Sensus Healthcare(SRTS) - 2025 Q2 - Quarterly Results

Company Overview & Q2 2025 Highlights Sensus Healthcare's Q2 2025 performance was impacted by reimbursement changes, yet the company expanded internationally and strengthened its market position Management Commentary CEO Joe Sardano reported Q2 performance was impacted by a proposed LCD, but a potential Medicare Physician Fee Schedule change could align outpatient SRT payments with higher hospital rates from January 2026, alongside international expansion and a new ROS partnership - Domestic sales momentum was impacted by a proposed Local Coverage Determination (LCD) in mid-May to limit reimbursement for ultrasound when used with SRT-100 Vision™[3] - Medicare proposed a Physician Fee Schedule in July to align outpatient SRT payments with higher hospital rates, expected to be effective January 1, 2026, if finalized[3] - The company shipped 19 SRT systems (including four to China), signed five additional FDA contracts, activated four sites, and FDA treatment volume increased 27% sequentially[3][4] - Received MDSAP certification for the full SRT product portfolio, supporting global regulatory access and commercial expansion[5] - Engaged Radiology Oncology Systems (ROS) as a primary distribution partner to hospital-based radiation oncology departments and freestanding oncology centers nationwide[5][6] Second Quarter 2025 Highlights Sensus Healthcare reported Q2 2025 revenues of $7.3 million, a net loss of $1.0 million, 19 SRT systems shipped, and ended the quarter with $22.2 million in cash and no debt Q2 2025 Key Financial Highlights | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :----- | :------ | :------ | :----------- | | Revenues | $7.3 million | $9.2 million | -20.7% | | Net Loss (Income) | $(1.0) million | $1.6 million | N/A (loss vs income) | | EPS | $(0.06) | $0.10 | N/A (loss vs income) | - Shipped 19 superficial radiotherapy (SRT) systems, including 10 to a large customer and four internationally[4][5] - Recorded a 27% sequential-quarter increase in FDA treatment volume[4][5] - Exited the quarter with $22.2 million in cash and no debt[4] Financial Results Overview This section details Sensus Healthcare's financial performance for Q2 and H1 2025, showing revenue declines, increased operating expenses, and a shift to net losses Second Quarter 2025 Financial Performance Q2 2025 revenues decreased to $7.3 million due to lower unit sales, resulting in a significant gross profit decline to $2.9 million (39.7% margin), increased operating expenses, a net loss of $1.0 million, and negative Adjusted EBITDA of $(1.8) million Q2 2025 Financial Performance (in thousands) | Metric | Q2 2025 | Q2 2024 | YoY Change | | :---------------------- | :------ | :------ | :--------- | | Revenues | $7,315 | $9,239 | -20.7% | | Cost of Sales | $4,412 | $3,816 | +15.6% | | Gross Profit | $2,903 | $5,423 | -46.5% | | Gross Margin | 39.7% | 58.7% | -19.0 pp | | Net (Loss) Income | $(1,037) | $1,612 | N/A | | Diluted EPS | $(0.06) | $0.10 | N/A | | Adjusted EBITDA | $(1,777) | $2,078 | N/A | - Revenue decrease was primarily due to a lower number of units sold to a large customer, partially offset by growth in recurring revenue from Fair Deal Agreements[6] - Cost of sales increased primarily related to higher cost of service[7] - Operating expenses increased across General and administrative (higher professional fees and compensation), Selling and marketing (tradeshows, clinical studies, payroll due to headcount increase), and Research and development (ongoing product development costs)[8][9] Six Months Ended June 30, 2025 Financial Performance For H1 2025, revenues decreased to $15.7 million due to fewer unit sales, leading to a gross profit decline to $7.3 million (46.5% margin), significantly increased operating expenses, and a net loss of $3.6 million H1 2025 Financial Performance (in thousands) | Metric | H1 2025 | H1 2024 | YoY Change | | :---------------------- | :------ | :------ | :--------- | | Revenues | $15,659 | $19,902 | -21.3% | | Cost of Sales | $8,403 | $7,817 | +7.5% | | Gross Profit | $7,256 | $12,085 | -39.9% | | Gross Margin | 46.5% | 60.8% | -14.3 pp | | Net (Loss) Income | $(3,609) | $3,886 | N/A | | Diluted EPS | $(0.22) | $0.24 | N/A | | Adjusted EBITDA | $(4,258) | $5,126 | N/A | - Revenue decrease was primarily driven by a lower number of units sold to a large customer in the 2025 period[13] - Research and development expense significantly increased due to lobbying costs related to billing code reimbursement, increased headcount, and existing product development cost[16] - The effective tax rate decreased to 14.5% for H1 2025 from 26.6% for H1 2024, primarily due to an increase in estimated tax credits[17] Cash Position As of June 30, 2025, Sensus Healthcare maintained a stable cash position with $22.2 million in cash and cash equivalents, slightly up from December 31, 2024, and no outstanding debt Cash and Cash Equivalents (in thousands) | Metric | June 30, 2025 | Dec 31, 2024 | Change | | :-------------------- | :------------ | :----------- | :----- | | Cash and cash equivalents | $22,162 | $22,056 | +$106 | - The Company had no outstanding borrowings under its revolving line of credit at the end of either period[12] Non-GAAP Financial Measures & Corporate Information This section outlines Sensus Healthcare's use of non-GAAP financial measures, provides reconciliation, and includes corporate details and forward-looking statements Use of Non-GAAP Financial Information Sensus Healthcare utilizes Adjusted EBITDA, a non-GAAP financial measure, to analyze performance by excluding specific non-cash and non-operating items, providing supplemental information without replacing GAAP measures - Adjusted EBITDA is a non-GAAP financial measure used by management to analyze the Company's performance[11][18] - Adjusted EBITDA excludes interest, income taxes, depreciation, amortization, and stock-compensation expense[11][18] - Non-GAAP financial measures are not formally defined by GAAP, and other entities may use different calculation methods[18] GAAP to Non-GAAP Reconciliation This section provides a reconciliation table bridging GAAP Net (loss) income to Adjusted EBITDA for Q2 and H1 2025 and 2024, detailing adjustments for depreciation, stock compensation, income tax, and interest income GAAP to Non-GAAP Reconciliation (in thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------- | :------ | :------ | :------ | :------ | | Net (loss) income, as reported | $(1,037) | $1,612 | $(3,609) | $3,886 | | Add: Depreciation and amortization | $99 | $31 | $185 | $101 | | Add: Stock compensation expense | $67 | $65 | $146 | $156 | | Add: Income tax (benefit) expense | $(723) | $579 | $(613) | $1,406 | | Add: Interest income, net | $(183) | $(209) | $(367) | $(423) | | Adjusted EBITDA, non GAAP | $(1,777) | $2,078 | $(4,258) | $5,126 | - Adjusted EBITDA for Q2 2025 was negative $1.8 million, a significant decrease from positive $2.1 million in Q2 2024[11][20] - Adjusted EBITDA for H1 2025 was negative $4.3 million, down from positive $5.1 million in H1 2024[20] Conference Call and Webcast Sensus Healthcare hosted a conference call and webcast on August 7, 2025, to discuss financial results and provide a business update, with replay information available - An investment community conference call was hosted on August 7, 2025, at 4:30 p.m. Eastern time[1][21] - A telephone replay was available until September 7th, and an archived webcast is available in the Investor Relations section of the Company's website[23] About Sensus Healthcare Sensus Healthcare, Inc. is a global pioneer in developing and delivering non-invasive treatments for skin cancer and keloids, leveraging superficial radiotherapy (SRT and IG-SRT) technology - Sensus Healthcare, Inc. is a global pioneer in the development and delivery of non-invasive treatments for skin cancer and keloids[2][24] - The company leverages its cutting-edge superficial radiotherapy (SRT and IG-SRT) technology[24] Forward-Looking Statements This section contains forward-looking statements subject to various risks and uncertainties, including inflationary pressures, reimbursement levels, and regulatory requirements, which the company does not undertake to update - Forward-looking statements involve risks and uncertainties related to inflationary pressures, government and/or third-party payor reimbursement levels, and customer concentration in the U.S. and China[26] - Other risks include the development of new products by competitors, regulatory requirements, manufacturing process management, risks from doing business in foreign countries, IT system performance, data security, and intellectual property protection[26] - The company undertakes no obligation to update such statements to reflect events or circumstances after the date of the press release, except as may be required by applicable law[28] Condensed Consolidated Financial Statements This section presents Sensus Healthcare's condensed consolidated balance sheets and statements of operations for the reported periods Condensed Consolidated Balance Sheets The balance sheet shows total assets decreased to $58.9 million as of June 30, 2025, primarily due to a decrease in accounts receivable, while total liabilities slightly increased and stockholders' equity decreased Condensed Consolidated Balance Sheets (in thousands) | Metric | June 30, 2025 | Dec 31, 2024 | Change | | :-------------------- | :------------ | :----------- | :----- | | Total Assets | $58,852 | $62,165 | $(3,313) | | Cash and cash equivalents | $22,162 | $22,056 | $106 | | Accounts receivable, net | $12,622 | $19,731 | $(7,109) | | Inventories | $12,405 | $10,097 | $2,308 | | Total Liabilities | $6,788 | $6,338 | $450 | | Total Stockholders' Equity | $52,064 | $55,827 | $(3,763) | - Accounts receivable, net, decreased significantly from $19.7 million at December 31, 2024, to $12.6 million at June 30, 2025[31] - Inventories increased from $10.1 million at December 31, 2024, to $12.4 million at June 30, 2025[31] Condensed Consolidated Statements of Operations The statement of operations details financial performance for Q2 and H1 2025, showing declining revenues and gross profit, increased operating expenses, and a net loss for both periods, contrasting with net income in 2024 Condensed Consolidated Statements of Operations (in thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------- | :------ | :------ | :------ | :------ | | Revenues | $7,315 | $9,239 | $15,659 | $19,902 | | Cost of sales | $4,412 | $3,816 | $8,403 | $7,817 | | Gross profit | $2,903 | $5,423 | $7,256 | $12,085 | | Total operating expenses | $4,846 | $3,441 | $11,845 | $7,216 | | Net (loss) income | $(1,037) | $1,612 | $(3,609) | $3,886 | | Net (loss) income per share – basic | $(0.06) | $0.10 | $(0.22) | $0.24 | - Total operating expenses for the six months ended June 30, 2025, increased significantly to $11.8 million from $7.2 million in the prior year period[33] - The company reported a net loss for both the three and six months ended June 30, 2025, contrasting with net income in the corresponding periods of 2024[33]