SRTS — Sensus Healthcare, Inc.

Summary of Sensus Healthcare, Inc. Q4 2025 Earnings Call

1. Key Financial Results and Metrics:

• Q4 2025 Revenues: $4.9 million, a significant decrease from $31 million in Q4 2024, primarily due to reduced sales to the largest customer.
• Cost of Sales: $3 million, down from $6 million in the prior year, reflecting lower unit sales.
• Gross Profit: $1.9 million (38.8% of revenues) compared to $7.1 million (54.2% of revenues) in Q4 2024.
• Net Loss: $3.2 million, or $0.19 per share, compared to net income of $1.5 million, or $0.09 per share, in Q4 2024.
• Full-Year 2025 Revenues: $27.5 million, down from $41.8 million in 2024.
• Full-Year Net Loss: $7.7 million, or $0.47 per share, compared to net income of $6.6 million, or $0.41 per share, in 2024.
• Cash Position: $22.1 million in cash and equivalents, with no debt.

2. Strategic Updates and Business Highlights:

• CPT Codes: Sensus Healthcare received dedicated CPT codes for its SRT technology, enhancing reimbursement clarity and expected to drive adoption.
• Sales Strategy: Focus on expanding the sales force and diversifying the customer base to reduce reliance on any single customer.
• International Growth: Continued strong demand, particularly in China and emerging markets like Taiwan and Brazil.
• Fair Deal Agreement Program: Increased utilization with a substantial rise in treatments year-over-year, indicating growing acceptance of the technology.

3. Forward Guidance and Outlook:

• Q1 2026 Expectations: Anticipated revenue growth, projecting shipments to exceed Q4 levels without contributions from the largest customer.
• Profitability Goal: Aiming for full-year profitability in 2026, supported by new reimbursement codes and a more diversified customer base.

4. Bad News, Challenges, or Points of Concern:

• Revenue Decline: Significant drop in revenues year-over-year due to reduced sales to the largest customer, which remains a concern.
• Dependence on New Codes: Future growth is heavily reliant on the successful adoption of new CPT codes and the company's ability to educate physicians on these changes.
• Regulatory Challenges: Ongoing issues with FDA approvals for certain products, which could delay potential revenue streams.

5. Notable Q&A Insights:

• Customer Dynamics: The largest customer is not expected to contribute to revenue in 2026, but any future orders would be considered upside.
• International Demand: Strong demand in Asia, particularly in China, with potential expansion into South America and the Middle East.
• Private Equity Interest: Increased interest from private equity groups in light of clearer reimbursement pathways, indicating a shift in market dynamics.
• Product Mix: A trend towards outright purchases and leasing options for smaller practices, driven by the new reimbursement environment.

Overall, Sensus Healthcare is navigating a challenging financial landscape but is optimistic about future growth driven by new reimbursement codes and a diversified customer base. The company is focused on expanding its sales force and international presence while addressing regulatory hurdles.