Senseonics Holdings, Inc.

Good day, everyone, and welcome to Senseonics' fourth quarter and full year 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. Please note, today's call will be recorded, and I'll be standing by should you need any assistance. It is now my pleasure to turn the conference over to Jeremy Pfeffer from LifeSci Advisors. Please go ahead.

Thank you. This is Jeremy Pfeffer from LifeSci Advisors. 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 31st, 2025, 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.senseonics.com. We undertake no obligation to update publicly or revise these forward-looking statements for any reason except as required by law. Joining me today from Senseonics are Tim Goodenough, President and Chief Executive Officer, Rick Sullivan, Chief Financial Officer, and Brian Hanson, Chief Commercial Officer. And now, I'll turn the call over to Tim.

Thanks, Jeremy, and I appreciate everyone joining us today. Looking back over 2025, it's hard to believe how much has changed at Senseonics. This time last year, ever since 365, had only been available in the United States for a few months. And we were partnered with Essentia Diabetes Care for all commercialization and sales operations globally. And we were conducting feasibility studies for our Gemini product. On the financial front, our gross margins were hovering around 25%. Annual revenue was less than $23 million. and we were in the process of executing a successful cost savings initiative to lower operating expenses. Today, just one year later, Senseonics is a fully integrated developer, manufacturer, and once again, seller of Eversense. We have an exceptional sales and marketing team led by Brian Hanson, our new chief commercial officer, and Eversense 365 is now approved in both the United States and in the European Union. In 2025, we achieved full-year revenue of over $35 million, growing approximately 60% year-over-year. Our year-long sensor, our continued partnership with healthcare providers, and our enhanced direct-to-consumer marketing strategy has delivered tangible results, with a doubling of patients on Eversense in the U.S., with new patient starts growing 103%. And we have already accomplished margin improvements to greater than 50% to finish the year. 2025 was certainly a year of transformation at Senseonics. The strategic decisions we made last year established a strong foundation for growth in 2026 and beyond. The biggest decision we made in 2025 was to transition all commercial activities from a sense of diabetes care back to Senseonics, removing a layer of complexity from our operations and providing us with a new level of control and agility to execute on our focus strategy. By bringing the sales, customer service, marketing, and sales operations functions in-house, we both eliminate revenue sharing with Essentia and have the opportunity to respond quickly to meet the needs of people with diabetes. This change also brings an impressive team of commercial professionals to Sensionics. This end-to-end responsibility for ever since 365 unlocks operational efficiency, enhances our financial profile, enables more integration between our corporate objectives and commercial results. Additionally, this change simplifies revenue recognition and provides critical insights into the effectiveness of our DTC efforts. PHC remains a meaningful shareholder in Senseonics and will continue to support the European commercialization of Eversense under transition service agreements through the anticipated closing in Europe in the second quarter and establishment of our own in-country operations. To implement this commercial evolution and drive long-term revenue growth, Brian Hanson transitioned to Scentsionics and brought with him his complete leadership and sales force team. Brian was formerly the head of Ascensia's CGM division, and prior to that, the chief commercial officer for Tandem, bringing a tremendous amount of experience and expertise from his accomplished career in diabetes care. In just a few minutes, I'll turn the call over to Brian so that he can give you a firsthand account of what has been a smooth and successful commercial transition. He'll also give his thoughts on our growth trajectory, which he will be instrumental in driving. Excitedly, our integration with Sequel's Twist automated insulin delivery system was another significant milestone in 2025, not just for us, but for the diabetes community at large. Patients utilizing the TWIST insulin pump can now use Eversense 365 to send glucose readings seamlessly to their pump for an entire year. This means eliminating a CGM change every 10 to 15 days and providing our type 1 patients with reliable and accurate glucose monitoring 365 days at a time. Our collaboration with Sequel combines the world's most sophisticated glucose sensing, algorithm control, and pumping technologies, and is just the first of many collaborations we hope to establish with Pump Partners. Finally, in 2025, we made improvements in our financials, raised capital from institutional investors and strategic partners, executed a reverse stock split, and began trading on the NASDAQ exchange. Similar to our other transformation initiatives, we believe these accomplishments set Senseonics up for long-term growth and disciplined financial execution. Moving on to the leading indicators for 2026. I'll start with a quick reminder that our business is seasonal. The fourth quarter is typically our strongest quarter due to insurance deductibles being met. Further, a higher number of existing customers are available for reorders of EverSense in the quarter because the US commercial launch of EverSense 365 took place in the fourth quarter of 2024. So early adopters translate into annual reorders beginning in this fourth quarter. Through this, we saw meaningful quarter-over-quarter growth for the entirety of 2025, including growth in leads, conversions, new patient starts, and prescribers of our sensor for the first time. We expect this momentum to continue in 2026, buoyed by our growth initiatives and investments, the twist integration, and expansion of Eversense into new markets. In January, we received CE marketing for EverSense 365, and we expect to launch one global product, Germany, Italy, Spain, and Sweden in the coming months with our own dedicated European sales force. We recognize that patients and providers in Europe have been waiting for us to deliver on our promise of one year, one CGM in their markets, and we now have the approval. We anticipate a similar uptake in interest and new patients on EverSense as we had in the United States. On the product pipeline front, we continue to advance development of both the Gemini and Freedom products. We expect to complete the Gemini pivotal trials before the end of the year with the launch expected to follow in 2027. Gemini improves on the capabilities of ever since 365 with an integrated one-year battery and flash glucose monitoring capabilities without a transmitter. And Freedom is close behind with launch planned for 2028. The Freedom System further improves on Gemini, incorporating direct wireless communication between the sensor and the patient's phone. I'm confident that our decisions on execution in 2025 will form the foundation of our 2026 growth. We have the right team, the right financial structure, and the world's first and only year-long CGM to improve and simplify the lives of millions of patients worldwide. And with that, I'll now turn the call over to Brian.