Q2 2025 Senseonics Holdings Inc Earnings Call
Please note today's call will be recorded and I'll be standing by should you need any assistance.
And it's now my pleasure to turn the conference over to Jeremy Feffer from life side Visors. Please go ahead.
Thank you. This is Jeremy feffer from life side Visors before we begin today, let me remind you that the company's remarks include forward looking statements.
These statements reflect management's expectations about future events operating plans regulatory matters product enhancements company performance and other matters and speak only as of the date hereof.
These forward looking statements involve a number of risks and uncertainties a list of the factors that could cause actual results to be materially different from those expressed or implied by any of these forward looking statements is detailed under risk factors and elsewhere in our annual report on Form 10-K for the year ended December 31, 2024, and our 10-Qs and our.
Other reports filed with the SEC.
These documents are available on the Investor Relations section of our website at Www Dot <unk> Dot com, we undertake no obligation to update publicly or revise these forward looking statements for any reason, except as required by law joining.
Joining me today from <unk> are Tim Goodnow, President and Chief Executive Officer, and Rick Sullivan, Chief Financial Officer.
Please stand by your program is about to begin if you need assistance, on today's conference, please press star zero.
I'll now turn the call over to Tim.
Thanks, Jeremy and thank you to everyone on the call for joining us today in the second quarter, we executed on a number of programs to drive shareholder value and position <unk> for long term growth, Rick and I will walk you through these initiatives today.
Good day, everyone and welcome to cinc second quarter 2025 earnings call.
At this time, all participants are in a listen-only mode.
Later, you will have the opportunity to ask questions during the question-and-answer session.
One of our main objectives is to drive ever since awareness and adoption and we're doing this by further supporting our product with added Cynthia Onyx commercial investment additions.
Assistance and is now my pleasure to turn the conference over to Jeremy, fur from Life side advisors, please go ahead.
Additional objectives include enhancing $3 65 access with the <unk> build out while expanding capabilities with our device integration efforts in advancing our key product development pipeline programs, we are making solid progress across each of these areas.
Thank you. This is Jeremy fur from Life side, advisors, before we begin today, let me remind you that the company's remarks include forward-looking statements,
Q2 completes two quarters with ever since $3 65 on the U S market and we continue to be pleased with our launch momentum.
these statements reflect Management's, expectations about future events. Operating plans regulatory matters, product enhancements company, performance and other matters, and speak only as of the date of
We expect that through expanded DTC marketing more people learn about the unique performance attributes and convenience of our one year sensor, resulting in more people choosing ever since to help manage their diabetes.
In Q2, we saw meaningful progress in that direction.
These forward-looking statements involve a number of risks and uncertainties a list of the factors that could cause actual results to be materially different from those expressed or implied by any of these. Forward-looking statements is detailed under risk factors and elsewhere in our annual report on form. 10K for the year-end December, 31st 2024, and our 10 cues and our other reports filed with the SEC.
Our new patient starts were up 79% over the prior year and 37% from Q1.
Leads were more than doubled over the prior year and June leads were up 50% over the prior three month average.
These documents are available on the investor relations section of our website at www.sense.org.
We are seeing true acceleration in the growth of ever since the expanded DTC and we plan to continue to augment our sense is DTC spending through the remainder of this year.
Joining me today from senseonics are Tim goodno, president and chief executive officer and Rick Sullivan Chief Financial Officer.
I'll now turn the call over to Tim.
Thanks, Jeremy. And thank you to everyone on the call for joining us today.
To support this increased volume of Cynthia has hired a dozen new inside sales reps to handle these calls.
Our plan is for the increased DTC spending to expand awareness and the enhanced inside sales capacity to support sales conversion combining directly to translate into increased new patient starts.
In the second quarter, we executed on a number of programs to drive shareholder value and position Senseonics for long-term growth. Rick and I will walk you through these initiatives today.
One of our main objectives is to drive awareness and adoption. We're doing this by further supporting our product with added Senseonics commercial investment.
We expect that these results to be bolstered by ever since reorders in the U S in the fourth quarter.
Recall that in transitioning from a six month to one year product the cadence for repeat ever since users to have a new center inserted as change to a 12 months cycle.
Additional objectives include enhancing 365 access with the Aeon care buildout while expanding capabilities with our device integration efforts and advancing our key product development pipeline programs, we are making solid progress across each of these areas.
Instead of coming back for re insertion in 180 days users now returning 365 days.
This means that following the Q4 launch of ever since 365, our overall U S shipments during Q2, and Q3 naturally reflected significantly reduced reorder volume compared with the prior year.
Therefore, nearly all sensors sold in Q2 and Q3 are for new patient starts.
Q2 completes 2 quarters with ever since 365 on the US market and we continue to be pleased with our launch momentum. We expect that through expanded DTC marketing more people will learn about the unique performance attributes and convenience of our 1 year, sensor resulting, in more people choosing ever since to help manage their diabetes.
In Q2, we saw a meaningful progress in that direction.
In Q4 with the first 365 adopters coming up for their next insertion.
Reorders will make more meaningful contributions to sales.
Our new patient starts. We're up 79% over the prior year and 37% from q1.
Beyond the U S launch execution, we are advancing a series of initiatives to broaden access support adoption and enhance the user experience.
Leads were more than doubled over the prior year and June leads were up. 50% over the prior 3-month average.
We continue to expect our development work to translate into CE Mark approval for ever since $3 65 in Europe and.
We are seeing true acceleration in the growth of our direct-to-consumer (DTC) efforts. We plan to continue to augment Ascent's DTC spending for the remainder of the year.
And we are planning for the European launch later this year.
We have begun training the O U S as Cynthia sales team to be ready upon approval.
To support this increased volume, asencia has hired, a dozen new inside, sales reps to handle these calls.
We anticipate this will translate into more people in more markets, having access to the promise of one year one sensor.
Additionally, we are collaborating with other companies to further improve the market presence of ever sense of $3 65.
Our plan is for the increased DTC spending to expand awareness and the enhanced Insight sales capacity to support sales. Conversion combining directly to translate into increased new patient starts.
We expect that these results to be bolstered by ever since reorders in the US in the fourth quarter.
Last month seek will began our launch of their twits pump and we announced during the quarter. Our respective development teams are collaborating on the final integration work and we expect to see the ever sent 365 available for use with a twist pump later this year.
Recall that in transitioning from a 6-month to 1 year product the Cadence for repeat ever since users to have a new center inserted has changed to a 12-month cycle.
We believe combining the advanced technologies of both companies will offer a real differentiation and unique benefits to people with diabetes.
Instead of coming back or reinsertion in 180 days users. Now, returning, 365 days.
We all know that our users have to monitor their carb intake exercise and their glucose levels to determine the safe amount of insulin they need.
This means that following the Q4 launch of EverSense 365, our overall U.S. shipments during Q2 and Q3 naturally reflected significantly reduced reorder volume compared with the prior year.
This constant management requires significant patient involvement and through the integration of ever since with the sequel twists pump patients can simplify their lives.
Therefore nearly all sensors sold in Q2 and Q3 are for new patient starts.
In Q4, with the first 365 adopters coming up for their next insertions.
<unk> diabetes overhead distress, the CGM complexity for an entire year and rest assured that the world's most advanced diabetes technology is working for them.
Reorders will make more meaningful contributions to sales.
The integration with a twist pump is the first of multiple partnerships, we hope to announce the pump manufacturers and other parties.
Beyond the US launch execution. We are advancing a series of initiatives to broaden, access support adoption, and enhance the user experience.
With the worlds first and only $3 65 to a continuous glucose monitor approved as an IC GM, we have a unique and convenient offering to integrate with any pump on the market and we look forward to announcing updates in the future.
We continue to expect our development work to translate into CE Mark approval for EverSense 365 in Europe.
And we are planning for the European launch later this year.
We have begun training, the O Us asencia sales team to be ready upon approval.
And another important initiative, we continue working to make it easier for patients to have access to ever since and for physicians to prescribe it during.
We anticipate this will translate into more people in more markets having access to the promise of 1 year 1 sensor.
During Q2, we completed the planned transition of <unk> from a nurse practitioner group to E on care, our network of providers that can perform ever since $3 65, an assertion procedures.
65.
The goal of this initiative is threefold.
To make it more convenient for interested people with diabetes to be served by <unk>.
To enable practitioners, who want to prescribe our product, but not insert to simply do so and third to ensure a consistent high quality insertion experience.
Last month, SQL began a launch of their Twist pump, and we announced during the quarter. Our respective development teams are collaborating on the final integration work, and we expect to see the Eversense 365 available for use with a Twist pump later this year.
We Believe combining the Advanced Technologies of both companies will offer a real differentiation and unique benefits to people with diabetes.
Following the transition from NPG R. E on care network has nearly 40 strong and handles approximately 20% of our assertions.
We all know that our users have to monitor their carb intake and exercise and their glucose levels to determine the safe amount of insulin. They need
The volume of insertion through we incur continues to grow increasing nearly 30% in Q2 versus Q1 this year.
With the foundation <unk> established we are working to quickly expand it.
this constant management requires significant patient involvement, and through the integration of ever. Since with the sequel twist, pump patients can simplify their lives.
Our current goal is to increase this network to approximately 50 practitioners by the end of this year and roughly 100 by the end of next year.
Simplify the diabetes overhead de-stress the CGM complexity for an entire year. And rest assured that the world's most advanced diabetes technology is working for them.
Through the combination of <unk> nurses and prescribing providers perform their own insertions, we continue to add further insertion depth and breath targeting the major U S geographies.
The integration with the twist pump is the first of multiple Partnerships. We hope to announce with pump manufacturers and other parties.
Our aim is to ensure that anyone who wants ever since 365 has a convenient option to access it.
With the world's first and only 365-day continuous glucose monitor approved as an ICGM.
Further supporting access and Q2 CMS updated the Medicare physician fee schedule to provide payment for a full year of ever since this inclusion was announced in April and was retroactive to January one.
We have a unique and convenient offering to integrate with any pump on the market and we look forward to announcing updates in the future.
In another important initiative, we continue working to make it easier for patients to have access to EverSense and for physicians to prescribe it.
And as a result, we did see a notable increase in the business that flows through our consignment program.
We are also seeing some commercial payers begin to transition to a bundled payment reimbursement.
During Q2, we completed the plan transition of inserters from the nurse practitioner group to Aeon care, our network of providers that can perform ever since 365 insertion procedures.
The goal of this initiative is 3 fold.
Similar to Medicare.
As the product is confined to the office until its use you'll hear us refer to this channel is either bundled pay buy and bill our consignment.
To make it more convenient for interested. People with diabetes to be served by an inserter.
This reimbursement pathway. It covers both the product cost and providers procedure fee through a single claim.
To enable practitioners who want to prescribe our product but not insert to Simply do so and third to ensure a consistent high-quality insertion experience.
This simplifies payment for insurers providers and patients.
following the transition from npg, our Eon Care Network is nearly 40 strong and handles approximately 20% of our insertions
Furthermore, because ever since as an implanted device Medicare reimbursement for the product is included as part of CPT codes for four six.
The volume of insertions through Care continues to grow, increasing nearly 30% in Q2 versus Q1 this year.
And for $4 80.
These codes are established on the physician fee schedule and covered through a member's medical benefit Medicare part B.
With the foundation of eon care established. We are working to quickly expand it.
Our current goal is to increase this network to approximately 50 practitioners by the end of this year, and roughly 100, by the end of next year.
Medicare correctly does not characterize ever since as the DNA product, meaning that ever since will be excluded from the pending <unk> competitive bidding program.
Now I'd like to turn to the important development work and progress being made by our R&D teams.
Through the combination of ion care, nurses and prescribing providers perform their own insertions. We continue to add further insertion depth and breadth targeting. The major US geographies.
Since <unk> was founded to develop and deliver on the best in class once a year continuous glucose monitor having delivered on that promise.
Our aim is to ensure that anyone who wants ever since 365 has a convenient option to access it.
Mission is to now drive further advances to make the one year sensor more convenient less intrusive and more appealing to patients.
Gemini is the next step and that continued evolution.
Further supporting access in Q2 CMS updated. The Medicare physician fee schedule to provide payment for a full year of ever. Since this inclusion was announced in April and was retroactive to January 1st.
As a reminder, Gemini includes a self powered battery and offers both swipe and prospective CGM functionality.
And as a result, we did see a notable increase in the business that flows through our Consignment program.
All incorporated into a tiny under the skin sensor.
We are also seeing some commercial payers, begin to transition to a bundled payment reimbursement.
Similar to Medicare.
This offers the option to where our transmitter when the full functionality of alarms and alerts protection is required and swipe when to use it does not want to wear anything on their skin.
As the product is consigned to the office until its use, you'll hear us refer to this channel as either bundled pay buy and Bill or consignment.
This product will be especially attractive to the large population of people with diabetes on both basal insulin and those are non insulin regimens.
This reimbursement pathway covers both the product cost and providers procedure fee through a single claim.
We're very excited about the growing type two opportunity with Gemini and I'm pleased with the development teams progress.
To simplify to payment for insurers providers and patients.
Channel is either bundled pay buy and Bill or consignment.
We remain on schedule to start a pivotal study for Gemini later this year.
This reimbursement pathway covers both the product cost and the provider's procedure fee through a single claim.
Furthermore because ever since is an implanted device, Medicare reimbursement for the product is included as part of CPT codes, 446t and 448 t.
Our target is to then have a U S submission mid next year with a commercial launch in the U S. Starting near the end of 2026.
This simplifies payment for insurers providers and patients.
These codes are established on a physician fee schedule and covered through a member's medical benefit.
The next exciting evolution beyond Gemini is our work on the freedom program with.
Furthermore because ever since is an implanted device, Medicare reimbursement for the product is included as part of CPT codes, 446t and 448 t.
With freedom, we are targeting to deliver the world's first truly invisible CGM.
Freedom will eliminate any on body component to offer people continuous readings with real time alarms and alerts directly to the phone with nothing on the skin.
These codes are established on the physician fee schedule and covered through a member's medical benefit Medicare Part B.
Our team is working towards the goal of launching freedom about a year after Gemini.
Medicare correctly does not characterize ever since as a DME product, meaning that ever since we'll be excluded from the pending DME competitive bidding program.
All of us at Cynthia Onyx remained committed to pushing the boundaries of technology and continue to provide the world's most advanced CGM to people with diabetes.
Now, I'd like to turn to the important development work and progress being made by our R&D teams.
Cynics was founded to develop and deliver on the best-in-class once a year. Continuous glucose monitor.
Lastly, we raised approximately $78 million in gross proceeds during the second quarter, including $20 million from Abbott and a concurrent private placement.
Having delivered on that promise. Our mission is to now drive further advances to make the 1 year sensor more convenient, less intrusive and more appealing to patients.
This capital supports the critical work that I've been speaking about expanding the ongoing launch of ever since 365, including increased direct to consumer advertising supporting access and other initiatives to the product and continuing our development pipeline.
Gemini, is the next step in that continued evolution.
As a reminder, Gemini includes a self-powered battery and offers both swipe and prospective CGM. Functionality.
All incorporated into a tiny Under the Skin sensor.
We believe our progress on these initiatives positions us well to further drive product awareness innovation long term growth and shareholder value.
Now I'll turn the call over to Rick to walk you through financials from the quarter and provide some additional detail.
This offers the option to wear a transmitter when the full functionality of alarms and alert protection is required. And swipe when a user does not want to wear anything on their skin.
Thank you, Tim and thanks to everyone joining us this afternoon.
This product will be a special attractive to the large population of people with diabetes on both basil insulin, and those on non-insulin regimens.
This was an important quarter for <unk> with a focus on many initiatives all supported by the recent public offering together with the avid investment that resulted in a combined gross proceeds of $77 8 million, including the full exercise of the underwriters Green shoe.
We're very excited about the growing type 2 opportunity with Gemini, and I'm pleased with the development team's progress.
We remain on schedule to start an IDE pivotal study for Gemini later this year.
With a cash position of over $126 million, we have strengthened our balance sheet to support our runway not only for continued development of both the Gemini and freedom systems, but also to support key launch and marketing initiatives, such as driving patient leads through direct to consumer advertising.
Our Target is to then have a US submission mid next year with a commercial launch in the US, starting near the end of 2026.
The next exciting, Evolution Beyond Gemini, is our work on the freedom program.
With freedom, we are targeting to deliver the world's first truly invisible CGM.
As Tim mentioned, we are complementing adc's efforts in this area.
Freedom will eliminate any on-body component to offer people, continuous readings with real time alarms and alerts directly to the phone with nothing on the skin.
Jointly we will more than double the previously anticipated DTC spend to more than $10 million over the next two quarters together with our partner a sense, yes, we expect to boost actionable leads and support our sales force a conversion and other activities to accelerate patient growth.
Our team is working towards the goal of launching Freedom about a year after Gemini.
All of us at Cynics remain committed to pushing the boundaries of technology and continue to provide the world's most advanced CGM to people with diabetes.
We expect our expanded DTC efforts to improve product recognition and awareness of the unique benefits of $3 65, driving patients and prescribers to the ever since brand.
Lastly, we raised approximately 78 million in Gross proceeds during a second quarter, including 20 million from Abbott and a concurrent private placement.
This Capital supports the critical work that I've been speaking about.
Our recent public offering also gave us the opportunity to speak with a significant number of institutional investors. The majority of investors that participated in the offering requested that we consider a stock split in the near future and during the marketing of the deal. We also heard from a number of potential investors that they can.
Expanding the ongoing launch of ever since 365 including increased direct to Consumer advertising.
Supporting access and other initiatives to the product and continuing our development pipeline.
We believe our progress on these initiatives positions us, as well, to further drive product awareness, innovation, long-term growth, and shareholder value.
Could not participate due to internal policies and practices that limited their ability to invest in stocks trading below a certain dollar value thresholds.
Now, I'll turn the call over to Rick to walk you, through financials from the quarter and provide some additional details.
Thank you Tim and thanks to everyone joining us this afternoon.
Listening to this feedback we plan to seek shareholder approval for a reverse stock split to overcome these limitations, which we believe will address this impediment and make it easier for a broader number of investors to invest in <unk>.
We also believe a reverse stock split will facilitate inclusion of <unk> and indices that have stock price requirements, such as the Russell and reduce the administrative costs caused by the current share count.
This was an important quarter for Senseonics, with a focus on many initiatives, all supported by the recent public offering together with the Avid investment that resulted in a combined gross proceeds of $77.8 million, including the full exercise of the underwriters' greenshoe.
Taking into consideration the shareholder feedback from earlier this year, we have elected to reduce the targeted split ratio to a range of 10 for one to two for one and we will provide additional details as we get closer to the fall special meeting of stockholders to vote on this proposed reverse stock split.
With a cash position of over 126 million. We have strengthened our balance sheet, to support our Runway. Not only for continued development of both the Gemini and freedom systems but also to support key launch and marketing initiatives. Such as driving patient leads through direct to Consumer advertising.
As Tim mentioned, we are complementing, adc's efforts in this area.
Now transitioning to the quarterly results in the second quarter of 2025 net revenue grew to 37% to $6 6 million compared to $4 9 million in the prior year period on the strength of new ever since 365 insertions.
Jointly, we will more than double the previously anticipated DTC spend to more than 10 million dollars over the next 2 quarters together with our partner ascensia. We expect to boost actionable leads and support our sales force and conversion and other activities to accelerate patient growth.
U S revenue for the second quarter was $4 9 million and revenue outside the U S was $1 7 million.
We expect our expanded DTC efforts to improve products to recognition and awareness of the unique benefits of 365 driving patients and prescribers to the eversense brand.
As always a quick reminder, regarding revenue recognition in our two main sales channels.
Our collaboration agreement with our sense here is based on revenue sharing with the revenue sharing percentage applied differently in each channel for.
For sales made directly to our sense, yet we recognize revenue after discounting the current revenue sharing percentage when shipments are delivered to a sense yet.
SNCF target 60 to 90 days of inventory and therefore shipments made during the quarter largely support future demand of ever since.
Opportunity to speak with a significant number of institutional investors. The majority of investors that participated in the offering requested that we consider a stock split in the near future and during the marketing of the deal. We also heard from a number of potential investors that they could not participate due to internal policies and practices that limited their ability to invest in stocks trading below, certain dollar value thresholds.
Apply a ever since 365 has been at target levels since the end of Q2.
We also sell products through an office consignment program, which continues to grow making up over 40% of our revenue in Q2.
Listening to this feedback, we plan to seek shareholder approval for a reverse stock, split to overcome these limitations, which we believe will address this impediment and make it easier for a broader number of investors to invest in senseonics.
In this channel we recognize revenue at the time of procedure and at the same time record of commission expense to sales and marketing expenses based on the current revenue sharing percentage for us since he is commercial support.
We also believe that a reverse stock split will facilitate the inclusion of Senseonics in indices that have stock price requirements, such as the Russell, and reduce the administrative costs caused by the current share count.
The average selling prices and the consignment channel are approximately two times the asps through the <unk> direct shipment channel as a result of the consignment channel being primarily Medicare with the recently announced updated pricing and the ability to recognize 100% of the ever since revenue.
Taking into consideration, the shareholder feedback from earlier. This year, we have elected to reduce the targeted split ratio to a range of 10 for 1 to 20 for 1. And we will provide additional details as we get closer to the fall. Special meeting of stockholders to vote on this proposed reverse stock split.
With this sales channel mix, we recognized approximately 80% of the ever since revenue.
Now transitioning to the quarterly results.
In Q2 2025 gross profit was $3 1 million, an increase of $2 8 million from the prior year period. This increase in gross profit was primarily driven by the increased margins on the 365 day product sale.
in a second quarter of 2025 net revenue, grew 37% to 6.6 million compared to 4.9 million in the prior year period on the strength of new ever since 365 insertions
Sales channel mix and for this quarter, a onetime gain of <unk> 7 million from value added tax recoveries expensed in prior years.
Us revenue for the second quarter was 4.9 million and revenue outside. The US was 1.7 million.
as always, a quick reminder regarding Revenue recognition in our 2, main sales channels,
Research and development expenses in Q2, 2025, or $7 7 million a decrease of $3 1 million compared to the prior year period. The decrease was primarily due to a reduction in clinical study spend and consultant costs due to the completion of the 365 day product trials.
Our collaboration agreement with asencia is based on Revenue sharing with the revenue sharing percentage applied differently in each Channel.
For sales made directly to Ascensia, we recognize revenue after discounting the current revenue-sharing percentage when shipments are delivered to Ascensia.
Second quarter 2025, selling general and administrative expenses were $9 7 million, an increase of <unk> 7 million compared to $9 million in the prior year period, primarily driven by sales Commission expenses due to a sense therefore commercial support of our consignment program.
A sensia targets 60 to 90 days of inventory and therefore shipments made during the quarter, largely support future demand of ever. Since the supply of ever since 365 has been at Target levels since the end of Q2
Net loss was $14 5 million or <unk> <unk> loss per share in the second quarter of 2025 compared to a net loss of $20 3 million or <unk> <unk> loss per share in the second quarter of 2024.
We also sell products through an office Consignment program, which continues to grow making up over 40% of our Revenue in Q2.
Net loss decreased by $5 8 million, primarily due to improved gross profit margins of ever since $3 65, and reduced research and development costs.
In this channel, we recognize Revenue at the time of procedure and at the same time, record a commission, expense to sales and marketing expenses based on the current Revenue sharing percentage for a census commercial support.
As of June 32025, cash restricted cash and cash equivalents totaled $126 7 million and debt and accrued interest was $35 3 million.
The average selling prices in the consignment channel are approximately 2 times. The asps through the asencia direct shipment Channel as a result of the consignment Channel, being primarily Medicare with the recently announced updated pricing and the ability to recognize 100% of the eversense revenue.
Reiterating our outlook for 2025, we expect full year 2025 global net revenue to be approximately 34 million to $38 million as we progress the launch of ever since $3 65 in the U S and we expect EU.
With this sales Channel mix We recognize Approximately 80% of the eversense revenue.
This financial outlook takes into consideration several factors, including the timeline for the regulatory approval and planned commercial launch of ever since 365 outside the United States.
In Q2 2025, gross profit was $3.1 million, an increase of $2.8 million from the prior year period. This increase in gross profit was primarily driven by the increased margins on the 365-day product.
Sales Channel mix and for this quarter, a 1-time gain of 0.7 million from value added tax. Recoveries expensed in Prior years.
With respect to spending on the USD Tc marketing campaigns to generate leads continued progress in our launch activities.
Reinsertion and pricing dynamics with a shift from six to 12 months product and the status of other sales and marketing initiatives.
The full year 2025 financial outlook assumes approximately doubling the global patient base in 2025 compared to 2024.
Research and development expenses in Q2 2025 or 7.7 million, a decrease of 3.1 million compared to the prior year period. The decrease was primarily due to a reduction in clinical study spend and Consulting costs due to the completion of the 365 day product trials.
We achieved our target of approximately one third of planned annual revenue in the first half of the year with the remaining two thirds of revenue expected in the second half because of the steady increase in patients and the seasonality of program discounts and patient deductibles.
Second quarter, 2025, selling General and administrative expenses were 9.7 million and increase of 7 million compared to 9 million in the prior year period, primarily driven by sales commission expenses due to a sensia for commercial support of our Consignment program.
For the second half of the year, we expect the majority of revenue in the fourth quarter due to the continued momentum in new patient starts and importantly, reorders from our first U S 365 patients as we pass the first anniversary of our ever since 365 launch.
Net loss was $14.5 million, or a $0.02 loss per share, in the second quarter of 2025, compared to a net loss of $20.3 million, or a $0.03 loss per share, in the second quarter of 2024.
Excluding accounting adjustments and one time benefits that have a positive impact to gross profit margins. We continue to see favorability due to our sales channel mix and the execution of our manufacturing and supply chain teams. We are continuing to monitor the impact of tariffs and currently expect that we'll be able to mitigate much of the negative.
Net loss decreased by 5.8 million primarily due to improved gross profit margins of ever since 365 and reduced research and development costs.
Impacts.
Taking into consideration our margin performance to date and the anticipated continued favorability. We now expect full year gross profit margins between 32, and a half and 37, 5%.
reiterating our outlook for 2025 we expect full year 2025 global, net revenue to be approximately 34 million to 38 million as we progress the launch of ever since 365 in the US and we expect EU
We expect cash utilization in 2025 to be approximately $60 million largely as a result of tight cash management, while complementing SNCF DTC spend.
This financial Outlook takes into consideration, several factors including the timeline for the regulatory approval, and the Planned commercial launch of ever since 365.
Outside the United States.
Finally, we practice good financial housekeeping filing an updated shelf with the SEC and the amount of $300 million with a portion of assigned to a $100 million at the market facility with TD Cowen.
Plans with respect to spending on the usdt marketing campaigns to generate leads continued progress in our launch activities.
Two additional activities to facilitate long term growth.
Reinsertion and pricing dynamics with the shift from a 6-month to a 12-month product and the status of other sales and marketing initiatives.
And with that I'll turn it back to Tim.
Thanks, Rick the last thing I'll mention before wrapping up the event we hosted at this year's Ada We had a great turnout and I encourage any of you that did not participate to go and listen to the replay on our website we.
The full year 2025 financial outlook assumes approximately doubling the global patient base in 2025 compared to 2024.
We featured some of our DTC marketing materials, featuring George our favorite CGM personality and heard from Gary Graff, our nurse practitioner that uncertainty ever since 365 on a regular basis.
We achieved our Target of approximately 1/3 of planned annual revenue in the first half of the year with the remaining 2/3 of Revenue. Expected in the second half because of the steady increase in patients and the seasonality of program discounts and patient deductibles
According to Gary the procedure fit seamlessly into his practice typically takes them about eight minutes and can be easily completed on a patient's lunch break.
For the second half of the year. We expect the majority of Revenue in the fourth quarter, due to the continued momentum in new patient starts. And importantly, reorders, from our first US 365 patients, as we passed the first anniversary of our eversense, 365 launch
As you've heard we accomplished a lot in the second quarter and have made great strides in setting the company up for long term growth.
To build shareholder value will continue to drive to 365 launch enhancing investment and effective direct to consumer marketing, all while supporting greater access and convenience of ever sense and by moving Gemini and freedom closer to the market.
Excluding accounting adjustments and 1-time benefits that have a positive impact to gross profit. Margins, we continue to see favorability due to our sales Channel mix and the execution of our manufacturing and supply chain teams.
We are continuing to monitor the impact of tariffs and currently expect that, we'll be able to mitigate much of the negative impacts.
We're also forming partnerships to advance and simplify diabetes care to.
Together with maintaining financial discipline, and strengthening our balance sheet and remaining focused on the transformative potential of one year one CGM.
Taking into consideration, our margin performance to date and the anticipated favorability. We now expect full year gross profit margins between 32 and a half and 37 and a half percent.
With that I'll now turn the call over to the operator to answer any questions that you may have.
We expect cache utilization in 2025 to be approximately 60 million largely. As a result of tight cash management. While complimenting, a census DTC spent
Thanks, once again for your time today.
Operator, let's go ahead and open up the call for questions.
Thank you at this time, if you would like to ask a question. Please press star one now on your telephone keypad to withdraw yourself from the queue. You May press star two once again to ask a question. Please press star one.
Finally, we've practiced Good Financial housekeeping filing and updated shelf with the SEC in the amount of 300 million with a portion assigned, to a hundred million dollar at the market facility with TD Cowen.
2 additional activities to facilitate long-term growth.
And with that, I'll turn it back to Tim.
We will take our first question from Josh Jennings of TD Cowen Your line is open.
Hi, good afternoon, thanks for taking the questions and congratulations on the nice quarter and continued momentum of the ever since 365 launch.
Thanks Rick. The last thing I'll mention before wrapping up is the event. We hosted at this year's Ada? We had a great turnout and I encourage any of you that did not participate to go and listen to the replay, on our website.
I wanted to just ask a couple questions on the back half here and I guess to start.
We featured some of our DTC marketing materials, featuring George, our favorite CGM personality and her from Gary Graff a nurse practitioner, that inserts the ever since 365 on a regular basis.
Going out again fourth.
Fourth quarter is stronger in the third quarter and Youll have some replacement cycle kicking in for ever since the initial ever since 365 patients.
According to Gary, the procedure fits seamlessly into his practice. He typically takes him about 8 minutes and can be easily completed on a patient's lunch break.
Maybe just help us think about or help us frame up expectations for retention rates.
And anything you can share just on historic attrition.
As you've heard, we accomplished a lot in the second quarter and have made great. Strides in setting the company up for long-term growth.
Pension slash attrition rates for ever since.
In prior versions.
And then what you expect going forward.
Sure Josh I appreciate.
Right at the time as well.
As you know we don't yet have the retention on the 365 is that first patient has not asked yet but.
To build shareholder value, we'll continue to drive the 365, launching enhanced investment in effective, direct-to-consumer marketing. All wealth, supporting greater access and convenience of ever since, is achieved by moving Gemini and Freedom closer to the market.
We're also forming Partnerships to advance and simplify Diabetes Care.
Our experience to date typically has been.
75% retention from September one to two.
Together with maintaining Financial discipline and strengthening our balance sheet and remaining focused on the transformative. Potential of 1 year 1 CG
Jumped to about 85% from sensitivity to three in about 95% from sensor three and beyond so as they become longer and longer tenured users of course, it becomes more and more part of their life.
With that, I'll now turn the call over to the operator to answer any questions that you may have.
Thanks once again for your time today.
They continue to sign up for the Reinsertion.
Operator, let's go ahead and open up the call for questions.
We do.
<unk> that the retention rate will be higher for $3 65, and it was for the 180, but of course don't have that real that real data yet. So that's that's what our history has been and we're obviously going to continue to work hard in a number of programs in place to do everything we can to <unk>.
Thank you at this time. If you would like to ask a question, please press *1 now on your telephone keypad to withdraw yourself from the queue. You may press *2 once again to ask a question. Please press *1.
Maximize those reinsertion.
We'll take our first question. From Josh Jennings of TD Cowen. Your line is open.
Excellent. Thanks for the help there and then just on the consignment channel pig.
<unk> percentage of <unk> revenue.
Medicare reimbursement is in place I'm, assuming that that's helping that kind of percentage increase sequentially, but how should we be thinking about.
The consignment as a percentage of total revenue.
Going going forward.
And just on the second part of this last question is just how do you should we be thinking about the private pay.
For <unk>.
Physicians in this kind of a global reimbursements and play per Medicare, how far behind or our private payors to.
Institute that coverage and are already are you already there with some payers. Thanks, a lot for taking the questions.
Third quarter. And you'll have some uh the replacement cycle kick in for ever since the initial ever since 365 patients. Um, maybe just help us think about or help us frame up, expectations for retention rates. Um, anything you can share just on historic, attrition, slasher, retention rates for forever since, uh, in Prior versions. And then, what do you expect going forward?
Sure, Yes, we actually have started to see some of the payers that they recognize that this is not a traditional <unk> by any means so they have begun that transition to the.
To that buy and Bill channel, which again, we confine that product so the.
Docs don't don't actually pay for it until <unk>.
Uh, sure Josh appreciate, uh, appreciate the time as well. Um, as you know, we don't yet have the um, the retention on the 365 is that first? Patient is not off yet, but um our experience today typically has been um 75% retention from since there were 1 to 2
I actually use it so typically one or two sensors will sit in their institution they'll do the insertion and then.
And it will run out.
Earl appear in the cloud and we will actually build them forward at that point so.
<unk>.
And for sure that confinement channel is definitely increasing as.
It's the most attractive for that that buy and bill space, but Rick do you want to you want to speak to how we're thinking about it going forward.
Sure. Thanks, Tim Thanks, Josh.
Still the right that a big piece of the.
Um jumps to about 85% from sensitive 2 to 3 and about 95% from sensor 3 and Beyond. So as they become longer and longer tenure users, of course it becomes more and more part of their life and they uh they continue to to sign up for the reinsertion. Um, we do expect that the retention rate will be higher for 365 and it was for the for the 180 but of course don't have that real that real data yet. So that's, uh, that's what our history has been. And we're obviously going to continue to work hard at a number of programs in place to to do everything we can to to maximize those reinsert.
Increasing the percentage of revenue from the consignment channel is that Medicare pricing, but the volume is actually up as well and it's certainly supported by our E on care efforts and the increase in the number of providers that were anticipating there.
So we will continue to see that consignment channel increase as a percentage of our revenue.
Excellent, thanks for the help there and then just the on the consignment Channel, big percentage of 2q Revenue. Medicare reimbursement is in place. I'm assuming that that's helping that, that kind of percentage, increase sequentially. But how should we be thinking about?
I wouldn't expect the growth to be as dramatic in future quarters. We also will see that our asp's in our other Cynthia direct channel will improve in the second half of this year as many of the patient assistance programs are going to be less utilized since our patients have now met.
The consignment as a percentage of total, uh, Revenue in, uh, going going forward. And, uh,
Their deductibles are near meeting them in the second half of this year.
Excellent I appreciate it thanks.
And just on a second part of this last question is, is just how, how do you she'll be thinking about the private pay, um, for you know, Physicians and this kind of global reimbursements and play for Medicare, how far behind are are private payers to to Institute that coverage and are already? Are you already there with with some pairs? Thanks a lot for taking the questions.
Thank you we'll take our next question from Ben Hayner of Lake Street Capital markets. Please go ahead.
Good afternoon, gentlemen, thanks for taking the questions.
Um, sure. Yes, we actually have started to see some of the payers, they recognize that this is not a traditional DME by any means. So, uh, they have begun that transition to the, um,
Just following up on on.
I wanted to ask the questions on the retention rates.
Is there anything more that you could share maybe on how those changed.
To that buy in Bill Channel. Um which again we can sign that product. So the the docs don't don't actually pay for until
When you move from 90 days to 180 days or less.
The sample size not their non representative.
They actually use it. So, typically 1 or 2 sensors will sit in their institution, they'll do the insertion and then, um,
Okay.
No it's pretty consistent.
then it'll run out or, or it'll appear in the cloud, and we'll actually build them for it at that point. So, um,
As I said.
The sensor retention is.
Around 75% from sensor one sensor too.
About half of the time in both cases, whether it was on the 90 or the 180 is economic.
and for sure that Consignment channel is definitely increasing. Its, uh, you know, it's the most attractive for that that buy in Bill space. But Rick do you want to you want to speak to how we're thinking about it going forward?
So they will have moved plans potentially would have been a participant in.
sure, thanks Tim, thanks, Josh, uh, you're absolutely right that uh a big piece of the
A subsidized so a patient assistance program that might have expired.
It is an economic barrier to the transition to future ones. So.
We think.
Thank you.
We're planning in that range again.
Increase in the percentage of revenue from the consignment channel is that Medicare pricing but the volume is actually up as well and it's certainly supported by our Eon care efforts and the increase in the number of providers that we're anticipating. Their
Also the recognition that by the time, you you'd use the product per year. It really does become part of your life.
And that certainly of course, the case with now all the 365 centers.
Okay that makes sense definitely helpful. And then is there anything you can share on kind of a mix of diabetics that are that are getting these things is it.
Has it changed much between what you've seen historically type arms type two using insulin intensive insulin type on aware et cetera.
Um, so so we will continue to see that Consignment Channel increase as a percentage of our Revenue. I, I wouldn't expect the growth to be as dramatic in future quarters. Uh, we we also will see the that our asps in our other essencia direct channel will improve in the second half of this year. As many of the patient Assistance programs, uh are going to be less utilized since our, our patients have now met their deductibles or or a near meeting them in the second half of this year.
I mean, it's certainly started out where all CCM started out being very heavy into the into the type one but.
Excellent, appreciate it. Thanks.
Especially because of the long duration in the.
Thank you. We'll take our next question from Ben Hainer of Lake Street Capital Markets. Please go ahead.
Frankly, the ease of use.
The vast majority of our patients now about 75%.
Are type twos.
Good afternoon, gentlemen. Thank you for taking the questions. Uh, just following up on one of Josh's questions on the retention rates.
That are that are coming in.
They're attractive space for us the folks that are on basal insulin.
They're looking for a technology, that's got a little bit lower overhead and going into the office, having one procedure done and then being able to forget about it for the next 365 days is pretty attractive for them. So our biggest growth by far is coming from type two patients.
Is there anything more that you could share maybe on how those changed? Uh, when you move from 90 days to 180 days or is the the sample size? Not there, or not representative?
Uh, know it's pretty consistent. Um, you know, as I said this, the sensor retention is
Okay, that's great.
Right.
No.
Simon is there kind of a ballpark way to think about it once once you do go consignment with.
The clinic or provider.
Of the kind of increase that you expect to see in patient starts that can be expected.
In a participant in a subsidized. So a patient assistance program that might have expired, um, and it's a, it's an economic barrier to, to transition to Future ones. So,
Folks move over to that program.
Rick do you want to you want to take that one.
I don't know if we've got good data on the growth due to consignment, who really is remember this is a fairly expensive.
We think um, you know, think it'll be we're planning in that range but again there's also the recognition that by the time you use use the product for a year. It really does become part of your life.
And that's certainly, of course, the case with now all the 365 centers.
Device now that it's up to a year for a doctor to purchase upfront.
So we implemented the consignment program as a way to moderate debt buying barrier.
Yes, and I think.
To add to that a provider isn't on a consignment program or nothing else. They may have consignment sensors on their shelves ready for patients that.
Okay, that makes sense. Definitely helpful. And then is there anything you can share on kind of the mix uh of uh diabetics that are, that are getting these things. Is it has it changed much between what you've seen historically type 1 type 2 using insulin intensive, insulin and hypo unaware Etc.
Our reimbursed through those specific payers. They also may still go through our other channel as well.
It's I mean, it certainly started out, you know, we're all CG started out, being very heavy into the into the type 1. But um,
especially because of the long duration and the
Traditionally through those <unk> channels through a sense, yet so it's not a one or the other but as we continue to add key on care physicians and.
You know, frankly the ease of use, um, we are seeing the vast majority of our patients. It's now about 75%.
Alright utilize adding physicians to that consignment program, we are seeing the volume increase.
Our type 2s. Um, that are that are coming in where the very attractive space for us. Is the folk that are on basil in 1.
Again.
Okay got it and then.
Lastly on <unk>.
Is there any revenue contribution model for that's factored into guidance on that and is that meaningful or should we expect it to be meaningful.
For the year.
They're looking for a technology that's got a little bit lower overhead, and going into the office, having one procedure done, and then being able to forget about it for the next 365 days is pretty attractive for them. So, our biggest growth by far is coming from type 2 patients.
Rick you want because they want us there sure yes, there is.
Some contribution from the E care services as it relates to procedure revenue so not revenue from the sale of our of our product, but thats low single digit percentage. So it's not something that we're going to break out today, but it will certainly grow as the E on care becomes a larger percentage of.
Okay, that's great. And then on, on consignment, you know, is there kind of a, a ballpark way to think about it. Once once you do go Consignment with a clinic or provider um, of the, you know, kind of increase that you expect to see in patients starts. It can be expected when the, when these uh uh, folks move over to that program.
Our total procedures and as we increase providers over the coming years.
Got it excellent well thank you for taking the questions gentlemen, and congrats on the progress.
Thank you.
We'll go next to Sean Lee of H C. Wainwright Your line is open.
Rick. You want to you want to take that 1, IG growth due to Consignment. And really is, remember this is a, a fairly expensive device now that it's up to a year for a doctor to, you know, to purchase up front
Hey, good afternoon, guys and thanks for taking my questions.
So we implemented a consignment program as a way to to moderate that that buying barrier.
Two quick ones first on the <unk>.
Package with sequels twist. So you mentioned that <unk> launched this last month. So I was wondering what was the commercialization of <unk>.
Commvault look like it is going to be a whole marketing agreement and award.
Is there something else.
Yeah. And and I think um just to add to that, a provider isn't on a consignment program uh or nothing else, they may have Consignment sensors on their shelves, ready for patients that um are reimbursed through those specific payers. They also may still go through our other channel as well.
There is quite a bit of co marketing that we plan on doing.
Launched a new sensor.
In combination the commercial teams have actually been working for about the last three or four months to be prepared for the day.
well um traditionally through those DME channels through a censia so it's not a 1 or the other, but as we continue to add key on care physicians and
Formal relation is actually through a development agreement where.
our, our utilize adding Physicians to That Consignment program. We are seeing the volume increase.
Okay.
Lastly.
Where they have specific responsibilities and we have responsibilities. So that we're actively following and executing.
But by the nature of the uniqueness of their pump and their algorithm and the uniqueness of it.
Revenue contribution model for that's factored into the guidance on that. And is it, is that meaningful? Or should we expect it to be meaningful? Uh, for the year?
The one year sensor.
Exciting to be taking to patients that.
Um, Rick, you want to go there? Sure. Yeah, there is um,
That innovation, so that's a big part of how we're going to work together.
I see thank you for the additional clarity.
My last question is on the upcoming IDE.
The pivotal study for <unk>. So I was wondering what would the design of that study would be likely to similar to what was done previously with Emerson.
Some contribution from the Aeon care services as it relates to procedure Revenue. So not revenue from the sale of our of our product but that's low single digit percentage. So it's it's not something that we're going to break out today, uh, but it could will certainly grow as the Aeon care becomes a larger percentage of our total procedures. And as we increase providers over the coming years,
Okay.
Would you mind speaking.
Got it. Excellent. Well, thank you for taking the questions. Gentlemen, congrats on the progress.
Thank goodness.
No.
What would be similar would be the evaluation right, where we bring the patients through the clinic and hook them up and do it.
Thank you. We'll go next to Sean Lee of HC. Wayne Wright. Your line is open.
Bedside monitoring of accuracy two of ISI widely looked at the glucose data coming onto the CGM and competitive.
What we intend to do in this clinical study is too.
Just ask for a validate the new feature which is the flash part of it and not go through the entire longitudinal one year because the central part of the Gemini is the famous 365.
Hey, uh, good afternoon guys. And uh, thanks for taking my questions. Um, I just have 2, quick ones first on the, uh, uh, package with, uh, sequels twist. So you mentioned that SQL launch twist last month. So I was wondering what was the commercialization of the uh, combo look like, is it going to be a whole marketing agreement? Or is it something else?
This is how we are planning on that study we still are in discussions with FDA during the pre serve him having both of those questions. So it still has to be worked through that.
Um, there is quite a bit of co-marketing that we plan on doing as they launch the new sensor.
That's the intent.
Thanks again for taking my questions.
You're welcome.
And once again to ask a question that is star one on your telephone keypad will move next to Anthony Petrone of Mizuho group.
Thanks, and congrats on the quarter here and the launch on ever since so far.
Comments from the since the Onyx vantage point on.
The CMS proposal for competitive bidding and then just bundling.
Um, where they have specific responsibilities and and we have responsibilities so that we're actively following and executing. But, you know, by the nature of, um, the uniqueness of their pump and their algorithm and the uniqueness of, you know, the 1 year sensor, uh, it's pretty exciting to, to be taking to patients that.
With insulin pumps.
It almost seems like the payment if that does go through that actually ever census in AR.
You know, that Innovation. So um that's a that's a big part of how we're going to work together.
Favorable.
Guess position because it technically I don't think would fall into.
Does that category, but.
It may be.
Misspeaking, there, but just again.
He is on competitive bidding and just what that actually means for ever since if it.
It becomes a final rule as we head into 2027, and then I'll have a follow up.
Yes.
Anthony we agree with that assessment.
<unk> <unk>.
<unk> is.
Compensated by Medicare as a.
As a medical benefit so it's a part D benefit it is not a DIY product and they remunerate us as you've heard through.
The payment for that for the combined <unk>.
Buy and Bill.
And therefore.
We recognize that we will not be part of that competitive competitive bidding product because it is a dnb process that they follow so if those home use products that are subject to it very similar to what they did in the diabetes technology space for.
Blood glucose meters and strips.
This is how we are planning on that study. Uh we still are in discussions with FDA doing a preserve and having those discussions. So I still have to be uh work through that. But that that's the intent.
But it is a result of that that dnb process and as a medical benefit.
I see. Uh, thanks again for taking my questions.
You're welcome.
With a published annual CPT code and the reimbursement for it we will be we will certainly be outside of that.
No. That's helpful. And then the follow up there would be on the provide.
And once again to ask a question, that is star 1 on your telephone keypad. We'll move next to Anthony patron of meizuo group.
Uh,
Provider transition E on care incur.
thanks and congrats on the quarter here in the launch on ever since so far.
The increased number of nurse practitioners that are now in planners and servers.
And what's the timing there for.
maybe comments, you know, from the senseonics vantage point on the CMS proposal for competitive bidding and then just bundling
When you you can see that actually start to benefit volumes in <unk>.
You know, with with insulin pumps.
If you can give us just the scale of what that represents in terms of percentage increase in total number of implants for ever since thanks again.
uh, it almost seems like the payment if that does go through that actually ever since is in a
favorable, I I, I guess position because it technically, I don't think would fall into
Yes, so we are right around 40.
Professionals right now over the next three or four months, we're going to we're going to take that to 50.
And then we plan to double that again in 2026, so it's going to be a very material component. It offers us not only the advantage of that flexibility allows us to more regionally cover so in situations, where as we have transitioned to more and more type two patients.
That category. But you know, I may, I may be, you know, misspeaking there but just again, the views on competitive bidding and just what that actually means for ever since, if it, it becomes a final rule as we head into 2027, then I'll have a follow-up.
Yeah. Um Anthony uh we agree with that assessment um definitively.
Are seeing more and more by primary care.
It's less likely that theyre going to be large and servers. So those areas. We're augmenting with this.
Ever since is, um, you know, compensated by Medicare as a u, as a medical benefit. So it's a Part B benefit. Uh, it is not a DME product and they remunerate us as you heard through, um, you know, through the payment for that, for the combined.
Network.
Mostly held closely trained but $10 99 nurses so they work on contract with Pam.
Hourly or a per diem rate.
And then through the economy will actually bill for the procedure as well as the bundled payment if it's in.
Buy and bill. Um, and therefore, um, we recognize that we will not be part of that competitive bidding process because it is a DME process that they follow. So it's those home use products that are subject to a very similar process to what they did in the diabetes technology space for.
It's in Medicare or bill it through the commercial pay if it's.
The blood glucose meters and strips.
It's going through the the more traditional route.
Thanks again.
Thank you. This does conclude our question and answer session I'd be happy to return the call to Tim Goodnow.
Um, but it is a result of that uh, that DME process and as a medical benefit, um, with a published annual CPT code and the reimbursement for it. We will be, we will certainly be outside of that.
For closing comments.
No that's helpful and then the fault there would be on the you know, provider transition, Eon care.
Well great. Thank you we feel very excited about the progress that we're making with with ever sent in 365 product is truly showed some exciting times, where we're excited to continue to be working with.
The increase number of of nurse practitioners that are now, you know, in planters, inserters. Just What's the timing there for
The team at as Cynthia as we wrap up excuse me as we ramp up the DTC investment, which we're paying very close to an <unk>.
Encouraged with their with the results that we're seeing so look forward to updating you all in about a quarter on the progress and an important second half of the year for us so with that thanks, everyone for your time and look forward to speaking with you soon.
Actually, when you you you can see that actually start to benefit volumes and, you know, to, if you can give us just a scale of what that represents in terms of percentage increase in total number of of implants for ever since thanks again. So, yeah, so we are right around 40, um,
Thank you. This does conclude today's conference you may now disconnect your lines and everyone have a great day.
Professionals right now, over the next 3 or 4 months. We're going to, we're going to take that to 50. Uh and then we we plan to double that again in in 2026. So it's going to be a very material component. It offers us, not only the advantage of that flexibility also allows us to more regionally cover. So in situations where as we have transitioned to more and more type 2 patients, that are seeing more and more by Primary Care. Um it's less likely that they're going to be large insurers. So those are the areas where augmenting with this uh,
1099 nurses. So they work on contract, we pay them, you know, an hourly or per diem rate.
Uh, and then through the Aeon, we'll actually bill for the procedure as well as that bundle payment if it's in, um,
You know, if it's in Medicare, bill it through the commercial pay. If it's, um, you know, it's going through the more traditional route.
Thanks again.
Thank you. This does conclude our question and answer session. I'd be happy to return the call to Tim good new
for closing comments.
Oh great. Thank you. Uh, we feel very excited about the progress that we're making with. Uh, with ever since the 365 product is uh is truly shows some exciting times. We're, we're excited to continue to be working with the team at asensei as we wrap up. Uh, excuse me, as we ramp up the DTC investment, which we're paying very close to and, um, encouraged with their with the results that we're seeing. So look forward to updating you all in in about a quarter on, on the progress and an important second half of the year for us. So with that. Thanks everyone for the time and look forward to speaking with you soon.
Thank you. This does conclude today's conference, you may now disconnect your lines and everyone have a great day.