PROCEPT BioRobotics Q2 2026: HYDROS Growth, Margin Drama, and a Steady Revenue Forecast for 2026

Overview: Revenue Gains, Costs Rise, and Guidance Holds

The quarter produced total revenue of $94.5 million, up 19% from the prior year. The U.S. body accounted for the bulk of that, with U.S. revenue of $83.4 million—a 20% year-over-year rise. International revenue came in at $11.1 million, a 15% increase.

On the profitability side, the company reported a GAAP net loss of $26.9 million and an Adjusted EBITDA loss of $11.3 million for the quarter. No explicit EPS figure appears in the release, but the net loss implies a negative earnings-per-share result under GAAP.

Product Mix and Pricing: HYDROS in the Lead

A core driver remains HYDROS system sales. PROCEPT delivered 65 U.S. HYDROS systems in the quarter, including 14 replacements. The U.S. average selling price for new HYDROS systems was about $495,000.

Pricing dynamics also showed up in consumables. The handpiece ASP stood at approximately $3,550, up 11% versus the second quarter of 2025. Handpieces as a percent of U.S. procedures hovered around the 98% mark, underscoring a strong consumables tailwind.

Internationally, revenue rose modestly but meaningfully to $11.1 million in the quarter, reflecting continued geographic diversification.

Margins and Tariffs: A $2.9 Million Tax Break, Not a Structural Margin Miracle

Gross margin was 66% for the quarter, up from 65% in the prior year period and steady with the first quarter of 2026. Management credited pricing progress on U.S. system and consumables and a $2.9 million tariff refund as catalysts for the margin uptick.

Costs: Investment in Growth, Not a Mirage

Operating expenses came in at $89.8 million for the quarter, up from $73.9 million a year ago. The delta reflects continued investment in the commercial organization, R&D across the BPH platform, and higher spend tied to enrollment and follow-up for the WATER IV Prostate Cancer trial.

The company emphasized that the ongoing investments are aimed at execution and a longer-term opportunity to advance the standard of care in prostate disease.

Full-Year Guidance: Revenue Forecast Maintained, Growth Path Intact

PROCEPT reaffirmed its full-year 2026 revenue forecast in a range of $390 million to $410 million, implying approximately 27% to 33% growth versus the prior year. The guidance anchors expectations for a heavy H2 lift as the HYDROS sales cadence and international expansion continue.

Strategic Milestones: WATER IV, Guidelines, and Real-World Adoption

The quarter featured notable milestones, including enrollment completion in the WATER IV prostate cancer study and a strengthened recommendation for Aquablation therapy in the updated American Urological Association guidelines. These developments are the kind of signal that investors watch for when a company blends product cadence with clinical endorsement.

What This Might Portend for PROCEPT and Its Sector Peers

The results underscore a familiar dynamic in medtech robotics: revenue growth can outpace profitability for years as companies invest in sales capacity, regulatory-grade studies, and market education. For PROCEPT, HYDROS appears to be the primary growth engine, with pricing leverage and a strong replacement cycle that could support higher unit economics over time.

The revenue forecast and the maintenance of guidance suggest management sees a path to higher margins in the back half of 2026, but the net loss and negative Adjusted EBITDA signal that the conversion from revenue growth to bottom-line improvement remains work in progress. Watch for any quarterly cadence shifts in operating expenses or tariffs that could materially affect margin trajectory.

From a sector perspective, HYDROS-centric growth is a signal to peers that a high-value, high-ASP platform with a robust replacement cycle can drive meaningful top-line expansion even as R&D and field costs stay elevated. If other robotic platforms in urology or beyond show similar mix shifts—where premium systems drive pricing power while consumables sustain ongoing revenue—investors could see a broader re-rating of laborsaving medical devices.

Bottom Line

PROCEPT BioRobotics’ Q2 results deliver a narrative of growth and discipline: HYDROS is moving volume and price in the U.S. while international expansion adds a helpful tailwind. The company remains committed to its 2026 revenue forecast, a reminder that the path to profitability is measured in quarters, not in a single press release.

For readers tracking EPS, earnings surprise, or EPS consensus, the release did not provide explicit EPS data, but the combination of a double-digit revenue uptick, a higher gross margin, and a steady revenue forecast sets the stage for continued scrutiny of cost controls and sales efficiency in the upcoming quarters.