Sensus Healthcare, Inc.
For the period ended Dec 31, 2025. Filed Mar 4, 2026.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2025 · Filed Mar 4, 2026
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-K
Period ended 2024-12-31; filed 2025-03-05.
0001753926-25-000408
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-K
Period ended 2025-12-31; filed 2026-03-04.
0001753926-26-000435
Item 7. 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 41 previous paragraphs and 41 current paragraphs.
23 unchanged; 13 reworded; 5 added; 5 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 4 previous and 4 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 (5)
Current report
Results of Operation
Current report
Revenuesof $27.5 million in 2025 decreased by $14.3 million, or 34%, from $41.8 million in 2024. The decrease in revenue was primarily driven by a lower number of units sold (70 in the year ended December 31, 2025, compared to 115 in the year ended December 31, 2024), reflecting reduced sales to our largest customer, slightly offset by revenue recognized from new placements under the Fair Deal Agreement (the “Program”).
Current report
Research and development expenses of $7.8 million in 2025 increased by $3.6 million, or 86%, from $4.2 million in 2024. 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. The Company expects research and development expenses incurred in 2026 to be substantially lower than those incurred in 2025.
Current report
Inventoriesof $14.6 million at December 31, 2025 increased by $4.5 million, or 44%, from $10.1 million at December 31, 2024. The increase was primarily due to the anticipation of increasing future sales.
Current report
The Company claimed Employee Retention Credits (“ERC”) as provided in the Coronavirus Aid, Relief, and Economic Security Act of 2020 and subsequent amendments. The ERC is a fully refundable payroll tax credit to provide financial incentives to eligible businesses to retain their workforce through the period of financial hardship resulting from the COVID-19 pandemic. The Company received $0.3 million in the second quarter of 2025 and $0.2 million in the fourth quarter of 2024. These amounts were recorded against the payroll expenses in the consolidated statements of (loss) income. Further claims outstanding will be recorded in the period in which payment is received.
Removed paragraphs (5)
Previous report
Results of Operations
Previous report
Revenuesof $41.8 million in 2024 increased by $17.4 million, or 71%, from $24.4 million in 2023. The increase was primarily driven by a higher number of units sold, with 115 units sold in the year ended December 31, 2024 compared to 67 units sold in the year ended December 31, 2023.
Previous report
Research and development expenses of $4.2 million in 2024 increased by $0.5 million, or 14%, from $3.7 million in 2023. The increase was primarily due to higher compensation expenses and existing product development cost offset by a decrease in expenses related to a project to develop a drug delivery system for aesthetic use during 2024.** **
Previous report
Inventoriesof $10.1 million at December 31, 2024 decreased by $1.8 million, or 15%, from $11.9 million at December 31, 2023, primarily due to a shipments of units sold during the year ended December 31, 2024.
Reworded paragraphs (13)
Previous wording
As discussed elsewhere in this Report, Sensus achieved profitability for the first time in 2021, maintained profitability in 2023 and 2024, and seeks to maintain and increase profitability in 2025 by, among other things, increasing sales and managing operational expenses where necessary in order to continue to invest in research and development of new products and marketing initiatives to promote the Company’s products. However, Sensus faces a number of uncertainties in 2025 that could impact our ability to achieve this goal. These include inflation and international trade issues. Either of these matters could adversely affect the Company’s ability to do business in a number of countries and geographic regions, including China.
Current wording
As discussed elsewhere in this Report, Sensus achieved profitability for the first time in 2021, and maintained profitability through 2024. The Company incurred a net loss in 2025, mostly related to lobbying costs to secure reimbursement codes and lower demand particularly from our historically largest customer. Sensus continues to seek to return to profitability in 2026 by, among other things, increasing sales and managing operational expenses where necessary in order to continue to invest in marketing initiatives to promote the Company’s products. SRT reimbursement was just revalued and increased by CMS, effective as of January 1, 2026. Management expects that the new reimbursement codes will increase the demand for the SRT product. However, Sensus faces a number of uncertainties in 2026 that could impact our ability to achieve this goal. These include further decreased demand from its historically largest customer, increased cost due to hiring more sales representatives, continued inflation, and decreased demand for its higher priced SRT device.
Previous wording
Cost of sales of $17.4 million in 2024 increased by $7.1 million, or 69%, from $10.3 million in 2023. The increase in cost of sales was primarily related to a higher number of units sold in the year ended December 31, 2024 compared to the year ended December 31, 2023.
Current wording
Cost of sales of $15.6 million in 2025 decreased by $1.8 million, or 10%, from $17.4 million in 2024. The decrease in cost of sales was primarily related to a lower number of units sold offset by significantly higher costs of servicing systems and the cost associated with new placements under the Program, which generates costs related to installation and training in advance of related revenues.
Previous wording
Gross profit of $24.4 million, or 58.4% of revenue, in 2024 increased by $10.3 million, or 73%, from $14.1 million, or 57.8% of revenue, in 2023. The increase in gross profit was primarily driven by a higher number of units sold in the year ended December 31, 2024 compared to the year ended December 31, 2023.
Current wording
Gross profitof $11.9 million, or 43.3% of revenue, in 2025 decreased by $12.5 million, or 51%, from $24.4 million, or 58.4% of revenue, in 2024. The decrease in gross profit was primarily driven by lower sales, higher cost of servicing systems and the costs associated with new placements under the Program.
Previous wording
General and administrativeexpenses of $7.1 million in 2024 increased by $1.9 million, or 37%, from $5.2 million in 2023. The net increase in general and administrative expense was primarily due to higher compensation, professional fees and bad debt expense, which were offset by a reduction in bank fees and insurance expense.
Current wording
General and administrativeexpenses of $7.9 million in 2025 increased by $0.8 million, or 11%, from $7.1 million in 2024. The net increase in general and administrative expense was primarily due to higher professional fees and insurance costs and compensation costs.
Previous wording
Selling and marketingexpenses of $5.0 million in 2024 decreased by $0.6 million, or 11%, from $5.6 million in 2023. The decrease was primarily attributable to the decrease in marketing agency expense, travel expense, and payroll cost due to lower headcount.
Current wording
Selling and marketingexpenses of $6.5 million in 2025 increased by $1.5 million, or 30%, from $5.0 million in 2024. The increase was primarily driven by increases in tradeshow costs and payroll cost due to increase in headcount.
Previous wording
Other income, net of $0.9 million and $1.0 million in the years ended December 31, 2024 and 2023, respectively, relate primarily to interest income.
Current wording
Other income, net of $0.7 million and $0.9 million in the years ended December 31, 2025 and 2024, respectively, relates primarily to interest income.
Previous wording
Cash and cash equivalents of $22.1 million at December 31, 2024 decreased by $1.0 million, or 4%, from $23.1 million at December 31, 2023. SeeCash flowsfor details on the change in cash and cash equivalents during the year ended December 31, 2024.
Current wording
Cash and cash equivalents of $22.1 million at December 31, 2025 was unchanged as compared to December 31, 2024. SeeCash flowsfor details on the change in cash and cash equivalents during the year ended December 31, 2025.
Previous wording
Accounts receivable, net of $19.7 million at December 31, 2024 increased by $9.1 million, or 86%, from $10.6 million at December 31, 2023, primarily due to the increase in sales to the Company’s primary customer that is subject to extended payment terms.
Current wording
Accounts receivable, net of $6.0 million at December 31, 2025 decreased by $13.7 million, or 70%, from $19.7 million at December 31, 2024. The decrease was primarily due to the decrease in sales and concentration of sales to the Company’s largest customer that are subject to extended payment terms.
Previous wording
In general terms, liquidity is a measurement of the Company’s ability to meet its cash needs. For the year ended December 31, 2024, 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 annual report. Please see Note 3,Debt, to the 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 year ended December 31, 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 provide the Company with access to capital resources sufficient to meet operating capital and funding requirements for the next 12 months from the date of this annual report. Please see Note 3,Debt , to the 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 used in operating activities was $0.8 million for the year ended December 31, 2024, consisting of net income of $6.6 million and non-cash charges of $1.1 million, offset by an increase in net operating assets of $8.5 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. Net cash used in operating activities was $2.1 million for the year ended December 31, 2023, consisting of net income of $0.5 million and non-cash charges of $1.0 million, offset by a decrease in net operating liabilities of $3.6 million. Non-cash charges consisted of credit loss expense, deferred income taxes, stock-based compensation expense, provision for product warranties, amortization of right-of-use asset, depreciation and amortization of property and equipment and gain on sale of assets.
Current wording
Net cash provided by operating activities was $0.5 million for the year ended December 31, 2025, consisting of net loss of $7.7 million and non-cash activities of $0.4 million, offset by an increase in net operating assets of $8.6 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 of property and equipment. Net cash used in operating activities was $0.8 million for the year ended December 31, 2024, consisting of net income of $6.6 million and non-cash charges of $1.1 million, offset by an increase in net operating assets of $8.5 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 during the year ended December 31, 2024 reflected $0.3 million of purchases of property and equipment. Net cash used in investing activities during the year ended December 31, 2023 mainly reflected $0.2 million of purchases of property and equipment.
Current wording
Net cash used in investing activities during the year ended December 31, 2025 reflected $0.2 million of purchases of property and equipment. Net cash used in investing activities during the year ended December 31, 2024 mainly reflected $0.3 million of purchases of property and equipment.
Previous wording
Net cash provided by financing activities during the year ended December 31, 2024 reflected $67 thousand of exercised stock options, offset by $52 thousand of withholding taxes on stock-based compensation. Net cash used in financing activities during the year ended December 31, 2023 reflected $27 thousand of repurchases of common stock and $59 thousand of withholding taxes on stock-based compensation, offset by $46 thousand of exercised stock options.
Current wording
Net cash used in financing activities during the year ended December 31, 2025 reflected $0.3 million of stock repurchase and $5 thousand of withholding taxes on stock-based compensation. Net cash provided by financing activities during the year ended December 31, 2024 reflected $67 thousand of exercised stock options, offset by $52 thousand of withholding taxes on stock-based compensation.
Previous wording
During 2024, increased commodity and shipping prices and energy and labor costs 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 2025, increased commodity and shipping prices and energy and labor costs resulted in minor 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.