Sensus Healthcare(US:SRTS)2025-11-06 22:30Financial Data and Key Metrics Changes - Revenues for Q3 2025 were $6.9 million, down from $8.8 million in Q3 2024, primarily due to a lower number of units sold [14] - Gross profit decreased to $2.7 million with a gross margin of 39.1%, compared to $5.2 million and 59.1% in the prior year [14][15] - The company reported a net loss of $0.9 million, or $0.06 per share, compared to net income of $1.2 million, or $0.07 per diluted share in Q3 2024 [16] Business Line Data and Key Metrics Changes - The company shipped 16 SRT systems in Q3 2025, including three to China, bringing total global sales to over 900 systems since the launch of the SRT platform [5][6] - FDA treatment volumes increased by 20% from Q2 2025, marking the third consecutive quarter of double-digit growth [6][10] - Treatment volumes have increased by 157% since the launch of the Fair Deal Agreement program late last year [6] Market Data and Key Metrics Changes - The introduction of dedicated CPT codes for superficial radiotherapy has increased reimbursement per fraction by over 300% [4][8] - The company anticipates strong interest and rising demand for SRT technology following the new coding [4][10] Company Strategy and Development Direction - The company is focused on expanding its Fair Deal Agreement program and enhancing its software platform, Sentinel, to support long-term revenue growth [11][12] - An expanded R&D program for the next generation of the Sentinel platform, called Sentinel 2.0, is underway, with initial results expected in 2026 [12] - International expansion is a priority, with shipments to China and plans for regulatory clearance in other key markets [13][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the future of SRT technology, citing strong patient demand and the importance of the new reimbursement codes [9][22] - The company believes that the clarity provided by the new coding will lead to increased sales and utilization of SRT systems [64] - Management anticipates that pent-up demand will drive sales in Q4 2025, potentially leading to break-even or profitability [32][33] Other Important Information - The company ended Q3 2025 with $24.5 million in cash and no debt, maintaining a strong inventory of approximately $13 million in finished goods [20] - The management acknowledged the passing of a board member, emphasizing the importance of teamwork in navigating recent challenges [21] Q&A Session Summary Question: Impact of LCD reimbursement for ultrasound-guided SRT system - Management indicated that the impact has been minimal due to the significant increase in fractionation reimbursement codes [25][26] Question: Utilization trend metrics - Utilization increased by 20% from Q2 to Q3 2025, with a year-to-date increase of 152% [30] Question: Acceleration of placements in Q4 - Management noted pent-up demand and expected clarity on reimbursement codes would lead to increased placements in Q4 [32] Question: Shift between SRT-100 and SRT-100 Vision - Management believes there will be an uptick in SRT-100 sales, while the Vision product will maintain its importance due to its operating system, Sentinel [39][40] Question: Anticipated ramp for international sales - Management expects international sales to grow to about 20% of total revenue over the next 12-24 months [68]