Senseonics(SENS) - 2025 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - In 2025, the company achieved full-year revenue of over $35 million, growing approximately 60% year-over-year from less than $23 million in 2024 [5][25] - Gross margins improved to greater than 50% by the end of 2025, up from around 25% previously [5][24] - The net loss for 2025 was $69.1 million, a decrease from $78.6 million in 2024, indicating improved financial performance [25][26] Business Line Data and Key Metrics Changes - U.S. revenue for the fourth quarter of 2025 was $12.1 million, while revenue outside the U.S. was $2.2 million [21] - The number of patients using Eversense in the U.S. doubled, with new patient starts growing by 103% [5][18] - The active prescriber base grew more than 80% year-over-year, reflecting increased awareness and confidence in the Eversense 365 system [18] Market Data and Key Metrics Changes - The company expects Europe to contribute about 20% of total revenue in 2026, driven by the launch of Eversense 365 [40] - The company anticipates full-year 2026 global net revenue to be approximately $58 million-$62 million, representing year-over-year growth of 65%-76% [26] Company Strategy and Development Direction - The company transitioned all commercial activities from Ascensia Diabetes Care back to Senseonics, enhancing control and operational efficiency [6][9] - The integration with Sequel Med Tech's twiist Automated Insulin Delivery System is a significant milestone, expected to simplify life for patients requiring insulin [9][17] - The company plans to launch Eversense 365 in Germany, Italy, Spain, and Sweden, with a dedicated European sales force [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory for 2026, supported by strategic decisions made in 2025 [12][31] - The company noted that January is typically a soft month due to patient resets, but they are seeing encouraging interest in new patient starts associated with the Sequel product [36] - Management highlighted the importance of direct-to-consumer (DTC) marketing and patient retention as key growth drivers moving forward [14][16] Other Important Information - The company raised capital from institutional investors and strategic partners, executed a reverse stock split, and began trading on Nasdaq [9] - Cash, restricted cash, and cash equivalents totaled $94.3 million as of December 31, 2025 [26] Q&A Session Summary Question: Trends in new patient starts at the beginning of the year - Management noted that new patient growth continues as expected, with January typically being the softest month due to resets, but they are seeing encouraging interest with the Sequel product [36] Question: Contribution of Europe and twiist to revenue guidance - Management indicated that they expect Europe to contribute about 20% of revenue in 2026, with the twiist product launch expected to enhance revenue [40] Question: Seamlessness of the transition from Ascensia - Management confirmed that the transition in the U.S. was straightforward, with nearly 100% of employees transitioning smoothly [43] Question: Growth of the prescriber base and patient starts - Management expressed optimism about the potential for accelerated growth in the prescriber base and new patient starts, supported by increased DTC investments [53] Question: Challenges in expanding the EonCare inserter network - Management stated that the primary factor for expanding the EonCare network is volume, and there are no significant barriers to increasing the number of inserters [80] Question: Long-term investment expectations - Management indicated that while commercial spend will continue to grow with revenue, it will not increase at the same magnitude as in 2026, and R&D expenses are expected to stabilize in the following years [83]