Sensus Healthcare, Inc 2026 Q2 Earnings Call

Please go ahead. Good afternoon, and thank you all for joining today's call to discuss Sensus Healthcare's second quarter 2026 financial results.

Joining me from Sensus are Joe Sardano, Chairman and Chief Executive Officer, Michael Sardano, President, Chief Commercial Officer, and General Counsel, and Javier Rampolla, Chief Financial Officer. As a reminder, some of the matters that will be discussed during today's call contain forward-looking statements within the meanings of federal security laws. All statements other than historical facts that address activities Sensus Healthcare assumes, plans, expects, believes, intends, or anticipates, and other similar expressions, will, should, or may occur in the future are forward-looking statements. The forward-looking statements are management's beliefs based upon current available information as of the date of this conference call, August 13, 2026. Sensus Healthcare undertakes no obligations to revise or update any forward-looking statements except as required by law.

All forward-looking statements are subject to risks and uncertainties as described in the company's Forms 10-K, 10-Q, and other SEC filings. During today's call, references will be made to certain non-GAAP financial measures. Sensus believes these measures provide useful information for investors, yet they should not be considered as a substitute for GAAP, nor should they be viewed as a substitute for operating results determined in accordance with GAAP. A reconciliation of non-GAAP to GAAP results is included in today's press release. With that, I'd like to turn the call over to Joe Sardano.

Joe? Thank you, Alex, and good afternoon, everyone.

We appreciate you joining us today. I'll start with the issue that had the biggest impact on our second quarter financial results. During the quarter, we secured equipment orders that we expected to be recognized in Q2. Third-party financing approval was not completed before June 30, as was promised several times, which prevented us from recognizing 19 units and related revenue in the quarter. The good news is that the 8 units in question have since been approved, and the related revenue will be recognized in the third quarter. This bank clearly overcommitted while attempting to impress us to earn and further gain ongoing business from us. They were unable to execute on their promises. We will no longer be working with this bank. More importantly, our commercial momentum strengthened during the quarter.

At the beginning of the year, we laid out five priorities for 2026. Education and training, which is ongoing. Accelerating customer adoption, which is occurring. Expanding recurring revenue, broadening our commercial reach, and driving Sensus towards sustainable profitability. We spent much of the first half educating the market around the new CPT codes and helping physicians understand what the new reimbursement environment means for their practices. We are now seeing that work translate into commercial momentum. Our pipeline is stronger. We are seeing more inbound interests. We are engaging with a broader range of customers, including independent dermatology practices, larger physician groups, and health systems. We are increasingly seeing opportunities with larger organizations that have the potential to adopt SRT across multiple locations during our multiple models. That is the future of our business. We are not looking simply to replace revenue from one customer with revenue from another.

We are building a broader, more diversified customer base that can support sustainable, more predictable growth in a wider geography. The dedicated CPT codes remain a major catalyst for that transition. Physicians now have greater reimbursement clarity and a much better understanding of the economics associated with providing SRT as a non-invasive alternative to Mohs surgery. As practices gain experience with the codes and see reimbursement working in the real world, the conversation increasingly moves from whether they should consider SRT to how they want to incorporate it in their practices. They are also seeing increasing utilization within our Fair Deal Agreement program. For larger groups in particular, the shared service model remains an attractive way to bring SRT into multiple practices while allowing us to participate directly in treatment utilization.

At the same time, we continue to see customers evaluating direct ownership as they understand the economics under the new reimbursement environment. Internationally, we are also seeing growing interest, particularly across Asia Pacific. Michael spent considerable time in the region during the quarter, including Australia, and he will talk more about what we are seeing there in a moment. We entered the second half with considerably more commercial activity than we had entering the year. Our job now is to convert that activity into revenue, and that is exactly where our focus is. With that, I will turn the call over to Michael to provide more detail on what we are seeing in the market and how we are converting these opportunities.

Michael? Thanks, Joe. I would like to start by giving some color on what we are actually seeing in the market, as the nature of our customer conversations has changed considerably since the beginning of the year.

When the dedicated CPT code took effect January 1, our first job was education. Physicians needed to understand the codes, understand the economics, and most importantly, see that reimbursement was actually being paid out. That conversation has changed. Increasingly, we are no longer explaining whether reimbursement works. We are speaking with practices about how they want to bring SRT in. We are seeing growing engagement across independent dermatology practices, larger physician groups, and healthcare systems. Our pipeline strengthened during the quarter as a result of physician education, inbound customer inquiries, and follow-up from the commercial initiatives we have undertaken throughout the year. Importantly, we are increasingly engaging with larger physician organizations and healthcare systems.

These opportunities naturally take longer to develop than a single practice sale, but the potential is also much greater because one relationship can ultimately represent multiple locations and multiple systems. We are spending more time with these organizations because we believe they can become an important part of the next phase of Sensus's growth. Customers also have more ways than ever to access our technology. They can purchase a system outright, utilize financing, enter into a rental arrangement, or participate in our Fair Deal Agreement program. Having those different pathways allows us to meet customers where they are and removes barriers that historically may have delayed adoption. Internationally, I spent a significant amount of time during the quarter developing our opportunities across the Asia-Pacific, particularly in Australia, New Zealand, China, and Hong Kong.

We're seeing growing physician interest in SRT and believe there are attractive opportunities to build the business in these markets over time. China is as strong as ever, but Australia, in particular, has generated strong engagement in just the two conferences that we have attended, and we are actively developing relationships that can support our commercial presence there. To give you some facts, nearly 70% of all Australians will have skin cancer before the age of 70, making it the highest rate of skin cancer on Earth. New Zealand trails close behind, with no other country anywhere near them. This is a market that is prime for growth in SRT. We are going to be disciplined about international expansion, but we see it as another meaningful avenue for diversifying the Sensus business. Our priorities for the second half are straightforward.

Convert the pipeline, expand adoption across a broader customer base, increase utilization of the systems already in the field, and give customers the flexibility they need to bring SRT into their practices. We have considerably more opportunities in front of us today than we did at the beginning of the year. Now it's about conversion. With that, I'll turn the call over to Javier for a review of the financials.