Sensus Healthcare: Lake Street maintains Buy, PT down to $6 from $13.

Sensus Healthcare: Lake Street maintains Buy, PT down to $6 from $13.

Sensus Healthcare reported its Q2 2025 earnings, revealing a net loss that fell short of market expectations. The company's revenue also declined significantly compared to the previous year. The disappointing results led to a sharp drop in premarket trading, with shares falling by 25.79%. According to InvestingPro data, the company maintains a "GREAT" financial health score of 3.23, despite trading at elevated earnings and EBITDA multiples. The stock currently appears undervalued based on InvestingPro’s Fair Value analysis. Key Takeaways Sensus Healthcare reported a net loss of $1 million, or $0.06 per share, missing the forecasted EPS of $0.01. Revenue for Q2 2025 was $7.3 million, down from $9.2 million in Q2 2024. Premarket trading saw Sensus Healthcare’s stock fall by 25.79% to $3.97. The company is expanding its international presence and developing new products, despite current financial challenges. Company Performance Sensus Healthcare’s performance in Q2 2025 showed a significant decline compared to the same period last year. The company faced a net loss of $1 million, contrasting with a net income of $1.6 million in Q2 2024. Revenue also dropped to $7.3 million from $9.2 million, reflecting challenges in maintaining growth momentum. Despite these setbacks, Sensus Healthcare is focusing on international expansion and product development. Financial Highlights Revenue: $7.3 million, down from $9.2 million in Q2 2024. Earnings per share: -$0.06, compared to $0.01 forecasted. Gross Profit: $2.9 million, down from $5.4 million in Q2 2024. Year-to-date Revenues: $15.7 million, down from $19.9 million in 2024. Cash Position: $22.2 million, with no debt. Earnings vs. Forecast Sensus Healthcare’s Q2 2025 earnings missed analyst expectations, with an EPS surprise of -700%. The revenue also came in below the forecasted $8.65 million, marking a 15.61% shortfall. This performance contrasts with previous quarters where the company had managed to meet or exceed expectations. Market Reaction Following the earnings announcement, Sensus Healthcare’s stock experienced a significant decline in premarket trading, dropping by 25.79% to $3.97. This movement places the stock near its 52-week low of $4.01, signaling investor concern over the company’s financial health and future prospects. InvestingPro data shows the stock has seen a -22.69% YTD return, though analysts maintain price targets between $10 and $13, suggesting significant upside potential. Get access to detailed valuation metrics and the comprehensive Pro Research Report covering Sensus Healthcare on InvestingPro. Outlook & Guidance Looking ahead, Sensus Healthcare is projecting EPS growth in the coming quarters, with expectations of $0.08 in Q3 2025 and $0.19 in Q4 2025. The company is also targeting revenue growth, driven by international market expansion and new product launches. InvestingPro notes that three analysts have recently revised their earnings estimates downward for the upcoming period, though the consensus recommendation remains bullish at 1.6 (on a scale where 1 is Strong Buy). Access the full Pro Research Report for detailed analysis of growth prospects and market positioning. Executive Commentary Michael Sardano, President, emphasized the company’s commitment to its core technologies, stating, "We fully believe that IGSRT and SRT are here to stay and ultrasound will continue to be part of the SRT portfolio of products." CEO Joe Sardano added, "We’re not going to be losing any customers, but we’re going to be scrambling like hell to get deliveries out before the end of the year." Risks and Challenges Reimbursement Uncertainty: Potential changes in Medicare reimbursement could affect revenue streams. Market Competition: Increased competition in the dermatology and oncology sectors may pressure margins. International Expansion: While promising, international markets present regulatory and operational challenges. Economic Conditions: Macroeconomic pressures and spending cuts could impact capital equipment purchases. Q&A During the earnings call, analysts raised concerns about the impact of potential reimbursement changes on ultrasound products. Executives reassured stakeholders of their commitment to proving the clinical value of their offerings. Additionally, the company addressed a temporary pause in customer purchases due to reimbursement uncertainties, emphasizing efforts to mitigate these challenges through international expansion and advocacy. Full transcript - Sensus Healthcare Inc (SRTS) Q2 2025: Conference Operator: Good day, and welcome to the Sensus Healthcare Second Quarter twenty twenty five Financial Results Conference Call. All participants will be in listen only mode. After today’s presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Patel with Alliance Advisors IR. Please go ahead. Turf Patel, IR Representative, Alliance Advisors: Good afternoon. This is Turf Patel with Alliance Advisors IR. I’d like to start by apologizing for the press release being issued later than usual as there was a system wide glitch with our wire service. But thank you all for joining today’s call to discuss Sensus Healthcare’s second quarter twenty twenty five financial results. Joining me from Synthesis are Joe Sardano, Chairman and Chief Executive Officer Michael Sardano, President and General Counsel and Javier Rampolla, Chief Financial Officer. As a reminder, some of the matters that will be discussed during today’s call contain forward looking statements within the meaning of federal securities laws. All statements other than historical facts that address activities Sensus Healthcare assumes, plans, expects, believes, intends or anticipates and other similar expressions that will, should or may occur in the future are forward looking statements. The forward looking statements are management’s beliefs based upon currently available information as of the date of this conference call, 08/07/2025. Sensus Healthcare undertakes no obligation to revise or update any forward looking statements except as required by law. All forward looking statements are subject to risks and uncertainties as described in the company’s Forms 10 ks, 10 Q and other SEC filings. During today’s call, references will be made to certain non GAAP financial measures. Sensus believes these measures provide useful information for investors, yet they should not be considered as a substitute for GAAP nor should they be viewed as a substitute for operating results determined in accordance with GAAP. A reconciliation of non GAAP to GAAP results is included in today’s financial results news release. With that, I’d like to turn the call over to Joe Sardano. Joe? Joe Sardano, Chairman and CEO, Sensus Healthcare: Thank you, Terence. Good afternoon, everyone, and thank you for joining us. As you can see from the financial results we’re reporting today, after a very dynamic start to Q2, our second quarter domestic sales momentum was temporarily stalled by proposed local coverage determination or LCD that would limit the reimbursement of ultrasound when used with our SRT-one 100 Vision systems. Also just a few weeks ago, Medicare stepped in with a proposed physician fee schedule that we believe may fundamentally alter demand for our products. Let me explain starting with the LCD. Our SRT-one 100 Vision combines the treatment power of superficial radiotherapy with image guided ultrasound to ensure the best possible clinical outcome for patients. When treating non melanoma skin cancer, it’s the only way for a physician and patient to establish a treatment plan to visualize the eradication of the lesion from beginning to end. LCDs are reimbursement decisions made by a Medicare Administrative Contractor or MAC regarding whether a particular medical service is considered reasonable and necessary as such whether it’s covered under Medicare within the contractor’s geographic jurisdiction. The question arose as to the frequency for which the ultrasound feature should be used. In mid May, a proposed LCD to limit reimbursement for the use of ultrasound imaging prior to treating skin cancer was made public. It’s important to note that in treating other forms of cancer, imaging modalities such as MRI, CT, PET, mass spectrometry or nuclear, they use ultrasound or other imaging devices for every fraction of treatment. With the SRT-one hundred Vision, Sensus innovated and introduced the same approach for treating non melanoma skin cancer. This proposed LCD came out of nowhere. Up to that point in Q2, we were on track to surpass expectations, yet we found our market at a pause until there’s clarification, which we expect soon. We are making considerable investments of time and money to lobby CMS with information and facts supporting the value of ultrasound. With this initiative, we are in lockstep with our major customer as we work together to help the powers that be understand the importance of high frequency ultrasound in treating non melanoma skin cancer. To date, we believe that our actions are gaining traction and understanding among those in authority and their influencers. I want to be crystal clear that our technology in treating skin cancer with SRT is not in question, but rather the frequency for which ultrasound is being used during the treatment protocols is the subject of the LCD. On the other hand, just a few weeks ago, Medicare proposed a physician fee schedule that would significantly increase reimbursement for the delivery of a code of SRT. Pivoting now to a review of operations, the Sensus team made meaningful progress during the second quarter. We delivered 1