Senseonics Holdings, Inc. (SENS)·Q3 2025 Earnings Summary

Executive Summary

• Q3 revenue was $8.10M, up 90% YoY, with U.S. revenue of $6.4M and OUS revenue of $1.7M; EPS was a loss of $0.43 per share. Revenue modestly beat consensus while EPS missed (Revenue consensus ~$7.93M*, EPS consensus ~-$0.403*), driven by strong Eversense 365 adoption and higher SG&A from DTC spend .
• Gross profit improved to $3.47M (gross margin ~42.8%) versus a gross loss in Q3 2024, aided by favorable 365-day product margins and absence of prior-year E3 inventory write-offs .
• FY25 revenue guidance was refined to ~$35M (from $34–38M), with gross margin outlook raised to 35–40% and cash used in operations expected at ~$60M; outlook remains weighted to Q4 due to annual 365 reorder dynamics following the Q4 2024 launch .
• Strategic catalysts: transition of Eversense commercialization from Ascensia back to Senseonics, 1-for-20 reverse stock split, and planned transfer of listing to Nasdaq Global Market on Nov 17; management anticipates CE Mark for Eversense 365 by year-end and Gemini IDE submission by year-end .

What Went Well and What Went Wrong

• What Went Well

  • Record quarter with all-time highs in new patient shipments, insertions, and patient base; ~90% of new users switched from other CGMs, highlighting competitive differentiation of Eversense 365 .
  • U.S. new patient starts grew ~160% YoY, supported by expanded DTC marketing that generated record leads; U.S. revenue reached $6.4M .
  • Gross profit turned positive ($3.47M) from a prior-year gross loss, reflecting favorable 365-day product margins and absence of E3 write-offs; management raised full-year gross margin outlook to 35–40% .

• What Went Wrong

  • EPS of -$0.43 missed consensus (~-$0.403*) as SG&A increased to $15.3M, driven by higher selling/marketing personnel costs, DTC investments, and sales commissions .
  • Net loss remained elevated at $19.5M despite YoY improvement, reflecting continued operating investments ahead of commercialization transition .
  • Sequential gross margin dipped vs Q2 (Q2 GM ~$3.12M on $6.65M revenue vs Q3 GM ~$3.47M on $8.10M revenue), as heavier DTC spend and scaling activities preceded reinsertion/reorder phasing into Q4 .

Financial Results

Note: EPS comparability is impacted by the 1-for-20 reverse stock split effective Oct 17, 2025; Q3 2025 weighted-average shares were ~44.95M vs prior quarters’ pre-split counts .

Segment revenue breakdown

KPIs and operational metrics

Actual vs consensus (S&P Global)

Values retrieved from S&P Global.*

Guidance Changes

Earnings Call Themes & Trends

References to Q3 call opening and management remarks corroborated via transcript links .

Management Commentary

• “The third quarter of 2025 was a record setting quarter, highlighted by all-time highs in new patient shipments, insertions and our patient base…with now approximately 90% of our new users switching from other CGMs.” — Tim Goodnow, President & CEO .
• “We expect resuming commercialization of Eversense will enable us to control our own destiny and continue the momentum behind Eversense driving further revenue growth.” — Tim Goodnow .
• CFO noted reverse split and operating momentum; post-split shares ~41M outstanding and continued DTC investment to drive awareness and adoption .

Q&A Highlights

• Commercialization transition mechanics: timing, staffing migration from Ascensia, CRM/ERP readiness, and distributor agreements in place or transitioning; management emphasized minimal disruption and strong cooperation between teams .
• DTC spend and ROI: continued commitment to DTC to drive lead generation and new patient starts, supporting top-line growth .
• Outlook components: reiteration of Q4 weighting due to annual reorder dynamics, reinforcement of margin trajectory and operating investment plans .
• Regulatory pathway: CE Mark timing and Gemini IDE submission targeted by year-end, setting up 2026 EU launch .

Estimates Context

• Revenue of $8.10M beat S&P Global consensus (~$7.93M*) by $0.17M; EPS of -$0.43 missed consensus (-$0.403*) by ~-$0.027. The beat was driven by accelerated U.S. adoption and DTC-led lead generation; the miss reflected higher SG&A from scaling commercial infrastructure and spending .
  Values retrieved from S&P Global.*

Key Takeaways for Investors

• Demand momentum: 160% YoY new patient starts and ~90% competitive switchers indicate strong product-market fit for Eversense 365, especially in U.S. channels .
• Margin trajectory improving: Q3 gross margin ~42.8%, with FY margin guide raised to 35–40%; secular expansion supported by 365-day product economics .
• Q4 set-up: Annual 365 reorder dynamics make revenue heavily weighted to Q4; monitor execution on reinsertions/reorders and commercialization transition milestones .
• Structural catalyst: Transitioning commercialization in-house (MOU with Ascensia) should enhance control of strategy, marketing, and sales effort—key for sustained growth and brand building .
• Liquidity and operating runway: ~$34.46M cash and $76.49M short-term investments at 9/30/25; cash used in operations expected at ~$60M for FY25—watch burn vs revenue scale .
• Regulatory milestones: Anticipated CE Mark by year-end and Gemini IDE submission by year-end underpin medium-term pipeline and EU expansion in H1 2026 .
• Trading implications: Near-term stock reaction will hinge on confirmation of Q4-heavy revenue, margin progression, and clarity on transition accounting items; reverse split and planned Nasdaq listing may broaden investor access .

Note: EPS comparability is affected by the 1-for-20 reverse split effective Oct 17, 2025; figures are presented as reported in each period .