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]

Bitcoin Treasury Strategy - Semler Scientific aims to amplify stockholder returns through a Bitcoin treasury strategy focused on equity exposure to BTC using intelligent leverage[10] - The company strategically issues debt and equity securities, and utilizes potential operating cash flow to acquire BTC[10] - As of July 31, 2025, Semler Scientific held 5,021 BTC with a total market value of $586.2 million and an unrealized fair value gain of $110.4 million[12, 13] - Semler Scientific targets accumulating 105,000 Bitcoin by FY 2027E[21, 23] - The company plans to use operating cash flow (~$72 million, 15%), convertible bonds (~$89 million, 19%), and ATM issuances (~$315 million, 66%) to fund Bitcoin purchases[25] Financial Performance (Q2 2025) - Semler Scientific reported revenues of $8.2 million in Q2 2025, a 43.2% year-over-year increase[70] - The company recognized an unrealized gain of $83.8 million in Q2 2025 from the change in fair value of its Bitcoin holdings[70] - Net income for Q2 2025 was $66.9 million, or $5.71 per basic share and $5.04 per fully diluted share[70] - As of June 30, 2025, Semler Scientific's cash, cash equivalents, and restricted cash balance was $13.6 million[70] Capital Markets Activities - Semler Scientific issued 4.1 million shares of common stock through ATM in Q2 2025 for net proceeds of $156.6 million[77] - Post-quarter end through July 31, 2025, the company issued 1.1 million shares of common stock through ATM for net proceeds of $47.8 million[77]

Core Insights - Semler Scientific, Inc. has reported significant progress in its Bitcoin treasury strategy, purchasing approximately $195.4 million of Bitcoin, bringing total holdings to nearly $586.2 million as of July 31, 2025, with unrealized gains exceeding $110.4 million and a BTC yield of 31.3% year-to-date [2][9][10] - The company launched CardioVanta™, a subsidiary focused on healthcare initiatives for early detection of heart failure and cardiac arrhythmia, positioning itself as a dual-engine platform for growth [2][26] - Financial results for Q2 2025 show revenues of $8.2 million, a 43% decrease year-over-year, and a net income of $66.9 million, significantly up from $11 thousand in Q2 2024 [10][11] Bitcoin Treasury Highlights - As of June 30, 2025, Semler Scientific held 4,636 Bitcoins valued at $496.9 million, reflecting a cumulative increase in fair value of $66.9 million [9][10] - The company purchased 1,444 Bitcoins for $149.6 million during Q2 2025 and an additional 385 Bitcoins for $45.8 million through July 31, 2025 [9][10] - Total Bitcoin holdings as of July 31, 2025, reached 5,021 Bitcoins with a fair value of $586.2 million [9][10] Financial Performance - Total operating expenses for Q2 2025 were $10.3 million, compared to $9.1 million in Q2 2024, with a loss from operations of $2.1 million [10][11] - Pre-tax income for Q2 2025 was $80.6 million, influenced by an unrealized gain of $83.8 million from Bitcoin holdings [10][11] - The effective tax rate for Q2 2025 was 17%, compared to 99% in Q2 2024 [10][11] Customer Concentration - The two largest customers accounted for 45% and 31% of Q2 2025 revenues, while the three largest customers in Q2 2024 accounted for 44%, 27%, and 11% of revenues [5][10] Cash Flow and Financing Activities - The company reported a net cash increase of $4.7 million for the period, with significant cash flows from financing activities, including $156.9 million from the issuance of common stock [13][10] - Semler Scientific has entered into a new Controlled Equity OfferingSM Sales Agreement allowing it to issue up to $500 million in common stock [9][10]