Sensus Healthcare, Inc.
For the period ended Sep 30, 2025. Filed Nov 12, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 12, 2025
SRTS$2.86-2.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-12.
0001753926-25-001290
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-12.
0001753926-25-001745
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 54 previous paragraphs and 54 current paragraphs.
28 unchanged; 24 reworded; 2 added; 2 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 7 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (2)
Current report
Income taxes. The effective tax rates for the three months ended September 30, 2025 and 2024 were 60.9% and 31.5%, respectively. The increase in the effective tax rate for the three months ended September 30, 2025 compared to the prior period was primarily attributable to an increase in the estimated tax credits that are expected to be generated and utilized in proportion to the amount of pretax profit. These credits, which include federal incentives for research and development and other qualifying activities, are large in proportion to our income before taxes, resulting in a high effective tax rate benefit for the quarter. Looking ahead, we anticipate that our effective tax rate for the full year 2025 will continue to differ materially from the U.S. federal statutory rate of 21.0%, driven largely by the favorable impact of these tax credits relative to our pre-tax income.
Current report
Nine months ended September 30, 2025 compared to the nine months ended September 30, 2024
Removed paragraphs (2)
Previous report
Income taxes. The effective tax rates for the three months ended June 30, 2025 and 2024 were 41.1% and 26.4%, respectively. The increase in the effective tax rate for the three months ended June 30, 2025 compared to the prior period was primarily attributable to the reversal of the negative effective tax rate recorded during the three months ended March 31, 2025. This reversal occurred because the projected full-year tax liability began to exceed the amount of estimated tax credits, eliminating the amounts previously recorded in returning to a positive effective tax rate.
Previous report
Six months ended June 30, 2025 compared to the six months ended June 30, 2024
Reworded paragraphs (24)
Previous wording
You should read the following discussion and analysis in conjunction with the information set forth within the financial statements and the notes thereto included elsewhere in this Quarterly Report on Form 10-Q, and with our Management’s Discussion and Analysis of Financial Condition and Results of Operations in the 2024 Annual Report.
Current wording
You should read the following discussion and analysis in conjunction with the information set forth within the condensed consolidated financial statements and the notes thereto included elsewhere in this Quarterly Report on Form 10-Q, and with our Management’s Discussion and Analysis of Financial Condition and Results of Operations in the 2024 Annual Report.
Previous wording
**Revenues.**Revenues were $7.3 million for the three months ended June 30, 2025 compared to $9.2 million for the three months ended June 30, 2024, a decrease of $1.9 million, or 20.7%. The decrease was primarily driven by a lower number of units sold to a large customer in the three months ended June 30, 2025 compared to the three months ended June 30, 2024.
Current wording
**Revenues.**Revenues were $6.9 million for the three months ended September 30, 2025 compared to $8.8 million for the three months ended September 30, 2024, a decrease of $1.9 million, or 21.6%. The decrease in revenue was primarily driven by a lower number of units sold (16 in the three months ended September 30, 2025, compared to 27 in the three months ended September 30, 2024), reflecting reduced sales to a large customer, slightly offset by revenue recognized from the new placement program under the Fair Deal Agreement.
Previous wording
**Cost of sales.**Cost of sales was $4.4 million for the three months ended June 30, 2025 compared to $3.8 million for the three months ended June 30, 2024, an increase of $0.6 million, or 15.8%. The increase in cost of sales was primarily related to higher costs of servicing systems and the cost associated with the new placement program in the three months ended June 30, 2025 compared to the three months ended June 30, 2024.
Current wording
**Cost of sales.**Cost of sales was $4.2 million for the three months ended September 30, 2025 compared to $3.6 million for the three months ended September 30, 2024, an increase of $0.6 million, or 16.7%. The increase in cost of sales was primarily related to higher costs of servicing systems and the cost associated with the new placement program under the Fair Deal Agreement, which generates costs related to installation and training in advance of related revenues, in the three months ended September 30, 2025 compared to the three months ended September 30, 2024.
Previous wording
**Gross profit.**Gross profit was $2.9 million for the three months ended June 30, 2025 compared to $5.4 million for the three months ended June 30, 2024, a decrease of $2.5 million, or 46.3%. Our overall gross profit percentage was 39.7% in the three months ended June 30, 2025 compared to 58.7% in the corresponding period in 2024. The decrease in gross profit was primarily driven by lower sales, higher costs of servicing systems, and the cost associated with the new placement program in the three months ended June 30, 2025 compared to the three months ended June 30, 2024.
Current wording
**Gross profit.**Gross profit was $2.7 million for the three months ended September 30, 2025 compared to $5.2 million for the three months ended September 30, 2024, a decrease of $2.5 million, or 48.1%. Our overall gross profit percentage was 39.1% in the three months ended September 30, 2025 compared to 59.1% in the corresponding period in 2024. The decrease in gross profit was primarily driven by lower sales, higher costs of servicing systems, and the cost associated with the new placement program in the three months ended September 30, 2025 compared to the three months ended September 30, 2024.
Previous wording
**General and administrative.**General and administrative expense was $2.0 million for the three months ended June 30, 2025 compared to $1.6 million for the three months ended June 30, 2024, an increase of $0.4 million, or 25.0%. The net increase in general and administrative expense was primarily due to higher professional fees (legal and consult) and compensation.
Current wording
**General and administrative.**General and administrative expense was $1.9 million for the three months ended September 30, 2025 compared to $1.6 million for the three months ended September 30, 2024, an increase of $0.3 million, or 18.8%. The net increase in general and administrative expense was primarily due to higher professional fees (IT and consult) and compensation.
Previous wording
**Selling and marketing.**Selling and marketing expense was $1.4 million for the three months ended June 30, 2025 compared to $1.0 million for the three months ended June 30, 2024, an increase of $0.4 million, or 40.0%. The increase was primarily driven by an increase in tradeshow costs, costs related to clinical studies, and payroll cost due to an increase in headcount.
Current wording
**Selling and marketing.**Selling and marketing expense was $1.5 million for the three months ended September 30, 2025 compared to $1.3 million for the three months ended September 30, 2024, an increase of $0.2 million, or 15.4%. The increase was primarily driven by an increase in payroll cost due to commissions related to the new placement program and an increase in headcount.
Previous wording
Research and development. Research and development expense was $4.1 million for the six months ended June 30, 2025 compared to $1.8 million for the six months ended June 30, 2024, an increase of $2.3 million, or 127.8%. The increase was primarily due to significant lobbying costs related to billing code reimbursement, increased headcount, and an increase in product development costs related to next generation systems.
Current wording
Research and development. Research and development expense was $1.8 million for the three months ended September 30, 2025 compared to $0.9 million for the three months ended September 30, 2024, an increase of $0.9 million, or 100.0%. The increase was primarily due to significant lobbying costs related to billing code reimbursement, increased headcount, and an increase in product development costs related to next generation systems.
Previous wording
Other income. Other income of $0.2 million for the three months ended June 30, 2025 and 2024 relates primarily to interest income.
Current wording
Other income. Other income of $0.2 million for the three months ended September 30, 2025 and $0.3 million for the three months ended September 30, 2024 relates primarily to interest income.
Previous wording
**Revenues.**Revenues were $15.7 million for the six months ended June 30, 2025 compared to $19.9 million for the six months ended June 30, 2024, a decrease of $4.2 million, or 21.1%. The decrease was primarily driven by a lower number of units sold to a large customer in the six months ended June 30, 2025 compared to the six months ended June 30, 2024.
Current wording
**Revenues.**Revenues were $22.5 million for the nine months ended September 30, 2025 compared to $28.7 million for the nine months ended September 30, 2024, a decrease of $6.2 million, or 21.6%. The decrease in revenue was primarily driven by a lower number of units sold (56 in the nine months ended September 30, 2025, compared to 76 in the nine months ended September 30, 2024), reflecting reduced sales to a large customer, slightly offset by revenue recognized from the new placement program under the Fair Deal Agreement.
Previous wording
**Cost of sales.**Cost of sales was $8.4 million for the six months ended June 30, 2025 compared to $7.8 million for the six months ended June 30, 2024, an increase of $0.6 million, or 7.7%. The increase in cost of sales was primarily related to higher costs of servicing systems and the cost associated with the new placement program in the six months ended June 30, 2025 compared to the six months ended June 30, 2024.
Current wording
**Cost of sales.**Cost of sales was $12.6 million for the nine months ended September 30, 2025 compared to $11.4 million for the nine months ended September 30, 2024, an increase of $1.2 million, or 10.5%. The increase in cost of sales was primarily related to higher costs of servicing systems and the cost associated with the new placement program under the Fair Deal Agreement, which generates costs related to installation and training in advance of related revenues, in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.
Previous wording
**Gross profit.**Gross profit was $7.3 million for the six months ended June 30, 2025 compared to $12.1 million for the six months ended June 30, 2024, a decrease of $4.8 million, or 39.7%. Our overall gross profit percentage was 46.5% in the six months ended June 30, 2025 compared to 60.8% in the corresponding period in 2024. The decrease in gross profit was primarily driven by lower sales, higher costs of servicing systems, and the cost associated with the new placement program in the six months ended June 30, 2025 compared to the six months ended June 30, 2024.
Current wording
**Gross profit.**Gross profit was $10.0 million for the nine months ended September 30, 2025 compared to $17.3 million for the nine months ended September 30, 2024, a decrease of $7.3 million, or 42.2%. Our overall gross profit percentage was 44.4% in the nine months ended September 30, 2025 compared to 60.3% in the corresponding period in 2024. The decrease in gross profit was primarily driven by lower sales, higher costs of servicing systems, and the cost associated with the new placement program in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.
Previous wording
**General and administrative.**General and administrative expense was $4.2 million for the six months ended June 30, 2025 compared to $3.2 million for the six months ended June 30, 2024, an increase of $1.0 million, or 31.3%. The net increase in general and administrative expense was primarily due to higher professional fees and compensation.
Current wording
**General and administrative.**General and administrative expense was $6.1 million for the nine months ended September 30, 2025 compared to $4.7 million for the nine months ended September 30, 2024, an increase of $1.4 million, or 29.8%. The net increase in general and administrative expense was primarily due to higher professional fees and insurance costs.
Previous wording
**Selling and marketing.**Selling and marketing expense was $3.6 million for the six months ended June 30, 2025 compared to $2.3 million for the six months ended June 30, 2024, an increase of $1.3 million, or 56.5%. The increase was primarily driven by an increase in tradeshow costs, costs related to clinical studies, and payroll cost due to an increase in headcount.
Current wording
**Selling and marketing.**Selling and marketing expense was $5.1 million for the nine months ended September 30, 2025 compared to $3.6 million for the nine months ended September 30, 2024, an increase of $1.5 million, or 41.7%. The increase was primarily driven by an increase in tradeshow costs, payroll cost due to commissions related to the new placement program, and an increase in headcount.
Previous wording
Research and development. Research and development expense was $1.5 million for the three months ended June 30, 2025 compared to $0.9 million for the three months ended June 30, 2024, an increase of $0.6 million, or 66.7%. The increase was primarily due to an increase in product development costs related to next generation systems.
Current wording
Research and development. Research and development expense was $5.9 million for the nine months ended September 30, 2025 compared to $2.7 million for the nine months ended September 30, 2024, an increase of $3.2 million, or 118.5%. The increase was primarily due to significant lobbying costs related to billing code reimbursement, increased headcount, and an increase in product development costs related to next generation systems.
Previous wording
Other income. Other income of $0.4 million for the six months ended June 30, 2025 and 2024 relates primarily to interest income.
Current wording
Other income. Other income of $0.5 million for the nine months ended September 30, 2025 and $0.7 million for the nine months ended September 30, 2024 relates primarily to interest income.
Previous wording
Income taxes. The effective tax rates for the six months ended June 30, 2025 and 2024 were 14.5% and 26.6%, respectively. The decrease in the effective tax rate for the six months ended June 30, 2025 compared to the prior year period was primarily due to an increase in the estimated tax credits that are expected to be generated and utilized.
Current wording
Income taxes. The effective tax rates for the nine months ended September 30, 2025 and 2024 were 31.4% and 27.8%, respectively. The increase in the effective tax rate benefit for the nine months ended September 30, 2025 compared to the prior year period was primarily due to an increase in the estimated tax credits that are expected to be generated and utilized.
Previous wording
Cash and cash equivalents were $22.2 million at June 30, 2025 compared to $22.1 million at December 31, 2024, an increase of $0.1 million. SeeCash Flowsfor details on the change in cash and cash equivalents during the six months ended June 30, 2025.
Current wording
Cash and cash equivalents were $24.5 million at September 30, 2025 compared to $22.1 million at December 31, 2024, an increase of $2.4 million. SeeCash Flowsfor details on the change in cash and cash equivalents during the nine months ended September 30, 2025.
Previous wording
Accounts receivable was $12.6 million at June 30, 2025 compared to $19.7 million at December 31, 2024, a decrease of $7.1 million. The decrease was primarily due to the decrease in sales and concentration of sales to the Company’s primary customer that is subject to extended payment terms.
Current wording
Accounts receivable was $9.3 million at September 30, 2025 compared to $19.7 million at December 31, 2024, a decrease of $10.4 million. The decrease was primarily due to the decrease in sales and concentration of sales to the Company’s primary customer that is subject to extended payment terms.
Previous wording
Inventories was $12.4 million at June 30, 2025 compared to $10.1 million at December 31, 2024, an increase of $2.3 million. The increase was primarily due to the anticipation of increasing future sales.
Current wording
Inventories was $13.0 million at September 30, 2025 compared to $10.1 million at December 31, 2024, an increase of $2.9 million. The increase was primarily due to the anticipation of increasing future sales.
Previous wording
In general terms, liquidity is a measurement of the Company’s ability to meet its cash needs. For the six months ended June 30, 2025, funding was derived primarily from cash generated by the sale of equipment to our customers in the ordinary course of business. The Company believes that proceeds from maturing cash equivalents, as well as the Company’s borrowing capacity under its existing line of credit and access to capital resources are sufficient to meet operating capital and funding requirements for the next 12 months from the date of this quarterly report. Please see Note 3, Debt, to the condensed consolidated financial statements for a discussion regarding the Company’s revolving credit facility with Comerica Bank. The Company’s liquidity position and capital requirements may be impacted by a number of factors, including the following:
Current wording
In general terms, liquidity is a measurement of the Company’s ability to meet its cash needs. For the nine months ended September 30, 2025, funding was derived primarily from cash generated by the sale of equipment to our customers in the ordinary course of business. The Company believes that proceeds from maturing cash equivalents, as well as the Company’s borrowing capacity under its existing line of credit and access to capital resources are sufficient to meet operating capital and funding requirements for the next 12 months from the date this quarterly report was issued. Please see Note 3,Debt , to the condensed consolidated financial statements for a discussion regarding the Company’s revolving credit facility with Comerica Bank. The Company’s liquidity position and capital requirements may be impacted by a number of factors, including the following:
Previous wording
Net cash provided by operating activities was $0.4 million for the six months ended June 30, 2025, consisting of net loss of $3.6 million and non-cash activity of less than $0.1 million, offset by a decrease in net operating assets of $4.1 million, primarily driven by a $7.1 million decrease in accounts receivable and a $3.2 million increase in inventories. Cash flows provided by operating activities primarily include the receipt of revenues offset by the payment of operating expenses incurred in the normal course of business. Non-cash items consisted of stock-based compensation expense, deferred income taxes, provision for product warranties, amortization of right-of-use asset and depreciation and amortization of property and equipment. Net cash used in operating activities was $4.0 million for the six months ended June 30, 2024, consisting of net income of $3.9 million and non-cash charges of $1.1 million, offset by an increase in net operating assets of $9.0 million, primarily driven by a $7.7 million increase in accounts receivable and a $1.0 million increase in inventories. Cash flows provided by operating activities primarily include the receipt of revenues offset by the payment of operating expenses incurred in the normal course of business. Non-cash items consisted of credit loss expense, deferred income taxes, stock-based compensation expense, provision for product warranties, amortization of right-of-use asset and depreciation and amortization of property and equipment.
Current wording
Net cash provided by operating activities was $2.7 million for the nine months ended September 30, 2025, consisting of net loss of $4.6 million and non-cash activity of $0.9 million, offset by a decrease in net operating assets of $8.2 million, primarily driven by a $10.4 million decrease in accounts receivable, a $2.0 million decrease in prepaid inventory, and a $3.7 million increase in inventories. Cash flows provided by operating activities primarily include the receipt of revenues offset by the payment of operating expenses incurred in the normal course of business. Non-cash items consisted of stock-based compensation expense, deferred income taxes, provision for product warranties, amortization of right-of-use asset, credit loss expense, and depreciation of property and equipment. Net cash used in operating activities was $4 thousand for the nine months ended September 30, 2024, consisting of net income of $5.1 million and noncash charges of $0.6 million, offset by an increase in net operating assets of $5.8 million. Cash flows provided by operating activities primarily include the receipt of revenues offset by the payment of operating expenses incurred in the normal course of business. Non-cash items consisted of credit loss expense, deferred income taxes, stock-based compensation expense, provision for product warranties, amortization of right-of-use asset and depreciation and amortization of property and equipment.
Previous wording
Net cash used in investing activities for the six months ended June 30, 2025 reflected $34 thousand of purchases of property and equipment. Net cash used in investing activities for the six months ended June 30, 2024 reflected $0.2 million of purchases of property and equipment.
Current wording
Net cash used in investing activities for the nine months ended September 30, 2025 reflected $38 thousand of purchases of property and equipment. Net cash used in investing activities for the nine months ended September 30, 2024 reflected $0.6 million of purchases of property and equipment.
Previous wording
Net cash used in financing activities for the six months ended June 30, 2025 reflected $0.3 million of repurchases of common stock. Net cash provided by financing activities for the six months ended June 30, 2024 reflected $17 thousand of exercised stock options.
Current wording
Net cash used in financing activities for the nine months ended September 30, 2025 reflected $0.3 million of repurchases of common stock. Net cash used in financing activities for the nine months ended September 30, 2024 reflected $34 thousand of exercised stock options, offset by $47 thousand of withholding taxes on stock-based compensation.
Previous wording
During the first and second quarters of 2025, we continued to experience some increase in commodity and shipping prices and energy and labor costs which resulted in inflationary pressures across various parts of our business and operations, including on our customers, partners, and suppliers. We continue to monitor the impact of inflation and we are taking actions, such as ordering inventory in advance, to minimize its effects on our product cost and sales.
Current wording
During the first three quarters of 2025, we continued to experience some increase in commodity and shipping prices and energy and labor costs which resulted in inflationary pressures across various parts of our business and operations, including on our customers, partners, and suppliers. We continue to monitor the impact of inflation and we are taking actions, such as ordering inventory in advance, to minimize its effects on our product cost and sales.