Sensus Healthcare 2025 Q1 Earnings Misses Targets as Net Income Declines 213.1%

Sensus Healthcare (SRTS) reported its fiscal 2025 Q1 earnings on May 15th, 2025. Despite surpassing revenue expectations with a 14.77% increase, the company fell short of the Zacks Consensus Estimate for earnings, reporting a quarterly loss of $0.16 per share versus the expected $0.04. The guidance for profitability in the upcoming quarters remains unchanged, as the company anticipates meaningful contributions from the Fair Deal Agreements later this year. Sensus Healthcare aims to maintain its growth trajectory, focusing on strategic investments in sales, marketing, and research and development.

Revenue
Sensus Healthcare experienced a notable decline in its total revenue, which dropped by 21.7% to $8.34 million in Q1 2025, compared to $10.66 million in Q1 2024. This decrease was influenced by reduced unit sales to a major customer. Within this, service revenue amounted to $1.44 million, contributing to the overall revenue figure.

Earnings/Net Income
The company reported a net loss of $2.57 million for Q1 2025, a significant deterioration from the $2.27 million net income in Q1 2024. This translated to a loss of $0.16 per share, down from a profit of $0.14 per share the previous year. The EPS reflects a challenging financial performance for the quarter.

Price Action
The stock price of Sensus Healthcare has edged down 2.71% during the latest trading day, climbed 4.25% during the most recent full trading week, and has edged down 2.71% month-to-date.

Post-Earnings Price Action Review
Following the earnings release, Sensus Healthcare's stock experienced marked volatility, primarily due to the negative earnings surprise. Despite surpassing revenue expectations by 14.77%, the company reported a quarterly loss of $0.16 per share, missing the Zacks Consensus Estimate of $0.04. This has raised questions about the company's short-term performance, although the forecast for profitability in the next three quarters remains promising. Investors considering buying SRTS should weigh the potential for a rebound against the risks posed by recent stock underperformance and declining earnings estimates for the full year 2025. Moreover, diversifying investments across the medical device sector may mitigate sector-specific volatility risks. Ultimately, the decision to invest in Sensus Healthcare should align with individual investment horizons, risk tolerance, and overall portfolio strategies.

CEO Commentary
"During the first quarter we invested in several important initiatives that we expect will benefit our business for the rest of the year and beyond, including in sales and marketing and in research and development," said Joe Sardano, Chairman and Chief Executive Officer of Sensus Healthcare. Sardano highlighted the strong response to the company's event at the AAD and noted orders for additional units to meet expected demand. He emphasized the company's commitment to broadening awareness of the Fair Deal Agreement (FDA) program and increasing research and development investments, particularly in lobbying and product enhancement efforts. Sardano expressed confidence in the company's growth trajectory, expecting profitability in the next three quarters and the full year.

Guidance
"We remain confident in our growth trajectory and expect to be profitable in each of the next three quarters and for the full year," stated Joe Sardano. He indicated that revenue from FDAs is anticipated to contribute meaningfully in the second half of the year, supported by a 65% quarter-over-quarter increase in patient treatments. Sardano affirmed expectations to sign 3-5 additional multisite FDA customers within the year.

Additional News
Recently, Sensus Healthcare has been active in the market beyond its earnings report. Notably, the company showcased its innovative SRT systems at the American Academy of Dermatology Annual Meeting, featuring Olympic swimmer Katie Ledecky at an event that attracted significant attention from potential customers. In addition, Sensus Healthcare has been increasing its participation in smaller dermatology conferences nationwide to enhance awareness of their Fair Deal Agreement program. The company is also advancing its research and development efforts, particularly in lobbying for billing code reimbursement and finalizing the development of the TransDermal Infusion (TDI) product with Sentinel IT Solutions capabilities. These strategic moves aim to position Sensus Healthcare well for future growth.