Senseonics targets $35M revenue for 2025 while advancing Eversense commercialization and margin expansion

Earnings Call Insights: Senseonics Holdings, Inc. (SENS) Q3 2025

MANAGEMENT VIEW

* Tim Goodnow, President and CEO, opened the call highlighting, "the third quarter was truly exceptional for Senseonics. We're pleased to see the growth in interest and adoption of Eversense 365, supported by Senseonics' DTC campaign and sales efforts. Our third quarter revenue grew by 90% from Q3 last year."
* Goodnow explained that Senseonics executed a memorandum of understanding with Ascensia Diabetes Care to reassume control of Eversense commercialization and emphasized, "Through this change, commercialization efforts will continue to be led by Brian Hansen, who has been appointed as Chief Commercial Officer of Senseonics."
* The company reported that 160% growth in new patient shipments over the prior-year period fueled the 90% year-over-year revenue growth. Direct-to-consumer (DTC) investments drove a 300% increase in patient leads year-over-year and 85% sequentially, with about 60% of new patients coming from DTC advertising in Q3.
* Goodnow noted, "Eon Care delivered a standout quarter, advancing its role as a key strategic driver of insertion capacity, access and standardized patient experience...Eon now represents approximately 1/4 of all insertions nationwide."
* The CEO indicated the CE mark application for Eversense 365 in Europe is in final review and anticipated before the end of 2025, with a launch planned for the first half of 2026 using a new direct sales force.
* Frederick Sullivan, CFO, stated, "In the third quarter of 2025, net revenue grew 90% to $8.1 million compared to $4.3 million in the prior-year period on the strength of top line Eversense 365 U.S. revenue."
* Sullivan also highlighted, "gross profit was $3.5 million, an increase of $7.5 million from the prior-year period. This increase in gross profit was primarily driven by the onetime charges incurred in the prior year as a result of the transition from Eversense E3 to Eversense 365 as well as more favorable margins on the 365-day product sales."

OUTLOOK

* The company expects full year 2025 global net revenue to be approximately $35 million, taking into consideration the timeline for regulatory approval, commercial launch plans for Eversense 365 outside the U.S., continued investment in DTC marketing, reinsertion and pricing dynamics, and other sales and marketing initiatives.
* Sullivan added, "we now expect full year gross profit margins to be between 35% and 40%. As Tim mentioned, we are excited about our margin expansion next year as a result of bringing the commercialization of Eversense back to Senseonics and expect gross profit margins north of 50% next year, growing to approximately 70% or more with scale."
* Management intends to provide initial 2026 guidance in early January.

FINANCIAL RESULTS

* Net revenue for Q3 2025 was $8.1 million, with U.S. revenue at $6.4 million and outside U.S. at $1.7 million.
* Net loss was $19.5 million or a $0.43 loss per share in Q3 2025 compared to a net loss of $24 million or $0.77 loss per share in Q3 2024.
* Cash, restricted cash and cash equivalents as of September 30 were $111.3 million, with debt and accrued interest of $35.3 million.
* Research and development expenses decreased to $7.8 million compared to the prior-year period, attributed to completion of clinical trials and reduced headcount.
* Selling, general and administrative expenses rose to $15.3 million, primarily due to higher personnel, promotional, and sales commission expenses related to DTC investments and consignment sales.

Q&A

* Matthew Miksic, Barclays: Asked about new patient sources and impact of DTC. Goodnow responded that "we are seeing a significant growth in the number of switchers...right around 90%." He detailed that about 60-65% of switchers came from Dexcom and 35-40% from Libre and noted Medicare and commercial pay mix trends.
* Joshua Jennings, TD Cowen: Inquired about insertions network and payer mix. Goodnow stated Eon Care is expanding capacity, and the company expects more private payers to transition to bundled payment reimbursement, with United already having transitioned.
* Anthony Petrone, Mizuho: Questioned DTC spend and new patient trends. Goodnow stated DTC investment levels will be materially consistent in 2026 and that October new patient starts continued the record trend seen in Q3.
* Jonathan Block, Stifel: Asked about 2026 margin and revenue impact from inventory dynamics. Sullivan clarified inventory in the channel will affect revenue recognition in 2026 but margin improvement is expected.
* Xun Lee, H.C. Wainwright: Asked about European business transition. Sullivan responded the company is transitioning current CGM employees and hiring a new sales force, with 365 launch planned for the first half of 2026.

SENTIMENT ANALYSIS

* Analysts were largely positive, focusing on growth opportunities, DTC effectiveness, payer mix, and the upcoming transition of commercial operations. Questions centered on sustainability, competitive dynamics, and execution of strategic initiatives.
* Management maintained a confident tone in both prepared remarks and Q&A, using phrases such as "we are excited about our margin expansion next year" and "we remain committed to expanding access to our unique system and continuing to advance our technology."
* Compared to the previous quarter, the sentiment from both management and analysts was more optimistic, particularly around the transition to direct commercialization and margin prospects.

QUARTER-OVER-QUARTER COMPARISON

* Revenue growth accelerated from 37% year-over-year in Q2 to 90% in Q3.
* Gross profit improved with Q3 gross profit at $3.5 million, compared to $3.1 million in Q2.
* Full year revenue outlook narrowed to $35 million versus the previous $34 million to $38 million range.
* Management's tone shifted from a focus on launch momentum and foundational expansion in Q2 to highlighting record-setting results, commercialization transition, and margin expansion in Q3.
* Analysts increased their focus on DTC effectiveness, patient source details, payer transitions, and the integration of commercial operations.

RISKS AND CONCERNS

* Management cited the need to manage inventory transition from Ascensia and the impact of this dynamic on revenue recognition in early 2026.
* Ongoing monitoring of tariff impacts was noted, with the expectation of mitigating negative effects.
* Analyst concerns included sustainability of DTC-led growth, private payer transition pace, and execution risks associated with commercial team integration and European launch.

FINAL TAKEAWAY

The third quarter of 2025 marked a record-setting period for Senseonics, driven by unprecedented adoption of Eversense 365, robust DTC campaigns, and strategic moves to bring commercialization in-house. Management emphasized ongoing investments in marketing and insertion capacity, projected gross margin improvement, and a narrowed revenue outlook for the year. The transition from Ascensia is set to further expand margins and support growth as the company prepares for a pivotal 2026, with continued advancements in product pipeline and planned international expansion.

Read the full Earnings Call Transcript [https://seekingalpha.com/symbol/sens/earnings/transcripts]

MORE ON SENSEONICS

* Senseonics Holdings, Inc. (SENS) Q3 2025 Earnings Call Transcript [https://seekingalpha.com/article/4838798-senseonics-holdings-inc-sens-q3-2025-earnings-call-transcript]
* Senseonics Holdings, Inc. (SENS) Eversense 365 Commercial Update Call (Transcript) [https://seekingalpha.com/article/4819473-senseonics-holdings-inc-special-call]
* Senseonics Q3 2025 Earnings Preview [https://seekingalpha.com/news/4514545-senseonics-q3-2025-earnings-preview]
* Senseonics to take over global commercial operations for Eversense CGM system [https://seekingalpha.com/news/4492111-senseonics-to-take-over-global-commercial-operations-for-eversense-cgm-system]
* Seeking Alpha’s Quant Rating on Senseonics [https://seekingalpha.com/symbol/SENS/ratings/quant-ratings]