France's EDAP TMS Q4 revenue beats on HIFU segment strength

Overview

• France robotic therapies maker's Q4 revenue beat analyst expectations, driven by HIFU segment growth

• Company-wide Q4 revenue fell 7% yr/yr as non-core business revenue declined

• Company reiterated 2026 revenue guidance, expects HIFU revenue to grow 34%-45% yr/yr

Outlook

• EDAP reiterates 2026 revenue guidance of $72.0 mln to $80.0 mln

• Company expects 2026 HIFU revenue between $50.0 mln and $54.0 mln, up 34%-45% YoY

• EDAP says demand for Focal One systems remains strong across academic and community centers

Result Drivers

• HIFU SYSTEM SALES - Q4 HIFU revenue rose 34% yr/yr, driven by record Focal One system placements and strong demand in academic and community hospitals, per CEO Ryan Rhodes

• PROCEDURE GROWTH - U.S. Focal One procedure volume grew 28% yr/yr, supporting higher disposables revenue

• GROSS MARGIN PRESSURE - Gross margin declined due to tariffs on imports from France and an inventory reserve for legacy parts

Company press release: ID:nGNE1rGnn4

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the advanced medical equipment & technology peer group is "buy."

• Wall Street's median 12-month price target for Edap Tms SA is $4.00, about 2.3% above its March 24 closing price of $3.91

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