Semler Scientific(SMLR) - 2025 Q2 - Quarterly Results

Financial Performance - Semler Scientific reported revenues of $8.2 million for Q2 2025, a 43% decrease year-over-year[8] - Total operating expenses for Q2 2025 were $10.3 million, compared to $9.1 million in Q2 2024, including $1.9 million in non-cash stock-based compensation[8] - The company experienced a loss from operations of $2.1 million in Q2 2025, compared to income from operations of $5.4 million in Q2 2024[8] - Net income for Q2 2025 was $66.9 million, or $5.71 per basic share, compared to net income of $11 thousand in Q2 2024[8] - For the six months ended June 30, 2025, net income was $2,230,000 compared to $6,084,000 for the same period in 2024, representing a decrease of approximately 63.4%[15] - Net cash used in operating activities for the first half of 2025 was $(1,392,000), a significant decline from $10,558,000 in the prior year[15] - The company reported a net cash used in investing activities of $(236,978,000) for the six months ended June 30, 2025, compared to $(60,548,000) in 2024, indicating a substantial increase in investment outflows[15] - Non-GAAP loss from operations for the six months ended June 30, 2025, was $(28,000), compared to a profit of $12,621,000 in the same period of 2024[22] Bitcoin Holdings and Strategy - Semler Scientific's Bitcoin holdings increased to 5,021 Bitcoins with a fair value of $586.2 million as of July 31, 2025, reflecting a cumulative increase in fair value of $66.9 million[4] - The company achieved a BTC yield of 31.3% year-to-date through July 31, 2025, generating over $110.4 million in unrealized gains[2] - Semler Scientific purchased approximately $195.4 million of Bitcoin since Q1 2025, bringing total Bitcoin holdings to nearly $586.2 million[2] - Total Bitcoin holdings increased to 4,636 BTC as of June 30, 2025, up from 3,192 BTC at the end of March 2025, reflecting a growth of approximately 45%[20] - The average price per Bitcoin held as of June 30, 2025, was $92,753, with a total fair value of $496,865,000[16] - The BTC Yield for the second quarter of 2025 was 1.8%, with a year-to-date yield of 31.3%[20] - The company plans to continue accumulating Bitcoin as a primary treasury reserve asset, leveraging proceeds from equity and debt financings[29] - Semler Scientific is focusing on acquiring and holding Bitcoin, with plans to support additional Bitcoin purchases through sales of securities under the ATM offering program[31] Healthcare Initiatives - The company launched CardioVanta™, a subsidiary focused on early detection of heart failure and cardiac arrhythmia, to drive future healthcare initiatives[2] - Semler Scientific's flagship product, QuantaFlo, is designed for early detection and monitoring of chronic diseases, indicating ongoing commitment to healthcare innovation[29] - The company aims to grow its healthcare business, particularly through FDA-cleared products and CardioVanta, which are expected to generate cash[31] - Semler Scientific is seeking a new 510(k) clearance for QuantaFlo with expanded indications, which could enhance its product offerings[31] Risks and Challenges - The company is facing risks related to Bitcoin's volatility and the implementation of a Bitcoin treasury strategy[31] - There are uncertainties regarding the continuation of licensing for cardiovascular testing products by insurance plans and other customers[31] - Changes in the reimbursement landscape, particularly related to CMS rate announcements, pose risks to the company's healthcare business[31] - Semler Scientific is working towards a potential settlement with the DOJ, with risks associated with finalizing the terms[31] - The company has outlined risks related to its indebtedness and other factors in its SEC filings[31] Equity and Financing - As of July 31, 2025, Semler Scientific had sold 4,932,737 shares of common stock for net proceeds of approximately $194.3 million under a new equity offering program[5] - The effective tax rate for Q2 2025 was 17%, compared to 99% in Q2 2024, with an income tax expense of $13.6 million[8] - The company raised $156,923,000 from the issuance of common stock during the financing activities in the first half of 2025[15]