Senseonics Holdings, Inc. (SENS)·Q1 2025 Earnings Summary

Executive Summary

• Q1 2025 revenue was $6.26M, up 24% year over year; U.S. revenue $4.5M and OUS $1.8M. Gross profit was $1.51M, driven by increased margins on the 365-day product .
• Senseonics reiterated full-year 2025 guidance: global net revenue $34–$38M, gross margin 25–30%, cash used in operations $50–$60M; management expects 1/3 of revenue in H1 and 2/3 in H2 as the Eversense 365 launch scales .
• Revenue beat Wall Street consensus for Q1 2025 by approximately $0.70M; EPS comparisons are less like-for-like because S&P Global “Primary EPS” is normalized and not GAAP (see Estimates Context) *.
• Strategic catalysts: twiist automated insulin delivery (AID) integration targeted for Q3 launch, CE Mark submission progressing with EU launch planned in H2, and CMS Medicare fee schedule updated to reimburse full-year Eversense 365 retroactive to January 1, 2025 .

What Went Well and What Went Wrong

What Went Well

• Revenue growth and margin expansion on the 365-day product: Q1 revenue $6.26M (+24% YoY); gross profit increased to $1.51M as margins improved on Eversense 365 .
• Positive reimbursement and DTC traction: CMS updated physician fee schedule to cover full-year Eversense 365 retroactive to Jan 1, supporting strong Medicare conversion; DTC campaigns show promising lead conversion via Facebook, TikTok, Instagram and YouTube .
• Strategic integrations: commercial agreement to integrate Eversense 365 with Sequel’s twiist AID, with joint launch targeted for Q3; “We look forward to jointly launching our combined products in the coming quarter” — Tim Goodnow .

What Went Wrong

• Mercy Health Systems program paused due to executive restructuring, delaying RPM integration plans and expected back-half contribution; management reiterated guidance despite this pause .
• Tariff exposure could be a low single-digit headwind to gross margin given global supply chain inputs, including a very small percentage from China; management expects to mitigate via exemptions and operational changes .
• Profitability remains negative as the launch scales: Q1 net loss of $14.26M and GAAP loss per share of $0.02; manufacturing scale still limited early in the product lifecycle .

Financial Results

Notes: Q4 2024 gross profit includes ~$1.6M pre-approval manufacturing costs previously expensed to R&D; Q1 2025 margin color suggests ~18% if including ~$0.4M manufacturing costs previously expensed to R&D .

Segment Revenue Breakdown

KPIs and Operational Metrics

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “Securing positive CMS reimbursement of our one-year CGM, effective from January 1, was a major milestone for access… Together with progress towards launching Eversense 365 in Europe, collaborations such as Sweet Spot, and development on Gemini and Freedom…” — Tim Goodnow, CEO .
• “We look forward to jointly launching our combined products in the coming quarter.” — Tim Goodnow on twiist AID integration .
• “Gross profit was $1.5 million… driven by increased margins on the 365-day product; including ~$0.4M previously expensed manufacturing costs, margins would be ~18%” — Rick Sullivan, CFO .
• “We continue to expect gross profit margins to steadily increase each quarter in 2025, with full year gross margins projected to be between 25% and 30%” — CFO .

Q&A Highlights

• Guidance durability despite Mercy pause: Management expects U.S. momentum, EU launch, and DTC-driven conversions to offset timing risk; reiterated FY 2025 revenue guide .
• DTC strategy: Focus on Facebook, TikTok, Instagram, YouTube with geo-targeting supporting rep activity; strongest conversion in Medicare population given clear reimbursement .
• Reimbursement conversion: Vast majority of commercial plans expected to shift to 365 by Q3/Q4; some moving from DME to buy-and-bill (consignment) channels .
• AID timeline: Verification/validation work ongoing on the pump side; teams from Ascensia and Sequel engaged; Q3 integration on track .

Estimates Context

Disclaimer: Values marked with * retrieved from S&P Global (Capital IQ). Primary EPS consensus and “actual” figures are normalized and may not be directly comparable to reported GAAP EPS; revenue consensus/actual are comparable.

Highlights: Q1 2025 revenue beat consensus by ~$0.70M; EPS comparisons to S&P normalized “Primary EPS” are not like-for-like vs GAAP reported loss per share *.

Key Takeaways for Investors

• Revenue momentum with Eversense 365 is building; Q1 beat vs consensus and reiteration of FY guide point to accelerating H2 phasing as payer transitions and DTC awareness scale * .
• Near-term catalysts: Q3 launch of twiist AID integration and H2 EU launch should broaden adoption and drive ASP/margin benefits over time .
• Reimbursement tailwinds: CMS full-year coverage retroactive to Jan 1 and expected >90% commercial conversion by Q3/Q4 reduce friction and support Medicare-heavy demand .
• Margin trajectory: Management targets 25–30% FY gross margin with sequential quarterly improvement; monitor tariff impacts (low single-digit) and scaling efficiencies .
• Channel mix: Consignment program (~13% of Q1 revenue) and buy-and-bill transitions can accelerate insertions and influence commission expense/SG&A trends .
• Balance sheet improved: Debt reduced with note repayment; ATM proceeds extend runway into mid-2026 under current plans, supporting launch and pipeline execution .
• Trading implications: Expect narrative to center on execution of AID integration, EU timing, and reimbursement conversions; watch H2 revenue skew (365 reorder dynamics) and margin progression as potential stock-moving data points .