Profound Medical Corp 10-Q for FY2026 Q2

Profound Medical Corp. (PROF)

10-Q 2026-08-06 For: 2026-06-30

Added on August 06, 2026

About this 10-Q

Profound Medical Corp filed this 10-Q on August 6, 2026, covering the quarter ended June 30, 2026 (FY2026 Q2).

Headline figures

Quarter ended June 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $2.48M; up 12.3% from $2.21M a year earlier
Net loss: $9.54M; compared with a net loss of $15.7M a year earlier
Diluted EPS: -$0.26; compared with -$0.52 a year earlier

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Ontario, Canada	Not Applicable
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

2400 Skymark Avenue, Unit #6, Mississauga, Ontario, Canada (Address of principal executive offices)	L4W 5K5 (Zip Code)


Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Shares, No Par Value Per Share		PROF		Nasdaq Stock Market LLC


Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
Emerging growth company	☐


		Page
PART I.	Financial Information
Item 1.	Condensed Consolidated Financial Statements
	Condensed Consolidated Balance Sheets (Unaudited)	1
	Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited)	2
	Condensed Consolidated Statements of Shareholders’ Equity (Unaudited)	3
	Condensed Consolidated Statements of Cash Flows (Unaudited)	5
	Notes to Condensed Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	16
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	23
Item 4.	Controls and Procedures	23
PART II.	Other Information	23
Item 1.	Legal Proceedings	23
Item 1A.	Risk Factors	23
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	23
Item 3.	Defaults Upon Senior Securities	24
Item 4.	Mine Safety Disclosures	24
Item 5.	Other Information	24
Item 6.	Exhibits	24
Signatures		25


	June 30,	December 31,
	2026	2025
	$	$
Assets

Current assets:
Cash	38,271	59,723
Trade and other receivables, net (note 3)	9,614	7,200
Inventory (note 4)	10,456	8,238
Prepaid expenses and deposits	523	928
Total current assets	58,864	76,089

Trade and other receivables, net (note 3)	—	300
Property and equipment, net (note 5)	556	698
Intangible assets, net (note 6)	121	138
Right-of-use assets, net (note 9)	2,763	184
Deferred tax assets, net	81	66
Total assets	62,385	77,475

Liabilities

Current liabilities:
Accounts payable	955	1,563
Accrued expenses and other current liabilities (note 7)	3,127	3,815
Deferred revenue	342	445
Long-term debt (note 8)	4,507	—
Lease liabilities (note 9)	119	213
Income tax payable	63	39
Total current liabilities	9,113	6,075

Deferred revenue	618	388
Long-term debt (note 8)	—	4,499
Lease liabilities (note 9)	2,754	—
Other non-current liabilities	92	79
Total liabilities	12,577	11,041

Shareholders’ equity

Common shares, no par value, unlimited shares authorized, 36,532,594 and 36,293,640 issued and outstanding at June 30, 2026 and December 31, 2025, respectively (note 10)	325,383	323,839
Additional paid-in capital	25,688	25,310
Accumulated other comprehensive income	3,070	5,025
Accumulated deficit	(304,333)	(287,740)
Total shareholders’ equity	49,808	66,434

Total liabilities and shareholders’ equity	62,385	77,475


	Three Months Ended June 30,			Six Months Ended June 30,
	2026	2025		2026	2025
	$	$		$	$
Revenue (note 12)
Recurring - non-capital	1,612	1,561		4,086	3,362
Capital equipment	871	650		3,734	1,470
	2,483	2,211		7,820	4,832
Cost of sales	536	593		2,041	1,361
Gross profit	1,947	1,618		5,779	3,471

Operating expenses
Research and development	5,654	6,098		10,916	10,906
Selling, general and administrative	7,359	9,326		13,950	17,537
Total operating expenses	13,013	15,424		24,866	28,443

Operating loss	11,066	13,806		19,087	24,972

Other (income) expenses
Net finance income	(336)	(343)		(713)	(788)
Net foreign exchange (gain) loss	(1,245)	2,168		(1,861)	2,130
Total other (income) expenses	(1,581)	1,825		(2,574)	1,342

Net loss before income taxes	9,485	15,631		16,513	26,314

Income tax expense	68	78		95	119
Deferred tax recovery	(13)	(14)		(15)	(14)
Total income tax expense	55	64		80	105

Net loss attributed to shareholders for the period	9,540	15,695		16,593	26,419

Other comprehensive (income) loss
Item that may be reclassified to (income) loss
Foreign currency translation adjustment	950	(2,713)		1,955	(2,816)

Net loss and other comprehensive loss for the period	10,490	12,982		18,548	23,603

Loss per share (note 13)
Basic and diluted net loss per common share	0.26	0.52		0.46	0.88
Basic and diluted weighted average common shares outstanding	36,350,665	30,053,142		36,324,393	30,055,047


				Accumulated
			Additional	Other
			Paid-in	Comprehensive	Accumulated
	Common Shares		Capital	Income	Deficit	Tota1
	Shares	Amount $	$	$	$	$
Balance - December 31, 2025	36,293,640	323,839	25,310	5,025	(287,740)	66,434
Net loss for the period	—	—	—	—	(7,053)	(7,053)
Cumulative translation adjustment – net of tax of $nil	—	—	—	(1,005)	—	(1,005)
Vesting of DSUs (note 11)	10,000	68	(68)	—	—	—
Vesting of RSUs (note 11)	33,997	256	(256)	—	—	—
Share-based compensation (note 11)	—	—	1,048	—	—	1,048
Balance – March 31, 2026	36,337,637	324,163	26,034	4,020	(294,793)	59,424

Net loss for the period	—	—	—	—	(9,540)	(9,540)
Cumulative translation adjustment – net of tax of $nil	—	—	—	(950)	—	(950)
Vesting of DSUs (note 11)	16,128	96	(96)	—	—	—
Vesting of RSUs (note 11)	178,829	1,124	(1,124)	—	—	—
Share-based compensation (note 11)	—	—	874	—	—	874
Balance – June 30, 2026	36,532,594	325,383	25,688	3,070	(304,333)	49,808


				June 30, 2026						December 31, 2025
				$						$
		Weighted
		Average
		Remaining				Accumulated						Accumulated
		Useful		Gross		Amortization		Net		Gross		Amortization		Net
		Lives		Carrying		and		Carrying		Carrying		and		Carrying
		(Years)		Amount		Impairments		Amount		Amount		Impairments		Amount
Exclusive license agreement		3.1		231		(171)		60		231		(158)		73
Software		—		978		(978)		—		978		(978)		—
Distribution rights		14.3		66		(5)		61		66		(1)		65
				1,275		(1,154)		121		1,275		(1,137)		138


2026		69
2027		377
2028		497
2029		512
2030		528
Thereafter		1,533
Total		3,516
Less: Imputed interest		643
Present value of remaining lease payments		2,873
Less: Current portion		119
Non-current portion		2,754


			Weighted average
	Number		exercise price
	of options		C$
Balance - December 31, 2025	2,142,522		13.53
Granted	121,600		8.29
Forfeited/expired	(113,074)		15.69
Balance - June 30, 2026	2,151,048		13.12
Exercisable - June 30, 2026	1,450,606		14.49
Expected to vest - June 30, 2026	2,151,048		13.12


		March 17,		May 19,		June 11,
Grant date		2026		2026		2026
Exercise price		C$7.58		C$9.63		C$9.41
Expected volatility		68	%	67	%	67	%
Expected life of options		6 years		6 years		6 years
Risk-free interest rate		3.00	%	3.45	%	3.32	%
Dividend yield		—		—		—


				Weighted
				average grant
				date fair value
		Number of		per share
		RSUs		C$
Balance - December 31, 2025		859,335		9.23
Granted		97,430		8.29
Vested		(212,826)		9.18
Forfeited		(82,003)		9.19
Balance - June 30, 2026		661,936		9.11


	For the three months ended June 30, 2026
	Canada	USA	Germany	Total
	$	$	$	$
Revenue
Recurring - non-capital	129	1,301	182	1,612
Capital equipment	427	444	—	871
	556	1,745	182	2,483


	For the six months ended June 30, 2026
	Canada	USA	Germany	Total
	$	$	$	$
Revenue
Recurring - non-capital	1,614	2,140	332	4,086
Capital equipment	2,513	1,221	—	3,734
	4,127	3,361	332	7,820


	For the six months ended June 30, 2025
	Canada	USA	Germany	Total
	$	$	$	$
Revenue
Recurring - non-capital	376	2,620	366	3,362
Capital equipment	570	900	—	1,470
	946	3,520	366	4,832


		Six Months Ended June 30,
		2026		2025
		$		$
Cash flows from operating activities
Net loss for the period		(16,593)		(26,419)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation of property and equipment (note 5)		219		218
Amortization of intangible assets (note 6)		16		86
Non-cash lease expense adjustment		99		(19)
Share-based compensation (note 11)		1,922		2,440
Interest and accretion expense		9		51
Changes in operating assets and liabilities:
Trade and other receivables (note 3)		(2,473)		2,449
Inventory (note 4)		(2,686)		(2,723)
Prepaid expenses and deposits		384		1,042
Accounts payable, accrued expenses and other liabilities (note 7)		(991)		545
Deferred revenue		164		317
Income taxes payable		27		—
Deferred tax assets		(18)		(14)
Net cash used in operating activities		(19,921)		(22,027)

Cash flows from financing activities
Repayments of long-term debt (note 8)		—		(290)
Net cash provided by (used in) financing activities		—		(290)

Net increase (decrease) in cash		(19,921)		(22,317)
Effect of exchange rate changes on cash		(1,531)		2,600
Cash, beginning of period		59,723		54,912
Cash, end of period		38,271		35,195

Supplemental cash flow information:
Interest paid		150		139
Income taxes paid, included in operating activities		69		65


	June 30,	December 31,
	2026	2025
	$	$
Trade receivables, gross	9,584	7,621
Contract assets, gross	—	386
Trade receivables and contract assets	9,584	8,007
Allowance for expected credit losses	(577)	(898)
Trade receivables, net	9,007	7,109
Tax receivables	427	311
Other receivables	180	80
Total trade and other receivables, net	9,614	7,500
Less: Current portion	9,614	7,200
Long-term portion	—	300


	June 30,	December 31,
	2026	2025
	$	$
Balance - Beginning of the period	898	158
Write off against the allowance	(375)	—
Provision for allowance for expected credit losses	54	740
Balance - End of the period	577	898


	June 30,	December 31,
	2026	2025
	$	$
Finished goods	5,899	5,280
Raw materials	4,557	2,958
Inventory	10,456	8,238


	For the period ended June 30, 2026
	Canada	USA	Germany	China	Finland	Total
	$	$	$	$	$	$
Total assets	51,218	7,215	540	137	3,275	62,385
Intangible assets	121	—	—	—	—	121
Property and equipment	13	389	—	—	154	556
Right-of-use assets	2,763	—	—	—	—	2,763
Amortization of intangible assets	16	—	—	—	—	16
Depreciation of property and equipment	28	169	—	—	22	219


	For the year ended December 31, 2025
	Canada	USA	Germany	China	Finland	Total
	$	$	$	$	$	$
Total assets	63,046	9,791	1,243	137	3,258	77,475
Intangible assets	138	—	—	—	—	138
Property and equipment	41	481	—	—	176	698
Right-of-use assets	184	—	—	—	—	184
Amortization of intangible assets	187	—	—	—	—	187
Depreciation of property and equipment	51	322	—	—	—	373


		For the six months ended June 30,
		2026		2025
		$		$
Revenue		7,820		4,832
Operating expenses		24,866		28,443
Other (income) expense		(2,574)		1,342
Net loss for the period		16,593		26,419
Basic and diluted loss per share		0.46		0.88


		For the three months ended June 30,
		2026		2025		Change
		$		$		$		%
Revenue		2,483		2,211		272		12	%
Cost of sales		536		593		(57)		(10)	%
Gross profit		1,947		1,618		329		20	%
Gross margin

Expenses
Research and development		5,654		6,098		(444)		(7)	%
Selling, general and administrative		7,359		9,326		(1,967)		(21)	%
Total operating expenses		13,013		15,424		(2,411)		(16)	%

Other (income) expense
Net finance (income) expense		(336)		(343)		7		(2)	%
Net foreign exchange (gain) loss		(1,245)		2,168		(3,413)		(157)	%
Total other (income) expense		(1,581)		1,825		(3,406)		(187)	%

Net loss before income taxes		9,485		15,631		(6,146)		(39)	%

Income taxes		55		64		(9)		(14)	%

Net loss attributed to shareholders for the period		9,540		15,695		(6,155)		(39)	%

Other comprehensive (income) loss
Item that may be reclassified to profit or loss
Foreign currency translation adjustment		950		(2,713)		3,663		(135)	%
Net loss and comprehensive loss for the period		10,490		12,982		(2,492)		(19)	%

Loss per share
Basic and diluted net loss per common share		0.26		0.52		(0.26)		(50)	%
Basic and diluted weighted average common shares outstanding		36,350,665		30,053,142


		Total spending of proceeds
		from the 2025
		Offering as of
		June 30, 2026
		$
TULSA-PRO commercialization		17,075
Sonalleve development and commercialization		4,269
Working capital and general corporate purposes		5,563
Total		26,907

Exhibit Number		Exhibit Description		Filed with this Report		Incorporated by Reference herein from Form or Schedule		Filing Date		SEC File/Reg. Number
3.1		Articles of Incorporation				Form S-8 (Exhibit 4.1)		11/7/2019		333-234574
3.2		Articles of Amendment				Form S-8 (Exhibit 4.2)		11/7/2019		333-234574
3.3		Articles of Amalgamation				Form S-8 (Exhibit 4.3)		11/7/2019		333-234574
3.4		Bylaws				Form S-8 (Exhibit 4.4)		11/7/2019		333-234574
31.1		Certification of the Company’s Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002		X
31.2		Certification of the Company’s Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002		X
32†		Certification of the Company’s Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002		X

	PROFOUND MEDICAL CORP.

Date: August 6, 2026	By:	/s/ Arun Menawat
		Name: Arun Menawat
		Title: Chief Executive Officer
		(Principal Executive Officer)

Date: August 6, 2026	By:	/s/ Rashed Dewan
		Name: Rashed Dewan
		Title: Chief Financial Officer
		(Principal Financial and Accounting Officer)

Date: August 6, 2026

/s/ Arun Menawat
Arun Menawat
Principal Executive Officer

Date: August 6, 2026

/s/ Rashed Dewan
Rashed Dewan
Principal Financial Officer

Dated: August 6, 2026		/s/ Arun Menawat
		Arun Menawat
		Principal Executive Officer

Dated: August 6, 2026		/s/ Rashed Dewan
		Rashed Dewan
		Principal Financial Officer