Full Press Release Details
Healthcare Reports Second Quarter 2025 Financial Results
call begins at 4:30 p.m. Eastern time today
RATON, Fla. (August 7, 2025) - Sensus Healthcare, Inc. (Nasdaq: SRTS), a medical device company specializing in highly
effective, non-invasive, minimally-invasive and cost-effective treatments for oncological and non-oncological skin conditions,
announces financial results for the three and six months ended June 30, 2025.
of the second quarter of 2025 and subsequent weeks include the following:
financial performance was tracking ahead of expectations throughout the first half of the quarter, yet domestic sales momentum was impacted
by a proposed Local Coverage Determination (LCD) to limit the reimbursement for ultrasound when used with our SRT-100 Vision that
became public in mid-May," said Joe Sardano, Chairman and Chief Executive Officer of Sensus Healthcare. "As importantly,
in July Medicare proposed a Physician Fee Schedule to align outpatient SRT payments with the higher hospital rates. This schedule is
open to comments through mid-September and if finalized, will be effective as of January 1, 2026."
this dynamic reimbursement landscape, the Sensus team executed very well across our strategic priorities and continued to advance key
commercial and operational initiatives, including expanding our international presence, growing our FDA base and unlocking new global
opportunities through MDSAP certification," he added. "We shipped 19 SRT systems during the quarter, including four to China,
signed five additional FDA contracts and activated four sites. Importantly, FDA treatment volume increased 27% sequentially vs Q1. Based
on these trends, we believe our FDA model is gaining traction and delivering value to both Sensus and our customers.
recently announced partnership with ROS to serve as our primary distribution partner to hospital systems and radiation oncology departments
represents an important commercial milestone," continued Mr. Sardano. "This agreement builds upon our strong base in dermatology
and supports broader adoption of SRT in complementary care settings. We anticipate this relationship will begin to yield tangible results
Quarter Financial Results
were $7.3 million for the second quarter of 2025 compared with $9.2 million for the second quarter of 2024. The decrease was primarily
due to a lower number of units sold to a large customer, partially offset by growth in recurring revenue from Fair Deal Agreements.
of sales was $4.4 million for the second quarter of 2025 compared with $3.8 million for the prior-year quarter. The increase was primarily
related to higher cost of service compared with the prior-year period.
profit was $2.9 million for the second quarter of 2025 compared with $5.4 million for the prior-year quarter. Gross margin was 39.7%
in the 2025 quarter versus 58.7% a year ago, primarily driven by lower sales and higher cost of service.
and administrative expense was $2.0 million for the second quarter of 2025 compared with $1.6 million for the second quarter of 2024,
reflecting higher professional fees and compensation.
and marketing expense was $1.4 million for the second quarter of 2025 compared with $1.0 million for the second quarter of 2024 due to
higher tradeshow expenses, costs related to clinical studies and payroll costs due to an increase in headcount.
and development expense was $1.5 million for the second quarter of 2025 compared with $0.9 million for the prior-year quarter, primarily
due to increased costs associated with ongoing product development.
income of $0.2 million for the three months ended June 30, 2025 and 2024 relates primarily to interest income.
loss for the second quarter of 2025 was $1.0 million, or $0.06 per share, compared with net income of $1.6 million, or $0.10 per diluted
share, for the second quarter of 2024.
EBITDA for the second quarter of 2025 was negative $1.8 million compared with positive $2.1 million for the second quarter of 2024. Adjusted
EBITDA, a non-GAAP financial measure, is defined as earnings before interest, taxes, depreciation, amortization and stock-compensation
expense. Please see below for a reconciliation between GAAP and non-GAAP financial measures, and the reason these non-GAAP financial
measures are provided.
and cash equivalents were $22.2 million as of June 30, 2025, compared with $22.1 million as of December 31, 2024. The Company had no
outstanding borrowings under its revolving line of credit at the end of either period.
Month Financial Results
for the first half of 2025 were $15.7 million compared with $19.9 million for the first half of 2024. The decrease was primarily driven
by a lower number of units sold to a large customer in the 2025 period.
of sales was $8.4 million for the first half of 2025 compared with $7.8 million for the first half of 2024. The increase was primarily
related to higher cost of service in the 2025 period.
profit was $7.3 million for the first half of 2025, or 46.5% of revenues, compared with $12.1 million, or 60.8% of revenues, for the
first half of 2024. The decrease was primarily driven by lower sales and higher cost of service in the 2025 period.
and administrative expense was $4.2 million for the first half of 2025 compared with $3.2 million for the first half of 2024. The increase
was primarily due to higher professional fees and compensation.
and marketing expense was $3.6 million for the first half of 2025 compared with $2.3 million for the first half of 2024. The increase
was primarily due to higher tradeshow expenses, costs related to clinical studies and payroll costs due to an increase in headcount.
and development expense was $4.1 million for the first half of 2025 compared with $1.8 million for the first half of 2024. The increase
was primarily due to significant lobbying costs related to billing code reimbursement, increased headcount and existing product development
income of $0.4 million for the first half of 2025 and 2024 relates primarily to interest income.
effective tax rates for the first six months of 2025 and 2024 were 14.5% and 26.6%, respectively. The decrease was primarily due to an
increase in the estimated tax credits that are expected to be generated and utilized.
of Non-GAAP Financial Information
press release contains supplemental financial information determined by methods other than in accordance with accounting principles generally
accepted in the United States (GAAP). Sensus Healthcare management uses Adjusted EBITDA, a non-GAAP financial measure, in its analysis
of the Company's performance. Adjusted EBITDA should not be considered a substitute for GAAP basis measures, nor should it be viewed
as a substitute for operating results determined in accordance with GAAP. Management believes the presentation of Adjusted EBITDA, which
excludes the impact of interest, income taxes, depreciation, amortization and stock-compensation expense, provides useful supplemental
information that is essential to a proper understanding of the financial results of Sensus Healthcare. Non-GAAP financial measures are
not formally defined by GAAP, and other entities may use calculation methods that differ from those used by Sensus Healthcare. As a complement
to GAAP financial measures, management believes that Adjusted EBITDA assists investors who follow the practice of some investment analysts
who adjust GAAP financial measures to exclude items that may obscure underlying performance and distort comparability. A reconciliation
of the GAAP net loss to Adjusted EBITDA is provided in the schedule below.
TO NON-GAAP RECONCILIATION
| For the Three Months Ended | For the Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| (in thousands) | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net (loss) income, as reported | $ | (1,037 | ) | $ | 1,612 | $ | (3,609 | ) | $ | 3,886 | ||||||
| Add: | ||||||||||||||||
| Depreciation and amortization | 99 | 31 | 185 | 101 | ||||||||||||
| Stock compensation expense | 67 | 65 | 146 | 156 | ||||||||||||
| Income tax (benefit) expense | (723 | ) | 579 | (613 | ) | 1,406 | ||||||||||
| Interest income, net | (183 | ) | (209 | ) | (367 | ) | (423 | ) | ||||||||
| Adjusted EBITDA, non GAAP | $ | (1,777 | ) | $ | 2,078 | $ | (4,258 | ) | $ | 5,126 |
Healthcare will host an investment community conference call today beginning at 4:30 p.m. Eastern time during which management will discuss
these financial results, provide a business update and answer questions.
are encouraged to pre-register for the conference call here to receive a unique dial-in number that will permit them to bypass the live
operator. Participants may pre-register at any time, including up to and after the call start time. Alternatively, participants can access
the conference call by dialing 844-481-2811 (U.S. and Canada Toll Free) or 412-317-0676 (International). Please direct the operator to
be connected to the Sensus Healthcare conference call. The call will be webcast live and can be accessed here or in the Investor Relations
section of the Company's website at www.sensushealthcare.com.
the conclusion of the conference call, a telephone replay will be available until September 7th by dialing 877-344-7529 (U.S. Toll Free),
855-669-9658 (Canada Toll Free) or 412-317-0088 (International). At the system prompt, enter the replay code 8187211. An archived webcast
will be available in the Investor Relations section of the Company's website for a period of time.
Healthcare, Inc. is a global pioneer in the development and delivery of non-invasive treatments for skin cancer and keloids. Leveraging
its cutting-edge superficial radiotherapy (SRT and IG-SRT) technology, the company provides healthcare providers with a highly effective,
patient-centric treatment platform. With a dedication to driving innovation in radiation oncology, Sensus Healthcare offers solutions
that are safe, precise, and adaptable to a variety of clinical settings. For more information, please visit www.sensushealthcare.com.
press release includes statements that are, or may be deemed, forward-looking statements.'' In some cases,
these statements can be identified by the use of forward-looking terminology such as "believes," "estimates,"
"anticipates," "expects," "plans," "intends," "may," "could,"
"might," "will," "should," "approximately," "potential" or negative or other
variations of those terms or comparable terminology, although not all forward-looking statements contain these words.
Forward-looking statements involve risks and uncertainties
because they relate to events, developments, and circumstances relating to Sensus, our industry, and/or general economic or other conditions
that may or may not occur in the future or may occur on longer or shorter timelines or to a greater or lesser degree than anticipated.
In addition, even if future events, developments, and circumstances are consistent with the forward-looking statements contained in this
press release, they may not be predictive of results or developments in future periods. Although we believe that we have a reasonable
basis for each forward-looking statement contained in this press release, forward-looking statements are not guarantees of future performance,
and our actual results of operations, financial condition and liquidity, and the development of the industry in which we operate may differ
materially from the forward-looking statements contained in this press release, as a result of the following factors, among others: the
possibility that inflationary pressures continue to impact our sales; the level and availability of government and/or third party payor
reimbursement for clinical procedures using our products, and the willingness of healthcare providers to purchase our products if the
level of reimbursement declines; concentration of our customers in the U.S. and China, including the concentration of sales to one particular