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Semler Scientific (SMLR)
NASDAQ:SMLR
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Semler Scientific (SMLR) AI Stock Analysis

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SMLR

Semler Scientific

(NASDAQ:SMLR)

Rating:62Neutral
Price Target:
$36.00
▲(28.02% Upside)
Semler Scientific's overall stock score reflects a mix of strong strategic initiatives and financial challenges. The company's robust Bitcoin strategy and stable balance sheet are positive factors, but declining revenues and bearish technical indicators weigh on the score. The valuation is reasonable, but the lack of a dividend yield is a drawback for some investors.
Positive Factors
Analyst Coverage
Analyst initiates coverage of Semler Scientific with a Buy rating.
Market Opportunity
Semler Scientific's target screening population for PAD is roughly 80 million people, presenting a large market opportunity.
Strategic Expansion
Semler Scientific's dual strategy of Bitcoin accumulation and technology expansion in the cardiovascular market underpins a compelling valuation.
Negative Factors
Revenue Decline
The medical device business is experiencing declining revenue due to reimbursement cuts, not product issues.
Revenue Impact
2Q25 revenue was down significantly year-over-year, mainly due to CMS reimbursement cuts.
Valuation Comparison
Semler Scientific's valuation has lagged behind other companies that focus on bitcoin acquisition.

Semler Scientific (SMLR) vs. SPDR S&P 500 ETF (SPY)

Semler Scientific Business Overview & Revenue Model

Company DescriptionSemler Scientific (SMLR) is a medical technology company focused on developing innovative solutions for the healthcare sector, specifically in the area of diabetes management and cardiovascular health. The company is known for its proprietary software and diagnostic tools that assist healthcare providers in evaluating and managing patients' health conditions more effectively. Semler's core products include its advanced diagnostic devices that utilize machine learning algorithms to analyze patient data and provide actionable insights to clinicians.
How the Company Makes MoneySemler Scientific generates revenue primarily through the sale of its diagnostic devices and software solutions to healthcare providers, including hospitals and clinics. The company operates on a direct sales model, where it markets its products to end-users in the healthcare industry. Additionally, Semler may earn recurring revenue through subscription services associated with its software, as well as through partnerships with healthcare organizations that integrate its technology into their patient management systems. The company's ability to establish strategic partnerships with key players in the healthcare market further bolsters its revenue potential and market reach.

Semler Scientific Earnings Call Summary

Earnings Call Date:Aug 04, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements in Bitcoin accumulation and financial performance, although the decline in healthcare revenues and operating losses presented challenges. The company's strategic initiatives in Bitcoin and healthcare expansion suggest optimism for future growth.
Q2-2025 Updates
Positive Updates
Record Bitcoin Holdings
During the second quarter of 2025, Semler Scientific acquired approximately $195 million of Bitcoin, holding a total of approximately $586 million worth of Bitcoin. This resulted in an unrealized gain of $110 million.
Strong Financial Performance
Semler Scientific reported a GAAP net income of $66.9 million or $5.04 per fully diluted share for the second quarter of 2025.
Expansion of Health Care Business
Plans to launch new products in larger markets through a subsidiary called CardioVanta, with focus areas in early detection of heart failure and cardiac arrhythmia.
Accretive Bitcoin Strategy
Since adopting the Bitcoin standard in May 2024, Semler has achieved a 300% positive Bitcoin yield, resulting in a BTC dollar gain of $195 million through July 31, 2025.
Negative Updates
Decline in Revenue
Total revenues in Q2 2025 were $8.2 million, down compared to the second quarter of 2024 due to decreased usage of Semler's device following the 2024 CMS rate announcement.
Operating Loss
Operating expenses for Q2 2025 were $10.3 million, leading to a loss from operations of $1.2 million.
Legal Expenses and DOJ Settlement
In Q2 2025, Semler incurred $0.5 million of legal expenses related to a DOJ settlement agreement.
Company Guidance
During the Semler Scientific Second Quarter 2025 Financial Results Conference Call, significant guidance was provided regarding the company's dual-engine strategy focusing on Bitcoin and healthcare. Key metrics highlighted include the acquisition of approximately $2,723 Bitcoin in 2025, totaling a holding of 5,021 Bitcoin valued at $586 million, with unrealized gains of $110 million. The company aims to reach 10,000 Bitcoin by year-end 2025 and 105,000 by year-end 2027. Financially, Semler reported a GAAP net income of $66.9 million or $5.04 per fully diluted share, with a notable Bitcoin yield of 31%. The company also issued 4.1 million shares in Q2 under its ATM offering, generating $156.6 million in proceeds. In healthcare, despite headwinds affecting revenues, a record cash generation of $24 million was achieved in 2024. The company launched a subsidiary, CardioVanta, to focus on new healthcare products, aiming to unlock substantial value in larger markets.

Semler Scientific Financial Statement Overview

Summary
Semler Scientific demonstrates strong profitability margins but faces significant challenges in operational efficiency and cash flow management. The balance sheet remains robust with low leverage, providing a cushion against financial volatility. However, declining revenue and negative cash flow trends pose risks to future financial stability and growth.
Income Statement
65
Positive
Semler Scientific's income statement shows a high gross profit margin of 90.8% TTM, indicating strong cost management. However, the company faces challenges with a negative EBIT margin of -153.7% TTM, reflecting operational inefficiencies. The net profit margin is robust at 86.2% TTM, driven by non-operational factors. Revenue has declined by 12.7% TTM, which is a concern for future growth.
Balance Sheet
70
Positive
The balance sheet is stable with a low debt-to-equity ratio of 0.25 TTM, suggesting conservative leverage. Return on equity is healthy at 17.2% TTM, indicating efficient use of equity. The equity ratio stands at 73.4% TTM, reflecting a strong capital structure. Overall, the balance sheet shows financial stability with low leverage risk.
Cash Flow
50
Neutral
Cash flow analysis reveals a negative free cash flow growth of -32.1% TTM, highlighting cash management issues. The operating cash flow to net income ratio is 0.34 TTM, indicating weak cash conversion. The free cash flow to net income ratio is -9.42 TTM, further emphasizing cash flow challenges. These factors suggest potential liquidity concerns.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue42.98M56.29M68.18M56.69M53.03M38.60M
Gross Profit39.04M51.53M61.20M52.43M46.91M35.25M
EBITDA-22.89M21.51M23.28M17.79M19.45M15.96M
Net Income37.05M40.90M20.58M14.32M17.22M14.01M
Balance Sheet
Total Assets522.60M239.83M78.06M62.69M50.67M34.64M
Cash, Cash Equivalents and Short-Term Investments13.48M14.92M57.20M43.09M37.32M22.08M
Total Debt96.28M70.00K160.00K245.00K325.00K332.00K
Total Liabilities139.19M9.08M6.27M7.02M5.13M4.85M
Stockholders Equity383.41M230.75M71.80M55.68M45.55M29.79M
Cash Flow
Free Cash Flow-117.31M24.36M20.50M15.30M15.23M14.36M
Operating Cash Flow12.46M24.41M21.33M17.46M16.06M15.42M
Investing Cash Flow-366.41M-189.98M18.40M-26.84M-825.00K-1.31M
Financing Cash Flow360.10M117.19M-5.41M-4.94M13.00K230.00K

Semler Scientific Technical Analysis

Technical Analysis Sentiment
Negative
Last Price28.12
Price Trends
50DMA
36.35
Negative
100DMA
36.02
Negative
200DMA
43.15
Negative
Market Momentum
MACD
-2.18
Positive
RSI
30.13
Neutral
STOCH
11.28
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SMLR, the sentiment is Negative. The current price of 28.12 is below the 20-day moving average (MA) of 31.76, below the 50-day MA of 36.35, and below the 200-day MA of 43.15, indicating a bearish trend. The MACD of -2.18 indicates Positive momentum. The RSI at 30.13 is Neutral, neither overbought nor oversold. The STOCH value of 11.28 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SMLR.

Semler Scientific Risk Analysis

Semler Scientific disclosed 50 risk factors in its most recent earnings report. Semler Scientific reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Semler Scientific Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$300.05M21.627.64%6.15%-54.24%
62
Neutral
$416.31M11.5816.04%-30.39%46.15%
61
Neutral
$314.12M-85.68%19.68%-13.17%
58
Neutral
$483.47M-25.57%-1.36%-479.49%
51
Neutral
$7.95B-0.40-42.50%2.21%22.29%-1.85%
46
Neutral
$372.72M-102.61%5.94%25.16%
43
Neutral
$462.96M-15.36%-0.02%-1196.44%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SMLR
Semler Scientific
28.12
4.63
19.71%
SRDX
SurModics
32.38
-7.24
-18.27%
CLPT
ClearPoint Neuro
11.05
-1.01
-8.37%
SENS
Senseonics Holdings
0.46
0.12
35.29%
TCMD
Tactile Systems Technology
13.46
0.21
1.58%
VREX
Varex Imaging
11.65
0.30
2.64%

Semler Scientific Corporate Events

Executive/Board ChangesShareholder Meetings
Semler Scientific’s Stockholder Meeting Approves Key Proposals
Neutral
Sep 5, 2025

On September 5, 2025, Semler Scientific held its annual meeting of stockholders where several key proposals were voted upon. Stockholders elected William H.C. Chang as a Class I Director and approved the executive compensation on a non-binding advisory basis. They also approved an amendment to increase the authorized shares of common stock from 50 million to 210 million. However, the proposal to authorize the issuance of 42 million shares of ‘blank-check’ preferred stock was not approved. Additionally, the selection of BDO USA, P.C. as the independent registered public accounting firm for 2025 was ratified.

Private Placements and FinancingBusiness Operations and Strategy
Semler Scientific Acquires Bitcoin Amid Equity Offering
Positive
Jul 24, 2025

Semler Scientific has announced updates regarding its financial activities, including a Controlled Equity Offering℠ Sales Agreement entered on April 15, 2025, allowing the company to issue and sell up to $500 million of its common stock. By July 23, 2025, the company had raised approximately $194.3 million through this program. Additionally, Semler Scientific acquired 175 Bitcoin between July 17 and July 23, 2025, using proceeds from the ATM offering, and held a total of 5,021 Bitcoin valued at $594.8 million as of July 23, 2025. The company reported a BTC Yield of 31.3% year-to-date, indicating a strategic focus on enhancing shareholder value through Bitcoin investments.

Product-Related AnnouncementsRegulatory Filings and Compliance
Semler Scientific Launches Bitcoin Holdings Dashboard
Neutral
Jul 17, 2025

Semler Scientific has launched a dashboard on its website to disclose information about its Bitcoin holdings, market data, and related key performance indicators. This initiative aims to ensure compliance with disclosure regulations and provide transparency to investors and stakeholders.

Product-Related AnnouncementsRegulatory Filings and Compliance
Semler Scientific Launches Bitcoin Holdings Dashboard
Neutral
Jul 7, 2025

Semler Scientific has launched a website dashboard to disclose information about its Bitcoin holdings, market data, and key performance indicators to comply with Regulation FD. This initiative aims to provide transparent and broad distribution of material information, encouraging investors to regularly review the updates.

Private Placements and FinancingBusiness Operations and Strategy
Semler Scientific Launches CardioVanta Subsidiary for Healthcare
Neutral
Jun 24, 2025

On June 24, 2025, Semler Scientific announced the creation of CardioVanta, Inc., a wholly-owned subsidiary dedicated to its future healthcare business activities. This strategic move aims to enhance the company’s focus on early detection of heart-related conditions and involves seeking external investment to support its initial capital requirements, potentially impacting its market positioning and stakeholder interests.

Business Operations and StrategyRegulatory Filings and Compliance
Semler Scientific Updates Bylaws for Compliance Clarity
Neutral
Jun 23, 2025

On June 22, 2025, Semler Scientific‘s board of directors approved the Fifth Amended and Restated Bylaws, effective immediately. This amendment was made to clarify compliance with Delaware General Corporation Law and to align with the company’s certificate of incorporation, potentially impacting corporate governance and operational clarity.

Executive/Board ChangesPrivate Placements and FinancingBusiness Operations and Strategy
Semler Scientific Appoints Joe Burnett for Bitcoin Strategy
Positive
Jun 20, 2025

On June 19, 2025, Semler Scientific, Inc. announced the appointment of Joe Burnett as director of Bitcoin strategy. The company also revealed its ambitious plan to acquire 10,000 Bitcoins by the end of 2025, 42,000 by the end of 2026, and 105,000 by the end of 2027, utilizing funds from equity and debt financings as well as cash flows from operations.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 19, 2025