Profound Medical Corp. Common Stock (PROF)

FairStock Score: 38/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn money today and sell at a discount to conservatively estimated value. Profound Medical does not fit that mold yet. It is a commercial-stage medical-device company with a differentiated, incision-free MRI-guided prostate treatment, but filed figures show fiscal year 2023 revenue of $5.9M, fiscal year 2024 revenue of $9.7M, and fiscal year 2025 revenue of $16.1M. That top-line growth is real. However, fiscal year 2025 net income was -$42.6M, and in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $2.5M against a net loss of $9.5M. The business is still consuming cash: trailing free cash flow was -$36.3M, a FairStock-calculated FCF yield of -14.2%. Balance-sheet leverage is modest, with D/E of 0.15, and FairStock's Altman Z-Score is 5.80. But the quality signals are weak: ROE -73.53%, ROCE -39.46%, Piotroski F-Score 1/9. The Lynch category is none, because it lost money in each of the last three years. At the close on 2026-10-13, the shares were $7.01, P/B is 5.15, so asset backing does not provide a Graham margin of safety. The moat may come from technology and regulatory know-how, but no durable profit stream currently proves pricing power. Growth is encouraging, but until cash burn turns and losses narrow toward breakeven, the stock is a speculative future-earnings story, not a value investment.

In plain English: Profound Medical sells a machine-based treatment for prostate disease that uses MRI and ultrasound to destroy tissue without incisions. Sales are growing, but the company still loses a lot of money and burns cash, so the business looks weak on current profits. At $7.01, the price does not look cheap compared with today's numbers because there are no earnings to support it.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer