PRCT · CIK 0001588978
What PROCEPT BioRobotics Corp. told the SEC could break it.
PROCEPT BioRobotics' disclosures revolve around supply-chain fragility. It manufactures both its robotic systems and its high-margin single-use handpieces at one California site, so a local event — earthquake, wildfire, power loss or labor disruption — could simultaneously halt new-system placements and the recurring disposable revenue. It also relies on third-party suppliers that are almost all single-source for the components, sub-assemblies and materials in its AquaBeam and HYDROS systems and handpieces, with essentially no qualified second sources. A pointed instance: the ultrasound systems and probes bundled with every robot come from a single third-party manufacturer in China, putting that component — and tariff exposure on it — in the critical path of every shipment.
3 self-disclosed vulnerabilities, pulled from its own filings, each in the company’s words, with the source. This is the risk register almost nobody reads.
In its own words
What could break it.
Geographic concentration
- Single California manufacturing site for both robotic systems and the recurring single-use handpiecesmedium
PROCEPT manufactures both its robotic systems and its single-use disposable handpieces in California — concentrating production of its capital equipment and its high-margin recurring razor-and-blade revenue at one site. A California-specific event (earthquake, wildfire, power loss, labor disruption) at the single manufacturing location would simultaneously interrupt new-system placements and the disposable-handpiece stream that drives recurring revenue, with limited large-scale-manufacturing experience to fall back on. A genuine single-site manufacturing concentration.
“While we manufacture our robotic systems and handpieces in California”
SEC filing →As of 2026
Regulatory & policy
- China-sourced ultrasound component + tariff exposure — the ultrasound systems/probes bundled with each robot come from a China-based third-party manufacturermedium
Although PROCEPT manufactures its robotic systems and handpieces in California, it sources certain components from foreign suppliers — including a third-party manufacturer of ultrasound systems and probes located in China that is bundled with every robotic system — and its suppliers import raw materials/components from abroad. Increased U.S. tariffs or other trade restrictions could raise the cost of its products and inputs and force additional risk-mitigation measures. The China-located, single-source ultrasound component sits in the critical path of every system shipment, making this a specific China-sourcing and trade-policy exposure. A distinct tariff/China-component supply exposure.
“we source certain components from foreign suppliers, including a third-party manufacturer of ultrasound systems and probes located in China.”
Sole-source dependency
- Almost all third-party suppliers are single-source — components, sub-assemblies and materials for the AquaBeam/HYDROS robotic systems and disposable handpiecesmedium
PROCEPT relies on third-party suppliers, almost all of whom are single-source, for certain components, sub-assemblies and materials used in its AquaBeam and HYDROS robotic systems and single-use handpieces, and depends on contract manufacturers and single-source suppliers generally — leaving it vulnerable to supply shortages and price fluctuations. A critical bundled component (a third-party ultrasound system and probe) ships with every robotic system. With essentially no qualified second sources, a disruption, quality failure or price action at one supplier could halt system or handpiece production. A broad, high-exposure single-source supply dependence.
“We rely on third-party suppliers, almost all of whom are single source suppliers, to provide us with certain components, sub-assemblies and materials for our products.”
SEC filing →As of 2026
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