Procept BioRobotics Corporation (NASDAQ:PRCT) is a pioneering surgical robotics company that has set its sights on revolutionizing the field of urology. Headquartered in Redwood City, California, the company is dedicated to developing innovative, minimally invasive technologies that enhance the precision, safety, and efficacy of urologic procedures—particularly for benign prostatic hyperplasia (BPH), a condition that affects millions of aging men worldwide.
Founded on the belief that surgical robotics should be intuitive, effective, and accessible, Procept BioRobotics introduced the world to Aquablation® therapy—a groundbreaking treatment enabled by its proprietary AquaBeam Robotic System and its next-generation evolution, Hydro’s. These robotic platforms use real-time, image-guided technology to deliver automated, heat-free tissue resection for patients suffering from BPH. Unlike traditional treatments such as transurethral resection (TURP), laser therapy, or open surgery, Aquablation therapy is designed to preserve sexual and urinary function while offering consistent and reproducible results across prostates of all sizes.
Since receiving FDA clearance in 2017 and launching full-scale commercial operations in 2021 following Medicare coverage, Procept has rapidly expanded its footprint across hospitals in the United States and abroad. The company has built a robust installed base, formed strategic partnerships with integrated delivery networks (IDNs), and continuously demonstrated strong clinical outcomes backed by Level 1 evidence from multiple randomized controlled trials. As of 2025, Procept’s technology has been adopted by over 500 hospitals in the U.S., with growing interest in key international markets such as the United Kingdom and Japan.
The company’s growth strategy is anchored on three pillars: evidence-based clinical innovation, strategic commercial expansion, and long-term operational scalability. Procept continues to invest in R&D and clinical studies, including initiatives that explore the potential of Aquablation therapy for treating low- and intermediate-risk prostate cancer—potentially unlocking an even larger market opportunity. Its dedication to quality care and procedural standardization has helped position Aquablation as a leading alternative to traditional surgical interventions, with increasing support from healthcare providers, patients, and policy makers alike.
Procept BioRobotics is not only transforming how BPH is treated—it is fundamentally reshaping the surgical robotics landscape with a focused, purpose-driven approach to men’s health. With expanding reimbursement coverage, breakthrough clinical data, strong commercial momentum, and a visionary management team at the helm, the company is well-positioned to become a dominant force in robotic-assisted urologic surgery. As the demand for safer, smarter, and more efficient surgical solutions grows globally, Procept BioRobotics stands at the forefront of one of the most compelling healthcare innovations of the decade.
Strong Start to 2025: Beating Estimates and Accelerating Momentum
In the first quarter of 2025, Procept BioRobotics exceeded Wall Street expectations with a reported EPS of –$0.45, beating the consensus forecast of –$0.49. Total revenue reached $69.2 million, marking a year-over-year increase of 55%. The company sold 43 robotic systems during the quarter, with an average selling price of approximately $435,000, and ended the quarter with a U.S. installed base of 547 systems. This revenue growth was fueled by strong handpiece sales, procedural momentum, and significant traction internationally—especially in the United Kingdom, where year-over-year revenue more than doubled.
International sales soared by 104%, contributing $8.9 million to the top line. Domestically, consumables revenue reached $38 million, representing a 61% year-over-year increase, while total U.S. system revenue grew by 32%. The growth was largely driven by increasing adoption of the Hydro’s platform, robust IDN (Integrated Delivery Network) interest, and expanded Medicare access.
The company’s adjusted EBITDA loss narrowed to $15.8 million from $20.4 million the previous year, and its gross margin expanded by 750 basis points year-over-year to reach 63.9%, a reflection of improved operational efficiencies and higher average selling prices.
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Aquablation Therapy: Clinically Proven, Patient-Preferred
What differentiates Procept is not just the technology—it is the outcomes. Aquablation therapy is the only BPH treatment backed by multiple randomized controlled trials that demonstrate superior preservation of sexual function while delivering equivalent or superior symptom relief compared to traditional methods. The landmark WATER III study, presented at the 2025 European Association of Urology Congress in Madrid, showed that Aquablation matched laser enucleation in efficacy for prostates sized 80 to 180 mL but achieved this with zero transfusion rates, 0% incontinence, and dramatically reduced ejaculatory dysfunction.
These clinical results are instrumental not just for patient adoption but also for influencing changes to global urology guidelines. The consistency and reproducibility of Aquablation—combined with a shorter learning curve—make it an attractive option for surgeons and hospitals alike.
The company also hinted at even broader horizons. During its Analyst Day at the 2025 AUA conference in Las Vegas, Procept unveiled early-stage data on Aquablation’s application in prostate cancer. With FDA IDE approval to conduct a randomized trial comparing Aquablation to radical prostatectomy for low- and intermediate-risk patients, the company is targeting a market few have dared to enter. Should this indication be approved, it could open a massive, underserved surgical category and significantly expand Procept’s addressable market.
Medicare Policy Tailwinds and Reimbursement Wins
Procept’s ability to scale depends heavily on reimbursement access, and recent developments in this area have been overwhelmingly positive. As of April 6, 2025, major regional Medicare contractors First Coast and Novitas removed key coverage limitations, including age restrictions, voided volume thresholds, and transrectal ultrasound requirements. These changes simplify pre-procedure workups and open up Aquablation therapy to a significantly broader patient base—accounting for approximately 30% of all Medicare beneficiaries in the U.S.
These coverage updates are not just administrative—they are strategic accelerants. Fewer barriers for urologists mean faster patient conversions, easier adoption at new hospitals, and a smoother path toward becoming the standard of care. Furthermore, the move to a Category I CPT code set for 2026 cements long-term economic viability for both providers and institutions.
Surge in IDN Adoption and Hospital-Level Expansion
The Hydro’s platform is gaining momentum across large health systems, many of which now see Procept as a Tier-1 medtech partner. IDN engagement is rising, with corporate-level bulk buys accounting for 45% of system placements in Q1 2025. Hospitals are increasingly motivated to launch and standardize Aquablation across their networks due to its clinical reproducibility, operational efficiency, and surgeon-driven demand.
The company has also seen growing penetration into low- and medium-volume BPH hospitals, which accounted for 50% of new system placements in the quarter. Historically reliant on high-volume centers, this shift indicates a new phase of adoption where Aquablation becomes viable across all care settings—not just premier surgical facilities.
As Sham Shiblaq, Chief Commercial Officer, emphasized, Aquablation enables hospitals to convert into high-volume BPH centers through market share capture and surgeon retention. This is especially true as patients increasingly demand robotic precision for urological care, a trend bolstered by strong referral networks and IDN-level support programs.
International Growth and Strategic Global Expansion
While the U.S. remains Procept’s primary revenue engine, the company is making calculated moves into international markets. The United Kingdom is proving to be a strong early adopter, with both NHS and private hospitals ramping up procedural volumes. The company is deploying the same commercial playbook that worked stateside—focused account launches, robust training programs, and centralized support—to build momentum.
Beyond the UK, Japan is slated as the next major market. Though the company has received interest from more than 20 countries, it is deliberately prioritizing sustainable expansion to ensure support infrastructure scales alongside demand. This disciplined international strategy could deliver robust revenue diversification and margin accretion over the next three to five years.
Financial Strength and Visibility for Full-Year 2025
Procept ended Q1 2025 with $319 million in cash, cash equivalents, and restricted funds, providing ample liquidity to execute its commercialization strategy, R&D initiatives, and tariff mitigation efforts. Full-year revenue guidance was raised to $323 million, reflecting 44% annual growth. U.S. system sales are expected to total approximately $95 million from around 210 units, while handpiece volumes are projected at 52,500 units—a 63% year-over-year increase.
Despite tariff concerns tied to ultrasound components sourced from China, the company anticipates only a modest $5 million gross margin headwind. Management reiterated its full-year adjusted EBITDA guidance of a $35 million loss and emphasized its ability to offset tariff impacts with operational efficiencies.
Conclusion: A High-Growth MedTech Powerhouse Poised for Dominance
Procept BioRobotics is building more than just a surgical robot—it is architecting a new standard of care in urology. With accelerating procedure volumes, breakthrough clinical data, Medicare coverage expansion, global scaling, and expanding use cases into prostate cancer, Procept is uniquely positioned to dominate the BPH surgical category.
As revenue compounds and operating leverage takes hold, Procept is charting a clear path to profitability, all while defending its leadership in a fast-evolving market. For investors seeking exposure to the intersection of surgical robotics, urology, and healthcare innovation, Procept BioRobotics (NASDAQ: PRCT) represents a compelling, long-term opportunity with multi-billion-dollar potential.
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