Profound Medical Secures $42M to Fuel Medical Device Expansion

TORONTO, ON – December 30, 2025 – Profound Medical Corp. (NASDAQ:PROF; TSX:PRN), a pioneer in AI-powered, incision-free medical therapies, has solidified its financial footing with the closing of a private placement that raised approximately US$6.45 million. The deal, which saw the issuance of 921,428 common shares to Canadian investors at US$7.00 per share, concludes a powerful year-end fundraising effort for the company. This placement comes on the heels of a larger US$36 million registered direct offering that closed just days earlier, bringing the company's total gross proceeds from recent financing to over US$42 million.

This substantial capital infusion is earmarked to accelerate the company’s growth trajectory across several key fronts. Profound intends to use the net proceeds to aggressively expand its sales and marketing operations, bolster working capital, advance research and development on its innovative platforms, and pursue potential strategic transactions. The move signals a clear intent to cement its position in the competitive medtech landscape.

A Strategic Financial Overhaul

The timing of the capital raise is significant. As of September 30, 2025, Profound held approximately US$24.8 million in cash, a figure that had been decreasing in previous quarters. The successful completion of these back-to-back offerings provides a critical boost to the company's balance sheet, equipping it with the necessary resources to execute its ambitious expansion plans without near-term financial constraints.

Investor sentiment appears robust. The private placement was increased to accommodate demand from an existing long-term investor, a move that often signals strong insider confidence in a company's future. The market reacted with a mild 1.49% gain in the stock price on the day the upsized placement was announced. Furthermore, the consistent US$7.00 per share price across both the private placement and the larger direct offering suggests a stable valuation and a positive reception from the investment community.

This financial strength is underpinned by strong operational performance. For the third quarter of 2025, Profound reported impressive revenue of approximately US$5.3 million, an 87% increase year-over-year. The company also improved its gross margin to 74.3% and beat analyst earnings per share estimates. With a full-year 2025 revenue growth target between 53% and 67%, this new funding provides the fuel needed to maintain and potentially exceed that momentum.

Fueling the TULSA-PRO Commercial Engine

A primary focus for the new capital will be the continued commercialization of Profound’s flagship technology, TULSA-PRO®. This revolutionary system combines real-time MRI guidance, AI-enhanced planning, and robotically driven transurethral ultrasound to ablate diseased prostate tissue without incisions or radiation. The procedure is designed to treat a wide spectrum of prostate diseases, from cancer to benign prostatic hyperplasia (BPH), while preserving critical functions like urinary continence and sexual potency.

Clinical evidence supporting TULSA-PRO is compelling. Four-year follow-up data from the TACT pivotal study demonstrated durable safety and efficacy. Patients showed a 95% reduction in PSA levels at one year, with 87% of previously potent men maintaining erections sufficient for penetration and 99% preserving urinary continence four years post-procedure. These outcomes position TULSA-PRO as a formidable alternative to traditional treatments like radical prostatectomy and radiation, which carry higher risks of side effects.

Adoption is steadily growing. As of the third quarter of 2025, Profound had an installed base of 70 TULSA-PRO systems, with a qualified sales pipeline of another 93. The company projects to have at least 75 systems installed by year-end. The new funds will directly support the expansion of the sales and marketing teams needed to convert this pipeline and penetrate the market further. A key strategic goal is to secure national and regional commercial payer coverage, which the company estimates could unlock an annual revenue potential of US$85 million.

Beyond the Prostate: Expanding Therapeutic Horizons

While TULSA-PRO is the current commercial driver, Profound’s vision extends well beyond prostate care. The company’s other major platform, Sonalleve®, is a testament to its broader ambitions in non-invasive therapy. Sonalleve, which also uses MRI-guided focused ultrasound, is already CE marked and approved in various jurisdictions for treating uterine fibroids, adenomyosis, and providing pain palliation for bone metastases.

Part of the new funding is allocated to research and development, which will be critical for unlocking Sonalleve's full potential. The company is in the early stages of exploring its use for the non-invasive ablation of abdominal cancers and for hyperthermia in cancer therapy, applications that could open up vast new markets. In the competitive field of uterine fibroid treatment, where options range from embolization to hormonal therapies, Sonalleve offers a completely non-invasive, uterus-preserving alternative.

Innovation is also continuing within the TULSA platform. Profound is developing its third AI-driven software module, TULSA-BPH, which is expected to be released soon. This module is designed to simplify and shorten treatment times for benign prostatic hyperplasia, making the TULSA Procedure an even more attractive option for a very large patient population and further differentiating it from competitors.

Navigating a Competitive Medtech Landscape

Profound Medical operates in a dynamic and competitive environment. In prostate cancer, it competes not only with the established standards of surgery and radiation but also with other ablation technologies and robotic-assisted procedures from industry giants like Intuitive Surgical and Medtronic. Its key differentiator remains the unique combination of a transurethral approach with real-time MR guidance and temperature control, offering a level of precision aimed at maximizing efficacy while minimizing collateral damage.

The strategic financing provides Profound with the firepower to not only compete but to lead in the shift toward less invasive medical interventions. By investing heavily in commercial expansion for TULSA-PRO and R&D for its next-generation applications, the company is making a clear statement about its long-term goals. The funds will enable Profound to scale its operations, generate more clinical data, and build the commercial infrastructure necessary to make its AI-powered, incision-free therapies a mainstream standard of care for patients worldwide.