Edap Tms S.a.

Continuing HIFU operations revenue was $13.2 million in Q2 2026, up 39% from $9.5 million in Q2 2025. Gross margin was 55.6%, compared with 51.1% a year ago, and U.S. Focal One procedures grew 47% year over year. Operating expenses were $15.4 million versus $11.5 million in Q2 2025. Cash and cash equivalents were $21.5 million at quarter end versus $15 million at the end of Q1 2026, and shareholder equity was negative $3.2 million. Management said an underwritten public offering with gross proceeds of $40 million is expected to close on August 14. For full-year 2026, the company reiterated core HIFU revenue guidance of $50 million to $54 million.

Ryan Rhodes framed the quarter as a transformative step for the company, pointing to the name change to FocalTherics, the focus on pure-play focal therapy, and the move to U.S. domestic filer status and U.S.-dollar reporting. He said the business is “fully capitalized” after the recent equity raise and described the company as positioned for durable shareholder value and long-term leadership in focal therapy. Strategically, he emphasized continued commercial execution, expansion into BPH and endometriosis, and development of histotripsy as additional growth engines.

Ken Mobeck highlighted the reporting change that moves noncore ESWL and distribution into discontinued operations, saying it clarifies the underlying HIFU trajectory and margin structure. He cited Q2 continuing HIFU revenue of $13.2 million, gross margin of 55.6%, operating expenses of $15.4 million, and cash of $21.5 million at quarter end. He also noted approximately $14 million drawn under the EIB facility in April, negative equity of $3.2 million due to recurring losses and warrant fair-value changes, and approximately $500,000 of tariff impact in the quarter. On capital allocation, he said the planned $40 million equity raise will strengthen the balance sheet and support strategic priorities.

Analysts focused on utilization, second-system purchases, ramp timing, and how management plans to use the new capital. Management said many customers are expanding capacity across multiple sites, with installed accounts typically still anchored on prostate cancer today and BPH/endometriosis not yet materially driving sales. On spending, management said new capital will support commercial growth, expanded indications, and histotripsy, while SG&A and R&D should decline as a percentage of revenue over time rather than require a major step-up in headcount.