Core Insights - Semler Scientific reported a GAAP EPS of $5.04 for Q2 2025, significantly exceeding analyst expectations of a loss of $0.22 per share, primarily driven by $83.8 million in unrealized gains from bitcoin holdings [1][5] - The company's healthcare revenue fell to $8.2 million, below the consensus estimate of $8.4 million, marking a 43.3% decline year-over-year [2][6] - The shift towards bitcoin as a primary treasury asset has reshaped Semler's financial profile, with operational improvements in healthcare necessary to stabilize performance [4][13] Financial Performance - Q2 2025 GAAP EPS was $5.04, compared to $0.00 in Q2 2024 [2] - Revenue for Q2 2025 was $8.2 million, down from $14.5 million in Q2 2024 [2] - Net income for Q2 2025 was $66.9 million, a significant increase from $0.01 million in Q2 2024 [2] - Total operating expenses rose 13.2% year-over-year to $10.3 million, with G&A costs more than doubling to $5.1 million [2][6] Business Strategy - Semler has pivoted to bitcoin investing, acquiring 1,444 bitcoins for $149.6 million during the quarter, with total holdings growing to 5,021 bitcoins valued at $586.2 million as of July 31, 2025 [9][10] - The healthcare segment continues to face challenges, with a 43% decline in revenue attributed to reimbursement changes from CMS and high customer concentration risk [6][11] - The company launched CardioVanta to address heart failure and cardiac arrhythmia but has yet to see significant revenue impact from this initiative [7][12] Regulatory and Legal Challenges - Semler is facing ongoing legal costs, including a $29.75 million contingent liability related to a DOJ investigation, which continues to affect financial performance [8][10] - The company is preparing for potential regulatory changes that could impact both its healthcare and cryptocurrency operations [8][16] Future Outlook - Management did not provide specific guidance for future revenue or income, emphasizing continued bitcoin purchases and regulatory efforts for new QuantaFlo indications [15][16] - The company's future performance is highly dependent on external factors, including bitcoin price fluctuations and regulatory developments in healthcare and cryptocurrency [16]