Senseonics Holdings, Inc. (SENS) Q2 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call shows strong financial performance with a 37% increase in net revenue and improved gross profit margins. Despite a net loss, the company reduced R&D expenses and increased cash position through public offerings. The Q&A section highlights positive retention rates and potential growth from the consignment program and Eon Care. However, there are uncertainties in retention data for the 365 version and revenue impact from Eon Care. Overall, the financial results and strategic initiatives suggest a positive stock price movement in the short term.
Key Financial Performance
Net Revenue $6.6 million in Q2 2025, a 37% increase from $4.9 million in Q2 2024, driven by new Eversense 365 insertions.
Gross Profit $3.1 million in Q2 2025, an increase of $2.8 million from the prior year, due to increased margins on the 365-day product, sales channel mix, and a one-time gain of $0.7 million from VAT recoveries.
Research and Development Expenses $7.7 million in Q2 2025, a decrease of $3.1 million from the prior year, primarily due to reduced clinical study spend and consulting costs after completing the 365-day product trials.
Selling, General and Administrative Expenses $9.7 million in Q2 2025, an increase of $0.7 million from the prior year, driven by sales commission expenses for Ascensia's commercial support.
Net Loss $14.5 million in Q2 2025, a decrease of $5.8 million from $20.3 million in Q2 2024, attributed to improved gross profit margins and reduced R&D costs.
Cash Position $126.7 million as of June 30, 2025, supported by $77.8 million in gross proceeds from a public offering and Abbott investment.
Debt and Accrued Interest $35.3 million as of June 30, 2025.
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Operating Highlights
Eversense 365: The company is focusing on driving awareness and adoption of Eversense 365, a 1-year continuous glucose monitor (CGM). New patient starts increased by 79% year-over-year and 37% from Q1. Leads doubled compared to the prior year, with June leads up 50% over the prior 3-month average. Ascensia hired 12 new inside sales reps to support increased volume.
Gemini and Freedom Systems: Development of Gemini, a self-powered CGM with swipe functionality, is on track for a pivotal study later this year, with a U.S. launch expected by late 2026. Freedom, a CGM with no on-body component, is targeted for launch a year after Gemini.
European Market Expansion: The company expects CE Mark approval for Eversense 365 in Europe and plans to launch later this year. Training of the OUS Ascensia sales team has begun.
Partnerships: Collaborating with Sequel for integration of Eversense 365 with the twiist pump, expected later this year. Plans for additional partnerships with pump manufacturers are underway.
Insertion Network Expansion: Transitioned inserters to the Eon Care network, which now handles 20% of insertions. The network grew by 30% in Q2 and aims to expand to 50 practitioners by year-end and 100 by the end of next year.
Reimbursement Improvements: CMS updated Medicare physician fee schedule to cover a full year of Eversense, leading to increased consignment program business. Some commercial payers are transitioning to bundled payment reimbursement.
Direct-to-Consumer Marketing: Doubling DTC marketing spend to over $10 million in the next two quarters to boost leads and patient growth.
Reverse Stock Split: Plans to seek shareholder approval for a reverse stock split to attract institutional investors and reduce administrative costs.
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Risk or Challenges
Regulatory Approval Delays: The company is awaiting CE Mark approval for Eversense 365 in Europe, which could delay the planned commercial launch and impact revenue growth.
Revenue Dependency on Reorders: The transition from a 6-month to a 1-year product has led to reduced reorder volumes in Q2 and Q3, impacting short-term revenue.
Stock Price and Investor Limitations: The company's low stock price has limited participation from institutional investors and may require a reverse stock split to attract broader investment.
Supply Chain and Tariff Risks: The company is monitoring the impact of tariffs and supply chain issues, which could negatively affect gross profit margins.
High Cash Utilization: Projected cash utilization of $60 million in 2025 could strain financial resources, especially if revenue targets are not met.
Competitive Pressures: The company faces competition in the continuous glucose monitoring (CGM) market, which could impact market share and pricing.
Product Development Risks: Delays or issues in the development and approval of new products like Gemini and Freedom could hinder long-term growth.
Reimbursement Challenges: While Medicare and some commercial payers have adopted bundled payment reimbursement, any changes in reimbursement policies could impact revenue.
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Guidance & Outlook
Revenue Expectations: The company expects full-year 2025 global net revenue to be approximately $34 million to $38 million, with the majority of revenue anticipated in the fourth quarter due to new patient starts and reorders from the first U.S. Eversense 365 patients.
Market Expansion: The company plans to launch Eversense 365 in Europe later this year, pending CE Mark approval, and has begun training the European sales team for readiness.
Product Development: The company is on schedule to start an IDE pivotal study for the Gemini system later this year, targeting a U.S. submission mid-2026 and a commercial launch near the end of 2026. The Freedom program, aiming to deliver a truly invisible CGM, is expected to launch about a year after Gemini.
Marketing and Sales: The company plans to more than double direct-to-consumer (DTC) marketing spend to over $10 million in the next two quarters to boost patient leads and sales conversions. Ascensia has hired additional inside sales reps to support increased volume.
Patient Growth: The company aims to double its global patient base in 2025 compared to 2024, supported by increased DTC marketing and sales efforts.
Reimbursement and Access: Medicare has updated its physician fee schedule to provide payment for a full year of Eversense, and some commercial payers are transitioning to bundled payment reimbursement. The company is expanding its Eon Care network to approximately 50 practitioners by the end of 2025 and 100 by the end of 2026 to improve patient access.
Financial Projections: The company expects full-year gross profit margins between 32.5% and 37.5% and cash utilization of approximately $60 million in 2025.
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Shareholder Return Plan
The selected topic was not discussed during the call.
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Key Q&A
Q:What are the retention rates for Eversense sensors, and what is expected for the 365 version?
A:Retention rates for Eversense sensors are typically 75% from sensor 1 to 2, 85% from sensor 2 to 3, and 95% from sensor 3 and beyond. The retention rate for the 365 version is expected to be higher than the 180 version, but no real data is available yet.
Q:How should consignment as a percentage of total revenue be viewed going forward?
A:The consignment channel is increasing as a percentage of revenue, driven by Medicare pricing and volume growth. However, the growth rate is not expected to be as dramatic in future quarters. ASPs in other channels are expected to improve in the second half of the year as patient assistance programs are less utilized.
Q:What are the retention rates when moving from 90 days to 180 days, and what factors influence them?
A:Retention rates are consistent, with 75% from sensor 1 to 2. About half of the attrition is due to economic factors, such as changes in insurance plans or expiration of patient assistance programs. Retention improves as the product becomes part of the user's life.
Q:What is the mix of diabetics using Eversense, and has it changed?
A:The majority of users are now type 2 diabetics, making up about 75% of users. This shift is due to the long duration and ease of use of the product, which is particularly attractive to type 2 patients on basal insulin.
Q:What is the impact of the consignment program on patient starts?
A:The consignment program helps reduce the upfront cost barrier for doctors, which is expected to increase patient starts. However, providers may use both consignment and traditional channels, so the impact is not solely attributable to consignment.
Q:Is there any revenue contribution from Eon Care, and is it meaningful?
A:Eon Care contributes to procedure revenue, but it is a low single-digit percentage of total revenue. It is expected to grow as Eon Care becomes a larger part of total procedures and as more providers are added.
Q:What is the commercialization plan for the Sequel twiist and Eversense combo?
A:The commercialization involves co-marketing and a development agreement. Both companies have specific responsibilities, and the teams have been preparing for the launch for several months.
Q:What is the design of the upcoming IDE pivotal study for Gemini?
A:The study will validate new features, such as the flash component, without a full longitudinal one-year study since the sensor part is the same as the 365 version. Discussions with the FDA are ongoing.
Q:What is the impact of the CMS proposal for competitive bidding on Eversense?
A:Eversense is not part of the competitive bidding process as it is compensated as a medical benefit under Medicare Part B, not as a DME product. This positions Eversense favorably compared to home-use products subject to competitive bidding.
Q:What is the timeline and scale for the provider transition to Eon Care?
A:Currently, there are around 40 professionals, which will increase to 50 in the next 3-4 months and double again by 2026. This transition is expected to significantly benefit volumes and provide regional coverage for type 2 patients.
Q:Review of Unclear Management Responses
A:Management avoided providing specific data on the retention rates for the 365 version, citing the lack of real data. They also did not provide clear data on the growth impact of the consignment program or the exact revenue contribution from Eon Care, describing it as a low single-digit percentage without further details.
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
Abbott
Ascensia DTC
Care network
DTC marketing
Eon Care
Eversense DME
Eversense insertion
LLC Research
Research Division
TD Cowen
advertising
alarm
area
benefit
channel mix
development progress
development work
effort product
evolution
exercise
favorability
functionality
future
inclusion
initiative
month product
number investor
objective
option
patient start
payment
position
practitioner
reinsertion
reorder
sale channel
shareholder
skin
stock split
twiist pump
volume
SENS Transcript
Senseonics Holdings, Inc. (SENS) Q1 2026 Earnings Call Transcript
Unknown5-8
The earnings call presents mixed signals: while there are positive aspects such as increased revenues, strong retention rates, and seamless transitions, these are counterbalanced by increased expenses, net losses, and vague guidance on partnerships. The Q&A section highlights concerns over partnership timelines and cost efficiencies. The lack of clear guidance and the increase in expenses and net loss weigh down the overall sentiment, leading to a neutral prediction for the stock price movement over the next two weeks.
Senseonics Holdings, Inc. (SENS) Q4 2025 Earnings Call Transcript
Positive3-2
The earnings call summary shows a positive sentiment with a 20% revenue increase and improved gross margins. Despite a net loss, it has narrowed significantly, indicating better cost management. The strategic plan outlines growth expectations and new product launches, which are promising. The lack of clear management responses in the Q&A is a concern but not enough to offset the positive financials and strategic outlook. Overall, the sentiment is positive, anticipating a stock price increase of 2% to 8%.
Senseonics Holdings, Inc. (SENS) Q3 2025 Earnings Call Transcript
Positive11-5
The earnings call highlights strong financial performance with improved gross margins and reduced net loss. The company is expanding its market presence with product launches in Europe and increased DTC marketing spend. Despite some uncertainties in timelines and payer transitions, the guidance is optimistic with expected patient growth and revenue. Positive trends in patient acquisition and competitive dynamics further support a positive outlook. The Q&A section indicates management's confidence in growth opportunities, although some details were vague. Overall, the sentiment is positive, likely leading to a stock price increase of 2% to 8%.
Senseonics Holdings, Inc. (SENS) Q2 2025 Earnings Call Transcript
Positive8-6
The earnings call shows strong financial performance with a 37% increase in net revenue and improved gross profit margins. Despite a net loss, the company reduced R&D expenses and increased cash position through public offerings. The Q&A section highlights positive retention rates and potential growth from the consignment program and Eon Care. However, there are uncertainties in retention data for the 365 version and revenue impact from Eon Care. Overall, the financial results and strategic initiatives suggest a positive stock price movement in the short term.
SENS Report
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