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Semler Scientific, Inc. (NASDAQ:SMLR), a medical device company with impressive gross profit margins of 91.55% and a market capitalization of $329.16 million, has disclosed preliminary financial results for the first quarter ended March 31, 2025, revealing a loss in operations and a significant drop in the value of its Bitcoin holdings. According to InvestingPro analysis, the company maintains strong financial health with a current ratio of 3.59, indicating robust liquidity. The company, known for its electromedical and electrotherapeutic apparatus, is still in the process of finalizing its full financial results.
According to the recent Form 8-K filing with the Securities and Exchange Commission, Semler Scientific anticipates reporting revenues between $8.8 million and $8.9 million, following a challenging period where revenue declined 17.44% over the last twelve months. However, the company expects to see a loss from operations ranging from $1.3 million to $1.5 million. Contributing to this loss are non-cash stock compensation of approximately $1.5 million, a state sales and use tax accrual of $0.4 million, and legal fees of $0.4 million related to a civil investigative demand (CID) from the U.S. Department of Justice (DOJ). InvestingPro subscribers can access 10+ additional expert insights about SMLR’s financial outlook and detailed valuation metrics through the comprehensive Pro Research Report.
The company also reported an unrealized loss of approximately $41.8 million due to the change in fair value of its Bitcoin holdings since December 31, 2024. As of March 31, 2025, Semler Scientific held 3,192 bitcoins, valued at approximately $263.5 million. Additionally, the company disclosed a contingent liability of about $29.75 million relating to the settlement of the DOJ CID and cash reserves totaling roughly $9.9 million.
The 8-K filing also mentioned a Master Loan Agreement with Coinbase (NASDAQ:COIN) Credit Inc., signed on Tuesday, which allows Semler Scientific to borrow cash or digital assets, using its Bitcoin as collateral. This agreement could play a role in funding the proposed DOJ settlement, should the company decide to borrow under the agreement.
It is important to note that the preliminary financial information is unaudited and subject to change upon completion of the company’s financial closing procedures. The final results may vary, and the information provided does not represent all necessary data for a complete understanding of Semler Scientific’s financial status for the first quarter of 2025.
The company has also updated its status regarding the DOJ CID, indicating that it has agreed in principle to a $29.75 million payment to settle all claims. However, this agreement is not yet final, and if a satisfactory settlement is not reached, the DOJ may pursue further legal action.
This article is based on a press release statement and the information provided is subject to change pending finalization of the company’s financial statements in accordance with U.S. GAAP. Despite recent challenges, Semler Scientific trades at a P/E ratio of 5.98, suggesting potential value opportunity. InvestingPro analysis indicates the stock is currently fairly valued, with additional metrics and expert insights available to subscribers through the platform’s comprehensive research tools.
In other recent news, Semler Scientific reported its fourth-quarter 2024 earnings, significantly surpassing analyst expectations with an earnings per share (EPS) of $3.41, compared to the forecasted $0.26. The company also reported revenues of $12.4 million, slightly exceeding the anticipated $12 million, although this figure represents an 18% decrease year-over-year. Despite the decline in revenue, Semler Scientific’s income from operations increased by 40% year-over-year, reaching $3.5 million. The company has strategically focused on its core product, QuantaFlo, and its Bitcoin treasury strategy, which has been a notable development. Semler Scientific’s strategic decisions included a $100 million convertible senior notes offering, which was oversubscribed, reflecting strong investor interest. The company has also been active in expanding its Bitcoin holdings, making it the tenth largest corporate holder of Bitcoin, according to bitcointreasuries.net. Analysts have pointed out potential revenue pressures in 2025 due to CMS rate changes, but the company remains optimistic about its strategic directions. Additionally, Semler Scientific is exploring new revenue opportunities in the cardiovascular space, aiming to expand its product offerings in this sector.
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