PROCEPT BioRobotics Corporation

Good afternoon and welcome to the Procept by Robotics fourth quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. We will be facilitating a question and answer session toward the end of today's call. As a reminder, this call is being recorded for replay purposes. I would now like to turn the conference over to Matt Basko, Vice President, Investor Relations, for a few introductory comments. Please go ahead.

Good afternoon, and thank you for joining Procept Biorobotics' fourth quarter 2025 earnings conference call. Presenting on today's call are Larry Wood, Chief Executive Officer, and Kevin Waters, Chief Financial Officer. Before we begin, I'd like to remind listeners that statements made on this conference call that relate to future plans, events, or performance are forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. While these four looking statements are based on management's current expectations and beliefs, these statements are subject to several risks, uncertainties, assumptions, and other factors that could cause results to differ materially from the expectations expressed on this conference call. These risks and uncertainties are disclosed in more detail in Procept Biorobotics filings with the Securities Exchange Commission, all of which are available online at www.sec.gov. Listeners are cautioned not to place under reliance on these forward-looking statements, which speak only as of today's date, February 24th, 2026. Except as required by law, Procept Biorobotics undertakes no obligation to update or revise any forward-looking statements to reflect new information, circumstances, or unanticipated events that may arise. During the call, we will also reference certain financial measures that are not prepared in accordance with GAAP. More information about how we use these non-GAAP financial measures as well as reconciliations of these measures to their nearest GAAP equivalent are included in our earnings release. With that, I would like to turn the call over to Larry.

Thanks, Matt. Before discussing our fourth quarter results, I want to share context on progress since joining the company as CEO. When I joined Procept, I outlined an immediate near-term plan for the organization that I believe was critical to positioning the company for its next chapter. It was essential to move with a clear vision, a strong sense of urgency, and a culture grounded in discipline and accountability. Historically, Procept executed effectively in its first chapter of growth. That work created the foundation the company benefits from today. However, as the company evolves, so do the requirements for success. The next stage of process development requires shifting the operational focus towards increasing procedure volume, expanding margins, and achieving profitability and gaining market share. At the same time, we must deliberately build an organization that supports both near-term performance and long-term sustainable growth. We recently made two changes to our commercial organization that we believe are strategically important for long-term performance. We have realigned our commercial team into an integrated regional structure where our clinical and sales functions now report to a common regional leader. The new structure creates a single point of accountability at the regional level to ensure clinical and commercial activities are coordinated around customer success and procedure growth. Second, we formed a dedicated launch team by reassigning a small number of our top performers to focus specifically on new system placements. The intent is to drive more consistent launches, reduce variability in activation, and accelerate time to value for customers because we see launches as a key lever to improving downstream utilization and performance. In the near term, the sales realignment and formulation of the launch team creates some short-term disruption. Certain account coverage has changed, and temporarily we have fewer tenured resources in the field as we stand up a launch team. We view this as a normal transition period as teams ramp, establish account relationships, and standardize new operating processes. Importantly, we believe these changes better position us for sustained high growth through clearer leadership, better alignment, and more repeatable launches. We will continue to manage through this transition thoughtfully, and we expect the benefits to build as the organization settles into the new model. Now, turning to fourth quarter results, in the fourth quarter we completed 12,200 procedures, reflecting approximately 69% annual growth. On the third quarter earnings call, we reduced our previously issued Q4 guidance by 1,000 handpiece units as we reestablished customer inventory targets that we felt were appropriate based on usage volume. Separate from establishing inventory targets, it became clear as the quarter progressed that accounts had become accustomed to purchasing large quantities of handpieces receiving bulk discounts in the final weeks of the quarter i've always believed pricing discipline is foundational to long-term success at procef i've been focused on implementation of handpiece price discipline and as part of that we eliminated the historical practice of providing discounts on bulk purchases particularly at the end of the quarter despite customer requests we remain disciplined and do not allow bulk purchases at a discount as a result Handpiece unit sales were approximately 80% of procedures in the fourth quarter. And for the first time, procedures exceeded handpiece to sole. While this resulted in lower than expected revenue, it delivered a significant improvement in handpiece selling price. Average fourth quarter selling price was $3,340 or up 140 or approximately 5% sequentially from the third quarter. Historically, handpiece unit sales exceeded procedure volumes by approximately 8% to 16%. Based on the last several months, we now expect handpiece unit sales and procedure volumes to be in close alignment on a go-forward basis with sustained improvement in handpiece average selling prices. These business practice changes resulted in a reduction of our projected 2026 handpiece revenue. The revenue impact is meaningfully offset by the increase in handpiece average selling prices. Based on the combination of these factors, with the short-term disruption associated with the Salesforce realignment, we are now resetting 2026 guidance to 390 to $410 million, representing annual growth of 27 to 33%. Before I turn it over to Kevin to walk through the financials, I want to close by previewing what to expect at our investor day tomorrow morning. For the first time since the IPO nearly five years ago, we will provide a more detailed multi-year look at our financial guidance including more details on 26 and 27, our path to profitability, and an update on the Water 4 prostate cancer trial, as well as a vision for our future. I hope to see everyone there. With that, I'll hand it over to Kevin to walk through the financials for the quarter. Kevin?