Sensus Healthcare Q2 Earnings Call Highlights

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. 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 f...