Semler Scientific, Inc. (SMLR): Marketing Mix Analysis [Dec-2025 Updated]

You're looking for a clear, no-nonsense breakdown of Semler Scientific, Inc.'s marketing mix as of late 2025, and honestly, the company's dual focus makes this analysis defintely interesting. This is not your typical medical device story; Semler Scientific, Inc. is actively managing a core healthcare segment-pushing the QuantaFlo device and the new CardioVanta line-while simultaneously executing a massive corporate treasury strategy, holding over 5,021 Bitcoins as of July 31, 2025. To be fair, while Q2 2025 healthcare revenue fell 43% year-over-year to $8.2 million, that business still boasts gross profit margins of nearly 91%, showing the underlying product strength. Let's map out exactly how they are positioning the Product, Place, Promotion, and Price for this unique setup below.

Semler Scientific, Inc. (SMLR) - Marketing Mix: Product

The product offering from Semler Scientific, Inc. (SMLR) is structured around two distinct engines: established medical technology and a primary reserve asset strategy. The core medical device remains the QuantaFlo, which is patented and cleared by the U.S. Food and Drug Administration (FDA). This device provides rapid, point-of-care testing designed to measure arterial blood flow in the extremities, directly supporting the diagnosis of Peripheral Arterial Disease (PAD).

To drive future healthcare initiatives, Semler Scientific, Inc. (SMLR) launched CardioVanta, a wholly owned subsidiary, during the second quarter of 2025. This new entity focuses specifically on the early detection of heart failure and cardiac arrhythmia. Management has indicated plans to seek outside capital to validate and fund these new healthcare business opportunities.

The product portfolio's non-healthcare component centers on the company's primary reserve asset strategy, which involves the strategic accumulation of Bitcoin. This strategy is intended to be funded through proceeds from equity and debt financings, alongside cash flows from operations. The company has been actively growing this digital asset position.

• QuantaFlo is the FDA-cleared device for rapid Peripheral Arterial Disease (PAD) testing.
• CardioVanta, launched in Q2 2025, targets heart failure and cardiac arrhythmia detection.
• A customer representing more than 10% of revenue in both Q2 and Q3 2025 has ceased use of QuantaFlo devices.
• The company is targeting 10,000 BTC by year-end 2025.

The Bitcoin Treasury Asset forms a significant part of the current product/asset structure, with aggressive accumulation targets set for the coming years. The company has been growing its holdings substantially since adopting the Bitcoin Standard in May 2024.

As of July 31, 2025, the Digital Assets held by Semler Scientific, Inc. (SMLR) amounted to 5,021 Bitcoins, which carried a reported fair value of nearly $586.2 million. The aggregate purchase amount for these holdings was $475.8 million.

For the most recent preliminary data available, as of September 30, 2025, Semler Scientific, Inc. (SMLR) held 5,048 Bitcoins, reflecting a market value of $575.8 million based on the Coinbase exchange price at that quarter's end.

Semler Scientific, Inc. (SMLR) - Marketing Mix: Place

Semler Scientific, Inc. utilizes a distribution strategy heavily weighted toward direct engagement with major healthcare entities within the United States market for its QuantaFlo device and related services.

Direct Sales Model: Focus on large enterprise healthcare customers and health plans

The distribution channel centers on a direct sales approach targeting large enterprise healthcare customers and health plans. This model suggests a focus on securing high-volume, recurring revenue streams through established relationships with significant payers and providers. Management noted seeing 'green shoots from the cardiovascular product line that we introduced to our large enterprise customer base this year' in the first quarter of 2025. Furthermore, the company's wholly-owned subsidiary, CardioVanta, Inc., is structured to pursue a high margin software as a service (SaaS) business model focused on the multi-billion dollar markets for early detection of heart failure and cardiac arrhythmia monitoring.

Point-of-Care Settings: QuantaFlo device deployment for rapid, in-office patient testing

The physical placement of the QuantaFlo device is primarily within clinical point-of-care settings, specifically in-office environments where rapid patient testing is required. The QuantaFlo device itself is patented and FDA-cleared, providing rapid testing to measure arterial blood flow in the extremities to aid in the diagnosis of peripheral arterial disease. This in-office deployment strategy ensures immediate access to diagnostic information for clinicians managing patient care.

Highly Concentrated Distribution: Two largest customers accounted for 74% of Q1 2025 revenue

Distribution reliance exhibits significant concentration among a small number of key accounts. For the first quarter ended March 31, 2025, total revenues were $8.8 million. The reliance on these top accounts is a defining characteristic of the current distribution structure.

Also, Semler Scientific disclosed that a customer representing more than 10% of revenue in both the second and third quarters of 2025 has ceased use of its QuantaFlo devices.

United States Market: Primary focus on enhancing clinical effectiveness for U.S. healthcare providers

The entire distribution and sales effort for the QuantaFlo platform is concentrated within the United States. The regulatory clearances, including FDA 510(k) approval, confirm the product's authorized use for U.S. healthcare providers. The strategic goal remains focused on integrating the technology into clinical protocols to enhance the early detection and monitoring of chronic diseases for the U.S. patient population.

• FDA 510(k) approval secured for United States use.
• Focus on integration into U.S. hospital and health system protocols.
• CardioVanta subsidiary targets U.S. markets for heart failure monitoring.

Semler Scientific, Inc. (SMLR) - Marketing Mix: Promotion

You're looking at how Semler Scientific, Inc. communicates its value proposition, which is currently a dual-engine approach balancing medical technology with a significant Bitcoin treasury strategy. The promotion activities are heavily weighted toward signaling this unique corporate positioning to investors and the market.

Bitcoin Strategy PR

The promotion around the Bitcoin strategy has been very direct, focusing on leadership and aggressive accumulation targets. Semler Scientific, Inc. appointed Joe Burnett as its Director of Bitcoin Strategy on June 19, 2025. This move directly supports the public commitment to growing the Bitcoin treasury, which was first adopted in May 2024.

The promotion centers on a multi-year accumulation plan with specific targets:

• Target holding by year-end 2025: 10,000 BTC.
• Target holding by year-end 2026: 42,000 BTC.
• Final target holding by year-end 2027: 105,000 BTC.

The progress toward these goals is quantified through Key Performance Indicators (KPIs) that are central to the promotional narrative:

Investor Relations Focus

Semler Scientific, Inc. uses its Investor Relations (IR) website to provide transparent, real-time-like disclosures, which is a key promotional tactic for a company with a volatile treasury asset. They launched a public Bitcoin dashboard on their website on June 4, 2025. This dashboard is explicitly positioned as a key disclosure tool under Regulation FD.

The dashboard provides investors with material disclosures on key operational and financial aspects:

• Market data for SMLR common stock and Bitcoin.
• KPIs including BTC Yield, BTC Gain, and BTC $ Gain.
• Updates on Bitcoin purchases and overall holdings.

Financial health metrics disclosed via IR channels support the narrative of funding the Bitcoin strategy:

The company is the second U.S. public company to adopt the Bitcoin Standard, announced in May 2024. That's a strong positioning statement right there.

Clinical Marketing

Promotion for the core healthcare business involves segmenting and focusing on new growth areas. Semler Scientific, Inc. formed CardioVanta, Inc., a wholly-owned subsidiary, on June 24, 2025, to drive future healthcare activities. This subsidiary is promoted as focusing on the early detection of heart failure and cardiac arrhythmia monitoring, structured as a software-as-a-service (SAAS) business model.

The market size for CardioVanta's focus area is substantial, providing a backdrop for promotional efforts aimed at existing large customers:

• Heart failure affects more than six million Americans.
• The associated annual cost to the U.S. healthcare system is more than $30 billion.

The existing product line, QuantaFlo®, faces headwinds, which influences the promotional focus on the new subsidiary. Second quarter 2025 revenues were $8.2 million, down 43% year-over-year. Management anticipates fourth quarter 2025 revenues will be at least 60% lower compared to third quarter 2025 expected revenue due to reimbursement changes impacting QuantaFlo usage.

Corporate Positioning

The primary corporate positioning is the adoption of Bitcoin as the primary treasury reserve asset in May 2024. This decision is promoted as establishing Semler Scientific, Inc. as a 'dual-engine platform for growth,' balancing the medical device/software business with the Bitcoin strategy.

The company's relative standing in the Bitcoin corporate treasury space is a key promotional data point:

The promotion highlights the financial results tied to this positioning, such as the net income for Q2 2025 being $66.9 million, largely buoyed by an unrealized Bitcoin gain of $83.8 million in that quarter.

Finance: draft 13-week cash view by Friday.

Semler Scientific, Inc. (SMLR) - Marketing Mix: Price

You're looking at how Semler Scientific, Inc. prices its offerings in a market facing significant external pressure. The pricing strategy here is complex because it's split between a core healthcare service and a treasury asset strategy that heavily influences the balance sheet and, indirectly, the perceived value of the entire enterprise.

Declining Healthcare Revenue: The core diagnostics business is seeing its realized price points or volume erode. For the second quarter ended June 30, 2025, Semler Scientific, Inc. reported total revenues of $\mathbf{\$8.2}$ million. This figure represents a $\mathbf{43\%}$ decrease year-over-year. This revenue contraction is directly tied to external pricing policy shifts, specifically the phase-in of the 2024 Centers for Medicare and Medicaid Services (CMS) rate announcement, which resulted in decreased usage of their diagnostic device at some customer sites. It's tough when the reimbursement environment dictates your realized price.

High Gross Margin: To be fair, the underlying unit economics of the healthcare business remain strong, suggesting that when a service is rendered and paid for, the margin is excellent. The healthcare business segment maintains impressive gross profit margins of nearly $\mathbf{91\%}$. This high margin suggests that the issue isn't the cost to deliver the service, but rather the external factors limiting the volume or the price they can charge per service due to regulatory changes.

The financial reality of Q2 2025 shows this dynamic clearly:

Funding Strategy: The company's approach to funding its asset accumulation strategy-which is now a dominant factor in its financial narrative-involves using capital markets to secure funds for Bitcoin purchases, which indirectly impacts shareholder equity and future pricing power. Semler Scientific, Inc. utilized $\mathbf{\$100.0}$ million from convertible notes (specifically the 4.25% 2030 converts) and raised approximately $\mathbf{\$194.3}$ million in net proceeds from its at-the-market (ATM) equity offering program through July 31, 2025. These funds are directed toward scaling its Bitcoin treasury, with a target of holding $\mathbf{10,000}$ Bitcoin by the end of fiscal year 2025, up from $\mathbf{5,021}$ BTC held as of July 31, 2025.

Value-Based Pricing: The perceived value of Semler Scientific, Inc.'s core offering-services and products for chronic disease detection, like Peripheral Artery Disease (PAD) screening via QuantaFlo-is being actively repriced by external bodies. The removal of PAD without complications from the Medicare Advantage risk adjustment model by CMS directly reduces the incentive structure for customers to utilize the diagnostic service, effectively lowering the realized price or volume. The company is attempting to offset this by introducing new value propositions, such as CardioVanta, a Software as a Service (SaaS) business focused on heart failure detection. This shift aims to price a recurring, subscription-based service, moving away from the fee-for-service model impacted by the CMS changes. The pricing strategy now relies on two engines:

• Pricing for PAD detection is constrained by CMS reimbursement.
• New SaaS offering, CardioVanta, targets heart failure detection.
• Bitcoin holdings are a key treasury asset influencing overall valuation.
• Target BTC holdings for YE 2025 is $\mathbf{10,000}$ coins.

If onboarding takes 14+ days, churn risk rises.