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Sensus Healthcare, Inc. (SRTS)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 revenue was $8.34M, above Street consensus, but EPS missed due to deliberate spending on marketing and R&D; management expects profitability in each of the next three quarters and for FY25 .
  • Revenue beat versus consensus ($7.23M*) and unit shipments of 21 systems (15 to a large customer; 1 international) underpin top-line strength; EPS missed versus $0.02* on higher OpEx tied to derm conferences and TDI advancement .
  • Sequential FDA activity accelerated: patient treatments up 65% q/q, installed base now >880 systems, and 11 Fair Deal Agreements initiated with 6 going live; management sees meaningful FDA revenue contribution in 2H25 .
  • Near-term catalysts: recurring FDA revenue ramp (45–60 day billing cycle), Q2 revenue expected above Q1, and potential TDI 510(k) clearance by year-end with no FDA questions to date .

What Went Well and What Went Wrong

What Went Well

  • Revenue of $8.34M exceeded consensus and reflected 21 SRT shipments; management highlighted strong engagement at Winter Clinical, Maui Derm, and AAD, prompting orders for additional units to meet demand .
  • FDA program traction: 65% sequential rise in treatments; management expects significant revenue contribution beginning in 2H25; “We expect to return to profitability in each of the next 3 quarters and to be profitable for the full year” .
  • Strategic pipeline: TDI 510(k) resubmitted March 7; “we have not had any follow-up questions,” with determination expected by year-end; continued global expansion (ESTRO, Australia) .

What Went Wrong

  • Gross margin compressed to 53.0% vs 62.6% YoY on lower sales and higher service costs; net loss of $2.57M (−$0.16 per diluted share) vs $2.27M profit in Q1 2024 .
  • OpEx elevated: G&A $2.2M (professional fees/comp), S&M $2.2M (trade shows/studies/headcount), and R&D $2.6M (lobbying, development), driving negative adjusted EBITDA (−$2.48M) .
  • Concentration risk remains: 15 of 21 units shipped to a single large customer; management acknowledges pace and deliberateness of multisite FDA rollouts could slow near-term install cadence .

Financial Results

MetricQ3 2024Q4 2024Q1 2025
Revenue ($USD Millions)$8.80 $13.07 $8.34
Diluted EPS ($USD)$0.07 $0.09 −$0.16
Gross Margin (%)59.3% 54.4% 53.0%
Net Income ($USD Millions)$1.20 $1.55 −$2.57
Units Shipped (#)27 39 21
Q1 Year-over-YearQ1 2024Q1 2025
Revenue ($USD Millions)$10.66 $8.34
Diluted EPS ($USD)$0.14 −$0.16
Gross Margin (%)62.6% 53.0%
Actual vs Consensus (Q1 2025)Consensus*Actual
Revenue ($USD Millions)$7.23*$8.34
Primary EPS ($USD)$0.02*−$0.16

Note: Values marked with * retrieved from S&P Global.

Segment/KPI detail:

KPIQ3 2024Q4 2024Q1 2025
Shipments to largest customer (#)~50% of placements 25 of 39 15 of 21
International shipments (#)1 (Swedish Hospital; hospital channel highlight) 5 in Q4 1
Installed base (cumulative)——>880 systems
FDA contracts initiated/go-live22 contracts as of 9/30 —11 initiated; 6 live in Q1
FDA patient treatments q/q——+65% vs Q4
Cash ($USD Millions)$22.6 (9/30) $22.06 (12/31) $19.07 (3/31)
Inventories ($USD Millions)$12.0 (9/30) $10.10 (12/31) $9.92 (3/31)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueQ2 2025None specificQ2 revenue expected > Q1 revenue New
ProfitabilityQ2–Q4 2025; FY 2025Optimistic on growth/profitability (no formal) Expect profitability in each of next 3 quarters and FY25 Raised/Initiated
G&A expense run-rate ($USD Millions)Q2–Q4 2025Q4 increase partly one-time ~$1.8 per quarter for rest of year New
Sales & marketing run-rate ($USD Millions)Q2–Q4 2025Lower summer trade show spend ~$1.3 per quarter going forward New
R&D run-rate ($USD Millions)Q2–Q4 2025$1.6 in Q4 ~$1.5 per quarter for rest of year New
FDA revenue contribution2H 2025Begin contributing in 2H25 “Meaningfully” in 2H25; treatments +65% q/q Maintained/Affirmed
FDA multisite signingsFY 2025Exclusive agreement (Platinum) Expect to sign 3–5 additional multisite FDA customers New
TDI (510(k))FY 2025Resubmission planned H1’25 Resubmitted Mar 7; determination expected by year-end Maintained/Progressed

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024)Previous Mentions (Q4 2024)Current Period (Q1 2025)Trend
Fair Deal Agreements (FDA)7 signed in Q3; 22 total; exclusive with Platinum (130 sites); recurring revenue starting 2025 Emphasis on recurring revenue model; no FDAs counted in Q4 shipments; inventory ready for FDA placements 11 initiated; 6 live; +65% treatments q/q; significant 2H contribution expected Accelerating utilization and pipeline
R&D/TDIPlanned 510(k) submission before year-end Resubmission planned H1’25 Resubmitted Mar 7; no questions; decision expected by YE25 Advancing toward clearance
Macro/tariffs—Seasonal softness Q1/Q3; major conferences in Q1 impact sales & spend No tariff repercussions observed Neutral
International/Hospital channelSwedish Hospital sale; Asia/Middle East expansion; Taiwan success International shipments (5 in Q4); vet market exploration ESTRO Vienna; Australia dermatology meeting Expanding presence
Large customer concentration~50% placements 25 of 39 shipments; PO for another 25 in 2025 15 of 21 shipments Persisting concentration, managed ramp

Management Commentary

  • “We invested in several important initiatives… significantly expanded awareness of our Fair Deal Agreement program… Revenues for the first quarter came in at $8.3 million… we shipped 21 SRT systems… We expect to return to profitability in each of the next 3 quarters and to be profitable for the full year” — Joe Sardano .
  • “FDA arrangements deliver substantial value by aligning our financial interest directly with patient volume… we anticipate significant revenue contributions starting in the second half of 2025… signing 3 to 5 additional multisite FDA customers in 2025” — Michael Sardano .
  • “Revenue for the first quarter of 2025 was $8.3 million… gross margin of 52%… Operating expenses were significantly higher… We expect Q2 revenue to be higher than Q1… G&A ~$1.8M/quarter; Sales & marketing ~$1.3M/quarter; R&D ~$1.5M/quarter for the balance of the year” — Javier Rampolla .
  • “We resubmitted our 510(k) application in early March… expecting a determination before the end of the year… we have not had any follow-up questions from the FDA” — Joe and Michael Sardano .

Q&A Highlights

  • Profitability cadence: Management expects each subsequent quarter of 2025 to be profitable, driven by FDA revenue and system sales .
  • FDA ramp mechanics: 4–5 months from signing to initial cash collection; billing cycle 45–60 days post-treatment; marketing support and analytics provided to ramp utilization .
  • Multisite strategy: Large PE-backed groups target 10–20 high-volume practices first, then expand; installations prioritized by analytics-confirmed high-patient regions .
  • Tariffs: No observed impact on business confidence or operations to date .
  • Treatment growth composition: Of the 65% q/q increase, ~60% organic same-store ramp, ~5% from new go-lives in Q1 .

Estimates Context

  • Revenue beat: Q1 2025 revenue $8.34M vs consensus $7.23M* — significant top-line outperformance likely from stronger shipments (21 units) and initial FDA revenues .
  • EPS miss: Q1 2025 EPS −$0.16 vs consensus $0.02* — driven by higher G&A, sales & marketing tied to major conferences, and step-up in R&D (lobbying and TDI development); adjusted EBITDA −$2.48M .
  • Street recalibration: With management guiding Q2 revenue > Q1 and profitability for Q2–Q4, models should reflect lower OpEx run-rates (G&A ~$1.8M; S&M ~$1.3M; R&D ~$1.5M per quarter) and FDA ramp beginning 2H25 .

Note: Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

  • Revenue outperformed consensus while EPS undershot due to purposeful OpEx investment; margin compression should ease as conference spend normalizes and FDA utilization ramps .
  • Near-term setup improves: Q2 revenue guided above Q1 and management targets profitability in Q2–Q4 and full-year FY25, supported by OpEx run-rate normalization .
  • FDA is a structural transition to recurring revenue: +65% q/q treatments, 11 contracts initiated and 6 live in Q1; expect meaningful 2H25 contribution with 45–60 day billing cycle .
  • Pipeline/reimbursement optionality: TDI 510(k) resubmitted with clean FDA dialogue to date; lobbying efforts for IG-SRT reimbursement underpin longer-term margin and adoption potential .
  • Customer concentration remains a watch item (15 of 21 shipments to one customer), but multisite PE groups could diversify demand as installations scale from 10–20 anchor sites .
  • International and hospital channels emerging (ESTRO, Australia; Swedish Hospital) broaden TAM beyond core dermatology .
  • Trading lens: Top-line resilience plus explicit profitability cadence and FDA ramp are the narrative drivers to monitor; updates on 2H FDA revenue and TDI regulatory milestones are likely stock catalysts .

Additional Source Materials (Q1-related press)

  • Awareness month positioning: company emphasized IG-SRT’s non-invasive value proposition and FDA program access model during May; aligns with demand generation strategy .
  • Earnings announcement and call logistics detailed in May 1 and May 15 releases .