Procept BioRobotics is down roughly 80% from its 2025 highs but the technology behind its Aquablation system genuinely works. So why won't we put PRCT in our portfolio?

Procept (PRCT) has one of the more interesting razor-and-blade models in medtech: sell the Hydros or Aquabeam system, then earn recurring revenue from single-use handpieces used in every Aquablation procedure for benign prostatic hyperplasia (BPH). Gross margins run around 65%, Medicare covers the procedure in all 50 states, and the addressable market is roughly 40 million U.S. men — yet the company has never generated positive free cash flow and has cut guidance multiple times over the past year.

In this episode, we size the real addressable market bottom-up using system counts and procedure volume, walk through the handpiece-to-procedure ratio that triggered a class-action lawsuit, compare Aquablation to competing BPH therapies like UroLift, Rezum, GreenLight, and traditional TURP, and dig into a foundational IP licensing structure that means Procept doesn't fully own the technology its business is built on. We also run a reverse DCF to see what growth rate the market is actually pricing in — and whether "cheap" is the right word for it.

This is a preview of the research format inside Semiconductor Insider, including our new investment thesis checklist dashboard.

TIMESTAMPS0:00 - Why PRCT Is Down 80% Despite Working Technology1:30 - How Aquablation Treats an Enlarged Prostate3:00 - Sizing the Real Market: 40 Million Men vs. Bottom-Up Math6:30 - The Business Model: Consumables, Margins, and Recurring Revenue8:00 - The Handpiece-to-Procedure Ratio and the Class Action Lawsuit10:00 - Competitive Landscape: UroLift, GreenLight, TURP, and da Vinci12:30 - Who Actually Pays? Medicare, CMS Codes, and Reimbursement Risk17:00 - The IP Problem: Why Procept Doesn't Own Its Core Patents19:00 - Guidance Cuts and Margin Trends Through Q2 202622:00 - Reverse DCF: What Growth Rate Is Priced In?26:00 - Investment Thesis Checklist and Final Verdict

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Disclosure: Some links above are affiliate links. If you buy something through them, we might earn a little coffee money — thanks for helping us (Kasey) fuel our caffeine addiction.

Content in this episode is for general information or entertainment only and is not specific or individual investment advice. Forecasts and information presented may not develop as predicted, and there is no guarantee any strategies presented will be successful. All investing involves risk, and you could lose some or all of your principal. CSI doesn't own shares of Procept BioRobotics.

Procept Is Down 80% and the Tech Works — So Why Won't We Buy PRCT?

Chip Stock Investor Podcast

Procept Is Down 80% and the Tech Works — So Why Won't We Buy PRCT?