SRTS
RadTechSensus Healthcare, Inc.
Chart
At a glance
No thesis note yet.
The call
ThesisWe see the shares as undervalued: at $3.00 they trade at a 23% discount to our $3.67 intrinsic estimate.
ValuationThe DCF is not meaningful here — its terminal year is still cash-flow-negative — so we anchor on the peer EV/EBITDA multiple at $3.67 rather than the raw intrinsic number.
What's priced inAt $3.00, the tape is discounting roughly 16% starting revenue growth versus our 0% — a more aggressive ramp than we underwrite.
LevelsHistory is too thin for a scenario band, so we frame value on the $3.67 point estimate and would look to accumulate below $2.94 (~25% margin of safety).
Risks to ratingKey risks to the rating: the estimate rests on unreviewed tier-default assumptions, not an owner-reviewed model.
Bottom lineBottom line: Speculative accumulate — accumulate below $2.94 toward our $3.67 target. Low-conviction call.
Model-derived synthesis of the computed valuation — not investment advice.
Price & volume signals
Technical signals from price history, for your own read of market timing. These never affect the Estimated Price — they sit apart from the valuation by design.
· Only 47 bars — the 50/200-day averages need more history.
Drafted from official evidence. It does not change the Estimated Price until you approve it.
The official evidence—Sensus’s Q1 2026 10-Q showing a 59% revenue decline to $3.4M, units down to 10 from 21, no sales to a historically large U.S. customer, gross margin collapsing to 29.4% from 53.0%, a $2.6M net loss, and a credit-facility default on the profitability covenant—forces a materially worse near-term revenue growth and EBITDA margin path than the current curve. The 24% operating-expense cut and management’s statement that cash covers 12 months provide only modest support; there is no official guidance or backlog evidence to justify an early recovery. After the first two or three difficult years, the evidence is silent, so the forecast reverts toward the current curve and terminates at the 18% category-normal margin with 2% terminal growth, below the 4% cap.
| Y1 FY2026 | Y2 FY2027 | Y3 FY2028 | Y4 FY2029 | Y5 FY2030 | Y6 FY2031 | Y7 FY2032 | Y8 FY2033 | Y9 FY2034 | Y10 FY2035 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue growth | -40.00% was 0.40% -40.4pp | -20.00% was 0.64% -20.6pp | -5.00% was 0.87% -5.9pp | 0.00% was 1.10% -1.1pp | 0.50% was 1.34% -0.8pp | 0.80% was 1.57% -0.8pp | 1.00% was 1.80% -0.8pp | 1.20% was 2.03% -0.8pp | 1.50% was 2.27% -0.8pp | 2.00% was 2.50% -0.5pp |
| EBITDA margin | -60.00% was -36.36% -23.6pp | -45.00% was -30.32% -14.7pp | -32.00% was -24.28% -7.7pp | -22.00% was -18.24% -3.8pp | -12.00% was -12.20% +0.2pp | -5.00% was -6.16% +1.2pp | 0.00% was -0.12% +0.1pp | 5.00% was 5.92% -0.9pp | 11.00% was 11.96% -1.0pp | 18.00% was 18.00% |
- Y1 · FY2026 — Q1 2026 revenue -59%, units 10 vs 21, no large U.S. customer, gross margin 29.4%; deeply negative EBITDA margin and large negative revenue growth.
- Y2 · FY2027 — No official recovery signal yet; 24% opex cut and inventory build soften the decline, but growth stays negative and margin remains deeply negative.
- Y3 · FY2028 — Evidence silent beyond Q1; revert toward current curve, growth still slightly negative and margin negative.
- Y4 · FY2029 — No new guidance; continue reverting to current curve, growth flat and margin less negative.
- Y5 · FY2030 — Evidence silent; growth turns low-positive but margin remains negative as the current-curve recovery path resumes.
- Y6 · FY2031 — Reverting toward the current curve; margin approaches breakeven while growth stays modest.
- Y7 · FY2032 — No official evidence for acceleration; growth remains modest and EBITDA margin reaches roughly breakeven.
- Y8 · FY2033 — Current-curve recovery continues; margin turns positive on operating leverage, with growth still below the terminal cap.
- Y9 · FY2034 — Evidence silent; margin expands toward category-normal 18%, growth stays modest.
- Y10 · FY2035 — Terminal year at category-normal 18% EBITDA margin and 2% growth, below the 4% terminal-growth cap.
working capital uses the disclosed default rather than this company's own history — its ingested statements do not carry enough years. The rest of the cash-conversion path is derived from its own filings.
Beta 1.12: Healthcare Products unlevered 1.12 (Damodaran, Global, Jan 2026) relevered at this company's own market D/E 0.0%.
Estimate shown is the peer P/S-implied price, not the DCF: the discounted-cash-flow model is not meaningful for this name (terminal value is 300% of enterprise value — past the 85% ceiling, the explicit forecast carries almost none of the answer). Value it on relative multiples and Level-3 assumptions, not the raw DCF.
The DCF path is discarded— its final-year cash flow is negative, so it isn't meaningful. The two struck figures are shown for transparency only; they do not feed the 3.67 estimate.
No reliability rule firing — Level 1 passes through.
Interest expense not ingested — coverage not computed.
Serviceability lens (EBIT ÷ interest) — separate from the WACC and the leverage haircut; never moves the Estimated Price.
Not meaningful — terminal value is 300% of enterprise value — past the 85% ceiling, the explicit forecast carries almost none of the answer; a single-scenario DCF has broken down here.
Shown side by side, never averaged. Headline uses the DCF, with the peer multiple as fallback when the DCF is invalid.
- · No debt on the balance sheet — cost of debt is immaterial to the WACC.
- · DCF not meaningful (terminal value is 300% of enterprise value — past the 85% ceiling, the explicit forecast carries almost none of the answer) — headline falls back to the peer P/S-implied price.
The estimate sits +23% above the market, though the lenses conflict or the data is thin — a low-confidence read, lean on your own judgement.
A reading of the numbers already computed — not a new estimate. It never overrides a method, rule, or approval gate.
Fair value $0.79 — -74% vs price.
Peer-implied $3.67 — +23% vs price; DCF sits -78% vs peer.
DCF not meaningful — a scenario band on a broken DCF would mislead.
Interest coverage not computable — no interest figure ingested.
No reliability rule firing — the Level-1 DCF passes through un-haircut.
Price below its moving averages. Timing only — never part of the value read.
- ·DCF puts intrinsic value at $0.79 (-74% vs price) — reads rich.
- ·Peer multiple implies $3.67 (+23% vs price) — reads cheap.
- ·The DCF and the peer check point in OPPOSITE directions — the two methods disagree on whether the market is mispricing this name.
- ·No scenario band — history is too thin to gauge how assumption-sensitive the estimate is.
Fundamentals
Position
No open position. Record a trade on the Portfolio tab and it flows into this card.
Status
—
SRTS (Sensus Healthcare) is a loss-making superficial-radiotherapy (SRT) device maker, and the story here is demand, not leverage: total debt is zero against $15.2M of cash as of 2026-06-30, so net leverage is negative and the leverage rule does not fire on a drawn-debt basis. The P&L is the problem.
Read more ▾Show less ▴
FY2025 revenue fell 34% to $27.5M with a $7.7M net loss; Q1 2026 revenue fell 59% to $3.4M on 10 units versus 21, with zero sales to a historically large U.S. customer, and gross margin compressed to 29.4% from 53.0% on unfavorable mix plus upfront Fair Deal/rental placement costs. TTM figures are gross profit $11.9M, EBITDA -$10.0M, net income -$7.7M, EPS -$0.47. Because EBITDA and net income are negative and there is no funded leverage, a peer EV/EBITDA or EV/Sales point estimate would be misleading for this name; if it is marked at all, present a distressed range rather than a single number. Note the distress rule as written (high net leverage AND thin/negative margins) is not triggered, since the leverage leg is absent — the caution about mechanical multiples applies on the merits, not because that rule fired. What does fire is concentration. The largest customer was 52% of FY2025 revenue (down from 73% in 2024), and Q1 2026 recorded no sales to that historically large U.S. customer; two U.S. customers were 25% and 24% of Q1 revenue. The entire 2026 thesis rests on the increased CMS SRT reimbursement effective January 1, 2026 reigniting demand from that narrow customer base, offset by heavy lobbying/R&D spend and an inventory build to $16.5M (from $14.6M at FY-end) that has to convert to sales. Management gives only qualitative guidance and explicitly flags risk of further large-customer weakness and softness in higher-priced SRT models. There is no dividend and only a modest ~$3M buyback. Balance-sheet mechanics deserve attention even though leverage screens clean. SRTS was in covenant default on its $15M facility for failing the minimum profitability test, received notice that the Fifth Third facility terminates May 20, 2026, and has replaced it with a new $15M revolver from City National Bank of Florida that matures June 5, 2027 — i.e., inside 12 months of the as-of date — bearing SOFR+3%, secured by $2.23M cash collateral plus a blanket security interest, and carrying a 1.50x minimum debt service coverage covenant plus lender consent for major asset sales, additional debt, liens, or top-leadership changes. The facility is undrawn per the current facts, but the near-dated maturity and tighter covenant package mean renewal risk and operating constraints sit alongside the reimburement bet. Two data gaps should be treated as unknown, not as passing grades. Backlog is not disclosed (null), so book-to-bill cannot be computed; the order-momentum rule cannot be evaluated mechanically, even though units (10 vs 21) and the customer gap point to clearly weak momentum — do not score that rule as satisfied. There are also no recent signals and no disclosed customer-capex or research/biopharma funding data, so the customer-capex-cycle rule is not testable from these inputs. New EDGAR material (Q1 2026 10-Q, FY2025 10-K, and two 8-Ks covering Q2 2026 earnings and the new credit facility) has been detected and ingested.
Single-customer concentration far exceeds 40%: largest customer was 52% of FY2025 revenue (73% in 2024), and Q1 2026 booked no sales to that historically large U.S. customer; two U.S. customers were 25% and 24% of Q1 revenue. With FY2025 revenue down 34% to $27.5M and Q1 2026 down 59% to $3.4M at a 29.4% gross margin, the re-rating case depends on CMS SRT reimbursement (effective 1/1/2026) reviving demand from a very narrow buyer base — a credible threat to the concentration rather than a diversification.
elevated · rule-concentration
New EDGAR filings detected and ingested: Q1 2026 Form 10-Q (59% revenue decline, $2.6M net loss, covenant default and Fifth Third facility termination notice), FY2025 Form 10-K ($7.7M net loss on 34% revenue decline), Form 8-K furnishing the Q2 2026 earnings press release (Exhibit 99.1), and Form 8-K reporting the new $15M City National Bank of Florida revolver (matures 2027-06-05, SOFR+3%, 1.50x minimum DSCR, $2.23M cash collateral and blanket lien).
info · rule-filing
—
Synthesized by deepseek-v4-flash over already-extracted filing facts, trajectory stats, and computed flags. Interpretation only — it moves no valuation number.
Filings & extraction
- 10-QAug 14, 2026Source ↗
Sensus is in a sharp downturn: H1 2026 revenue fell 63.7% to $5.7 million on 16 units versus 40, with the historically large U.S. customer absent, and gross margin dropped to 31.6% as mix shifted internationally and toward Fair Deal/rental placements that defer revenue. The $11.4 million net loss was aggravated by a $4.1 million non-cash deferred tax valuation allowance that reduced net deferred tax assets to zero, while inventory rose $3.9 million to $18.5 million in anticipation of future sales. Cash fell to $15.2 million and operating cash flow was -$6.9 million, but the Company exited a defaulted Fifth Third facility and replaced it with a CNB revolver (no borrowings outstanding, only $2.0 million currently available and secured by restricted cash). Management says liquidity is sufficient for 12 months, but the key swing factors are customer concentration, reimbursement trends, and whether the Fair Deal/rental model can offset lower unit sales.
Show extraction ▾Hide extraction ▴
MD&A highlights- ·Revenues fell 68.5% to $2.3 million in Q2 2026 from $7.3 million in Q2 2025, with units sold down to 6 from 19; no sales were made to a historically large customer, and some systems placed under Fair Deal/rental arrangements defer revenue recognition.
- ·For H1 2026, revenues decreased 63.7% to $5.7 million from $15.7 million on 16 units vs. 40; gross margin compressed to 31.6% from 46.5% (Q2: 34.8% vs. 39.7%) due to product mix, more international shipments, and upfront Fair Deal costs.
- ·Total operating expenses decreased to $3.9 million in Q2 2026 from $4.8 million in Q2 2025, and to $9.3 million from $11.8 million in H1 2026, led by lower R&D, S&M, and G&A costs.
- ·Net loss widened to $8.7 million in Q2 2026 from $1.0 million, and to $11.4 million from $3.6 million in H1 2026; the quarter included $5.7 million of income tax expense primarily from a valuation allowance that eliminated the deferred tax asset (effective tax rate of -185.6%).
- ·Cash, restricted cash, and cash equivalents decreased to $15.2 million at June 30, 2026 from $22.1 million at December 31, 2025, driven by inventory purchases; inventories rose to $18.5 million from $14.6 million due to anticipated future sales.
- ·No borrowings were outstanding under the new $15.0 million CNB revolving credit facility at June 30, 2026.
GuidanceNo quantitative revenue or earnings guidance was provided. Management stated it believes proceeds from maturing cash equivalents, as well as cash on hand, are sufficient to meet operating capital and funding requirements for the next 12 months from the date of this Quarterly Report.
BacklogNo product order backlog is quantified. Remaining performance obligations for service revenue totaled $0.5 million at June 30, 2026 ($0.4 million for H2 2026 and $0.1 million for 2027); product deposits have original expected durations of one year or less.
Debt / leverageAt December 31, 2025, the Company was in default under its prior Fifth Third revolving credit facility for failing the minimum profitability covenant; no borrowings were ever outstanding and the facility was terminated on May 20, 2026. On June 2, 2026, the Company entered a $15.0 million CNB Credit Facility maturing June 5, 2027; during the initial term borrowings are limited to $2.0 million and the remaining $13.0 million is restricted. Borrowings bear interest at SOFR plus 3.00% (6.68% at June 30, 2026), are secured by $2.2 million of restricted cash and a security interest in all assets, and require CNB consent for specified asset sales, additional indebtedness, liens, and removal of the CEO, President, or CFO. A 1.50 minimum debt service coverage ratio would apply if the remaining commitment becomes available. No amounts were outstanding at June 30, 2026.
Key risks- ·The level and availability of government and/or third-party payor reimbursement for clinical procedures using the Company's products, and providers' willingness to buy if reimbursement declines.
- ·Customer concentration in the U.S. and China, including concentration of sales to one U.S. customer that generated 56% of Q2 2025 and 63% of H1 2025 revenue; no sales to that customer were recorded in H1 2026.
- ·Development by others of new products, treatments, or technologies that render the Company's SRT technology partially or wholly obsolete.
- ·Risks from doing business in China and other foreign countries, including U.S.-China geopolitical tensions and tariffs or changes in international trade regulation.
- ·Continued inflationary pressure on commodity, shipping, energy, and labor costs that could impact sales and operations.
- ·Regulatory requirements, including state approval before customers can use products, and the need to obtain/maintain IP and avoid infringing third-party rights.
- ·Potential legal exposure from a Department of Justice Civil Investigative Demand regarding a physician's Medicare billing; the Company disputes wrongdoing and cannot estimate the cost, if any.
Forward-looking · richest in 10-KsOutlook / toneThe Company believes that proceeds from maturing cash equivalents, as well as cash on hand, are sufficient to meet operating capital and funding requirements for the next 12 months from the date this Quarterly Report was issued. Inventories were increased primarily due to the anticipation of increasing future sales. Management continues to monitor inflation and is taking actions, such as ordering inventory in advance, to minimize its effects on product cost and sales.
Strategic priorities- ·Continue marketing the SRT-100, SRT-100+, and SRT-100 Vision devices for non-melanoma skin cancer and post-surgical keloid scar prevention.
- ·Expand the Fair Deal Agreement service model through Sensus Healthcare Services, LLC, in which the Company leases equipment, provides radiation oncology/physicist oversight and on-site operation, and receives a contractual percentage of SRT reimbursement; revenue is recognized over the agreement term.
- ·Management identifies expansion of sales and marketing activities and expansion of research and development activities as primary short-term capital needs.
- ·Mitigate inflation by ordering inventory in advance to reduce effects on product cost and sales.
Capital allocationNo shares were repurchased in H1 2026 (H1 2025: 50,360 shares for $0.3 million) and no cash was used in financing activities in H1 2026; no dividends are disclosed. Treasury stock remained at 593,036 shares at cost of $3.9 million. Management may seek to raise additional funds for current operations, commitments, capital requirements, and business development transactions.
Risk-factor changesItem 1A is omitted because, as a smaller reporting company, the Company is not required to provide risk factor disclosure in this Form 10-Q; no updated risk factor discussion is included in this interim filing.
Extracted by deepseek-v4-flash · Aug 14, 2026
- 8-KAug 13, 2026Item 2.02,9.01Source ↗
This Form 8-K serves only as the vehicle to furnish Sensus Healthcare's Q2 2026 earnings press release (Exhibit 99.1) under Item 2.02; the press release text itself is not included in the provided filing document. The filing also states that non-GAAP financial measures are reconciled in the release. No operational MD&A details, forward guidance, backlog/orders commentary, debt/leverage commentary, capex plans, strategic priorities, outlook narrative, risk-factor changes, or capital-allocation information are available from the 8-K body itself. Investors must refer to Exhibit 99.1 for actual results and management commentary.
Show extraction ▾Hide extraction ▴
MD&A highlights- ·Sensus Healthcare announced its financial results for the second quarter of 2026 via a press release dated August 13, 2026 (Exhibit 99.1).
- ·The press release references certain non-GAAP financial measures, with reconciliation and other financial information provided in the release.
Extracted by deepseek-v4-flash · Aug 13, 2026
- 8-KJun 05, 2026Item 1.01,9.01Source ↗
In this 8-K, Sensus Healthcare disclosed a new $15 million revolving credit facility with City National Bank of Florida, replacing its previously terminated Fifth Third Bank facility. The facility matures June 5, 2027, bears interest at SOFR plus 3%, and is secured by $2.23 million in cash collateral plus a security interest in all assets. Key constraints include a 1.50 minimum debt service coverage ratio and the need for lender consent for major asset sales, additional debt, liens, or changes to top leadership. The filing is solely a financing event; it provides no guidance, backlog, capex, strategic priorities, or forward-looking outlook. The main investor takeaways are the company's continued use of credit availability and the tighter contractual restrictions and collateral obligations tied to the new facility.
Show extraction ▾Hide extraction ▴
MD&A highlights- ·On June 2, 2026, Sensus Healthcare entered into a Loan Agreement with City National Bank of Florida that provides a $15,000,000 revolving credit facility evidenced by a Revolving Promissory Note.
- ·Advances under the facility bear interest at SOFR plus 3% per annum and mature on June 5, 2027, unless extended by mutual agreement of the Company and CNB.
- ·The facility is secured by $2,230,000 of cash collateral and a security interest in all of the Company's assets; the Loan Agreement includes a 1.50 minimum debt service coverage ratio financial covenant.
- ·The Company's previous revolving credit facility with Fifth Third Bank, N.A., as successor to Comerica Bank, has been terminated.
Debt / leverageSensus Healthcare entered a new $15 million revolving credit facility with City National Bank of Florida. Borrowings bear interest at SOFR plus 3% per annum and mature June 5, 2027. The loan is secured by $2,230,000 in cash collateral and a security interest in all of the Company's assets. The agreement requires a minimum debt service coverage ratio of 1.50 and restricts significant actions without CNB consent. The prior Fifth Third Bank facility has been terminated.
Key risks- ·The Loan Agreement requires City National Bank's prior written consent for the Company to sell or transfer assets outside the ordinary course of business, incur other indebtedness (subject to exceptions), encumber assets with liens, or remove the current Chief Executive Officer, President, or Chief Financial Officer.
- ·If the Company fails to maintain the required 1.50 debt service coverage ratio or otherwise breaches covenants, CNB could accelerate all outstanding advances, terminate the facility, and exercise remedies against the collateral.
- ·Because the loan is secured by substantially all Company assets, a default could materially jeopardize the Company's asset base.
Extracted by deepseek-v4-flash · Aug 01, 2026
- 10-QMay 13, 2026Source ↗
Sensus Healthcare's Q1 2026 reflected a sharp 59% revenue decline to $3.4M (units sold fell to 10 from 21, with no sales to a historically large U.S. customer) and gross margin deterioration to 29.4% from 53.0% due to unfavorable mix and upfront costs of Fair Deal/rental placements. Operating expenses were cut roughly 24%, but the company still posted a $2.6M net loss, approximately flat year-over-year. Liquidity is adequate near-term ($18.3M cash, no borrowings), though the company was in default on its $15M credit facility for failing the minimum profitability covenant and received notice the facility terminates May 20, 2026. Inventories rose to $16.5M on anticipation of higher future sales; remaining performance obligations were modest at ~$0.55M of service revenue. Customer concentration remains a key risk (two U.S. customers were 25% and 24% of revenue). No formal financial guidance was provided.
Show extraction ▾Hide extraction ▴
MD&A highlights- ·Revenues decreased 59.0% to $3.4 million for Q1 2026 from $8.3 million in Q1 2025, driven by lower units sold (10 vs. 21) with no sales to a historically large customer and revenue recognized over time for Fair Deal/rental placements.
- ·Gross profit fell 77.3% to $1.0 million; gross margin was 29.4% vs. 53.0% due to product mix, including higher international shipments at lower average selling prices and upfront costs of Fair Deal/rental placements.
- ·Operating expenses decreased to $5.3 million from $7.0 million: G&A down 9.1% (lower professional fees), selling and marketing down 22.7% (lower tradeshow expenses), and R&D down 42.0% (lower lobbying, headcount, and product development).
- ·Net loss was $2.6 million ($0.16 per share) for Q1 2026 vs. $2.6 million ($0.16 per share) in Q1 2025.
- ·Cash and cash equivalents were $18.3 million at March 31, 2026 vs. $22.1 million at December 31, 2025; net cash used in operating activities was $3.8 million.
- ·Inventories increased by $1.9 million to $16.5 million 'due to the anticipation of increasing future sales.'
- ·Effective tax rate was 37.9% vs. (4.5%), driven by projected full year income and lower estimated tax credits.
BacklogRemaining performance obligations for product deposits have original expected durations of one year or less; estimated future service revenue to be recognized was $0.55 million as of March 31, 2026 ($0.515 million in remainder of 2026 and $0.035 million in 2027).
Debt / leverageThe Company had no borrowings outstanding under its Comerica/Fifth Third revolving credit facility ($15 million capacity, SOFR + 2.50%) at March 31, 2026 or December 31, 2025, but was in default for failing to maintain the required minimum profitability covenant and was consequently unable to borrow. On May 8, 2026, the Company received notice that the Credit Facility will terminate effective May 20, 2026.
Key risks- ·Concentration of customers in the U.S. and China, including concentration of sales to one particular U.S. customer (two U.S. customers accounted for 25% and 24% of Q1 2026 revenue).
- ·The level and availability of government and/or third-party payor reimbursement for clinical procedures using our products, and willingness of providers to purchase if reimbursement declines.
- ·Development by others of new products, treatments, or technologies that render our technology partially or wholly obsolete.
- ·Risks arising from doing business in China and other foreign countries, including ongoing geopolitical tensions between the U.S. and China.
- ·Legislation, regulation, or governmental action affecting products, taxes, or international trade, including tariffs on exported equipment or imported materials.
- ·Inflationary pressures continuing to impact sales; company is ordering inventory in advance to minimize effects on product cost and sales.
- ·The Company was in default under its Credit Facility and unable to borrow; facility is set to terminate.
Forward-looking · richest in 10-KsOutlook / toneThe Company believes 'proceeds from maturing cash equivalents, as well as cash on hand are sufficient to meet operating capital and funding requirements for the next 12 months from the date this Quarterly Report was issued.' It increased inventories 'due to the anticipation of increasing future sales.' Management also stated it believes deferred tax assets are more likely than not realizable, but changes in operating performance, including 'seasonal variability or declines in revenue,' could result in a valuation allowance.
Strategic priorities- ·Commercialize the SRT-100, SRT-100+, and SRT-100 Vision devices for non-invasive treatments of non-melanoma skin cancer and post-surgical keloid scar prevention.
- ·Expand the 'Fair Deal Agreement' service model through Sensus Healthcare Services, LLC, which provides leased equipment, radiation oncology and physicist oversight, and on-site device operation in exchange for a contractual percentage of SRT reimbursement.
- ·Primary short-term capital needs include expenditures for expansion of sales and marketing activities and expansion of research and development activities.
Capital allocationNo shares were repurchased in Q1 2026; in Q1 2025 the Company repurchased 50,360 shares in open market transactions for $0.3 million. No dividends or other capital allocation programs were disclosed.
Extracted by deepseek-v4-flash · Aug 01, 2026
- 8-KMay 07, 2026Item 2.02,9.01unprocessedSource ↗
Facts ingested; qualitative extraction pending.
View all filings (+12) ▾Hide older / routine filings ▴
- 8-KJun 02, 2026Item 5.07routineSource ↗
Routine 8-K — kept for the record, not extracted.
- 10-KMar 04, 2026Source ↗
SRTS swung to a $7.7 million net loss in 2025 on a 34% revenue decline to $27.5 million, driven by a sharp drop in units (70 vs 115) centered on its largest customer (52% of revenue vs 73% in 2024), plus heavy lobbying/R&D spending tied to securing new CMS reimbursement codes. Management is guiding only qualitatively: it expects the newly increased SRT reimbursement effective January 1, 2026 to reignite demand and plans to return to profitability in 2026 by growing sales and controlling expenses, but it explicitly flags risks of further large-customer weakness, higher selling costs, inflation and softness in higher-priced SRT models. Liquidity is adequate ($22.1 million cash, $15 million undrawn revolver), though the company was in covenant default at year-end for failing the minimum profitability test and is evaluating the impact of Comerica's acquisition by Fifth Third. Inventories were built up 44% to $14.6 million in anticipation of demand. With no dividend and only a modest $3 million buyback, the investment case hinges on whether the 2026 reimbursement uplift can offset customer concentration and restore sustainable profitability.
Show extraction ▾Hide extraction ▴
MD&A highlights- ·Revenue decreased 34% to $27.5 million in 2025 from $41.8 million in 2024; units sold fell from 115 to 70, reflecting reduced sales to the largest customer, partly offset by Fair Deal Agreement placements.
- ·Gross profit fell 51% to $11.9 million (43.3% of revenue) from $24.4 million (58.4%) due to lower sales, higher servicing costs and upfront costs for new Fair Deal placements.
- ·Net loss was $7.7 million versus 2024 net income of $6.6 million; the loss was 'mostly related to lobbying costs to secure reimbursement codes and lower demand particularly from our historically largest customer.'
- ·R&D expense rose 86% to $7.8 million, driven by lobbying/billing-code reimbursement costs, increased headcount and next-generation product development; management expects 2026 R&D to be substantially lower.
- ·Cash and cash equivalents were flat at $22.1 million; accounts receivable fell 70% to $6.0 million; inventories rose 44% to $14.6 million in anticipation of increasing future sales.
- ·CMS revalued and increased SRT reimbursement effective January 1, 2026; the July proposal of new CPT codes 'significantly impacted 2025 sales numbers' as customers anticipated use of the new codes in 2026.
GuidanceNo quantitative guidance provided. Management expects R&D expenses in 2026 to be 'substantially lower' than 2025, expects new CMS reimbursement codes to 'increase the demand for the SRT product,' and 'continues to seek to return to profitability in 2026' through increased sales and managing operating expenses.
BacklogNo order backlog is disclosed. Remaining performance obligations for service revenue totaled $501k at December 31, 2025 ($491k expected in 2026 and $10k in 2027); deposits for products have original expected durations of one year or less.
Debt / leverageThe Comerica Bank revolving credit facility provides maximum borrowings of $15 million (increased from $10 million in October 2024), with no borrowings outstanding at December 31, 2025 or 2024. Borrowings bear interest at SOFR plus 2.50% (6.37% at year-end) and are due on demand. The facility requires unencumbered liquid assets of at least $10.0 million, minimum profitability of $1 on a trailing 12-month basis, and the RbM manufacturing relationship. At December 31, 2025, the Company was in default under the Credit Facility for failing to maintain the required minimum profitability covenant; it was compliant at December 31, 2024. In February 2026, Comerica was acquired by Fifth Third and the Company is evaluating any impact.
Key risks- ·Customer concentration: one U.S. customer accounted for 52% of 2025 revenue (73% in 2024) and 65% of accounts receivable; loss or reduced business could cause significant fluctuations.
- ·Reimbursement risk: if third-party payors do not provide coverage and adequate reimbursement, products are unlikely to be widely used and revenue would be negatively impacted.
- ·Product concentration: substantially all revenue is from the SRT-100 product line and related products; any decline in these sales would materially harm results.
- ·Single preferred supplier for x-ray tubes and other major components; loss of this supplier could hinder production and commercialization.
- ·Profitability risk: the Company has a history of net losses, reported a $7.7 million net loss in 2025, and there can be no assurance it will return to or sustain profitability.
- ·Technology/competition risk: new products, treatments or technologies, including AI, machine learning and automation, could render the Company's technology obsolete or reduce market share.
Forward-looking · richest in 10-KsOutlook / toneManagement is cautiously optimistic but explicitly hedged. It states it 'expects that the new reimbursement codes will increase the demand for the SRT product' and 'continues to seek to return to profitability in 2026 by, among other things, increasing sales and managing operational expenses where necessary.' At the same time, it warns that '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.'
Strategic priorities- ·Return to profitability in 2026 by increasing sales and managing operational expenses while continuing to invest in marketing initiatives to promote products.
- ·Expand commercial offering through Sensus Healthcare Financial Services (launched February 2026), a third-party bank financing program intended to improve conversion of purchase-oriented prospects and support a scalable go-to-market strategy as demand accelerates under the new reimbursement environment.
- ·Launch Sensus Link (February 2026), a cloud-based software and connectivity solution for the SRT-100 installed base to enhance workflow, treatment documentation and operating intelligence across both direct purchase and Fair Deal Agreement customers.
- ·Grow the Fair Deal Agreement recurring revenue program, which provides a revenue-share turn-key solution with equipment, radiotherapy technologists and physicist oversight.
- ·Continue multi-tier sales strategy targeting private dermatology practices and radiation oncologists in both private and hospital settings, alongside international dealers and distributors.
Capex / expansionNo specific capex plans or timelines are disclosed. Cash used in investing activities was $0.2 million in 2025 (2024: $0.3 million), primarily for purchases of property and equipment; construction in progress was $228k at December 31, 2025.
Capital allocationNo dividends have ever been declared or paid, and the Company 'does not anticipate paying any cash dividends on its common stock in the foreseeable future,' expecting to retain earnings for growth. A $3.0 million share repurchase authorization from August 2023 remains active with no time limit; 50,360 shares were repurchased for $0.3 million in 2025, with no repurchases in Q4 2025. No M&A appetite or other capital-allocation plans are disclosed, and the credit facility restricts dividends/distributions without lender consent.
Risk-factor changesThe Risk Factors section reflects the 2025 net loss: after profitability from 2021 through 2024, the Company 'reported a net loss of $7.7 million during the year ended December 31, 2025' and there can be no assurances of returning to profitability. It also adds that the Company 'has experienced, and expects to continue to experience, cyber security threats and incidents, none of which have been material to the Company to date,' and cites emerging technological trends such as artificial intelligence, machine learning and automation as competitive risks. Customer concentration is updated to show one U.S. customer at 52% of 2025 revenue (73% in 2024).
Extracted by deepseek-v4-flash · Aug 01, 2026
- 8-KFeb 12, 2026Item 2.02,9.01unprocessedSource ↗
Facts ingested; qualitative extraction pending.
- 8-KJan 20, 2026Item 4.01,9.01unprocessedSource ↗
Facts ingested; qualitative extraction pending.
- 8-KJan 12, 2026Item 5.02,9.01routineSource ↗
Routine 8-K — kept for the record, not extracted.
- 8-KNov 13, 2025Item 5.02,9.01routineSource ↗
Routine 8-K — kept for the record, not extracted.
- 10-QNov 12, 2025Source ↗
Sensus Healthcare's Q3 2025 shows a sharp profitability pullback: revenue fell 21.6% on lower unit sales, gross margin compressed from 59.1% to 39.1%, and R&D spending doubled, producing a net loss of $0.9M versus a $1.2M profit a year earlier. The business is highly concentrated in one U.S. customer (62% of YTD revenue, 86% of receivables), and the company received a covenant default waiver from Comerica in September. Positives include a debt-free balance sheet with $24.5M cash, positive operating cash flow, and early-stage growth initiatives (Fair Deal placement program, Sensus Healthcare Services leasing subsidiary) that could diversify revenue but are currently margin-dilutive. No formal FY2025 guidance was provided, though management sees sufficient liquidity for the next twelve months and expects a high effective tax rate due to R&D credits.
Show extraction ▾Hide extraction ▴
MD&A highlights- ·Revenue decreased 21.6% in both Q3 and 9M 2025, to $6.9M and $22.5M, on lower unit sales (16 vs 27 and 56 vs 76), reflecting reduced sales to a large customer, partially offset by the new placement program under the Fair Deal Agreement.
- ·Gross margin fell to 39.1% in Q3 from 59.1% and to 44.4% YTD from 60.3%, due to lower sales, higher service costs, and upfront installation/training costs of the placement program.
- ·R&D expense rose 100% in Q3 and 118.5% YTD, driven by lobbying for billing code reimbursement, higher headcount, and next-generation product development.
- ·One U.S. customer concentration is extreme: 59% of Q3 revenue, 62% of 9M revenue, and 86% of accounts receivable.
- ·The Company recorded a net loss of $0.9M in Q3 vs net income of $1.2M a year ago; 9M net loss was $4.6M vs income of $5.1M.
- ·Cash and cash equivalents increased to $24.5M from $22.1M at year-end, with $2.7M of operating cash flow in 9M 2025.
- ·Comerica Bank waived a default under the revolving credit facility caused by a minimum profitability covenant breach at June 30, 2025.
- ·The Company formed Sensus Healthcare Services, LLC to provide leased equipment and operational services to dermatology clinics.
BacklogRemaining performance obligations for service revenue totaled $588 thousand as of September 30, 2025, with $258 thousand expected in 2025, $320 thousand in 2026, and $10 thousand in 2027; product deposits have original expected durations of one year or less.
Debt / leverageThe Company has a $15 million revolving credit facility with Comerica Bank (amended in October 2024), with no borrowings outstanding at September 30, 2025. It is secured by all assets, bears interest at SOFR plus 2.50% (6.74% at quarter end), and is due on demand. Financing covenants require at least $10.0 million of unencumbered liquid assets in a Comerica account, minimum trailing-12-month profitability of $1, and the SRT-100 manufacturing agreement. On September 26, 2025, Comerica waived a default for failing the minimum profitability covenant as of June 30, 2025.
Key risks- ·One U.S. customer accounted for 62% of revenue for the nine months ended September 30, 2025 and 86% of accounts receivable; reduced sales from this customer drove the revenue decline.
- ·The level and availability of government and/or third-party payor reimbursement for clinical procedures using our products, and the willingness of healthcare providers to purchase our products if reimbursement declines.
- ·An ongoing Department of Justice investigation related to a physician's Medicare billing using the SRT-100; the Company received Civil Investigative Demands and disputes wrongdoing; no cost estimate is possible.
- ·The Company was in default under its Comerica revolving credit facility for failing to maintain the minimum profitability covenant as of June 30, 2025; Comerica waived the default but the facility remains subject to demand repayment and secured by all assets.
- ·Risks from doing business in China, tariffs, and trade regulations; China revenue was only $1.2M YTD but remains a risk.
- ·Inflationary pressures on commodity, shipping, energy, and labor costs could impact margins; the Company is ordering inventory in advance to mitigate.
Forward-looking · richest in 10-KsOutlook / toneThe 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. 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.
Strategic priorities- ·Expansion of sales and marketing activities.
- ·Expansion of research and development activities, including next generation systems and lobbying for billing code reimbursement.
- ·New placement program under the Fair Deal Agreement to place equipment with customers, generating installation and training costs in advance of revenues.
- ·Growth of Sensus Healthcare Services, LLC for leased equipment and operational healthcare services, including radiation oncology and physics oversight and radiotherapy technologists.
Capital allocationDuring the nine months ended September 30, 2025, the Company repurchased 50,360 shares of common stock in open market transactions for $0.3 million; no shares were repurchased in Q3. No dividends were paid. The Company states its primary short-term capital needs are for expansion of sales and marketing and research and development activities, and management regularly evaluates cash requirements for operations, commitments, capital requirements, and business development transactions.
Risk-factor changesThe filing incorporates the risk factors from the 2024 Annual Report and subsequent quarterly reports and states they are not the only risks facing the Company; no material changes to risk factors are described for this quarter.
Extracted by deepseek-v4-flash · Aug 01, 2026
- 8-KNov 06, 2025Item 2.02,9.01unprocessedSource ↗
Facts ingested; qualitative extraction pending.
- 10-QAug 12, 2025unprocessedSource ↗
Facts ingested; qualitative extraction pending.
- 8-KAug 07, 2025Item 2.02,9.01unprocessedSource ↗
Facts ingested; qualitative extraction pending.
- 8-KJun 02, 2025Item 5.07routineSource ↗
Routine 8-K — kept for the record, not extracted.
- 10-QMay 15, 2025unprocessedSource ↗
Facts ingested; qualitative extraction pending.
News & signals
No signals for this name.
Illustrative data where noted. Not investment advice.