What Sensus Healthcare (SRTS) Said on Its Q3 Earnings Call

Key Points

• Q3 revenue fell 13% to $6 million despite shipments rising to 26 systems from 16, reflecting a shift toward lower-priced SRT-100 units and no sales to the company’s historically largest customer. Gross margin improved to about 55% from 39%.
• Sensus posted a net loss of $1.5 million, wider than the $0.9 million loss a year earlier, while adjusted EBITDA improved to negative $1.5 million from negative $2.4 million. Cash, restricted cash and equivalents totaled $12.9 million at quarter-end, with no revolving-credit borrowings.
• Management cited growing physician interest as reimbursement awareness increases, and said it signed contracts with two private equity-backed dermatology groups representing roughly 450 or more practices. Near-term priorities include converting its pipeline into sales and growing system utilization and recurring software and service revenue.

Sensus Healthcare NASDAQ: SRTS reported lower third-quarter revenue despite shipping more superficial radiation therapy systems, as product mix and the absence of sales to its historically largest customer weighed on the top line.

Revenue fell 13% to $6 million from $6.9 million a year earlier, while gross margin improved to approximately 55% from 39%. The company shipped 26 systems, up from 16, including eight that had been expected to ship in the second quarter but were delayed by third-party financing issues.

Chairman and CEO Joe Sardano said the company is seeing a broader customer pipeline as physicians become more familiar with dedicated reimbursement codes for superficial radiation therapy, or SRT, which took effect in January. SRT is a non-invasive treatment option for certain non-melanoma skin cancers.

Shipments Rise as Customer Mix Changes

Chief Financial Officer Javier Rampolla said the revenue decline primarily reflected a greater proportion of lower-priced SRT-100 systems relative to SRT-100 Vision systems, as well as no sales to the company’s historically largest customer.

Of the 16 systems shipped in the third quarter of 2025, 10 went to that customer and six went to other customers. In the latest quarter, three systems were shipped under Fair Deal Agreement or rental arrangements, with revenue recognized over the terms of those agreements rather than entirely at shipment.

Rampolla said the larger share of higher-margin SRT-100 units helped lift gross profit to $3.3 million from $2.7 million. Joe Sardano said reimbursement is pushing many U.S. customers toward the SRT-100, which costs less to manufacture than the Vision model.

President and Chief Commercial Officer Michael Sardano said the company is also seeing international interest in the Vision system, which includes imaging capability.

Loss Widens Despite Margin Improvement

Sensus reported a net loss of $1.5 million, or $0.09 per share, compared with a loss of $0.9 million, or $0.06 per share, a year earlier. Rampolla noted that the prior-year quarter included an income tax benefit of approximately $1.5 million.

Adjusted EBITDA, a non-GAAP measure, improved to negative $1.5 million from negative $2.4 million. General and administrative expenses rose to $2.3 million from $1.9 million, primarily because of higher legal and professional fees. Research and development expenses declined to $1.1 million from $1.8 million, reflecting reduced lobbying costs and lower headcount.

The company ended September with $12.9 million in cash, restricted cash and cash equivalents, down from $15.2 million at the end of June. It had no outstanding borrowings under its revolving credit line at quarter-end.

Broader Customer Base and Recurring Revenue

Management said physician discussions are increasingly shifting from whether reimbursement works to how practices can incorporate SRT. Michael Sardano said the company signed contracts with two private equity-backed dermatology groups during the quarter. One purchased a system and the other chose a Fair Deal Agreement, he said.

The two groups collectively have approximately 450 or more practices nationwide, according to Michael Sardano. Joe Sardano said the company wants to place systems across their facilities, though some larger groups may initially use a hub-and-spoke approach.

Sensus offers outright purchases, financing, rentals and Fair Deal Agreements. Management said it is working to increase treatment utilization under the Fair Deal program and develop software and service revenue through Sensus Link. Michael Sardano said the technology lets customers pair patient data with a system and access remote radiation oncologists or medical physicists.

Joe Sardano also said the company recently placed its 1,000th SRT system. To educate patients about treatment options, Sensus launched treatskincancer.com in September; Michael Sardano said it drew nearly 1,000 visits during its initial launch period.

Reimbursement and International Expansion

Asked about a proposed 26% increase in hospital-based radiation treatment delivery reimbursement, Joe Sardano said he expected it to take effect Jan. 1, 2027. Michael Sardano said SRT is included in the level 1 hospital radiation treatment delivery category covered by the increase.

The company is also developing opportunities in Asia Pacific. Michael Sardano said SRT is already cleared for use in Australia, where Sensus is working with groups interested in introducing the technology. He said the company has spent relatively little effort pushing into that market over the past decade.

Management said its near-term priorities include converting its pipeline into sales, expanding adoption among a broader customer base and increasing utilization of systems already in the field.

About Sensus Healthcare (NASDAQ:SRTS)

Sensus Healthcare, Inc. is a medical device company focused on non-invasive treatment technologies for dermatologic and oncologic conditions. The company develops and commercializes superficial radiotherapy systems designed to deliver low-energy X-rays to targeted areas of the skin. Its principal products include the SRT-100 and SRT-100 Vision systems, which are used by physicians to treat non-melanoma skin cancers, including basal cell and squamous cell carcinomas, as well as keloids. The systems are intended to provide an alternative to certain surgical procedures and are used in dermatology, radiation oncology and other clinical settings.

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