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)

Exhibit 99.1 ● Revenues were $8.3 million ● Net loss was $2.6 million, or $(0.16) per share ● Shipped 21 superficial radiotherapy (SRT) systems, including 15 to a large customer and one internationally ● Showcased SRT systems and several pre-commercial products at the 2025 Winter Clinical Dermatology Conference and at the 2025 American Academy of Dermatology (AAD) Annual Meeting, including hosting a highly successful event for customers and prospects First Quarter Financial Results Revenues were $8.3 millio ...

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 ...

In the latest trading session, Sensus Healthcare, Inc. (SRTS) closed at $4.48, marking a +0.45% move from the previous day. This move outpaced the S&P 500's daily loss of 0.23%. Meanwhile, the Dow experienced a drop of 0.91%, and the technology-dominated Nasdaq saw an increase of 0.1%.The company's stock has dropped by 3.04% in the past month, exceeding the Medical sector's loss of 10.2% and the S&P 500's loss of 12.13%.Market participants will be closely following the financial results of Sensus Healthcare ...

The most recent trading session ended with Sensus Healthcare, Inc. (SRTS) standing at $4.69, reflecting a +1.08% shift from the previouse trading day's closing. The stock's change was more than the S&P 500's daily loss of 0.33%. Meanwhile, the Dow lost 0.37%, and the Nasdaq, a tech-heavy index, lost 0.53%.Prior to today's trading, shares of the company had lost 5.11% over the past month. This has lagged the Medical sector's loss of 3.24% and the S&P 500's loss of 4.03% in that time.The upcoming earnings rel ...

Sensus Healthcare, Inc. (SRTS) closed the latest trading day at $4.78, indicating a +0.84% change from the previous session's end. This change lagged the S&P 500's 1.08% gain on the day. At the same time, the Dow added 0.92%, and the tech-heavy Nasdaq gained 1.41%.The company's shares have seen a decrease of 18.84% over the last month, not keeping up with the Medical sector's gain of 0.21% and the S&P 500's loss of 8.26%.Investors will be eagerly watching for the performance of Sensus Healthcare, Inc. in it ...

Core Viewpoint - The average brokerage recommendation (ABR) for Sensus Healthcare, Inc. (SRTS) is 1.00, indicating a Strong Buy, but reliance solely on this recommendation may not be prudent due to potential biases in brokerage ratings [2][4]. Group 1: Brokerage Recommendations - Sensus Healthcare has an ABR of 1.00 based on recommendations from four brokerage firms, all of which are Strong Buy, representing 100% of the recommendations [2]. - Brokerage firms often exhibit a strong positive bias in their ratings, with research indicating that for every "Strong Sell" recommendation, there are five "Strong Buy" recommendations [5][9]. - The ABR is calculated based on brokerage recommendations and may not reflect the most current market conditions, potentially misleading investors [11]. 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 timely indicators of stock performance [7][10]. - The Zacks Consensus Estimate for Sensus Healthcare has declined by 54.2% over the past month to $0.33, reflecting analysts' growing pessimism about the company's earnings prospects [12]. - Due to the recent decline in earnings estimates, Sensus Healthcare has received a Zacks Rank of 4 (Sell), suggesting caution despite the favorable ABR [13].

Revenue and Profitability - Revenues for 2024 were $41.8 million, an increase of $17.4 million, or 71%, from $24.4 million in 2023, driven by a higher number of units sold (115 units in 2024 vs. 67 units in 2023) [152] - Gross profit for 2024 was $24.4 million, representing 58.4% of revenue, an increase of $10.3 million, or 73%, from $14.1 million, or 57.8% of revenue, in 2023 [154] - Net income for 2024 was $6.6 million, compared to $0.5 million in 2023, with net income per share increasing to $0.41 from $0.03 [151] Costs and Expenses - Cost of sales for 2024 was $17.4 million, up $7.1 million, or 69%, from $10.3 million in 2023, primarily due to the increased number of units sold [153] - General and administrative expenses increased by $1.9 million, or 37%, to $7.1 million in 2024, primarily due to higher compensation and professional fees [155] - Research and development expenses rose by $0.5 million, or 14%, to $4.2 million in 2024, mainly due to higher compensation expenses [157] Cash Flow and Financial Position - Cash and cash equivalents decreased by $1.0 million, or 4%, to $22.1 million at December 31, 2024, from $23.1 million at December 31, 2023 [158] - Accounts receivable increased by $9.1 million, or 86%, to $19.7 million at December 31, 2024, primarily due to increased sales to a primary customer with extended payment terms [159] - The company reported net cash used in operating activities of $0.8 million for 2024, compared to $2.1 million for 2023 [164] Economic Factors - Inflationary pressures from increased commodity and shipping prices, as well as labor costs, were noted, prompting the company to take actions to mitigate these effects [168]