Sensus Healthcare, Inc. Q1 FY2026 earnings call

• Five priorities for 2026: educate market on new reimbursement and train on code utilization, drive customer adoption post CPT code implementation, grow recurring and utilization-based revenue streams, diversify and strengthen commercial model, deliver sustainable profitability. - Shipped 14 SRT systems in Q1, including 10 direct sales and 4 placements under fair deal agreement and rental arrangements. - Treatment volumes increased 8% over Q1 2025. - Introduced Census Link for enhanced workflow, treatment documentation, and operating intelligence, creating recurring revenue opportunity. - Launched Census Healthcare Financial Services for flexible financing options to support customer acquisition. - International markets represent growth opportunity with lower servicing requirements

Revenue for the quarter was $3.4 million compared to $8.3 million in the prior year period. The year-over-year decrease was primarily due to the absence of sales to the historically largest customer and lower unit volumes. Cost of sales was $2.4 million compared to $4 million in the prior year period. Gross profit was $1 million compared to $4.4 million in the prior year period, and gross margin was 29.2% compared to 52.2% in Q1 2025. Adjusted EBITDA for Q1 2026 was negative $4.2 million compared with negative $2.5 million in Q1 2025. Ended the quarter with $18.3 million in cash, no debt, and inventory of $16.5 million

Expect second quarter revenue to be higher than first quarter. Revenue in second half of 2026 to be higher than first half. Anticipate improved financial performance over balance of 2026 with objective of full year profitability

Risks and uncertainties as described in company's SEC filings, including those related to forward-looking statements, market adoption of new codes, and dependence on customer concentration reduction

Q: About largest customer not buying units in Q1 2026 and upside if they come back, and pipeline conversion with new CPT code.

A: Largest customer not included in 2026 model but possibility exists. Tremendous interest due to new codes, but sales cycles involve waiting for EOBs to confirm reimbursement. Leads from AAD conference going into Q2, transitioning to more recurring revenue with CensusLink and fair deal/rental models