FocalTherics™ Reports Second Quarter 2026 Financial Results
39% Revenue Increase and 47% Growth in
Second Quarter 2026 Results and Recent Highlights of Continuing Operations (HIFU Segment)
- Increased Revenue to
$13.2 million , a 39% Increase Compared to the Prior Year Period - Delivered 47%
U.S . Procedure Volume Growth over the Prior Year Period - Recorded 13 Focal One® Capital System Sales compared to 9 in the Prior Year Period, including 2 Conversions from Operating Leases
- Expanded Focal One System Installed Base to 184, including 96 in the
U.S . and 88 Internationally - Achieved 55.6% Gross Margin, Compared to 51.1% in the Prior Year Period
- Completed Corporate Name Change to FocalTherics™
- Launched First Commercial Focal One Endometriosis Program in
Europe - Announced Underwritten Public Offering for
$40 million of Gross Proceeds Expected to CloseAugust 14, 2026
“We continue to demonstrate commercial success with our strongest second quarter ever, reflecting the growing strength of our core business and further supporting the strategic shift to Focal Therapy with our corporate rebranding to FocalTherics,” said
Second Quarter 2026 Financial Results for Continuing Operations (HIFU Segment)
Total revenue for the second quarter of 2026 was
Gross margin for the second quarter of 2026 was 55.6%, compared to 51.1% in the prior year period. The increase in gross margin was primarily attributable to improvement of the standard cost of the Focal One system and favorable absorption due to higher production volumes.
Operating expenses were
Operating loss was
Cash and cash equivalents as of
Reiterating 2026 Guidance for Continuing Operations (HIFU Segment)
- Total revenue of
$50.0 -$54.0 million , representing 34% - 45% year-over-year growth
Discontinued Operations
During the second quarter of 2026, the ESWL and Distribution segments met the criteria to be classified as held for sale under ASC 205-20, Presentation of Financial Statements — Discontinued Operations, and ASC 360-10, Property, Plant, and Equipment, and the Company determined that the planned exit represents a strategic shift that will have a significant effect on the Company’s operations and financial results. Accordingly, the Company’s unaudited financial results as of and for the three and six months ended
Prior-period results presented in this release have been recast to reflect this classification on a consistent basis. As a result, all continuing operations figures and growth rates presented herein reflect the Company's HIFU business only.
Conference Call Information
A conference call and webcast to discuss the second quarter 2026 financial results will be hosted by
| Date: | |
| Domestic: | 1-800-245-3047 |
| International: | 1-203-518-9765 |
| Passcode: | FOCAL |
| Webcast: | https://viavid.webcasts.com/starthere.jsp?ei=1767672&tp_key=2d69d92ca7 |
About FocalTherics
A recognized global leader in robotic focal therapy, FocalTherics develops, manufactures, and markets minimally invasive medical devices worldwide to treat various conditions using proprietary focused ultrasound technology. The Company’s flagship platform, Focal One Robotic HIFU, combines advanced imaging, real-time treatment planning, robotic precision, and HIFU technology to deliver personalized focal therapy designed to optimize clinical outcomes while preserving quality of life.
Forward-Looking Statements
In addition to historical information, this press release contains forward-looking statements within the meaning of applicable federal securities laws, including Section 27A of the U.S. Securities Act of 1933 (the “Securities Act”) or Section 21E of the U.S. Securities Exchange Act of 1934, which may be identified by words such as “believe,” “can,” “contemplate,” “could,” “plan,” “intend,” “is designed to,” “may,” “might,” “potential,” “objective,” “target,” “project,” “predict,” “forecast,” “ambition,” “guideline,” “should,” “will,” “estimate,” “expect” and “anticipate,” or the negative of these and similar expressions, which reflect our views about future events and financial performance. Such statements are based on management's current expectations and are subject to a number of risks and uncertainties, including matters not yet known to us or not currently considered material by us, and there can be no assurance that anticipated events will occur or that the objectives set out will actually be achieved, and include statements such as quote from our Chief Executive Officer, the expected closing and proceeds from our offering, and our financial performance guidance. Important factors that could cause actual results to differ materially from the results anticipated in the forward-looking statements include, among others, the clinical status and market acceptance of our HIFU devices and the continued market potential for our lithotripsy and distribution divisions, as well as risks associated with the current worldwide inflationary environment, the uncertain worldwide economic, political and financial environment, geopolitical instability, climate change and pandemics, or other public health crises, and their related impact on our business operations, including their impacts across our businesses or demand for our devices and services.
Other factors that may cause such a difference may also include, but are not limited to, those described in the Company's filings with the Securities and Exchange Commission and in particular, in the sections "Cautionary Statement on Forward-Looking Information" and "Risk Factors" in the Company's Annual Report on Form 10-K and Quarterly Report on Form 10-Q.
Forward-looking statements speak only as of the date they are made. Other than required by law, we do not undertake any obligation to update them in light of new information or future developments. These forward-looking statements are based upon information, assumptions and estimates available to us as of the date of this press release, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete.
Investor Contact
Louisa Smith
Gilmartin Group
investor.relations@focalone.com
EDAP TMS S.A.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands of U.S. Dollars, except per share data)
| Three Months Ended: | ||||
| 2026 | 2025 | |||
| $US | $US | |||
| Sales of goods | 9,527 | 6,385 | ||
| Sales of RPPs & leases | 2,758 | 2,155 | ||
| Sales of spare parts and services | 918 | 969 | ||
| TOTAL | 13,203 | 9,509 | ||
| Other revenues | (0) | — | ||
| TOTAL REVENUES | 13,203 | 9,509 | ||
| Cost of sales | (5,865) | (4,646) | ||
| GROSS PROFIT | 7,338 | 4,863 | ||
| Research & development expenses | (2,317) | (2,291) | ||
| Selling, general & administrative expenses | (13,054) | (9,194) | ||
| Total operating expenses | (15,371) | (11,485) | ||
| LOSS FROM OPERATIONS | (8,033) | (6,623) | ||
| Interest (expense) income, net | (748) | (79) | ||
| Loss from change in fair value of warrant liability | (5,547) | | ||
| Currency exchange gains (loss), net | (76) | 362 | ||
| LOSS BEFORE TAXES FROM CONTINUING OPERATIONS | (14,404) | (6,340) | ||
| Income tax (expense) credit, net from continuing operations | (8) | (14) | ||
| LOSS FROM CONTINUING OPERATIONS | (14,412) | (6,354) | ||
| Income(loss) from discontinued operations, net of tax | (75) | (51) | ||
| NET LOSS | (14,487) | (6,406) | ||
| Loss per share – Basic and diluted | (0.39) | (0.17) | ||
| Average number of shares used in computation of EPS - basic and dilutive | 37,527,950 | 37,420,318 | ||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands of
| Six Months Ended: | ||||
| 2026 | 2025 | |||
| $US | $US | |||
| Sales of goods | 17,782 | 10,185 | ||
| Sales of RPPs & leases | 5,250 | 4,100 | ||
| Sales of spare parts and services | 1,764 | 1,724 | ||
| TOTAL REVENUES | 24,796 | 16,009 | ||
| Cost of sales | (11,496) | (7,989) | ||
| GROSS PROFIT | 13,300 | 8,020 | ||
| Research & development expenses | (4,784) | (4,648) | ||
| Selling, general & administrative expenses | (24,574) | (16,739) | ||
| Total operating expenses | (29,357) | (21,388) | ||
| LOSS FROM OPERATIONS | (16,057) | (13,368) | ||
| Interest (expense) income, net | (1,151) | (81) | ||
| Loss from change in fair value of warrant liability | (6,851) | — | ||
| Currency exchange gains (loss), net | 77 | (664) | ||
| LOSS BEFORE TAXES FROM CONTINUING OPERATIONS | (23,982) | (14,113) | ||
| Income tax (expense) credit, net from continuing operations | (25) | (23) | ||
| LOSS FROM CONTINUING OPERATIONS | (24,007) | (14,135) | ||
| Income(loss) from discontinued operations, net of tax | 437 | 285 | ||
| NET LOSS | (23,570) | (13,850) | ||
| Loss per share – Basic and diluted | (0.63) | (0.37) | ||
| Average number of shares used in computation of EPS - basic and dilutive | 37,481,986 | 37,406,202 | ||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands of
| 2026 | 2025 | |||
| $US | $US | |||
| Cash, cash equivalents | 21,542 | 20,452 | ||
| Accounts receivable, net | 10,060 | 14,948 | ||
| Inventory | 8,251 | 7,770 | ||
| Other current assets | 2,350 | 2,439 | ||
| Total current assets of discontinued operations | 16,812 | 11,555 | ||
| TOTAL CURRENT ASSETS | 59,015 | 57,164 | ||
| Property, plant and equipment, net | 8,635 | 8,789 | ||
| 735 | 757 | |||
| Other non-current assets | 6,164 | 6,181 | ||
| Total non-current assets of discontinued operations | - | 6,106 | ||
| TOTAL ASSETS | 74,548 | 78,997 | ||
| Accounts payable & other accrued liabilities | 17,830 | 17,436 | ||
| Deferred revenues, current portion | 6,395 | 6,452 | ||
| Short term borrowing | 1,860 | 4,386 | ||
| Other current liabilities | 1,786 | 3,005 | ||
| Total current liabilities of discontinued operations | 8,978 | 5,862 | ||
| TOTAL CURRENT LIABILITIES | 36,849 | 37,141 | ||
| Obligations under operating and finance leases non-current | 835 | 1,183 | ||
| Long-term debt, non-current | 37,197 | 15,903 | ||
| Deferred revenues, non-current | 923 | 768 | ||
| Other long-term liabilities | 1,970 | 1,632 | ||
| Total non-current liabilities of discontinued operations | - | 2,957 | ||
| TOTAL LIABILITIES | 77,773 | 59,584 | ||
| TOTAL SHAREHOLDERS’EQUITY | (3,225) | 19,413 | ||
| TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY | 74,548 | 78,997 |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands of
| Six Months Ended | Six Months Ended | |||
| 2026 | 2025 | |||
| ($US) | ($US) | |||
| NET INCOME (LOSS) | (23,570) | (13,850) | ||
| Adjustments to reconcile net income (loss) to net cash generated by (used in) operating activities(1) | 11,750 | 3,024 | ||
| OPERATING CASH FLOW | (11,820) | (10,827) | ||
| Increase/Decrease in operating assets and liabilities | 5,157 | 779 | ||
| NET CASH GENERATED BY (USED IN) OPERATING ACTIVITIES | (6,663) | (10,047) | ||
| Short term investments | — | — | ||
| Additions to capitalized assets produced by the company and other capital expenditures | (2,017) | (2,917) | ||
| NET CASH GENERATED BY (USED IN) INVESTING ACTIVITIES | (2,017) | (2,917) | ||
| NET CASH GENERATED BY (USED IN) FINANCING ACTIVITIES | 10,402 | (1,198) | ||
| NET EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (632) | 2,231 | ||
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 1,090 | (11,931) |
(1) including share-based compensation expenses for
UNAUDITED CONDENSED STATEMENTS OF OPERATIONS BY DIVISION
six months ended
(Amounts in thousands of
| Six months ended | HIFU | Reconciling | Total After | ||||||||
| Division | Items | Consolidation | |||||||||
| Sales of goods | 17,782 | — | 17,782 | ||||||||
| Sales of RPPs & leases | 5,250 | — | 5,250 | ||||||||
| Sales of spare parts and services | 1,764 | — | 1,764 | ||||||||
| TOTAL REVENUES | 24,796 | — | 24,796 | ||||||||
| GROSS PROFIT (% of | 13,300 | 53.6 | % | — | 13,300 | 53.6 | % | ||||
| Research & development expenses | (4,784) | — | (4,784) | ||||||||
| Selling, general & administrative expenses | (20,309) | (4,265) | (24,574) | ||||||||
| OPERATING PROFIT (LOSS) | (11,792) | (4,265) | (16,057) |
