PROCEPT Biorobotics Corp (PRCT) - Q1 2026 Filing Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended March 31, 2026. PROCEPT Biorobotics Corporation develops and sells the AquaBeam and HYDROS robotic systems for treating benign prostatic hyperplasia (BPH) using Aquablation therapy. As of March 31, 2026, the company reported a global install base of 971 robotic systems, with 765 located in the United States.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Revenue | $83.1 million | $69.2 million |
| Gross Profit | $53.9 million | $44.2 million |
| Gross Margin | 65% | 64% |
| Net Loss | $(31.6) million | $(24.7) million |
| Loss Per Share (Basic/Diluted) | $(0.56) | $(0.45) |
| Cash and Cash Equivalents | $245.6 million | $316.2 million |
| Long-Term Debt | $51.7 million | $51.6 million |
| Operating Cash Flow | $(38.1) million | $(17.0) million |
Material Changes vs. Prior Period
- Revenue Growth: Revenue increased 20% year-over-year, driven by higher sales volumes of systems, handpieces, and service contracts. U.S. revenue accounted for 87% of total revenue.
- Expense Increases: Operating expenses rose 21% to $86.6 million. Research and Development (R&D) expenses increased 31% to $21.5 million, and Selling, General, and Administrative (SG&A) expenses increased 18% to $65.1 million, primarily due to expanded commercial and R&D headcount and stock-based compensation.
- Cash Burn: Net cash used in operating activities more than doubled to $38.1 million, reflecting the net loss and a $21.9 million increase in net operating assets (specifically accounts receivable and inventory).
- Debt Structure: In August 2025, the company amended its term loan facility to defer principal payments until the maturity date in October 2027, replacing the prior amortization schedule.
Outlook, Risks, and Management Commentary
- Liquidity: Management believes existing cash ($245.6 million) and anticipated revenue are sufficient to fund operations for at least the next 12 months.
- Strategic Focus: The company is prioritizing growing its install base and increasing system utilization to drive recurring revenue from consumables. It is also investing in next-generation technologies and AI integration.
- Debt Covenants: The company is currently in compliance with all debt covenants. If available cash falls below $100 million, the company must meet specific minimum unrestricted cash or revenue growth covenants.
- Risks: Key risks include dependence on third-party payor reimbursement, competition, regulatory approvals for new technologies, and the ability to scale manufacturing efficiently. No material legal proceedings were reported.
Investor Verification Checklist
- Cash Runway: Verify the sustainability of the $38.1 million quarterly operating cash burn against the $245.6 million cash balance.
- Debt Covenants: Monitor the "available cash" threshold of $100 million, as falling below this triggers strict financial covenants regarding cash reserves or revenue growth.
- Install Base Utilization: Assess whether the growth in handpiece/consumable revenue (up 16%) is keeping pace with the expansion of the 971-unit install base.
- Stock-Based Compensation: Review the $13.1 million in stock-based compensation expense and the $130.3 million in unrecognized RSU expense, which impacts future dilution and cash flow.
- Reimbursement Landscape: Confirm the status of commercial payor coverage decisions outside of Medicare, which is critical for continued hospital adoption.