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 ...

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]