Semler Scientific, Inc. reported a significant decline in financial performance for the third quarter of 2025, with revenues of $7.5 million, down 45% from $13.5 million in the same period last year. For the nine months ending September 30, 2025, total revenues were $24.5 million, a decrease of 44% compared to $43.9 million in the prior year. The company attributed this decline primarily to reduced testing volumes and cancellations from key customers, which it believes are linked to changes in the Medicare reimbursement landscape and a recent settlement with the U.S. Department of Justice (DOJ) related to alleged false claims.
Despite the drop in revenues, Semler reported a net income of $16.9 million for the third quarter, a notable increase from $5.6 million in the same quarter of 2024. This increase was largely driven by a substantial gain in the fair value of the company's Bitcoin holdings, which rose by $30 million during the quarter. The company holds approximately 5,048 Bitcoins, valued at $575.8 million as of September 30, 2025, including 315 Bitcoins pledged as collateral for a loan from Coinbase.
Operating expenses for the third quarter increased to $12.9 million, up 52% from $8.4 million in the prior year, primarily due to higher general and administrative costs associated with the DOJ settlement and increased stock-based compensation. The company also reported a significant settlement expense of $29.8 million for the nine months ended September 30, 2025, which was not present in the previous year. As a result, total operating expenses for the nine-month period reached $63.1 million, a 138% increase compared to $26.5 million in the same period of 2024.
In terms of strategic developments, Semler is pursuing a merger with Strive, Inc., which was announced on September 22, 2025. The merger is expected to provide additional resources and support for Semler's ongoing operations and future growth initiatives. The company is also seeking FDA clearance for expanded use of its QuantaFlo product, which is intended to aid in the diagnosis of cardiovascular diseases. However, the company anticipates further revenue declines in the fourth quarter of 2025 as more customers cease using the QuantaFlo device due to the current reimbursement landscape.
Looking ahead, Semler's management indicated that they will need to align expenses with the anticipated revenue decline and continue to explore opportunities for growth, particularly through the development of new products and services under its CardioVanta subsidiary. The company remains focused on its Bitcoin treasury strategy, which it views as a key component of its financial strategy moving forward.
About Semler Scientific, Inc.
Semler Scientific develops FDA-cleared vascular testing products, notably QuantaFlo, to aid in diagnosing peripheral arterial disease and other cardiovascular conditions. The company serves healthcare providers, insurance plans, and risk assessment groups, offering non-invasive, rapid blood flow assessments. It also invests in bitcoin as a treasury reserve asset, leveraging its digital assets to support long-term value and inflation hedging.
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