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][24] - Gross margins improved to greater than 50% by the end of 2025, up from around 25% the previous year [5][24] - The net loss for 2025 was $69.1 million, a decrease from a net loss of $78.6 million in 2024 [24] 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][17] - The active prescriber base grew more than 80% year-over-year, reflecting increased awareness and confidence in the Eversense 365 system [17] 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% [25] Company Strategy and Development Direction - The company transitioned all commercial activities from Ascensia Diabetes Care back to Senseonics, enhancing control and operational efficiency [7][8] - 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] - 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 [6][12] - The company noted that the fourth quarter is typically the strongest due to insurance deductibles being met, and expects similar seasonality in 2026 [10][26] - Management highlighted the importance of patient retention and the effectiveness of direct-to-consumer marketing strategies [14][15] Other Important Information - The company raised capital from institutional investors and executed a reverse stock split, beginning trading on Nasdaq [9] - Cash, restricted cash, and cash equivalents totaled $94.3 million as of December 31, 2025 [25] Q&A Session Questions and Answers Question: Trends in new patient starts early in the year - Management noted that new patient growth continues as expected, with encouraging interest in the Sequel product [35] Question: Contribution of Europe and twiist to revenue guidance - Management expects Europe to be about 20% of revenue in 2026, with the twiist product launch contributing positively [40] Question: Seamlessness of the commercial transition from Ascensia - The transition was described as straightforward, with nearly 100% of employees successfully moving to Senseonics [43][44] Question: Growth of the prescriber base and patient base - Management indicated that they expect to double the patient base again in 2026, with potential for acceleration in prescriber growth [49][52] Question: Challenges in expanding the EonCare inserter network - Management stated that there are no significant barriers to expanding the network, but it is dependent on volume to justify additional inserters [80] Question: Expected timeline for the European rollout - The rollout is expected to occur in the second quarter of 2026, with some tenders potentially extending into early fall [104]