Sensus Healthcare Inc (NASDAQ:SRTS) Beats Q3 2025 Earnings Estimates Despite Revenue Decline

Sensus Healthcare Inc (NASDAQ:SRTS) reported its financial results for the third quarter of 2025, delivering a performance that notably exceeded analyst expectations on the bottom line despite a challenging quarter for revenue. The medical device company's latest earnings have drawn investor attention, prompting a closer look at the underlying operational trends and strategic developments that are shaping its market trajectory.

Earnings and Revenue Performance Versus Estimates

The company's third-quarter results presented a mixed but ultimately positive picture when measured against Wall Street forecasts. Sensus Healthcare reported a net loss of $0.9 million, or $0.06 per share, which significantly outperformed analyst projections that had anticipated a deeper loss of $0.10 per share. This better-than-expected earnings performance suggests the company managed its operational costs more effectively than analysts had predicted.

On the revenue front, the company reported $6.9 million for the quarter, representing a 21.6% decrease compared to the $8.8 million generated in the same period last year. However, this figure still came in above analyst estimates of $6.4 million. The revenue decline was primarily attributed to shipping fewer SRT systems—16 units this quarter compared to 27 in the third quarter of 2024—with reduced sales to a large customer being the main contributing factor.

Key financial metrics from the quarter include:

• Revenue: $6.9 million (beat estimates of $6.4 million)
• EPS: -$0.06 (beat estimates of -$0.10)
• Gross Margin: 39.1%, down from 59.1% in Q3 2024
• Cash Position: $24.5 million with no debt

Market Reaction and Price Action

Investors responded positively to the earnings beat, particularly the better-than-expected bottom-line performance. The stock has shown strength in after-market trading following the announcement, building on recent positive momentum. Over the past month, SRTS has demonstrated gradual appreciation, with the earnings release serving as a catalyst that reinforced investor confidence in the company's direction despite the year-over-year revenue contraction.

Strategic Developments and Operational Highlights

Beyond the quarterly financial figures, Sensus Healthcare highlighted several significant developments that management believes position the company for future growth. The establishment of dedicated CPT® codes by CMS for superficial radiotherapy represents a major milestone, providing what CEO Joe Sardano described as "compelling economics and reimbursement certainty" for treating non-melanoma skin cancer. This regulatory development potentially removes a significant barrier to broader adoption of SRT technology by aligning office-based reimbursement more closely with hospital outpatient rates.

Operational highlights from the quarter include:

• Treatment volume at FDA sites increased 20% compared to Q2 2025 and 52% versus Q1 2025
• Continued international expansion with three systems shipped to China
• Publication of clinical findings in Dermatologic Therapy demonstrating SRT's efficacy when combined with punch excision to treat keloids
• Maintenance of a substantial inventory of nearly 100 systems to respond quickly to market demand

Expense Management and Investment in Growth

The quarter also revealed strategic shifts in the company's spending patterns. While gross margins contracted due to lower sales volume and costs associated with the new placement program, the company significantly increased its investment in research and development, which rose to $1.8 million from $0.9 million in the same quarter last year. This increase reflected substantial lobbying costs related to billing code reimbursement and product development for next-generation systems—investments that management believes will drive future growth.

Looking Ahead

For the upcoming quarter, analysts are projecting revenue of approximately $9.0 million with an estimated loss of $0.02 per share. For the full year 2025, current consensus estimates point to revenue of $31.4 million with an expected loss of $0.34 per share. While the company did not provide specific financial guidance in its release, management expressed optimism about the long-term impact of recent regulatory developments and the growing adoption of SRT technology among healthcare providers.

For a more detailed analysis of future earnings projections and historical performance, investors can review additional estimates and data points for Sensus Healthcare's earnings.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any securities. Investors should conduct their own research and consult with a qualified financial advisor before making investment decisions.