Sensonics (SENS) Q2 2025: New Patient Starts Jump 79% as Eversense 365 Drives Channel Shift
Sensonics delivered a pivotal Q2, with Eversense 365 adoption accelerating and a marked channel shift toward higher-value consignment sales. Expanded direct-to-consumer (DTC) investment and a growing EonCare provider network are reshaping access and retention dynamics, while upcoming device integrations and the Gemini pipeline signal a multi-year innovation cycle. The company’s channel mix, capital raise, and strategy to double its patient base set the stage for a weighted second half and a structurally higher margin profile.
Summary
- Consignment Channel Expansion: Medicare and bundled-pay adoption raised consignment to over 40% of revenue, reshaping pricing and margin structure.
- DTC and EonCare Scale: Aggressive DTC spend and network buildout are driving new patient growth and improving insertion access.
- Pipeline Momentum: Gemini pivotal study and Freedom development target broader diabetes populations and future differentiation.
Performance Analysis
Sensonics’ Q2 revenue grew 37% year-over-year, driven almost entirely by new Eversense 365 insertions as the company transitions from a six-month to a one-year sensor replacement cycle. U.S. revenue led the quarter, with international sales contributing a smaller but growing share. The channel mix shifted materially: consignment sales, primarily Medicare and bundled-pay, now represent over 40% of total revenue, with higher average selling prices (ASPs) and improved gross margins. This channel shift, combined with a one-time VAT recovery, helped gross profit reach $3.1 million, up sharply from the prior year.
Operating expenses reflected increased DTC marketing and sales commissions, partially offset by lower R&D spend following the completion of 365-day product trials. Net loss narrowed to $14.5 million, helped by margin gains and cost controls. The company’s cash position was fortified by $78 million in new capital, including a $20 million Abbott investment, supporting the expanded commercial push and pipeline development. Management reiterated full-year guidance, with two-thirds of revenue expected in the back half and a pronounced Q4 lift as the first cohort of 365-day users become eligible for reorders.
- Patient Start Acceleration: New Eversense patient starts rose 79% year-over-year and 37% sequentially, reflecting DTC and sales team expansion.
- Consignment Channel Margin Impact: Consignment ASPs are roughly double those of direct shipments, supporting the quarter’s gross margin expansion.
- R&D Downshift: R&D expense fell by $3.1 million as major product trials concluded, freeing resources for commercialization and pipeline advancement.
Revenue recognition timing and channel mix will remain key levers, with Q4 expected to benefit from both new starts and the first wave of 365-day reorders.
Executive Commentary
"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. We are seeing true acceleration in the growth of Eversense for the expanded DTC, and we plan to continue to augment Ascensia's DTC spending through the remainder of this year."
Tim Goodenough, President and CEO
"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."
Rick Sullivan, CFO
Strategic Positioning
1. DTC and Provider Network Investment
Sensonics is doubling down on direct-to-consumer marketing, with more than $10 million allocated over the next two quarters in partnership with Essentia. This is backed by a rapid buildout of the EonCare provider network, now nearly 40 strong and targeting 50 by year-end. EonCare, a specialized inserter network, removes friction for both patients and prescribers, especially as type 2 diabetes adoption rises. The company’s approach is to combine broad awareness with point-of-care access, aiming to maximize both new starts and retention.
2. Channel Mix Shift and Reimbursement Tailwinds
Consignment sales, including bundled-pay and Medicare buy-and-bill, are now over 40% of revenue, with ASPs about 2x higher than direct sales. This channel shift is supported by recent Medicare policy changes and a growing trend among commercial payers to adopt bundled reimbursement. Importantly, Eversense is excluded from upcoming DME competitive bidding, shielding it from potential pricing pressure facing traditional CGMs.
3. Product Pipeline and Platform Integration
The Gemini sensor, featuring both swipe and continuous glucose monitoring, is on track for a pivotal study later this year, with U.S. submission targeted for mid-2026. The Freedom program aims to deliver a truly invisible CGM, eliminating on-body hardware entirely. Integration with Sequel’s Twist Pump is imminent, and management signals further pump partnerships are likely, reinforcing Eversense’s differentiation as a long-wear, interoperable platform.
4. Capital Structure and Shareholder Base Expansion
Sensonics raised $78 million in Q2, including a $20 million strategic investment from Abbott. The company is pursuing a reverse stock split (10:1 to 20:1 range) to enable index inclusion and broaden institutional ownership, responding directly to investor feedback. This move aims to lower administrative costs and address share price constraints for many funds.
5. Retention and Patient Mix Evolution
Retention rates for Eversense are historically 75% from first to second sensor, rising to 85% and then 95% for subsequent cycles. Management expects higher retention for the 365-day sensor, especially as type 2 and basal insulin users become a larger share of the patient base. Currently, about 75% of new patients are type 2, reflecting a shift from the type 1-dominated early adopter phase.
Key Considerations
This quarter marked a structural inflection point for Sensonics, with the Eversense 365 launch driving both operational and financial transformation. Investors should weigh the following:
Key Considerations:
- Channel Mix Leverage: The ongoing shift to consignment and bundled-pay channels is raising ASPs and margins, but exposes the company to payer mix volatility and reimbursement policy changes.
- DTC Spend and Conversion Efficiency: The doubling of DTC investment is yielding strong lead and patient start growth, but the sustainability of this CAC (customer acquisition cost) profile will be tested as competition and market saturation increase.
- Retention Curve and Reorder Dynamics: With 365-day reorders only beginning in Q4, the true stickiness and lifetime value of new cohorts will become clearer over the next 12 to 18 months.
- Pipeline Execution Risk: Gemini and Freedom represent significant technical and regulatory milestones, with commercial impact unlikely before late 2026 or beyond.
- Capital Allocation Discipline: The recent raise provides ample runway, but ongoing cash utilization guidance ($60 million for 2025) and incremental marketing spend require tight financial controls as the company scales.
Risks
Reimbursement dynamics remain a material risk, particularly as commercial payers transition to bundled payments and as the Medicare consignment channel grows. Execution risk around DTC conversion, provider network expansion, and pipeline milestones could impact both near-term growth and long-term differentiation. Retention rates for the 365-day sensor are still unproven, and any slowdown in patient starts or reorder rates could pressure the growth narrative.
Forward Outlook
For Q3 2025, Sensonics guided to:
- Continued sequential revenue growth, weighted toward Q4 as 365-day reorders begin
- Ongoing margin expansion from channel mix and manufacturing execution
For full-year 2025, management reiterated guidance:
- Global net revenue of $34 million to $38 million
- Gross profit margin of 32.5% to 37.5%
- Cash utilization of approximately $60 million
Management emphasized the following:
- Majority of revenue expected in the second half, with Q4 as the inflection point
- Full-year patient base expected to double versus 2024
Takeaways
Sensonics is executing a multi-pronged growth strategy, with DTC marketing, channel mix optimization, and pipeline innovation at the core. The business is structurally shifting toward higher-margin, bundled-pay channels, and is leveraging capital to accelerate patient acquisition and future product launches.
- Revenue and Margin Inflection: The combination of DTC-driven patient growth and consignment channel expansion is supporting both top-line and gross margin gains, with Q4 as the key test for reorder stickiness.
- Strategic Capital Deployment: Recent fundraising and a planned reverse stock split are designed to broaden the investor base and fund both commercial and R&D priorities.
- Pipeline and Platform Integration: The Gemini pivotal study and upcoming pump integrations position Sensonics to address a broader diabetes market, but execution risk remains elevated until commercial launches materialize.
Conclusion
Sensonics’ Q2 marked a turning point, with Eversense 365 adoption, channel mix, and capital allocation driving a structurally improved business model. The next two quarters will be decisive in validating retention, scaling access, and sustaining growth momentum as the company transitions from launch to scale.
Industry Read-Through
Sensonics’ channel shift and bundled-pay traction signal a broader trend in diabetes technology reimbursement, with Medicare and commercial payers moving toward integrated, procedure-based payment models. The company’s exclusion from DME competitive bidding highlights a potential advantage for implantable and medical-benefit CGMs relative to traditional DME models. For the broader diabetes device space, Sensonics’ integration with pump platforms and focus on Type 2 populations foreshadow increased convergence and patient segmentation. Investors in the CGM and diabetes management sector should monitor payer policy evolution, channel mix impacts, and the rising importance of DTC and provider network strategies.