Semler Scientific Reports 44% Revenue Decline and $64.7 Million Net Loss in Q1 2025

Semler Scientific, Inc. reported a significant decline in financial performance for the first quarter of 2025, with total revenues of $8.8 million, down 44% from $15.9 million in the same period of 2024. The company also experienced a net loss of $64.7 million, compared to a net income of $6.1 million in the prior year. This downturn is attributed primarily to decreased testing volumes among customers, which the company believes is a direct result of the 2024 Centers for Medicare and Medicaid Services (CMS) rate announcement. The loss per share for the quarter was $6.74, a stark contrast to earnings of $0.88 per share in the previous year.

Operating expenses surged to $39.9 million, a 347% increase from $8.9 million in the same quarter last year. This increase was largely driven by a $29.8 million litigation contingency related to a proposed settlement with the U.S. Department of Justice (DOJ). Other operational costs included $4.9 million in general and administrative expenses, which rose 72% year-over-year, reflecting higher payroll and legal fees associated with the DOJ settlement. The company’s cost of revenues decreased slightly to $0.9 million, primarily due to lower hardware sales.

In terms of strategic developments, Semler has adopted Bitcoin as its primary treasury reserve asset, holding 3,192 bitcoins valued at approximately $263.5 million as of March 31, 2025. The company plans to continue acquiring Bitcoin using proceeds from equity and debt financing, as well as cash generated from operations. Additionally, Semler is seeking a new FDA 510(k) clearance for its QuantaFlo product to expand its use in diagnosing cardiovascular diseases beyond peripheral arterial disease (PAD). The company also entered into a new $500 million at-the-market (ATM) offering program in April 2025, following the conclusion of a previous ATM offering that raised approximately $126 million.

Operationally, Semler's customer engagement metrics have been impacted by the recent changes in reimbursement rates, leading to decreased usage of its products. The company reported a negative working capital of approximately $17.2 million, largely due to the contingent liability related to the DOJ settlement. Despite these challenges, Semler maintains that its current liquidity sources, including cash and Bitcoin holdings, will provide adequate support for its operations over the next 12 months. The company is focused on returning to profitability through the expansion of its product offerings and strategic financial management.