Investment Highlights - Superficial Radiation Therapy (SRT) systems offer practitioners a quick ROI, potentially within 6-9 months, driven by a 50+% increase in reimbursement for the treatment course[7] - The company launched the "Fair Deal Agreement" recurring revenue program for the SRT-100 Vision (IG-SRT) using the Sentinel IT platform[7] - In 2023, the company's revenues reached $24.4 million with an EPS of $0.03 per share[7] - In the first half of 2024, revenues were $20 million, a 152% increase, with an EPS of $0.24, compared to a loss of $0.14 per share in the first half of 2023[7] - The company shipped 66 SRT systems in 2023 and 49 SRT systems in the first half of 2024[7] - As of June 30, 2024, the company has a strong balance sheet with $19.0 million in cash & equivalents, no debt, and receivables of $18.3 million[7] Technology and Market - 1 in 5 Americans will develop skin cancer in their lifetime[2] - Recurrence rates of keloids are up to 80% with surgery and other current treatment methods[25] - The company's installed base is currently at approximately 750 systems worldwide[59] Clinical Studies - A 2019 clinical multi-center study of 776 lesions showed a 98.9% cure rate after a 5-year retrospective study for skin cancer[32] - A 2018 clinical study of 151 lesions on lower extremities showed a 97.35% cure rate and a 5-year success rate of 97% for skin cancer[32] - A 2018 clinical study on keloid surgery followed with SRT for 297 lesions showed a 97% success rate[32]

Core Viewpoint - Brokerage recommendations, particularly for Sensus Healthcare, Inc. (SRTS), indicate a strong buy sentiment, but reliance solely on these recommendations may not be prudent due to potential biases and misalignment with retail investors' interests [2][5][10]. Group 1: Brokerage Recommendations - Sensus Healthcare has an average brokerage recommendation (ABR) of 1.00, indicating a Strong Buy based on four recommendations, all of which are Strong Buy [2]. - Despite the strong buy recommendations, studies suggest that brokerage recommendations often fail to guide investors effectively towards stocks with high price appreciation potential [5][10]. - Analysts from brokerage firms tend to exhibit a positive bias in their ratings, with a ratio of five "Strong Buy" recommendations for every "Strong Sell" [6][10]. Group 2: Zacks Rank Comparison - The Zacks Rank, a proprietary stock rating tool, categorizes stocks from 1 (Strong Buy) to 5 (Strong Sell) and is based on earnings estimate revisions, which are more reliable indicators of near-term stock performance [8][11]. - The Zacks Rank is distinct from the ABR, as it is a quantitative model that reflects earnings estimate revisions rather than solely brokerage recommendations [9]. - The Zacks Rank is updated more frequently, providing timely insights into stock price predictions compared to the potentially outdated ABR [12]. Group 3: Earnings Estimates and Current Outlook - The Zacks Consensus Estimate for Sensus Healthcare has decreased by 61.4% over the past month to $0.11, indicating growing pessimism among analysts regarding the company's earnings prospects [13]. - This significant decline in earnings estimates has resulted in a Zacks Rank of 5 (Strong Sell) for Sensus Healthcare, suggesting caution despite the ABR indicating a buy [14].

分组1 - Sensus Healthcare, Inc. reported a quarterly loss of $0.16 per share, significantly missing the Zacks Consensus Estimate of $0.04, representing an earnings surprise of -500% [1] - The company posted revenues of $8.34 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 14.77%, but down from $10.66 million year-over-year [2] - Sensus Healthcare shares have declined approximately 30.4% since the beginning of the year, contrasting with the S&P 500's gain of 0.2% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.08 on revenues of $8.89 million, and for the current fiscal year, it is $0.29 on revenues of $43.45 million [7] - The Medical - Instruments industry, to which Sensus Healthcare belongs, is currently ranked in the top 34% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $8.3 million, down from $10.7 million in Q1 2024, primarily due to lower unit sales to the largest customer [13] - Gross profit for Q1 2025 was $4.4 million, resulting in a gross margin of 52% [14] - The company reported a net loss of $2.6 million or a loss of $0.16 per share compared to net income of $2.3 million or $0.14 per diluted share in the prior year quarter [17] Business Line Data and Key Metrics Changes - The company shipped 21 SRT systems in Q1 2025, bringing the total installed base to over 880 systems [4] - There was a 65% increase in patient treatments from fair deal agreement installations when comparing Q1 volumes with Q4 [8] Market Data and Key Metrics Changes - The company expects to surpass 900 systems by the end of Q2 2025 and aims to reach 1,000 units under direct sale within the next twelve months [5] - The fair deal agreement program is anticipated to contribute significantly to revenue in the second half of 2025 [10] Company Strategy and Development Direction - The company is focusing on expanding its fair deal agreement program, which aligns financial interests with patient volume and practice utilization [9] - The international strategy is progressing, with participation in major industry events and targeted marketing activities [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to profitability in each of the next three quarters and for the full year [5] - The company is strategically executing plans to build sustainable long-term growth through FDA installations and product innovation [12] Other Important Information - Operating expenses increased significantly due to strategic growth initiatives, with general and administrative expenses rising to $2.2 million from $1.6 million a year ago [15] - Research and development expenses increased to $2.6 million from $0.9 million in the prior year period, reflecting continued investment in product innovation [16] Q&A Session Summary Question: How does the first quarter of 2025 compare to the first quarter of 2024? - Management expects each subsequent quarter to be profitable, driven by revenues from fair deal agreements and product sales [22] Question: Did any part of the first quarter revenue come from the fair deal agreement? - Yes, but it was not large enough to make a significant impact [24][26] Question: Has the existing U.S. tariff policy affected business confidence? - So far, there have been no observed tariff repercussions on any of the businesses [27] Question: What is the anticipated volume once fair deal agreements are fully operational? - It typically takes four to five months from signing an agreement to initial revenue generation [31] Question: What is the current installed base and target goal by the end of 2025? - The company is not providing specific guidance on the target goal but is moving along aggressively [45] Question: What marketing support will be provided to clinics to help them reach mature utilization rates? - The company will provide analytics and aggressive marketing strategies to help clinics attract patients [46] Question: What is the expected timeline for receiving payments after treatments? - Payments are typically received between 45 and 60 days after treatments [55] Question: What is the profile of attendees at smaller conferences? - Smaller conferences attract practitioners who may not attend larger events, providing opportunities for FDA agreements [57] Question: How do the installations match up with patient databases? - The installations tend to match well with the patient data, enhancing confidence in the targeted areas for treatment [61]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $8.3 million, down from $10.7 million in Q1 2024, primarily due to lower unit sales to the largest customer [12] - Gross profit for Q1 2025 was $4.4 million, resulting in a gross margin of 52% [12] - The company reported a net loss of $2.6 million or a loss of $0.16 per share compared to net income of $2.3 million or $0.14 per diluted share in the prior year [16] Business Line Data and Key Metrics Changes - The company shipped 21 SRT systems in Q1 2025, bringing the total installed base to over 880 systems [4][5] - A 65% increase in patient treatments from fair deal agreement installations was noted when comparing Q1 volumes with Q4 [7] Market Data and Key Metrics Changes - The company expects to surpass 900 systems by the end of Q2 2025 and aims to reach 1,000 units under direct sale within the next twelve months [5] - The fair deal agreement program is anticipated to contribute significantly to revenue in the second half of 2025 [9] Company Strategy and Development Direction - The company is focusing on expanding its fair deal agreement initiative, which aligns financial interests with patient volume and practice utilization [8] - There is an ongoing strategy to enhance international presence and product innovation, particularly with the transdermal infusion system [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to profitability in each of the next three quarters and for the full year [5][17] - The company is confident in the trajectory for the remainder of 2025, particularly as FDA agreements begin to contribute to revenue [65] Other Important Information - Operating expenses increased significantly due to strategic growth initiatives, with general and administrative expenses rising to $2.2 million from $1.6 million a year ago [13] - Research and development expenses increased to $2.6 million from $0.9 million in the prior year, reflecting continued investment in product innovation [15] Q&A Session Summary Question: How does the first quarter of 2025 compare to the first quarter of 2024? - Management expects each subsequent quarter to be profitable, driven by revenues from fair deal agreements and product sales [20] Question: Did any part of the first quarter revenue come from the fair deal agreement? - Yes, but it was not large enough to significantly impact overall revenue [21][22] Question: Has the existing U.S. tariff policy affected business confidence? - So far, there have been no observed tariff repercussions on any of the businesses [24] Question: What is the anticipated volume once fair deal agreements reach full capacity? - Revenue generation typically begins four to five months after signing the agreement, with significant revenue contributions expected in the second half of 2025 [28][34] Question: What support will be provided to clinics to reach mature utilization rates? - The company plans to provide analytics and marketing support to help clinics identify and access patients [44] Question: What is the current installed base and target goal by the end of 2025? - The company is not providing specific guidance on the target goal but is moving along aggressively with existing installations [43] Question: What is the timeline for receiving payments after treatments? - Payments are typically received between 45 and 60 days after treatments occur [52]

PART I – Financial Information [Condensed Consolidated Financial Statements (unaudited)](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) Q1 2025 unaudited financials report a $2.6 million net loss, decreased assets, negative operating cash flow, noting a DOJ investigation and revenue concentration [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $60.2 million by March 31, 2025, primarily from reduced cash, with liabilities increasing and equity falling to $53.0 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 (unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $19,072 | $22,056 | | Accounts receivable, net | $18,018 | $19,731 | | Inventories | $9,923 | $10,097 | | Total current assets | $54,196 | $56,738 | | Total assets | $60,210 | $62,165 | | **Liabilities & Equity** | | | | Total current liabilities | $6,725 | $5,885 | | Total liabilities | $7,176 | $6,338 | | Total stockholders' equity | $53,034 | $55,827 | | Total liabilities and stockholders' equity | $60,210 | $62,165 | [Condensed Consolidated Statements of Income (Loss)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20(Loss)) Q1 2025 reported a $2.57 million net loss, a shift from prior year's income, due to 21.7% lower revenues and a 188.9% increase in R&D expenses Condensed Consolidated Statements of Income (Loss) (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenues | $8,344 | $10,663 | | Gross Profit | $4,354 | $6,662 | | Total Operating Expenses | $7,000 | $3,775 | | Research and Development | $2,606 | $926 | | Income (loss) from operations | ($2,646) | $2,887 | | Net income (loss) | ($2,572) | $2,274 | | Net income (loss) per share – diluted | ($0.16) | $0.14 | [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) Total stockholders' equity decreased to $53.0 million by March 31, 2025, primarily due to a $2.57 million net loss and $0.3 million in stock repurchases - Key changes in stockholders' equity for Q1 2025 include a net loss of **$2.572 million** and the repurchase of stock for **$0.3 million**[18](index=18&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities was $2.7 million in Q1 2025, leading to a $3.0 million net decrease in cash, ending the quarter with $19.1 million Summary of Cash Flows (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($2,677) | ($8,187) | | Net cash used in investing activities | ($7) | ($233) | | Net cash used in financing activities | ($300) | $0 | | **Net decrease in cash and cash equivalents** | **($2,984)** | **($8,420)** | | Cash and cash equivalents – end of period | $19,072 | $14,728 | [Notes to the Condensed Consolidated Financial Statements (unaudited)](index=8&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) Notes detail accounting policies, Q1 2025 revenue of $6.7 million with 69% from one customer, a $15 million credit facility, and an ongoing DOJ investigation - In 2024, the company formed Sensus Healthcare Services, LLC, a wholly owned subsidiary to provide operational healthcare services, including leased equipment and radiotherapy technologists[23](index=23&type=chunk) - A single customer in the U.S. accounted for **69%** of revenue for Q1 2025 and **87%** of accounts receivable as of March 31, 2025[41](index=41&type=chunk) - The company has a **$15 million** revolving credit facility with Comerica Bank, with no borrowings outstanding as of March 31, 2025. The facility is secured by all company assets and has several covenants[66](index=66&type=chunk)[67](index=67&type=chunk) - The company is cooperating with a Department of Justice (DOJ) investigation into the billing practices of a physician who used the company's SRT-100. The company disputes any wrongdoing and is unable to estimate the potential cost[79](index=79&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes Q1 2025's 22.4% revenue decrease to lower unit sales, with gross profit margin falling to 53.0% and operating expenses, notably R&D, significantly increasing Q1 2025 vs Q1 2024 Performance (in thousands) | Metric | Q1 2025 | Q1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Revenues | $8,344 | $10,663 | -22.4% | | Gross Profit | $4,354 | $6,662 | -34.3% | | Selling and marketing | $2,186 | $1,270 | +69.2% | | Research and development | $2,606 | $926 | +188.9% | | Net Income (Loss) | ($2,572) | $2,274 | -226.3% | - The decrease in revenue was primarily driven by a lower number of units sold to a large customer[106](index=106&type=chunk) - The increase in R&D expense was primarily due to significant lobbying costs related to billing code reimbursement, increased headcount, and product development[111](index=111&type=chunk) - Cash and cash equivalents decreased by **$3.0 million** during the quarter, from **$22.1 million** to **$19.1 million**[115](index=115&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=24&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section is not applicable for the reporting period - The company has indicated that this item is not applicable[129](index=129&type=chunk) [Controls and Procedures](index=25&type=section&id=Item%204.%20Controls%20and%20Procedures) As of March 31, 2025, management concluded that disclosure controls and procedures were effective, with no significant changes to internal control over financial reporting - Management, including the CEO and CFO, evaluated disclosure controls and procedures and concluded they were effective as of March 31, 2025[130](index=130&type=chunk) - No significant changes were made to internal control over financial reporting during the most recently completed fiscal quarter[131](index=131&type=chunk) PART II – Other Information [Legal Proceedings](index=26&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course legal proceedings, with details on a Department of Justice investigation referenced in Note 6 - The company is involved in ordinary course legal proceedings and refers to Note 6, which details an ongoing DOJ investigation[134](index=134&type=chunk) [Risk Factors](index=26&type=section&id=Item%201A.%20Risk%20Factors) Investors are directed to the 2024 Annual Report for risk factors, as no new or amended risks are presented in this filing - For a discussion of risk factors, the report refers to Part I, Item 1A of the company's 2024 Annual Report[135](index=135&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=26&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales occurred in Q1 2025; the company repurchased 50,360 shares for $0.3 million under its $3 million stock repurchase program - There were no unregistered sales of securities during the three months ended March 31, 2025[136](index=136&type=chunk) Issuer Purchases of Equity Securities (Q1 2025) | Period | Total Shares Repurchased | Average Price Paid per Share | Approx. Dollar Value Remaining in Program | | :--- | :--- | :--- | :--- | | Jan 2025 | 0 | $— | $2,972,812 | | Feb 2025 | 50,360 | $5.90 | $2,672,816 | | Mar 2025 | 0 | $— | $2,672,816 | | **Total** | **50,360** | **$5.90** | | [Defaults Upon Senior Securities](index=26&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities during the period - None[141](index=141&type=chunk) [Mine Safety Disclosure](index=27&type=section&id=Item%204.%20Mine%20Safety%20Disclosure) This section is not applicable to the company - Not applicable[142](index=142&type=chunk) [Other Information](index=27&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated any Rule 10b5-1 trading plans during Q1 2025 - No directors or officers adopted or terminated any Rule 10b5-1 trading plans during the quarter[143](index=143&type=chunk) [Exhibits](index=27&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL documents - The exhibits filed include CEO and CFO certifications pursuant to Rule 13a-14(a) and 18 U.S.C. Section 1350, as well as Inline XBRL files[145](index=145&type=chunk)

Financial Performance - Revenues for the first quarter of 2025 were $8.3 million, a decrease from $10.7 million in the first quarter of 2024[5] - The net loss for the first quarter of 2025 was $2.6 million, or $(0.16) per share, compared to a net income of $2.3 million, or $0.14 per diluted share, in the same period last year[8] - Adjusted EBITDA for the first quarter of 2025 was negative $2.5 million, compared to $3.0 million in the first quarter of 2024[9] - Revenues for Q1 2025 were $8,344,000, a decrease of 21.7% compared to $10,663,000 in Q1 2024[26] - Net loss for Q1 2025 was $2,572,000, compared to a net income of $2,274,000 in Q1 2024[26] - Net income (loss) per share for Q1 2025 was $(0.16), a decline from $0.14 in Q1 2024[26] - Income (loss) from operations for Q1 2025 was $(2,646,000), compared to $2,887,000 in Q1 2024, indicating operational challenges[26] Gross Profit and Expenses - Gross profit was $4.4 million with a gross margin of 53.0%, down from $6.7 million and 62.6% in the prior year, primarily due to lower sales and higher service costs[6] - Gross profit for Q1 2025 was $4,354,000, down 34.5% from $6,662,000 in Q1 2024[26] - Total operating expenses increased to $7,000,000 in Q1 2025, up 85.8% from $3,775,000 in Q1 2024[26] - Research and development expenses rose to $2.6 million from $0.9 million year-over-year, driven by lobbying costs and product development[7] - Research and development expenses surged to $2,606,000, a significant increase from $926,000 in Q1 2024, reflecting a focus on innovation[26] Cash and Tax - Cash and cash equivalents decreased to $19.1 million as of March 31, 2025, down from $22.1 million at the end of 2024[10] - Interest income for Q1 2025 was $184,000, a slight decrease from $214,000 in Q1 2024[26] - The provision for income tax in Q1 2025 was $110,000, down from $827,000 in Q1 2024, reflecting changes in tax strategy[26] Business Operations and Future Outlook - The company shipped 21 superficial radiotherapy (SRT) systems during the quarter, including 15 to a large customer and one internationally[4] - There was a 65% increase in treatment volume from FDA-based SRT systems compared to the previous quarter[3] - The company expects to be profitable in each of the next three quarters and for the full year, with revenue from FDAs anticipated to contribute meaningfully in the second half of the year[3] - The company plans to sign 3-5 additional multisite FDA customers this year[3]

Group 1 - Sensus Healthcare, Inc. (SRTS) stock closed at $4.22, down 0.47% from the previous day, underperforming compared to the S&P 500's gain of 0.44% [1] - The stock has decreased by 7.22% over the past month, contrasting with the Medical sector's gain of 1.16% and the S&P 500's gain of 10.62% [1] Group 2 - The upcoming earnings report for Sensus Healthcare is scheduled for May 15, 2025, with projected earnings per share (EPS) of $0.04, indicating a 71.43% decrease year-over-year [2] - Revenue is expected to be $7.27 million, reflecting a 31.8% decline compared to the same quarter last year [2] Group 3 - For the annual period, Zacks Consensus Estimates predict earnings of $0.29 per share and revenue of $43.45 million, representing changes of -29.27% and +3.93% respectively from the previous year [3] Group 4 - Recent changes to analyst estimates for Sensus Healthcare reflect shifting short-term business dynamics, with positive revisions indicating a favorable outlook on the company's health and profitability [4] Group 5 - The Zacks Rank system, which incorporates estimate changes, currently ranks Sensus Healthcare at 4 (Sell), with the consensus EPS estimate remaining unchanged over the past month [6] Group 6 - Sensus Healthcare's Forward P/E ratio is 14.88, which is a discount compared to the industry's average Forward P/E of 25.35 [7] - The Medical - Instruments industry, part of the Medical sector, holds a Zacks Industry Rank of 84, placing it in the top 35% of over 250 industries [7]

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Sensus Healthcare, Inc. (SRTS), and highlights the disparity between brokerage ratings and actual stock performance [1][5]. Brokerage Recommendations - Sensus Healthcare has an average brokerage recommendation (ABR) of 1.00, indicating a Strong Buy, based on recommendations from four brokerage firms, all of which are Strong Buy [2][5]. - Despite the Strong Buy recommendation, relying solely on this information for investment decisions may not be advisable, as studies show brokerage recommendations often fail to guide investors effectively [5][10]. Analyst Bias - Brokerage analysts tend to exhibit a strong positive bias in their ratings due to vested interests, with five "Strong Buy" recommendations for every "Strong Sell" [6][10]. - This bias suggests that the interests of brokerage firms may not align with those of retail investors, providing limited insight into future stock price movements [7][10]. Zacks Rank Comparison - The Zacks Rank, a proprietary stock rating tool, is presented as a more reliable indicator of near-term price performance, driven by earnings estimate revisions [8][11]. - Unlike the ABR, which is based solely on brokerage recommendations, the Zacks Rank incorporates quantitative models and is updated more frequently to reflect current earnings estimates [9][12]. Earnings Estimates and Stock Performance - The Zacks Consensus Estimate for Sensus Healthcare has declined by 12.3% over the past month to $0.29, indicating growing pessimism among analysts regarding the company's earnings prospects [13]. - This decline in earnings estimates has resulted in a Zacks Rank of 4 (Sell) for Sensus Healthcare, suggesting caution despite the positive ABR [14].

Sensus Healthcare, Inc. (SRTS) closed at $4.69 in the latest trading session, marking a +1.3% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 1.67%. On the other hand, the Dow registered a gain of 1.07%, and the technology-centric Nasdaq increased by 2.5%.Coming into today, shares of the company had lost 5.12% in the past month. In that same time, the Medical sector lost 9.34%, while the S&P 500 lost 6.57%.The upcoming earnings release of Sensus Healthcare, Inc. will ...