PRCT

PROCEPT is doing exactly what a winning medtech compounder looks like early: revenue has gone $34.5M → $75M → $136M → $224M → $308M (FY21–FY25), a near-9x in four years, with FY25 up 37.2% — durable, not a one-quarter pop. The MD&A makes the model clear: an AquaBeam/HYDROS install base of 912 systems (718 U.S.) against a target of ~2,700 U.S. resective-BPH hospitals, each system pulling recurring single-use handpiece revenue. That razor/blade structure shows in the gross line — gross profit grew 43.1% (faster than revenue), lifting gross margin to 63.7%. BPH affects ~40M U.S. men and Aquablation is AUA-guideline-listed with superior-safety/non-inferior-efficacy WATER data vs. TURP, so the adoption runway is long and clinically defensible.

The key bull point is operating leverage finally appearing. Net loss was essentially flat ($95.6M vs $91.4M, +4.5%) and operating loss widened only 7.5% while revenue grew 37% — meaning the cost base is being absorbed by a much larger top line. Operating cash burn improved 50.6% to -$49.0M. Against $287M cash, $51.6M long-term debt and a clean 0.39x liabilities/equity, that implies roughly four-plus years of runway at the current (and falling) burn — enough to plausibly reach breakeven without a desperate raise, though some dilution is likely (shares +2.9% YoY).