PROCEPT BioRobotics Corp Q2 FY2025 earnings call

• Leadership transition: Larry Wood to join as CEO on September 2. - 2025 outlook: Estimated 715 installed systems with 20% procedural share in the hospital market; launch of HYDROS robotic platform; WATER IV trial enrollment progressing; gross margins in mid-60s. - Medicare update: Aquablation therapy assigned Category I code with 2026 Medicare payment details. - Tariffs: Tariff impact reduced from ~$5M to ~$1M-$2M in 2025. - WATER IV trial: Enrollment progressing, Dr. Mihan did same-day prostate cancer procedures in ASC. - Organizational update: Eliminating Chief Commercial Officer role, searching for SVP of Sales and Marketing.

Total revenue for the second quarter of 2025 was $79.2 million, representing growth of 48% compared to the second quarter of 2024. U.S. revenue was $69.6 million, up 46% y-o-y. International revenue was $9.6 million, up 69% y-o-y. Handpiece and other consumable revenue in the U.S. was $43.1 million, up 58% y-o-y, with approximately 12,750 handpieces sold, a 59% unit growth. U.S. system revenue was $22.1 million, up 24% y-o-y, with 48 new HYDROS robotic systems sold. Gross margin for the second quarter was 65.4%, an increase of 640 basis points year-over-year.

• Full year 2025 total revenue expected ~$325.5M, a 45% growth y-o-y. - U.S. system sales: ~210 new robotic systems in 2025, with Q3 greenfield system sales ~52 units at avg. $440,000. - Handpieces: Full year ~53,000 units, a 64% growth y-o-y, with Q3 expected ~13,350 units. - International revenue: ~$36M, a 50% growth y-o-y. - Gross margin guided to ~64.5% with tariff headwinds of ~$1M-$2M.

• Tariff fluctuations: Current tariff rates still pose margin headwinds, though manageable. - Macro environment: Potential impact on hospital capital spending, though currently stable. - Clinical trial timelines: Uncertainties in clinical trial enrollment and execution.

Q: About guidance confidence and back half execution A: Kevin discussed guidance adjustments based on current trends, confidence in sales team execution Q: Disruption from leadership change A: Kevin emphasized confidence in the sales team and their ability to execute despite change Q: International strength A: Kevin noted U.K. is primary driver, but Japan and Korea showing progress Q: Cat I code impact A: Reza and Kevin discussed standardization benefits, but no immediate surgeon feedback on payment impact Q: Utilization and handpieces A: Kevin explained utilization shifts and normalcy in growth rates, no major read into shifts