Semler Scientific ((SMLR)) has held its Q1 earnings call. Read on for the main highlights of the call.
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The recent earnings call for Semler Scientific painted a mixed picture of the company’s financial health and strategic direction. While there were notable successes in their bitcoin treasury strategy and stock price appreciation, significant challenges were acknowledged, particularly concerning revenue decline and high operating losses. Despite these setbacks, the company’s ambitious goals for bitcoin holdings and new healthcare initiatives suggest a cautiously optimistic outlook.
Bitcoin Treasury Strategy Success
Semler Scientific’s bitcoin treasury strategy has proven to be a significant success, with the acquisition of 3,808 bitcoins valued at $400 million. This positions the company as the fourth largest bitcoin treasury holder in the U.S. The strategy yielded a 22.2% return in 2025, resulting in a $52 million gain in bitcoin value.
Stock Price Appreciation
Since adopting bitcoin as their primary treasury reserve asset, Semler Scientific has seen its stock appreciate by 64% in less than 12 months. This growth far outpaces the S&P 500, which only saw a 9% increase in the same period, highlighting investor confidence in the company’s strategic direction.
Ambitious Growth Plans for Bitcoin Holdings
Looking forward, Semler Scientific has set ambitious goals for expanding its bitcoin holdings in 2025. This plan is supported by a new $500 million ATM program and a $100 million convertible note financing round, underscoring the company’s commitment to its bitcoin-first strategy.
New Healthcare Initiatives
In addition to its focus on bitcoin, Semler Scientific is targeting growth in its healthcare business. The company plans to diversify its customer base and introduce FDA-cleared products in the cardiovascular space, aiming to offset revenue declines in this segment.
Significant Revenue Decline
The earnings call revealed a significant revenue decline, with total revenues in Q1 2025 falling to $8.8 million, a 44% decrease compared to Q1 2024. This drop is primarily attributed to changes in CMS payments affecting the healthcare business.
High Operating Expenses and Losses
Operating expenses for Q1 2025 were reported at $39.9 million, resulting in a loss from operations of $31.1 million. This is a stark contrast to the previous year’s income from operations of $70 million, highlighting the financial challenges the company faces.
Net Loss and Bitcoin Valuation Impact
Semler Scientific reported a net loss of $64.7 million for Q1 2025, largely due to a $41.8 million net unrealized loss from changes in bitcoin valuation. This underscores the volatility and risk associated with the company’s heavy reliance on bitcoin.
Forward-Looking Guidance
During the earnings call, Semler Scientific provided significant guidance regarding its future strategies. The company reaffirmed its commitment to being a bitcoin-first entity, with plans to further bolster bitcoin acquisitions through a $500 million ATM program. Despite challenges in the healthcare segment, the company aims to leverage cash from this business to support its bitcoin strategy. Additionally, efforts to diversify the healthcare customer base and introduce new products are expected to help mitigate revenue declines.
In conclusion, Semler Scientific’s earnings call highlighted a dual focus on expanding bitcoin holdings and revitalizing its healthcare business. While the company faces significant financial challenges, particularly with revenue decline and operating losses, its strategic initiatives offer a potential path to recovery and growth. Investors will be keenly watching how these strategies unfold in the coming quarters.