Sensus Healthcare, Inc. ((SRTS)) has held its Q2 earnings call. Read on for the main highlights of the call.
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The recent earnings call for Sensus Healthcare, Inc. painted a mixed picture for the company. While there were notable advancements in international expansion and FDA treatment volume, these positive developments were overshadowed by declines in revenue and gross profit, as well as increased operating expenses. The proposed local coverage determination (LCD) has also introduced uncertainty, affecting domestic sales momentum.
FDA Treatment Volume Increase
The company reported a 27% increase in FDA treatment volume over the first quarter, highlighting more efficient practices and increased patient awareness of SRT as a preferred treatment option. This growth indicates a positive trend in the adoption of SRT treatments.
International Expansion
Sensus Healthcare made significant strides in international markets by delivering 19 SRT systems, including four to China. The company also achieved MDSAP certification, which provides access to markets in Brazil, Canada, Japan, and Australia, indicating growing international demand for their products.
New Distribution Partnership
In a strategic move to expand its U.S. footprint, Sensus appointed Radiation Oncology Systems as the primary distribution partner for the hospital-based oncology segment. This partnership is expected to enhance the company’s presence in the domestic market.
Potential Medicare Reimbursement Increase
A proposed Medicare physician fee schedule could significantly increase reimbursement for SRT delivery codes. This potential change is seen as a positive development that could improve the company’s financial performance in the future.
Revenue Decline
The company faced a revenue decline in Q2 2025, with revenues dropping to $7.3 million from $9.2 million in Q2 2024. This decline was primarily due to fewer capital system sales to a large customer, highlighting challenges in maintaining sales momentum.
Gross Profit and Margin Decline
Gross profit for Q2 2025 fell to $2.9 million, down from $5.4 million the previous year, with gross margin decreasing from 58.7% to 39.7%. This decline reflects the financial challenges the company is currently facing.
Increased Operating Expenses
Operating expenses saw a significant increase, with general and administrative expenses rising to $2 million, selling and marketing expenses to $1.4 million, and R&D expenses to $1.5 million in Q2 2025 compared to Q2 2024. These increased costs contributed to the company’s net loss.
Net Loss
Sensus Healthcare reported a net loss of $1 million for Q2 2025, compared to a net income of $1.6 million in Q2 2024. The adjusted EBITDA was negative $1.8 million, a stark contrast to the positive $2.1 million a year ago, indicating financial difficulties.
Proposed LCD Impact
The proposed local coverage determination (LCD) to limit reimbursement for ultrasound use with SRT-100 Vision systems has temporarily stalled domestic sales momentum. This uncertainty poses a challenge for the company’s immediate financial outlook.
Forward-Looking Guidance
Despite the challenges faced in the second quarter of 2025, Sensus Healthcare remains optimistic about its long-term prospects. The company has made notable progress in international markets and expanded its U.S. commercial footprint. However, the immediate outlook is contingent on resolving ongoing reimbursement uncertainties, particularly the impact of the proposed LCD.
In summary, Sensus Healthcare’s earnings call highlighted a mixed sentiment, with positive developments in international expansion and FDA treatment volume overshadowed by declines in revenue and increased operating expenses. The company’s future performance will largely depend on resolving reimbursement challenges and capitalizing on potential Medicare reimbursement increases.