PROCEPT BioRobotics Corp. (NASDAQ:PRCT) Reports Q2 2025 Revenue Growth but Misses Profitability Targets, Triggering After-Hours Decline

PROCEPT BioRobotics Corp. (NASDAQ:PRCT) reported its second-quarter 2025 financial results, delivering revenue growth but missing market expectations on profitability, leading to a sharp after-hours decline. The surgical robotics company posted revenue of $79.2 million, up 48% year-over-year, slightly above analyst estimates of $77.9 million. However, the company reported a net loss of $19.6 million, or $0.35 per share, which was narrower than the year-ago loss of $25.6 million but worse than the consensus estimate of a $0.42 loss per share.

Key Financial Highlights

• Revenue Growth: Total revenue reached $79.2 million, up 48% YoY, driven by strong U.S. and international demand.
  • U.S. revenue grew 46% to $69.6 million, with handpiece and consumables revenue up 58%.
  • International revenue surged 69% to $9.6 million.
• Gross Margin Expansion: Improved to 65%, up from 59% in Q2 2024, reflecting better operational efficiency and higher system pricing.
• Operating Expenses: Increased to $73.9 million due to commercial expansion and R&D investments.
• Net Loss: Narrowed to $19.6 million from $25.6 million in the prior-year quarter. Adjusted EBITDA loss improved to $8.0 million from $17.9 million.

Market Reaction

Despite the revenue beat, shares fell sharply in after-hours trading, down more than 8%. The market’s negative reaction likely stems from:

• Higher-Than-Expected Losses: While revenue growth was strong, the EPS miss suggests ongoing profitability challenges.
• Increased Operating Expenses: Rising costs in sales, R&D, and administration may concern investors looking for a clearer path to breakeven.
• Guidance Adjustment: The company raised its full-year revenue outlook to $325.5 million (from $323 million), but this was only a modest increase and did not significantly exceed analyst expectations.

Outlook vs. Analyst Estimates

PROCEPT’s updated full-year revenue guidance of $325.5 million represents 45% growth over 2024, slightly above the consensus estimate of $331.2 million. However, the company expects an adjusted EBITDA loss of $35 million, indicating continued investment in growth rather than near-term profitability.

Strategic Developments

• Install Base Expansion: Sold 51 robotic systems in the U.S., bringing the total installed base to 595.
• Leadership Transition: Larry Wood, a medical technology industry veteran, will take over as CEO in September.
• Clinical Progress: Continued enrollment in the WATER IV prostate cancer study and international commercial expansion.

Conclusion

While PROCEPT BioRobotics demonstrated robust revenue growth and margin improvement, the market’s reaction reflects concerns over profitability and spending trends. The company remains in investment mode, prioritizing market expansion over near-term earnings.

For more detailed earnings estimates and historical performance, visit PROCEPT BioRobotics earnings estimates.

Disclaimer: This article is not investment advice. Investors should conduct their own research before making any financial decisions.