Is Perimeter Medical Imaging a buy?

Paradigm Capital analyst Scott McAuley maintained a “Speculative Buy” rating but lowered his target price for Perimeter Medical Imaging AI (Perimeter Medical Imaging AI Stock Quote, Chart, News, Analysts, Financials TSXV:PINK) to C$0.70 from C$1.00 in a Sept. 3 update, citing more dilutive financings than expected. The target is based on 9.0x EV/Revenue on 2026 estimates.

Perimeter is a Toronto-based medical device company with U.S. headquarters in Dallas, developing advanced imaging tools that allow surgeons and radiologists to visualize microscopic tissue structures in real time. Its FDA-cleared S-Series platform is designed to reduce repeat surgeries in breast cancer, while its next-generation AI-enabled B-Series is under FDA review, with approval expected in late 2025 or early 2026.

Perimeter reported Q2 revenue of $506,000, below McAuley’s $700,000 estimate, but up 105% year-over-year. Consumable revenue of $348,000 rose 139% sequentially and 140% year-over-year, offsetting the absence of capital equipment sales. Adjusted EBITDA was a loss of $3.7-million, better than the forecasted loss of $4.3-million.

Operating costs fell 22% year-over-year, with management targeting further 30% reductions. Liquidity stood at about $3.5-million, including post-quarter financing and grant reimbursements, though McAuley cautioned the balance sheet “will remain an overhang in the near term.”

The company installed one new S-Series system in the quarter, bringing the total to 20 at period end, with a subsequent installation at Providence Saint Joseph Medical Center in California lifting the total to 21.Procedure volumes rose 35% sequentially and 93% year-over-year.

McAuley said the addition of Dr. James, previously Chief of Breast Surgical Oncology at Beth Israel Deaconess and Associate Professor at Harvard Medical School, was a vote of confidence in the technology. Dr. James has previously referred to the S-Series platform as the “holy grail” of breast surgery.

McAuley said that Perimeter should post an Adjusted EBITDA loss of $12.6-million on $2.9-million in revenue in fiscal 2025, narrowing to a loss of $11.9-million on $7.2-million in revenue in fiscal 2026. That compares with his previous forecasts of a $16.4-million loss on $3.2-million of revenue in 2025 and a $20.1-million loss on $6.7-million in 2026.

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