Loading...
01/11 03:37
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call summary and Q&A reveal strong financial performance with a 55% growth in US installed base and optimistic guidance, despite an adjusted EBITDA loss. The Hydros launch and international growth, particularly in the UK, Japan, and Korea, are positive indicators. Tariff impacts are being mitigated, and the Medicare coverage expansion is promising. The Q&A section highlights management's confidence in overcoming potential risks, with positive analyst sentiment. The market cap suggests a moderate reaction, leading to a positive stock price movement prediction.
Total Revenue $79.2 million, representing growth of 48% compared to the second quarter of 2024. Growth attributed to increased utilization, strong surgeon adoption, and record international revenue performance.
U.S. Revenue $69.6 million, representing growth of 46% compared to the prior year period. Growth driven by strong procedural momentum and stable operating periods.
Handpiece and Other Consumable Revenue $43.1 million, representing growth of 58% compared to the second quarter of 2024. Approximately 12,750 handpieces sold, reflecting year-over-year unit growth of 59%.
U.S. System Revenue $22.1 million, representing system revenue growth of 24% compared to the second quarter of 2024. 48 new HYDROS robotic systems sold with an average selling price of approximately $455,000.
International Revenue $9.6 million, representing growth of 69% compared to the prior year period. Growth driven by strong sales momentum in the United Kingdom, Japan, and Korea.
Gross Margin 65.4%, representing an increase of 640 basis points year-over-year. Improvement driven by operational efficiencies and higher average selling prices.
Operating Expenses $74 million compared to $58.3 million during the same period in the prior year. Increase attributed to investments in strategic capabilities and CEO transition expenses.
Net Loss $19.6 million for the second quarter of 2025 compared to $25.6 million in the same period of the prior year. Improvement due to gross margin expansion and higher revenue levels.
Adjusted EBITDA Loss of $8 million compared to a loss of $18 million in the second quarter of 2024. Improvement attributed to increased revenue and operational efficiencies.
Cash, Cash Equivalents, and Restricted Cash Approximately $306 million as of June 30, 2025.
HYDROS robotic platform: Launched as the next-generation robotic platform, serving as a foundation for continued innovation.
Aquablation therapy: Secured a Category I CPT code effective January 1, 2026, marking a significant milestone for clinical value and adoption.
International revenue growth: Achieved record international revenue performance, with strong sales momentum in the United Kingdom, Japan, and Korea.
U.S. market expansion: Increased adoption of HYDROS system by BPH hospitals, with plans to penetrate medium and lower volume hospitals.
Gross margin improvement: Expanded gross margins to 65.4%, driven by operational efficiencies and higher average selling prices.
Tariff impact mitigation: Reduced tariff-related cost of goods sold headwinds from $5 million to $1-2 million through operational strategies.
Leadership transition: Larry Wood announced as the incoming CEO, emphasizing a focus on evidence-based innovation and global leadership in urology.
Organizational restructuring: Eliminated the Chief Commercial Officer role, creating two new leadership positions to enhance commercial execution.
Tariff Exposure: The company faces tariff exposure due to components sourced from China, with a potential cost of goods sold headwind of $1 million to $2 million in the second half of 2025. Although the tariff rate has decreased, this remains a financial risk.
Leadership Transition: The transition to a new CEO and the elimination of the Chief Commercial Officer role could create short-term disruptions in strategic execution and commercial operations.
Regulatory and Reimbursement Risks: While the new CPT Category I code for Aquablation therapy is a positive development, the overall decline in professional fees for BPH procedures could impact financial performance.
Operational Costs: Operating expenses are expected to increase by 29% in 2025 compared to 2024, which could pressure profitability despite revenue growth.
Clinical Trial Progress: The WATER IV trial is progressing as expected, but delays in site activation or enrollment could impact timelines for entering the prostate cancer market.
Revenue Guidance for 2025: The company expects full year 2025 total revenue to be approximately $325.5 million, representing growth of approximately 45% compared to 2024.
System Sales Projections: The company anticipates selling approximately 210 new robotic systems in the United States in 2025. Greenfield system sales in the third quarter are expected to total approximately 52 units with average selling prices of $440,000 per system.
Handpiece Sales Projections: For the full year, the company expects sales of approximately 53,000 handpieces, representing a 64% increase in unit volume compared to 2024. Third quarter handpiece sales are projected to be approximately 13,350 units.
International Revenue Growth: The company expects full year international revenue to be approximately $36 million, representing annual growth of 50%.
Gross Margin Guidance: The company expects a full year gross margin of approximately 64.5%, which is at the high end of previously issued guidance. Tariff-related headwinds are expected to result in a modest decline in gross margin during the second half of the year compared to the first half.
Operating Expenses: Full year 2025 operating expenses are expected to total approximately $302 million, representing a 29% increase compared to 2024. Third quarter operating expenses are projected to be approximately $79 million, inclusive of onetime expenses associated with the CEO transition.
Adjusted EBITDA Guidance: The company expects a full year 2025 adjusted EBITDA loss of approximately $35 million, with fourth quarter results approaching breakeven.
Medicare Reimbursement Updates: The 2026 proposed Medicare physician fee schedule assigns Aquablation therapy a Category I CPT code effective January 1, 2026, with a proposed payment of 16.14 total RVUs. The 2026 OPPS proposed rule establishes hospital-based Aquablation therapy reimbursement at $9,765, a 5.6% increase from 2025.
WATER IV Trial Enrollment: Enrollment in the WATER IV trial is progressing as expected, with full enrollment anticipated by the second half of 2026.
The selected topic was not discussed during the call.
The earnings call revealed mixed signals: strong revenue guidance and strategic focus on growth, but concerns about profitability delays, tariff impacts, and vague responses on future plans. The Q&A highlighted management's confidence in long-term growth but also noted uncertainties in capital sales timelines and utilization improvements. The market cap suggests moderate stock movement, balancing positive growth prospects with operational challenges.
The earnings call summary and Q&A reveal strong financial performance with a 55% growth in US installed base and optimistic guidance, despite an adjusted EBITDA loss. The Hydros launch and international growth, particularly in the UK, Japan, and Korea, are positive indicators. Tariff impacts are being mitigated, and the Medicare coverage expansion is promising. The Q&A section highlights management's confidence in overcoming potential risks, with positive analyst sentiment. The market cap suggests a moderate reaction, leading to a positive stock price movement prediction.
The earnings call reveals strong financial performance with record revenue growth, particularly internationally. Despite increased operating expenses, the company is improving its margins and reducing net losses. The Q&A section indicates robust buyer interest and strategic market expansion plans. Although there are some regulatory and tariff challenges, management is optimistic about maintaining EBITDA guidance. The stock's market cap suggests it may not react as strongly as small-cap stocks, but overall positive financials and guidance should lead to a positive stock price movement.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
