Sensus Healthcare Reports 22.4% Revenue Decline and $2.6 Million Net Loss in Q1 2025

Sensus Healthcare, Inc. reported a significant decline in financial performance for the first quarter of 2025, with revenues totaling $8.3 million, down 22.4% from $10.7 million in the same period last year. The decrease was primarily attributed to a reduction in sales to a major customer. Gross profit also fell to $4.4 million, a 34.3% decrease from $6.7 million, resulting in a gross profit margin of 53.0%, down from 62.6% in the prior year. The company recorded a net loss of $2.6 million, compared to a net income of $2.3 million in the first quarter of 2024, leading to a net loss per share of $0.16.

Operating expenses surged to $7.0 million, more than doubling from $3.8 million in the previous year. This increase was driven by higher costs in selling and marketing, which rose 69.2% to $2.2 million, and research and development expenses, which skyrocketed 188.9% to $2.6 million. The rise in R&D costs was largely due to lobbying efforts related to billing code reimbursements and increased headcount. General and administrative expenses also increased by 37.5% to $2.2 million, reflecting higher professional fees and compensation.

In terms of operational metrics, Sensus Healthcare's cash and cash equivalents decreased to $19.1 million from $22.1 million at the end of 2024. Accounts receivable also fell to $18.0 million, down from $19.7 million, primarily due to reduced sales and extended payment terms with a key customer. Inventory levels slightly decreased to $9.9 million, reflecting a reclassification of inventory to property and equipment for leasing purposes. The company has not drawn on its revolving credit facility, which remains available at $15 million.

Strategically, Sensus Healthcare formed a new subsidiary, Sensus Healthcare Services, LLC, in 2024, aimed at providing operational healthcare services, including equipment leasing and oversight for dermatology clinics. The company continues to focus on expanding its market presence, particularly in the U.S. and China, where it has a concentrated customer base. Despite the current challenges, Sensus anticipates that its effective tax rate for the full year will remain favorable due to expected tax credits related to research and development activities.

Looking ahead, Sensus Healthcare is committed to addressing the inflationary pressures affecting its operations and is taking proactive measures to mitigate these impacts. The company remains focused on enhancing its product offerings and expanding its market share, while also evaluating its cash requirements and potential funding needs for future growth initiatives.