Free cash flow remains deeply negative, with quarterly outflows reaching $14.1 million in 2025Q2, necessitating a reliance on a $50.5 million cash buffer as of 2026Q1 to sustain operations.
| Cash from Operations | -38.67M | -53.34M | -23.45M | -22.61M | -25.8M | -22.36M | -20.57M | -15.45M | -13.43M | -11.81M | -10.79M | -4.94M | -2.88M |
| Operating CF Margin % | - | -331.36% | -230.67% | -314.06% | -386.17% | -325.33% | -281.68% | -370.07% | -703.02% | -302.87% | - | - | - |
| Operating CF Growth % | -185.31% | -127.45% | -3.73% | 12.37% | -15.38% | -8.68% | -33.19% | -15% | -13.71% | -9.48% | -118.25% | -71.7% | - |
| Net Income | -38.8M | 42.32M | -27.82M | -28.32M | -28.67M | -30.7M | -21.62M | -15.57M | -15.24M | -14.97M | -12.15M | -11.8M | -8.2M |
| Depreciation & Amortization | 497.98K | 0 | 936K | 929K | 1.6M | 1.88M | 1.54M | 1.55M | 1.23M | 693.31K | 139.13K | 85.77K | 84.9K |
| Stock-Based Compensation | 0 | 0 | 2.58M | 3.42M | 4.24M | 7.21M | 3.02M | 0 | 797.49K | 1.06M | 745.15K | 464.61K | 190.33K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -70.94K | 0 | 7.62K | -1.55M | 0 |
| Other Non-Cash Items | 5.62M | -93.27M | 255K | 828K | 2.66M | 132K | 1.13M | 1.72M | 847.17K | 1.9M | 617.44K | 7.54M | 5.05M |
| Working Capital Changes | -5.69M | -2.39M | 591K | 540K | -5.63M | -877K | -4.63M | -3.15M | -990.83K | -501.61K | -151.93K | 311.39K | 0 |
| Change in Receivables | -3.46M | -240.14K | 186K | -956K | -1.42M | 2M | -3.85M | -872.97K | 1.15M | -3.17M | -611.9K | 1.1M | 0 |
| Change in Inventory | -2.84M | -3.94M | 656K | 353K | -1.86M | -2.49M | -2.14M | -873.6K | -1.62M | -806.63K | -310.11K | 0 | 0 |
| Change in Payables | 383K | 527.74K | 815K | 1.35M | -566K | -356K | 102K | -18.63K | -857.06K | 2.68M | 577.17K | -65.16K | 0 |
| Cash from Investing | -246.24K | -337.87K | 0 | 0 | 0 | -593K | -350K | -192.79K | 0 | -793.18K | 6.63M | -6.49M | -61.28K |
| Capital Expenditures | -246.24K | -337.87K | 0 | 0 | 0 | -32K | -350K | -192.79K | 0 | -369.5K | -808.84K | -120.35K | -61.28K |
| CapEx % of Revenue | 1.31% | 2.1% | - | - | - | 0.47% | 4.79% | 4.62% | - | 9.47% | - | - | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -423.68K | 0 | 834.14K | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | -561K | 0 | 0 | 0 | 0 | 7.44M | 0 | 0 |
| Cash from Financing | 42.24M | 57.43M | 54.7M | 1.76M | 7.03M | 5.95M | 87.43M | 6.8M | 27.81M | 6.12M | 11.83M | 18.73M | 2.74M |
| Debt Issued (Net) | -1.03M | -1.82M | -2.56M | -912K | 6.92M | -386K | -9.61M | -12.5K | 9.05M | -2.29M | -213.3K | 1.98M | 1.04M |
| Equity Issued (Net) | 43.19M | 59.26M | 62.11M | 0 | 0 | 0 | 85.52M | 8.08M | 25.33M | 9.01M | 16.19M | 17.3M | 1.75M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 75K | 0 | -4.85M | 2.67M | 114K | 6.33M | 11.52M | -1.27M | -6.57M | -604.21K | -4.14M | -553.18K | -45.67K |
| Net Change in Cash | 4.03M | 6.5M | 28.7M | -20.3M | -20.64M | -16.76M | 69.11M | -7.64M | 14.38M | -7.74M | 7.67M | 7.29M | 2.74M |
| Free Cash Flow | -38.85M | -53.59M | -23.45M | -22.61M | -25.8M | -22.95M | -20.92M | -15.45M | -13.43M | -12.18M | -11.6M | -5.06M | -2.94M |
| FCF Margin % | -207.31% | -332.89% | -230.67% | -314.06% | -386.17% | -333.96% | -286.47% | -370.07% | -703.02% | -312.34% | - | - | - |
| FCF Growth % | -44.05% | -128.49% | -3.73% | 12.37% | -12.4% | -9.7% | -35.46% | -15% | -10.26% | -5.03% | -129.04% | -72.22% | - |
| FCF per Share | -1.07 | -1.77 | -0.95 | -1.07 | -1.24 | -1.12 | -1.21 | -1.39 | -1.34 | -1.98 | -2.79 | -2.14 | -13.57 |
| FCF Conversion (FCF/Net Income) | 1.00x | 1.25x | 0.89x | 0.79x | 0.90x | 0.73x | 0.95x | 1.01x | 0.88x | 0.79x | 0.89x | 0.42x | 0.35x |
| Interest Paid | 0 | 0 | 0 | 669K | 43K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 160K | 55K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Persistent operational cash burn
As reported in financial statements, PROF consistently exhibits a divergence between net income and operating cash flow, with OCF/NI ratios frequently fluctuating above 1.0, suggesting that non-cash charges and working capital movements are currently the primary drivers of the company's reported cash flow profile.
The persistent gap between net income and operating cash flow indicates that the company's accounting losses are not fully reflective of the actual cash resources being consumed by operations. Investors should monitor whether this conversion ratio stabilizes as the company attempts to scale its commercial footprint and reduce its reliance on external financing.
Based on PROF's reported figures, free cash flow remains deeply negative across all observed periods, with quarterly outflows reaching as high as $14.1 million in 2025Q2, highlighting the significant capital intensity required to support the ongoing commercialization of the TULSA-PRO system in competitive medical markets.
The lack of positive free cash flow suggests that the company is currently in a high-growth, high-burn phase where operational expenses significantly outpace revenue generation. This trajectory warrants further investigation into the company's ability to reach a self-sustaining cash flow inflection point before its current liquidity reserves are exhausted.
According to recent SEC filings, PROF's working capital changes have been highly erratic, swinging from a $3.5 million outflow in 2025Q3 to a $1.2 million inflow in 2025Q1, which reflects the inherent challenges of managing inventory and receivables during a rapid commercial expansion phase.
These fluctuations in working capital suggest that the company's cash cycle is sensitive to the timing of equipment installations and the subsequent collection of payments. Analysts should interpret these swings as a potential indicator of operational friction in the transition from capital sales to recurring revenue streams.
Financial statements reveal that stock-based compensation has historically served as a non-cash add-back to operating cash flow, with figures reaching nearly $1 million in specific quarters, which effectively masks the true magnitude of the cash-based operating losses incurred by the company's specialized workforce.
While stock-based compensation is a standard tool for talent retention in the medical device sector, its role in adjusting the cash flow statement may obscure the underlying cash burn rate. Investors should be cautious of relying solely on adjusted cash flow metrics that exclude these significant equity-based expenses.
Quick answers to the most common questions about buying PROF stock.
Profound Medical Corp. (PROF) generated $-53.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Profound Medical Corp. (PROF) reported negative free cash flow of $53.6M in 2025, indicating capital requirements exceeded cash from operations.
Profound Medical Corp. (PROF) spent $0.3M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.