What happens to stocks if AI loses momentum?
Introduction & Market Context
Senzime AB (STO:SEZI) released its Q2 2025 interim report on July 18, 2025, showcasing continued strong growth momentum. The company’s stock responded positively, rising 5.11% to 5.76 SEK following the presentation, building on its upward trajectory since the Q1 earnings announcement when it jumped 8.09%. The medical device company, which specializes in neuromuscular monitoring technology, continues to strengthen its position in the global market, particularly in the United States.
The company’s performance comes amid favorable industry tailwinds, including the pre-announcement of European Pediatric Guidelines for Neuromuscular Monitoring and expanded regulatory approvals for its partnership with Fukuda Denshi. These developments align with Senzime’s strategic focus on making its monitoring technology the standard of care globally.
Quarterly Performance Highlights
Senzime reported impressive growth figures for the first half of 2025, with net sales increasing 82% to 49.2 million SEK (compared to 27.0 million SEK in H1 2024). When adjusted for currency effects, sales growth reached 90%, driven primarily by Next-gen TetraGraph and TetraSens sensor sales.
As shown in the following chart of revenue growth by region, the US market has become the dominant revenue driver, accounting for 72% of total sales:
The company’s growth trajectory has been consistently strong, as evidenced by both rolling 12-month and quarterly sales figures:
The US market has been particularly impressive, with Q2 sales growth of 101% compared to the same period last year. This acceleration builds upon the 94% growth reported in Q1 2025, confirming the company’s successful execution of its US expansion strategy.
Detailed Financial Analysis
Despite the strong revenue growth, Senzime’s gross margin in Q2 was impacted by several factors. The Q2 gross margin was 61.7%, affected by new US tariffs, replacement units, and currency effects. Without these impacts, the adjusted gross margin would have been 68.4%, as illustrated in the following breakdown:
For the first half of the year, however, the gross margin still managed a slight improvement to 63.8% (from 63.7% in H1 2024), demonstrating the company’s ability to manage production costs effectively despite headwinds.
Operating expenses remained stable at 77,505 KSEK for the first half of 2025 (compared to 76,829 KSEK in H1 2024), despite significant investments in the US commercial team and global marketing. This disciplined cost management has contributed to improved EBITDA, which was -44,411 KSEK for H1 2025, a 23% improvement from -57,404 KSEK in the same period last year.
The company’s progress toward profitability is evident in its quarterly EBITDA trend, with Q2 2025 showing an 18% improvement to -23,573 KSEK (from -28,858 KSEK in Q2 2024):
Senzime ended Q2 with a cash position of 132 million SEK, bolstered by an additional 3.2 million SEK from the second tranche of a directed share issue that was booked in early July. The company also secured long-term funding of 110.4 million SEK through the issue of 24 million new shares at 4.60 SEK per share, providing financial stability to execute its strategic plan and reach positive cash flow.
Strategic Initiatives
A key driver of Senzime’s growth is the expanding installed base of TetraGraph monitors, which reached approximately 4,200 units by the end of Q2 2025, with 727 units delivered during the quarter. This growing installed base is fueling the recurring revenue from disposable sensors, with 327,215 TetraSens sensors sold in the last 12 months, more than double the 153,365 sold in the previous period.
The company has made significant inroads in the US market, securing approximately 200 hospital accounts and signing its first GPO agreement as a sole source supplier in 2024. Major installations during Q2 2025 included several large hospital systems across the United States:
Internationally, Senzime expanded its partnership with Fukuda Denshi, which received FDA and UKCA regulatory approvals for its NMT-module powered by TetraGraph technology. This opens opportunities for launches in the UK and US markets, building on the initial success in Japan where the HN-100 module was launched in 2024.
Forward-Looking Statements
Senzime’s management highlighted several factors that position the company for continued growth. The pre-announcement of European Pediatric Guidelines for Neuromuscular Monitoring at the Euroanaesthesia 2025 congress in Lisbon is expected to drive adoption in the pediatric segment, which represents approximately 10-12 million procedures annually.
The company summarized its key takeaways, emphasizing its hyper-growth trajectory, success in winning major hospital contracts, and the fundamental building blocks in place for continued expansion:
While Senzime did not provide specific revenue guidance in this presentation, the Q1 earnings report mentioned a target of 115-130 million SEK in revenue for 2025 and a long-term goal to become a 1 billion SEK company. The Q2 results suggest the company is on track to achieve these targets, with the combination of strong sales growth, stable operating expenses, and improving EBITDA indicating progress toward profitability.
As Senzime continues to execute its strategy of making its technology the standard of care globally, investors will be watching closely to see if the company can maintain its growth momentum while navigating challenges such as US tariffs and currency fluctuations. The stock’s performance, currently trading at 5.76 SEK (up 5.11% on the day of the presentation), reflects growing investor confidence in the company’s trajectory.
Full presentation:
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