EDAP TMS SA reported third‑quarter 2025 results that exceeded expectations, with total revenue of €13.9 million (US $16.1 million) – a 6% year‑over‑year increase that beat the consensus estimate of $15.05 million by $1.05 million. Net loss narrowed to €0.13 per share, a $0.39 per‑share improvement over the analyst estimate of –$0.26, marking a clear earnings beat.
The company’s core HIFU business drove the upside, generating €6.7 million (US $7.7 million) – a 49% jump from €4.4 million a year earlier. Six Focal One robotic systems were sold in the quarter, double the three sold in Q2, and disposables revenue grew 9% YoY, supported by a 15% rise in U.S. procedures. The higher‑margin mix and improved cost absorption lifted gross profit to €6.0 million (US $6.9 million) and expanded the margin to 43% from 39% in 2024.
Non‑core ESWL and distribution revenue fell to €7.2 million (US $8.4 million) from €8.6 million a year earlier, reflecting the company’s strategic shift away from legacy products. Cash and cash equivalents stood at €10.6 million (US $12.4 million), down from €16.3 million at the end of June, but the recently finalized €36 million European Investment Bank credit facility – with €11 million already drawn – provides additional liquidity for expansion and new indication development.
Management reaffirmed the 2025 guidance, maintaining a forecast of 26%–34% year‑over‑year growth for core HIFU revenue and a 25%–30% decline for non‑core business. CEO Ryan Rhodes highlighted the “record‑breaking” revenue performance and emphasized continued adoption of the Focal One platform, noting that “the return to double‑digit Focal One procedure growth in the U.S. is a clear sign of broader hospital adoption and expanded insurance coverage.”
The market reacted positively to the results, with investors citing the earnings beat, revenue upside, margin expansion, and the secured credit facility as key drivers. The strong performance reinforces confidence in EDAP’s pure‑play HIFU strategy and its ability to sustain growth while managing legacy business decline.
Overall, the quarter signals a successful acceleration of EDAP’s high‑margin HIFU business, improved profitability, and a clear path to higher revenue growth in 2025. The narrowed operating loss, maintained cash position, and new financing support the company’s strategic pivot and future market expansion.
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