Semler Scientific ((SMLR)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Semler Scientific’s recent earnings call painted a mixed picture with significant achievements in Bitcoin acquisitions and unrealized gains contributing to a robust net income. However, these positive developments were tempered by declines in healthcare revenue and operating losses, alongside legal expenses. The company’s dual focus on Bitcoin and healthcare presents both opportunities and challenges.
Strong Bitcoin Acquisition and Unrealized Gains
Semler Scientific reported a substantial acquisition of Bitcoin, approximately $195 million during Q2 2025, bringing their total holdings to $586 million. The company has achieved a remarkable 300% positive Bitcoin yield since adopting the Bitcoin standard, resulting in a BTC dollar gain of $195 million. This strategic move underscores the company’s commitment to leveraging cryptocurrency for financial growth.
Record Net Income
Despite operating expenses exceeding revenues, Semler Scientific reported a GAAP net income of $66.9 million or $5.04 per fully diluted share for Q2 2025. This record net income highlights the company’s ability to generate significant profits even amidst challenging operational conditions.
Strategic Expansion in Bitcoin Operations
To bolster its Bitcoin strategy and operations, Semler Scientific appointed Natalie Brunell and Joe Burnett to its team. Their notable contributions are expected to strengthen the company’s position in the cryptocurrency market, reflecting a strategic expansion in Bitcoin operations.
Growth in Investor Base
The company has seen a significant increase in its investor base, growing from approximately 11,000 stockholders in 2023 to over 32,000 in 2025. This growth reflects expanded investor interest and confidence in Semler Scientific’s strategic direction.
Decline in Healthcare Revenue
Total revenues for Q2 2025 were reported at $8.2 million, a decline from the previous year. This decrease is attributed to the phase-in of the 2024 CMS rate announcement affecting PAD patient reimbursement, highlighting challenges in the healthcare segment.
Operating Losses
The company reported an operating loss of $1.2 million in Q2 2025. This loss is attributed to decreased device usage and higher operating expenses, indicating operational challenges that need addressing.
Legal Expenses Related to DOJ Settlement
Semler Scientific incurred $0.5 million in legal expenses related to a DOJ settlement agreement in principle for a civil investigative demand. These legal expenses add to the financial challenges faced by the company.
Forward-Looking Guidance
During the earnings call, Semler Scientific outlined its strategic guidance with a focus on expanding its Bitcoin treasury and enhancing its healthcare business. The company plans to hold 10,000 Bitcoin by year-end 2025, 42,000 by 2026, and 105,000 by 2027. Additionally, ongoing efforts for new product launches within its subsidiary, CardioVanta, and proactive capital market activities are expected to support these endeavors.
In summary, Semler Scientific’s earnings call reflects a company navigating both opportunities and challenges. While significant achievements in Bitcoin acquisitions and net income are noteworthy, declines in healthcare revenue and operating losses present hurdles. The company’s forward-looking guidance suggests a continued focus on expanding its Bitcoin holdings and enhancing its healthcare business, offering a glimpse into its strategic priorities.