Executive Summary

Q2 revenue of $6.65M grew 36.7% year over year and exceeded S&P Global consensus ($6.02M) by ~$0.63M as U.S. adoption of Eversense 365 accelerated; GAAP diluted EPS was -$0.02, while S&P “Primary EPS” printed -$0.40 (definitions differ) . Revenue consensus: $6.02M*; Primary EPS consensus: -$0.40*.
Management reaffirmed FY25 revenue guidance ($34–$38M) and raised FY25 gross margin outlook to 32.5%–37.5% (from 25%–30% in Q1), citing higher 365-day product margins and mix; FY25 cash used in operations guided to ~ $60M (prior $50–$60M) .
Key growth drivers: U.S. new patient starts +79% YoY; expanded DTC marketing drove a 50% lead increase in June; CMS updated Medicare Physician Fee Schedule to cover a full year of Eversense 365 as a medical benefit .
Liquidity strengthened with $77.8M gross proceeds raised in May (public offering $57.5M; Abbott private placement $20.3M) to fund the 365 launch and pipeline (Gemini, Freedom); management discussed seeking shareholder approval for a reverse stock split to broaden investor access (call) .
Near-term catalysts: expected commercial availability of Sequel’s twiist AID system integrated with Eversense 365 in Q4 and continued ramp in 365 reorder dynamics weighted to Q4 per guidance .

What Went Well and What Went Wrong

What Went Well

U.S. commercial momentum: total Q2 revenue $6.6M (+37% YoY) driven by U.S. revenue $4.9M (vs. $3.0M), and a 79% YoY increase in U.S. new patient starts .
Marketing efficiency: enhanced DTC campaign in June generated a 50% increase in leads vs. prior 3‑month average, supporting H2 patient/revenue acceleration .
Structural tailwinds and margins: CMS updated Medicare Physician Fee Schedule to reimburse a full year of Eversense 365; Q2 gross profit improved to $3.1M aided by higher 365-day margins (and a one-time VAT recovery), with FY25 gross margin outlook raised to 32.5%–37.5% .
Management tone: “we continued to drive a strong U.S. Eversense 365 launch…enable acceleration in patients and revenue growth in the second half of the year” — Tim Goodnow, CEO .

What Went Wrong

International softness and opex pressure: OUS revenue declined to $1.7M (vs. $1.9M YoY) while SG&A increased to $9.7M (from $9.0M) on higher commissions and Eon Care network support .
Losses persist despite improvement: net loss narrowed to -$14.5M (from -$20.3M YoY), but remained significant; GAAP diluted EPS was -$0.02 .
FY25 cash use at high end: guidance now ~ $60M (vs. prior $50–$60M), reflecting commercial investment; management also flagged tariff monitoring earlier in the year and discussed a potential reverse split to address trading frictions (call) .

Financial Results

Headline P&L and Margins (oldest → newest)

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$8.3	$6.257	$6.649
Gross Profit ($USD Millions)	$4.0	$1.505	$3.121
Gross Margin (%)	48.2%	24.1%	47.0%
Operating Loss ($USD Millions)	N/A	$(13.488)	$(14.323)
Net Loss ($USD Millions)	$(15.5)	$(14.259)	$(14.501)
Diluted EPS (GAAP)	$(0.02)	$(0.02)	$(0.02)

Notes: Gross margin % calculated from cited revenue and gross profit.

Regional Revenue Breakdown

Metric	Q2 2024	Q1 2025	Q2 2025
U.S. Revenue ($USD Millions)	$3.0	$4.5	$4.9
Outside U.S. Revenue ($USD Millions)	$1.9	$1.8	$1.7
Total Revenue ($USD Millions)	$4.9	$6.3	$6.6

KPIs and Commercial Indicators

KPI	Q2 2025	Context
U.S. new patient starts	+79% YoY	U.S. patient acquisition momentum
DTC lead generation	+50% in June vs. prior 3‑mo avg	Early impact from enhanced campaign
Eon Care provider network	38 providers	Transition completed from NPG

Consensus vs. Actual (S&P Global; Q2 2025)

Metric	Consensus	Actual	Surprise
Revenue ($USD)	$6,021,830*	$6,649,000*	+$627,170 (beat)*
Primary EPS ($)	-$0.40*	-$0.40*	In line*
GAAP Diluted EPS ($)	—	-$0.02	—

Values with asterisks (*) retrieved from S&P Global. Note: S&P “Primary EPS” differs from GAAP diluted EPS reported by the company; use care when comparing.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue (Global Net)	FY 2025	$34–$38M	$34–$38M	Maintained
Gross Margin (%)	FY 2025	25%–30%	32.5%–37.5%	Raised
Cash Used in Operations	FY 2025	$50–$60M	~ $60M	Tightened to high end

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4’24, Q1’25)	Current Period (Q2’25)	Trend
DTC marketing & demand	Building awareness; ~50% inbound from DTC; consignment channel expanding	Enhanced DTC drove +50% leads in June; targeting H2 acceleration	Improving
Reimbursement (Medicare/commercial)	Medicare fee schedule update; commercial conversion to 365 advancing	CMS Physician Fee Schedule updated to reimburse full year as medical benefit; continued progress	Positive
AID integration	Sequel twiist integration expected Q3; joint commercial planning (ADA)	Integration with twiist expected to launch in Q4 (updated timing)	Slight delay; still near-term
Supply chain / tariffs	Monitoring tariffs; low single‑digit margin impact possible; mitigation in place	No new issues highlighted in PR; continued vigilance implied	Stable
Pipeline (Gemini, Freedom)	Gemini IDE submission targeted by year-end; Freedom to eliminate on‑body transmitter	Continued progress and emphasis on platform evolution	On track
Provider network (Eon Care)	Consignment sites >100; program growing	38 Eon Care providers supporting insertions	Scaling

Management Commentary

“During the quarter we continued to drive a strong U.S. Eversense 365 launch…enable acceleration in patients and revenue growth in the second half of the year.” — Tim Goodnow, CEO .
“This was an important quarter…supported by the recent public offering, together with the Abbott investment…combined gross proceeds of $77.8M.” — Rick Sullivan, CFO (prepared remarks) .
“We plan to seek shareholder approval for a reverse stock split to overcome these limitations…facilitate inclusion in indices and reduce administrative costs.” — Rick Sullivan, CFO (prepared remarks) .

Q&A Highlights

Adoption drivers and marketing: Analysts focused on lead conversion and DTC effectiveness; management highlighted enhanced campaigns and Medicare coverage supporting provider conversion (medical benefit, CPT fee schedule) .
Reimbursement & payer mix: Questions addressed Medicare coverage in place and commercial transitions, including movement to bundled/medical-benefit models; management emphasized progress and ongoing payer updates .
Retention/usage: Analysts probed sensor retention ranges and durability of adoption; management reiterated focus on patient experience and EON Care support (insertion access) .
Capital markets & listing mechanics: Management discussed intent to seek approval for a reverse split to broaden investor access and index eligibility .

Estimates Context

Revenue beat vs. consensus: $6.65M actual vs. $6.02M consensus; ~10% beat, driven by U.S. 365 adoption and DTC activity . Revenue consensus and actual from S&P: $6.02M and $6.65M*.
EPS: GAAP diluted EPS -$0.02; S&P “Primary EPS” shows -$0.40 (consensus and actual)*, reflecting definitional differences versus GAAP diluted EPS and share count dynamics .
Estimate breadth: 6 estimates for revenue and EPS for Q2 2025*. Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

Demand momentum is building in the U.S. with clear marketing and Medicare tailwinds; sequential growth and raised margin guidance suggest improving unit economics into H2, with Q4 weighted by 365 reorder dynamics .
Revenue came in above consensus; focus near-term is on sustaining new patient growth and converting DTC leads amid continued commercial payer transitions to the 365 medical‑benefit model .
Gross margin trajectory is the core narrative change: FY25 outlook raised to 32.5%–37.5% on mix and scale; monitor for continued expansion as Eversense 365 penetrates and OUS transitions later in 2025 .
Balance sheet flexibility improved with $77.8M gross proceeds; expect investment behind marketing, EON Care network, and pipeline while cash use runs ~ $60M in FY25 .
AID integration with Sequel’s twiist shifts to Q4; successful launch could be a medium‑term differentiator versus peers by pairing 1‑year CGM with a modern pump algorithm .
Potential reverse split could remove trading frictions and expand the shareholder base; not fundamental, but may affect index eligibility and liquidity (timing subject to shareholder approval) .
Watch OUS contribution and commercial payer conversions as incremental drivers; OUS revenue fell YoY this quarter, but EU 365 rollout remains targeted for 2H25 per earlier commentary .

Additional Supporting Items Read This Quarter

Q2 2025 8‑K/Press Release with full financials and outlook .
Q1 2025 press release and call (context on Medicare, marketing, Sequel integration) .
Q4 2024 press release and call (launch KPIs, revenue recognition, consignment channel) .
Sequel Med Tech integration press release (AID collaboration) .
Capital raise closing press release (May 21, 2025) .

Values marked with * retrieved from S&P Global.

Senseonics Holdings, Inc. (SENS)·Q2 2025 Earnings Summary