Executive Summary

Q3 2025 revenue was $83.3M, up 43% YoY, with gross margin of ~64.8% and net loss per share of ($0.38). U.S. revenue was $73.9M (+42% YoY) and OUS $9.4M (+53% YoY) .
Results beat S&P Global consensus: revenue $83.3M vs $80.8M* and EPS ($0.38) vs ($0.42)*; management reiterated FY25 revenue guidance (~$325.5M) and introduced FY26 revenue guidance of $410–$430M .
Capital remained strong: 57 U.S. HYDROS systems sold in Q3 (avg ASP ~$435K), U.S. installed base reached 653; handpiece units ~13,225 (+51% YoY) .
Near‑term headwinds: Q4 gross margin includes ~$2M tariff expense (~200 bps), and handpiece sales guidance reduced due to field inventory optimization and ramp timing of recent installs .
New CEO Larry Wood emphasized faster new account launches, utilization growth, and patient activation to drive the next adoption phase; issued early FY26 outlook and plans an Analyst Day in late Feb 2026 .

What Went Well and What Went Wrong

What Went Well

Strong top-line and capital execution: revenue +43% YoY to $83.3M; U.S. systems revenue $24.7M (+26% YoY); international +53% YoY to $9.4M .
Robust installed base expansion and unit metrics: 57 U.S. HYDROS systems sold; U.S. installed base reached 653; ~13,225 handpieces sold (+51% YoY) .
Margin progress and operating leverage: gross margin ~64.8%, +160 bps YoY; Adjusted EBITDA loss improved to ($7.4M) from ($12.4M) YoY .
Management tone: “We accelerated U.S. system placements… and achieved 43% year over year global revenue growth” — Larry Wood, CEO .

What Went Wrong

Utilization growth slowed in Q3 (low single-digit YoY) due to elongated launch timelines; management is prioritizing faster ramp from sale to first 15–20 cases .
Q4 gross margin headwind (~$2M tariffs) implies ~63% Q4 GM; tariff-related costs remain a near‑term drag .
Handpiece guidance trimmed (Q4 destocking): full-year handpieces reduced to ~52,000 (from ~53,000 guided previously), reflecting field inventory optimization and variable launch timing .

Financial Results

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue ($M)	$69.2	$79.2	$83.3
Net loss per share (GAAP)	($0.45)	($0.35)	($0.38)
Gross margin (%)	64%	65%	64.8%
Operating expenses ($M)	$71.6	$73.9	$77.2
Adjusted EBITDA ($M)	($15.8)	($8.0)	($7.4)

Consensus vs. Actual (S&P Global, Q3 2025):

Revenue: $80.8M* estimate vs $83.3M actual — beat by ~$2.6M.
Primary EPS: ($0.42)* estimate vs ($0.38) actual — beat by ~$0.04.
Values retrieved from S&P Global.

Segment Breakdown (Q3 2025):

Revenue ($000s)	U.S.	Outside U.S.	Total
System sales & rentals	$24,747	$3,391	$28,138
Handpieces & consumables	$44,411	$5,316	$49,727
Service	$4,754	$708	$5,462
Total	$73,912	$9,415	$83,327

Key KPIs (Q3 2025):

KPI	Q3 2025
U.S. HYDROS systems sold (units)	57
U.S. installed base (systems)	653
System ASP (U.S.)	~$435K
Handpiece units sold (units)	~13,225
U.S. revenue ($M)	$73.9
International revenue ($M)	$9.4
Cash, cash equivalents & restricted cash ($M)	~$297.3

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenue ($M)	FY 2025	~$325.5	~ $325.5	Maintained
Gross Margin (%)	FY 2025	~64.5	64.0–64.5; Q4 GM ~63% incl. ~$2M tariffs	Narrowed range; called out Q4 tariff headwind
Total OpEx ($M)	FY 2025	~$302	~$302	Maintained
Adjusted EBITDA ($M)	FY 2025	(~$35)	(~$35)	Maintained
U.S. Systems (units)	FY 2025	~210	~213	Raised
Handpieces (units)	FY 2025	~53,000	~52,000	Lowered
International Revenue ($M)	FY 2025	~$36	~$37.5	Raised
2026 Total Revenue ($M)	FY 2026	—	$410–$430	New

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2 2025)	Current Period (Q3 2025)	Trend
Utilization & Launch Timing	Strong procedure momentum; time to ramp 3–4 quarters; focus on launching with multiple surgeons	Low single-digit YoY utilization in Q3 due to elongated launch timelines; launch initiatives to compress time to first 15–20 cases	Intensified focus on faster ramp
Capital Environment & IDNs	Capital stable; building top-down IDN relationships; Q2 capital shifted timing	Strong Q3 capital; timing variability persists; Q4 ~mid-60s systems expected	Healthy but timing sensitive
Tariffs & Margins	Tariff headwind attenuated to ~$1–$2M in FY25; FY25 GM ~64.5%	Q4 ~ $2M tariff expense; FY25 GM 64.0–64.5%	Managed headwind; transparent Q4 impact
Reimbursement (Category I CPT)	Category I CPT proposed for 2026; OPPS support emphasized	PFS professional fees consistent with expectations; hospital economics more impactful; cautiously optimistic on facility rates	Framework supportive
Organizational Changes & Strategy	CEO transition announced; restructuring commercial leadership	New CEO prioritizes patient activation, international focus, faster launches; Analyst Day in Feb 2026	Strategic pivot to demand gen
International Expansion	Q2 strength in UK/Japan/Korea	FY25 international revenue guide raised to ~$37.5M	Positive momentum

Management Commentary

“We accelerated U.S. system placements… and achieved 43% year over year global revenue growth.” — Larry Wood, CEO .
“In Q3, we sold 57 new HYDROS systems… exited Q3 with a U.S. installed base of 653 systems… handpiece units ~13,225 (+51% YoY).” — Kevin Waters, CFO .
“We’re implementing initiatives aimed at improving our commercial execution… focusing on improving speed of new account launches… from sale to when systems hit utilization targets.” — Larry Wood .
“We now expect FY25 gross margin 64%–64.5%… Q4 GM ~63% includes ~$2M of tariff expense… FY25 Adjusted EBITDA loss ~($35M).” — Kevin Waters .
“For FY26, we anticipate total revenue $410–$430M… we may see modest procedural headwinds in 1H26 as we make targeted strategic investments.” — Larry Wood .

Q&A Highlights

Capital demand and timing: Management cited ongoing timing variability (especially with IDNs) but robust capital pipeline; expecting ~mid‑60s systems in Q4 .
Utilization dynamics: Q3 utilization in low single digits YoY as expected; initiatives target faster ramp from sale to procedures; focus on handoff between capital and utilization teams .
Q4 outlook: Q3 beat but FY25 guide maintained; Q4 handpieces lowered by ~1,000 due to field inventory optimization and variable launch timing; management expects good Q4 procedures .
Tariffs and margins: Q4 GM ~63% including ~$2M tariff costs; management sees margins trending upwards over time and not a hindrance to path to profitability .
Financing model: One operating lease placement in Q3 was a one‑off; no near‑term shift to leasing model planned .

Estimates Context

Consensus vs Actuals (S&P Global)

Metric	Q1 2025 Estimate	Q1 2025 Actual	Q2 2025 Estimate	Q2 2025 Actual	Q3 2025 Estimate	Q3 2025 Actual
Revenue ($)	65,404,950*	69,162,000	76,237,940*	79,182,000	80,768,390*	83,327,000
Primary EPS ($)	(0.49125)*	(0.45)	(0.41)*	(0.35)	(0.42111)*	(0.38)

Values retrieved from S&P Global.

Implications: PRCT beat revenue and EPS consensus in Q3, with upside driven by U.S. capital sales and international strength; near‑term estimate revisions may reflect lower Q4 handpiece shipments (destocking), a ~63% Q4 GM including tariffs, and raised FY25 international revenue .

Key Takeaways for Investors

Capital momentum remains a key near‑term driver: 57 U.S. HYDROS systems sold in Q3; ~65 systems expected in Q4 underpinning installed base growth and 2026 setup .
Utilization is the primary lever: Q3 utilization growth decelerated, but management launched initiatives (faster post-sale ramp, improved capital-to-utilization handoffs) that should improve throughput into 2026 .
Guidance steady; 2026 color introduced: FY25 revenue ~$325.5M maintained; FY26 revenue outlook $410–$430M indicates 26%–32% YoY growth potential despite 1H26 investment headwinds .
Margin path intact despite tariffs: FY25 GM 64.0–64.5% with Q4 ~$2M tariff headwind (Q4 ~63% GM); management does not see margin as a barrier to profitability trajectory .
Handpiece dynamics a near‑term watch item: FY25 handpiece guidance reduced to ~52,000 units due to field inventory optimization and ramp timing; procedure growth remains focus .
International upside building: FY25 international revenue guide raised to ~$37.5M on UK/Asia momentum; supportive of diversified growth .
Narrative catalysts: Analyst Day in late Feb 2026 (multi‑year targets), Category I CPT code in 2026, and updates on WATERFALL prostate cancer trial; watch for evidence of faster new account ramps and patient activation initiatives translating into utilization .

Notes and Sources:

Q3 2025 press release/8‑K and financial tables ; stand‑alone press release –.
Q3 2025 earnings call transcript (prepared remarks and Q&A) –.
Q2 2025 8‑K/press release and transcript – –.
Q1 2025 8‑K/press release –.
Category I CPT code press release (2026 effective) .

S&P Global estimates disclaimer: Values retrieved from S&P Global. (*) indicates consensus estimate value.

PROCEPT BioRobotics Corp (PRCT)·Q3 2025 Earnings Summary