Sensus Healthcare’s Earnings Call: Mixed Outlook with Growth Potential

Sensus Healthcare, Inc. ((SRTS)) has held its Q1 earnings call. Read on for the main highlights of the call.

The recent earnings call for Sensus Healthcare, Inc. presented a mixed outlook for the company. While there were significant highlights such as the expansion of the FDA program and increased brand visibility, the company faced challenges with a revenue decline and increased operating expenses leading to a net loss for the quarter. However, there is optimism for the remainder of 2025 with expected revenue growth from the FDA program and international expansion.

Expansion of Fair Deal Agreement Program

The Fair Deal Agreement (FDA) program showed a promising 65% increase in patient treatments from Q4 2024 to Q1 2025. This growth is expected to significantly contribute to revenue in the second half of 2025. Sensus Healthcare plans to sign 3-5 additional multi-site FDA customers throughout the year, indicating a strategic focus on expanding this successful program.

Strong Marketing and Brand Visibility

Sensus Healthcare has made notable strides in expanding its brand visibility. Through participation in major industry events and targeted marketing activities, the company has developed a strong pipeline of new FDA opportunities. This strategic marketing push is expected to bolster the company’s market presence and drive future growth.

International Expansion and Product Innovation

The company is making progress in its international strategy, attending major conferences such as ESTRO in Vienna and planning to exhibit at the Australian Academy of Dermatology Annual Meeting. Additionally, enhancements to the transdermal infusion system (TDI) are underway, with an expected FDA determination by year-end, showcasing Sensus Healthcare’s commitment to innovation.

Revenue Decline

Sensus Healthcare reported a revenue of $8.3 million for Q1 2025, down from $10.7 million in Q1 2024. This decline was primarily due to lower unit sales to the company’s largest customer, highlighting a challenge that the company needs to address moving forward.

Increased Operating Expenses

Operating expenses saw a significant rise compared to the previous year. General and administrative expenses increased to $2.2 million from $1.6 million, and selling and marketing expenses rose to $2.2 million from $1.3 million. These increased expenses reflect the company’s investments in growth and expansion efforts.

Net Loss in Q1 2025

Sensus Healthcare reported a net loss of $2.6 million or $0.16 per share in Q1 2025, compared to a net income of $2.3 million or $0.14 per diluted share in Q1 2024. This shift to a net loss underscores the financial challenges faced by the company during this period.

Forward-Looking Guidance

Despite the challenges faced in Q1 2025, Sensus Healthcare remains optimistic about its future. The company expects to surpass 900 installed SRT systems by Q2 and reach 1,000 within a year. With a strong cash position of $19.1 million and no debt, Sensus is well-positioned to return to profitability in the upcoming quarters as its fair deal agreements mature and contribute more significantly to revenue.

In summary, the Sensus Healthcare earnings call highlighted both challenges and opportunities for the company. While facing a revenue decline and increased operating expenses, the company is optimistic about future growth driven by the expansion of its FDA program, international efforts, and product innovations. Investors will be keen to see how these strategies unfold in the coming quarters.