer term, with share count increasing 75.0% over 5 years.
Valuation and performance
Profound Medical trades at a price-to-sales multiple of 11.5x and an enterprise value-to-revenue multiple of 9.4x, based on a market cap of $219.6M and an enterprise value of $179.7M. Its price-to-sales ratio stands above the 4.1x median of its US-listed Healthcare peers. Over the past year, the stock returned 8.1%, trailing the 16.8% return of the S&P 500 (SPY). Over a 5-year period, the stock declined 60.0% compared to an 83.0% gain for the S&P 500.
What analysts expect
All 5 analysts covering Profound Medical assign it a Strong Buy rating. The mean price target is $11.14, representing an 85.4% premium over the October 16, 2026 closing price of $6.01. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $37.4M and an EPS of -$0.84. For the following fiscal year, 5 analysts forecast revenue of $60.0M and an EPS of -$0.59. The company beat EPS estimates in each of the last 4 quarters, with its next earnings date scheduled for November 12, 2026.
Key risks and what to watch
- Operating margin for the trailing twelve months was -445.7%, showing ongoing operational deficits relative to revenue.
- Cash and short-term investments totaled $38.3M as of June 30, 2026, compared to FY2025 free cash burn of -$39.1M.
- The stock trades 11.4% below its 200-day average and has experienced a 23.6% decline year-to-date.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this PROF AI stock analysis
This page is an AI-written research summary of Profound Medical Corp. (PROF). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: PROF income statement, PROF balance sheet, PROF key metrics, PROF analyst forecast, PROF chart. See the PROF stock overview for the latest quote and news.
PROF AI stock analysis FAQ
What systems does Profound Medical Corp. manufacture?
Profound Medical develops magnetic resonance guided ablation technologies, led by its flagship TULSA-PRO system for prostate disease. It also offers the Sonalleve platform for non-invasive treatment of uterine fibroids and palliative pain relief from bone metastases.
Does Profound Medical pay a dividend?
No, Profound Medical does not pay a dividend. The company directs its capital toward operations, product development, and commercial expansion.
What are analysts forecasting for Profound Medical's revenue?
Analysts estimate revenue of $37.4M for the fiscal year ending December 31, 2026. For the next fiscal year, consensus estimates project revenue of $60.0M, reflecting expected growth of 60.7%.
What is Profound Medical's debt and liquidity position?
As of June 30, 2026, the company held $38.3M in cash and short-term investments and $7.3M in total debt, giving it $31.0M in net cash. Its current ratio was 6.45 and debt-to-equity was 0.15.