Sensus Healthcare Q2 Earnings Call Highlights

Key Points

• Second-quarter revenue fell sharply to $2.3 million from $7.3 million a year earlier, primarily because financing delays prevented recognition of eight equipment sales. Sensus expects to recognize those sales, valued at roughly $250,000 per SRT-100 system, in the third quarter.
• Profitability weakened, with gross margin declining to 34.8%, an adjusted EBITDA loss of $3 million, and a net loss of $8.7 million, including a $5.7 million deferred-tax valuation allowance. Cash fell to $15.2 million, although the company had no revolving-credit borrowings outstanding.
• Management expects a stronger second half, citing a growing pipeline, increased physician familiarity with SRT reimbursement, international opportunities, and expansion of recurring-revenue offerings such as Fair Deal Agreements and Sensus Link. A proposed 26% increase in reimbursement for certain low-energy radiation treatments could further support adoption.

Sensus Healthcare NASDAQ: SRTS reported second-quarter revenue of $2.3 million, down from $7.3 million a year earlier, as delayed third-party financing prevented the company from recognizing revenue tied to eight equipment units before the end of June.

Chairman and Chief Executive Officer Joe Sardano said the company had secured orders expected to be recognized in the second quarter, but a bank did not complete financing approvals by June 30 despite repeated assurances. Sensus has since obtained approval for the eight units through another bank and expects to recognize the related revenue in the third quarter, he said.

“We will no longer be working with this bank,” Sardano said. He clarified during the question-and-answer session that Sensus booked 11 units in the second quarter and would have recorded 19 units had the eight additional financing-backed orders closed in time. The eight units were SRT-100 systems and are expected to carry an average selling price closer to $250,000, according to Sardano.

Second-Quarter Results

Sensus sold 11 units during the quarter, including Fair Deal Agreements and rentals, compared with 19 units in the second quarter of 2025. Of the 11 units, six were direct sales, Sardano said. Revenue from Fair Deal Agreements and rentals is recognized over the term of the arrangement rather than upon shipment.

• Revenue was $2.3 million, compared with $7.3 million in the prior-year quarter.
• Cost of sales declined to $1.5 million from $4.4 million.
• Gross profit was approximately $0.8 million, down from $2.9 million.
• Gross margin was 34.8%, compared with 39.7% a year earlier.
• Adjusted EBITDA loss was $3 million, compared with an adjusted EBITDA loss of $1.8 million.
• Net loss was $8.7 million, or $0.53 per share, compared with a net loss of $1 million, or $0.06 per share.

Chief Financial Officer Javier Rampolla said the net loss included a $5.7 million valuation allowance against net deferred tax assets. Gross margin was affected by product mix, including a greater proportion of international shipments with lower average selling prices and costs associated with new Fair Deal Agreement placements.

Rampolla said those placements are expected to generate revenue in future periods as utilization rises. General and administrative, selling and marketing, and research and development expenses each declined year over year, driven by factors including lower compensation, trade show, commission, clinical research, product development, and headcount costs.

The company ended the quarter with $15.2 million in cash and cash equivalents, down from $18.3 million at March 31. It had no outstanding borrowings under its revolving credit facility. Inventory rose to $18.4 million from $16.5 million at the end of the first quarter.

Commercial Pipeline and Reimbursement

Management said its commercial pipeline strengthened as physicians gained familiarity with dedicated CPT codes that took effect Jan. 1. The company spent the first half educating physicians about reimbursement and the economics of providing superficial radiation therapy, or SRT, as a non-invasive alternative to Mohs surgery.

Michael Sardano, President, Chief Commercial Officer and General Counsel, said customer discussions have increasingly shifted from whether reimbursement works to how practices can incorporate SRT. The company reported growing engagement from independent dermatology practices, larger physician groups, and healthcare systems.

Management said larger organizations may take longer to develop than single-practice sales but could support adoption across multiple locations. Customers can access the company’s technology through outright purchases, financing, rentals, or Fair Deal Agreements, which are shared-service arrangements that allow Sensus to participate in treatment utilization.

Joe Sardano said the current pipeline is running at roughly a 50/50 mix between recurring-revenue arrangements and outright purchases. He also said Sensus does not expect equipment purchases in the second half from a formerly large customer that is reevaluating its operating model.

Second-Half Expectations and International Expansion

Management said it expects stronger results in the second half of 2026, supported by the delayed eight-unit revenue recognition and a larger commercial pipeline. Sardano said the company expects sequential unit growth and anticipated “a nice third quarter,” following 14 units in the first quarter and what would have been 19 units in the second quarter absent the financing delay.

The company is also pursuing international opportunities, particularly in Australia, New Zealand, China, and Hong Kong. Michael Sardano said China remains a strong market and that Sensus has seen strong engagement in Australia after attending two conferences there. He cited high skin-cancer incidence in Australia and New Zealand as a potential opportunity for SRT adoption.

Separately, management said all new customers obtaining systems through either direct sales or recurring-revenue arrangements are receiving Sensus Link, the company’s software offering. Sensus has added inside sales personnel to market the service to existing SRT-100 and Vision customers, with management describing it as a potentially higher-margin recurring-revenue opportunity.

Management also noted that a proposed hospital physician fee schedule would increase reimbursement for level-one radiation, including treatments under 150 kV that affect SRT, by 26%. The company said it remains focused on education and training, accelerating customer adoption, expanding recurring revenue, broadening its commercial reach, and moving toward sustainable profitability.

About Sensus Healthcare (NASDAQ:SRTS)

Sensus Healthcare, Inc is a medical technology company specializing in the development, manufacture and commercialization of superficial radiation therapy (SRT) systems. The company's SRT devices utilize low-energy X-rays to treat a range of dermatological and oncological conditions, most notably non-melanoma skin cancers such as basal cell carcinoma and squamous cell carcinoma, as well as benign lesions including keloids. By delivering targeted radiation to superficial tissue layers, Sensus Healthcare's systems aim to provide an alternative to surgical excision or systemic therapies, offering clinicians a non-invasive treatment option for eligible patients.

The company's flagship products include the SRT-100™ and SRT-100+™ platforms, which feature handheld applicators, adjustable energy settings and integrated safety controls.

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