Sensus Healthcare, Inc. Q1 FY2025 earnings call

• Invested in sales, marketing, and R&D initiatives. • Significantly expanded awareness of fair deal agreement program and strengthened brand visibility at industry events. • Shipped 21 SRT systems, total installed base over 880 systems, on track to surpass 900 by end of Q2 and reach 1,000 direct sale units in next 12 months. • Fair deal agreement program saw 65% increase in patient treatments from Q4 to Q1. • International strategy progressing, attended ESTRO show and will exhibit at Australian Academy of Dermatology Annual Meeting. • Resubmitted 510(k) application for TDI, expecting determination by end of 2025. • Expect G&A expenses to be ~$1.8M per quarter, sales and marketing ~$1.3M per quarter, R&D ~$1.5M per quarter for rest of year.

In the first quarter of 2025, revenues came in at $8.3 million, down from $10.7 million in Q1 2024. Gross profit for Q1 2025 was $4.4 million, resulting in a gross margin of 52%. The net loss for Q1 2025 was $2.6 million or $0.16 per share, compared to net income of $2.3 million or $0.14 per diluted share in the prior year quarter. Adjusted EBITDA was negative $2.5 million for Q1 2025, versus positive $3 million a year ago. The balance sheet remained strong with $19.1 million in cash, no debt, and inventory at $9.9 million.

• Expect each subsequent quarter to be profitable and return to profitability for the full year. • FDA agreements expected to contribute significantly to revenue in second half of 2025. • Anticipate signing 3-5 additional multi-site FDA customers in 2025. • Expect Q2 revenue to be higher than Q1 and second half revenue higher than first half. • TDI commercial prospects optimistic with ongoing product innovation and enhancements.

• Forward-looking statements subject to risks and uncertainties as described in company’s Forms 10-K, 10-Q and other SEC filings. • Risks associated with product innovation and market adoption of new products like TDI. • Uncertainties related to timing and extent of revenue contribution from FDA agreements.

Q: The first quarter of 2025 appears weaker compared to Q1 2024. Do you think the rest of the quarters of ‘25 could be stronger or weaker compared to the ‘24 quarters?

A: Yes, expecting each subsequent quarter to be profitable.

Q: Has the existing US tariff policy affected the company’s business?

A: So far, no tariff repercussions witnessed on any of our businesses.

Q: On the fair deal agreement, do you have a sense of what kind of volumes you may anticipate once they reach full capacity?

A: Everything is key to patient volume once installed; marketing and patient volume will drive revenue, with significant contribution expected in second half.

Q: On the TDI 510(k) application, anything the FDA might come back with feedback questions and how to handle it?

A: So far, no follow-up questions from FDA, and things are on track as they usually respond quicker than 2.5 months.

Q: On the 65% growth in treatments for FDA accounts, how much was organic and new go live?

A: ~60% organic from Q4 to Q1 production, ~5% from new go live within the quarter.

Q: On the smaller conferences, profile of attendees and potential from smaller practices?

A: Smaller conferences allow closer interaction, with potential from smaller practices; focus on analytics and marketing to attract patients.