PROCEPT BioRobotics — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue for the quarter ended September 30, 2026, was $98.3 million, an 18% increase year-over-year compared to $83.3 million in the prior year period.
• U.S. revenue was $85.8 million, representing a 16% increase year-over-year.
• International revenue was $12.5 million, representing a 32% increase year-over-year.
• U.S. handpiece and consumable revenue was $53.9 million, a 21% increase year-over-year.
• U.S. system revenue was $24.7 million, flat compared to the prior year period.
• Gross margin was 66% for the quarter, compared to 65% in the prior year period.
• Operating expenses were $92.5 million, an increase from $77.2 million in the prior year period.
• Net loss was $26.5 million for the quarter, compared to a net loss of $21.4 million in the prior year period.
• Adjusted EBITDA was a loss of $9.8 million for the quarter, compared to a loss of $7.4 million in the prior year period.
• Cash, cash equivalents, and restricted cash totaled approximately $221.4 million as of September 30, 2026.
• Long-term debt was $51.8 million as of September 30, 2026, compared to $51.6 million as of December 31, 2025.
• Deferred revenue was $15.6 million as of September 30, 2026, compared to $13.0 million as of December 31, 2025.

Guidance and Future Outlook:

• The Company reaffirmed full-year 2026 revenue guidance of $390 million to $410 million, representing 27% to 33% growth compared to the prior year.
• The Company reaffirmed full-year 2026 U.S. procedure volume guidance of 54,000 to 56,000, representing 25% to 29% growth compared to the prior year.
• The Company reaffirmed full-year 2026 gross margin guidance of approximately 65%.
• The Company reaffirmed full-year 2026 Adjusted EBITDA loss guidance of $30 million to $35 million.
• Management stated a focus on executing against full-year revenue guidance and profitability plans.
• Data from the WATER IV randomized trial comparing Aquablation to radical prostatectomy is on track for presentation in the first half of 2027.

Business Segments and Product Lines:

• The Company delivered 62 U.S. HYDROS systems in the third quarter, including 20 replacement systems.
• The U.S. average selling price for new HYDROS systems was approximately $495,000.
• U.S. handpieces sold as a percentage of U.S. procedures in the third quarter was approximately 106%.
• The U.S. handpiece average selling price was approximately $3,570, a 12% increase compared to the third quarter of 2025.
• The Company is accelerating the replacement cycle to transition AquaBeam systems to HYDROS.
• U.S. procedures exceeded 13,400 in the third quarter, a 22% increase year-over-year.

Market and Competitive Landscape:

• The Company noted strong utilization in HYDROS accounts.
• The Company continues to expand its installed base.
• Aquablation therapy is designed for males suffering from lower urinary tract symptoms (LUTS) due to benign prostatic hyperplasia (BPH), impacting approximately 40 million men in the United States.
• The Company has approximately 250 peer-reviewed publications supporting the benefits of Aquablation therapy.

Risks and Challenges:

• Forward-looking statements regarding financial performance, market opportunity, and procedure growth involve risks and uncertainties that could cause actual results to differ materially from expectations.
• Actual results may differ due to risks described in the Company's SEC filings, including the Form 10-K filed on February 26, 2026.
• Surgical treatments have inherent and associated side effects.

Management Commentary and Tone:

• CEO Larry Wood expressed confidence in executing against full-year revenue guidance and profitability plans.
• Management described the path to achieving durable growth and profitability as clear.
• Management highlighted excitement regarding the upcoming presentation of WATER IV trial data.
• Management noted continued investment in people, product development, clinical studies, and sales and marketing programs.

Other Key Points:

• The Company manufactures the AQUABEAM and HYDROS Robotic Systems.
• The HYDROS Robotic System is the only AI-powered, robotic technology that delivers Aquablation therapy.
• The Company hosted a conference call on November 4, 2026, to discuss the results.
• The Company operates as a surgical robotics company focused on urology.