PROCEPT BioRobotics Corp (PRCT) - Q2 2026 10-Q Summary
Business Context and Reporting Period
This report covers the quarterly period ended June 30, 2026. PROCEPT BioRobotics Corporation is a surgical robotics company focused on urology, specifically treating benign prostatic hyperplasia (BPH) using its AquaBeam and HYDROS robotic systems. As of June 30, 2026, the company had a global install base of 1,036 robotic systems, with 816 located in the United States.
Key Financial Metrics
| Metric (in thousands) | Q2 2026 | Q2 2025 | 6 Months 2026 | 6 Months 2025 |
|---|---|---|---|---|
| Revenue | $94,498 | $79,182 | $177,631 | $148,344 |
| Gross Profit | $62,379 | $51,746 | $116,327 | $95,907 |
| Gross Margin | 66% | 65% | 65% | 65% |
| Net Loss | $(26,861) | $(19,578) | $(58,499) | $(44,316) |
| Operating Cash Flow | N/A | N/A | $(57,378) | $(32,023) |
| Cash & Equivalents (End of Period) | $227,914 | $286,503 (Dec 2025) | $227,914 | $286,503 (Dec 2025) |
| Long-Term Debt | $51,715 | $51,615 (Dec 2025) | $51,715 | $51,615 (Dec 2025) |
Note: Operating cash flow is presented for the six-month period as the filing does not provide a specific quarterly cash flow statement.
Material Changes vs. Prior Period
- Revenue Growth: Revenue increased 19% year-over-year in Q2 2026 and 20% for the six-month period. Growth was driven by higher sales volumes of systems, handpieces, and service contracts, with U.S. revenue accounting for 88% of total revenue.
- Expense Increases: Operating expenses rose 21% year-over-year for the six months ended June 30, 2026. Selling, General, and Administrative (SG&A) expenses increased 21% to $134.8 million, and Research and Development (R&D) expenses increased 22% to $41.6 million, primarily due to expanded commercial and R&D headcount and stock-based compensation.
- Net Loss Expansion: Net loss widened by 32% for the six-month period to $58.5 million, reflecting the acceleration in operating expenses outpacing revenue growth.
- Interest Income Decline: Interest and other income decreased significantly (55% for six months) due to lower cash balances compared to the prior year.
Guidance, Outlook, and Risks
- Liquidity: Management believes existing cash ($227.9 million) and anticipated revenue are sufficient to fund operations for at least the next 12 months. The company maintains a $52.0 million term loan facility maturing in October 2027.
- Strategic Focus: The company is focused on growing its install base (targeting ~2,700 U.S. hospitals) and increasing system utilization to drive recurring revenue from single-use handpieces.
- Legal Contingency: A putative securities class action lawsuit was filed on July 24, 2026, alleging false statements regarding handpiece sales, procedure volumes, and financial guidance. The company intends to defend the case vigorously but notes the potential for material adverse effects.
- Debt Covenants: The company is in compliance with all debt covenants. If cash balances fall below $100 million, the company must meet specific minimum unrestricted cash or revenue growth covenants.
Investor Verification Checklist
- Install Base Utilization: Verify the rate of procedure volume growth per installed system to confirm the recurring revenue model is scaling as projected.
- Legal Proceedings: Monitor the status of the July 2026 securities class action lawsuit for any updates on settlement discussions or court rulings.
- Cash Burn Rate: Track the trajectory of operating cash burn against the $227.9 million cash balance to assess the runway for future capital raises.
- Debt Covenant Compliance: Confirm continued compliance with the minimum cash and revenue covenants, especially if cash balances decline below the $100 million threshold.
- Stock-Based Compensation: Review the impact of the $27.6 million in stock-based compensation (six months) on future expense structures and dilution.