Sanara MedTech Inc. Reports Third Quarter 2025 Financial Results (Unaudited)
Net Revenue Increased 22% Year-Over-Year in Q3; Increased 25% Year-Over-Year in First Nine Months of 2025
FORT WORTH, TX, Nov. 12, 2025 (GLOBE NEWSWIRE) -- Sanara MedTech Inc. (“Sanara,” the “Company,” “we,” “our” or “us”) (Nasdaq: SMTI), a medical technology company focused on developing and commercializing transformative technologies to improve clinical outcomes and reduce healthcare expenditures in the surgical market, today reported its financial results for the third quarter ended September 30, 2025.
Third Quarter 2025 Financial Summary (2)
First Nine Months of 2025 Financial Summary (2)
Third Quarter and Recent Operational Announcements
(1) Adjusted EBITDA is a non-GAAP financial measure. See the discussion and the reconciliations at the end of this release for additional information.
(2) As a result of the Company’s strategic realignment, the operations of THP, which were previously reported as the THP segment, have been classified as discontinued operations in Sanara’s financial statements for the three and nine months ended September 30, 2025 and 2024.
Management Comments
“Our surgical team delivered strong sales performance in the third quarter, culminating in net revenue growth of 22% year-over-year,” stated Seth Yon, Sanara’s President and Chief Executive Officer. “Our net revenue growth was fueled by a 24% increase in sales of our surgical soft tissue products, including CellerateRX ® Surgical and BIASURGE ®. This performance reflects the success of our commercial strategy to develop relationships with independent distributors, expand into new healthcare facilities, and penetrate existing facilities by adding new surgeon users. In addition, we achieved notable year-over-year improvements in our profitability profile, with a $1.0 million improvement in net income from continuing operations and a $2.3 million improvement in Adjusted EBITDA, on net revenue growth of $4.7 million year-over-year.”
Mr. Yon stated, “Regarding THP, as outlined in our press release yesterday, we have completed a thorough assessment of strategic alternatives for THP and initiated a realignment of our portfolio in the third quarter. Accordingly, we have ceased THP’s operations to enhance operational efficiency and allocate resources to our core surgical business. We believe this focus will support sustained long-term growth and value creation.”
Mr. Yon also stated: “For the remainder of 2025, our team will continue to execute our commercial plan, improve our operational efficiency, and invest wisely in our surgical business. We expect these efforts to support strong, sustainable revenue growth and improved profitability, both this year and beyond.”
Third Quarter and Year-to-Date 2025 Revenue
The following table summarizes revenue streams from product sales and royalties for the three and nine months ended September 30, 2025 and 2024:
Third Quarter 2025 Financial Results
As a result of the Company’s strategic realignment, the operations of THP, which were previously reported as the THP segment, have been classified as discontinued operations in Sanara’s financial statements for the three and nine months ended September 30, 2025 and 2024.
Net revenue for the third quarter of 2025 was $26.3 million, compared to $21.7 million for the third quarter of 2024, an increase of $4.7 million, or 22%, year-over-year. The increase in net revenue was driven by an increase of $4.6 million, or 24%, in sales of soft tissue repair products, and an increase of $0.1 million, or 4%, in sales of bone fusion products. The increase in sales of soft tissue repair products was driven primarily by increased sales of CellerateRX ® Surgical Activated Collagen ® (“CellerateRX Surgical”) and BIASURGE ® Advanced Surgical Solution (“BIASURGE”), as a result of the Company’s increased penetration of medical facilities that represent existing accounts, expansion into additional medical facilities, and development of its independent distribution network in both new and existing U.S. markets.
Gross profit for the third quarter of 2025 was $24.5 million, compared to $19.7 million for the third quarter of 2024, an increase of $4.8 million, or 24%, year-over-year. Gross margin was 93% of net revenue for the third quarter of 2025, compared to 91% of net revenue for the third quarter of 2024. The increase in gross profit, and higher gross margin realized in the third quarter of 2025, was primarily driven by increased sales of soft tissue repair products.
Operating expenses for the third quarter of 2025 were $21.5 million, compared to $18.9 million for the third quarter of 2024, an increase of $2.6 million, or 14%, year-over-year. The increase in operating expenses was driven by an increase of $2.5 million, or 14%, in selling, general and administrative (“SG&A”) and an increase of $0.2 million, or 31%, in research and development (“R&D”). The increase in SG&A was primarily due to increased compensation and contract services, which accounted for $1.4 million of the increase, and higher direct sales and marketing expenses, which accounted for approximately $0.8 million of the increase.
Operating income for the third quarter of 2025 was $2.9 million, compared to operating income of $0.8 million for the third quarter of 2024, an increase of $2.2 million, or 278%, year-over-year.
Other expense for the third quarter of 2025 was $2.1 million, compared to $1.0 million for the third quarter of 2024. The increase in other expense was primarily due to higher interest expense and fees related to the CRG term loan and share of losses from equity method investments.
Net income from continuing operations for the third quarter of 2025 was $0.8 million, compared to a net loss from continuing operations of $0.2 million for the third quarter of 2024. Net loss from discontinued operations for the third quarter of 2025 was $31.2 million, compared to a net loss from discontinued operations of $2.7 million for the third quarter of 2024. Net loss from discontinued operations includes a noncash asset impairment charge of $26.5 million in the third quarter of 2025 related to the discontinued operations of THP. After including discontinued operations, net loss for the third quarter of 2025 was $30.4 million, compared to a net loss of $2.9 million for the third quarter of 2024.
Adjusted EBITDA (1) for the third quarter of 2025 was $4.9 million, compared to $2.6 million for the third quarter of 2024, an increase of $2.3 million, year-over-year.
Net cash provided by operating activities in the third quarter of 2025 was $2.2 million, compared to $2.1 million of net cash provided by operating activities in the third quarter of 2024.
As of September 30, 2025, the Company had $14.9 million of cash and $45.1 million of long-term debt, compared to $15.9 million and $30.7 million, respectively, as of December 31, 2024. As of September 30, 2025, the Company had $12.25 million of available borrowing capacity, which must be borrowed prior to December 31, 2025, if at all.
First Nine Months of 2025 Financial Results
As a result of the Company’s strategic realignment, the operations of THP, which were previously reported as the THP segment, have been classified as discontinued operations in Sanara’s financial statements for the three and nine months ended September 30, 2025 and 2024.
Net revenue for the first nine months of 2025 was $75.6 million, compared to $60.4 million for the first nine months of 2024, an increase of $15.2 million, or 25%, year-over-year. The increase in net revenue was driven by an increase of $14.0 million, or 27%, in sales of soft tissue repair products and an increase of $1.2 million, or 15%, in sales of bone fusion products.
Net income from continuing operations for the first nine months of 2025 was $0.7 million, compared to a net loss from continuing operations of $2.9 million for the first nine months of 2024. Net loss from discontinued operations for the first nine months of 2025 was $36.7 million, compared to a net loss from discontinued operations of $5.3 million for the first nine months of 2024. Net loss from discontinued operations includes a noncash asset impairment charge of $26.5 million in the first nine months of 2025 related to the discontinued operations of THP. After including discontinued operations, net loss for the first nine months of 2025 was $36.0 million, compared to a net loss of $8.2 million for the first nine months of 2024.
Adjusted EBITDA (1) for the first nine months of 2025 was $12.3 million, compared to $5.1 million for the first nine months of 2024, an increase of $7.2 million, year-over-year.
Net cash provided by operating activities in the first nine months of 2025 was $2.8 million, compared to $1.0 million of net cash used in operating activities in the first nine months of 2024.
(1) Adjusted EBITDA is a non-GAAP financial measure. See the discussion and the reconciliations at the end of this release for additional information.
Conference Call
The Company will host a conference call and webcast on November 12, 2025 at 8:00 a.m. Eastern Time to discuss the results of the quarter ended September 30, 2025 and hold a question and answer session at the end of the call. The toll-free number to call for this teleconference is 888-506-0062 (international callers: 973-528-0011) and the access code is 874713. A telephonic replay of the conference call will be available through Wednesday, November 26, 2025, by dialing 877-481-4010 (international callers: 919-882-2331) and entering the replay passcode: 52979.
A live webcast of Sanara’s conference call is accessible by clicking here and will be made available under the ‘Events’ section of the Company’s Investor Relations website, https://ir.sanaramedtech.com/. An online replay will be available for approximately one year following the conclusion of the live broadcast.
About Sanara MedTech Inc.
Sanara MedTech Inc. is a medical technology company focused on developing and commercializing transformative technologies to improve clinical outcomes and reduce healthcare expenditures in the surgical market. The Company develops, markets, and distributes surgical products for use by physicians and clinicians in hospitals. Each of the Company’s products, services, and technologies are designed to achieve the goal of providing better clinical outcomes at a lower overall cost for patients. Sanara’s products are primarily sold in the North American surgical tissue repair markets. Sanara markets and distributes CellerateRX ® Surgical Activated Collagen ® Powder, BIASURGE ® Advanced Surgical Solution, FORTIFY TRG ® Tissue Repair Graft, FORTIFY FLOWABLE ® Extracellular Matrix, as well as a portfolio of advanced biologic products including: ACTIGEN ® Verified Inductive Bone Matrix, ALLOCYTE ® Plus Advanced Viable Bone Matrix, BiFORM ® Bioactive Moldable Matrix, and TEXAGEN ® Amniotic Membrane Allograft to the surgical market. The Company believes it can drive its pipeline from concept to preclinical and clinical development while meeting quality and regulatory requirements. The Company strives to be one of the most innovative and comprehensive providers of effective surgical solutions and is continually seeking to expand its offerings for patients requiring treatments in the United States. For more information, please visit SanaraMedTech.com.
Information about Forward-Looking Statements
The statements in this press release that do not constitute historical facts are “forward-looking statements,” within the meaning of and subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995. These statements may be identified by terms such as “aims,” “anticipates,” “believes,” contemplates,” “continue,” “could,” “estimates,” “expect,” “forecast,” “guidance,” “intends,” “may,” “plans,” “possible,” “potential,” “predicts,” “preliminary,” “projects,” “seeks,” “should,” “targets,” “will” or “would,” or the negatives of these terms, variations of these terms or other similar expressions. These forward-looking statements include, among others, statements regarding the Company’s ability to improve its operating efficiency, the Company’s business strategy and mission, the development of new products, the timing of commercialization of the Company’s products, the regulatory approval process and expansion of the Company’s business into value-based skin, wound care and other services. These items involve risks, contingencies and uncertainties such as uncertainties associated with the development and process for obtaining regulatory approval for new products, the Company’s ability to build out its executive team, the Company’s ability to identify and effectively utilize the net proceeds of the CRG Term Loan Agreement to support the Company’s growth initiatives, the extent of product demand, market and customer acceptance, the effect of economic conditions, competition, pricing, uncertainties associated with the development and process for obtaining regulatory approval for new products, the ability to consummate and integrate acquisitions, and other risks, contingencies and uncertainties detailed in the Company’s SEC filings, which could cause the Company’s actual operating results, performance or business plans or prospects to differ materially from those expressed in, or implied by these statements.
All forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to revise any of these statements to reflect future circumstances or the occurrence of unanticipated events, except as required by applicable securities laws.
Investor Relations Contact:
Jack Powell or Mike Piccinino, CFA
ICR Healthcare
IR@sanaramedtech.com
SANARA MEDTECH INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
SANARA MEDTECH INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
SANARA MEDTECH INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
SANARA MEDTECH INC. AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES (UNAUDITED)
To supplement the Company’s financial information presented in accordance with generally accepted accounting principles in the United States (“GAAP”), we present certain non-GAAP financial measures in this press release and on the related teleconference call, including Adjusted EBITDA. The Company’s management uses these non-GAAP financial measures, both internally and externally, to assess and communicate the financial performance of the Company. The Company defines Adjusted EBITDA as net income (loss) from continuing operations excluding interest expense/income, provision/benefit for income taxes, depreciation and amortization, non-cash share-based compensation expense, change in fair value of earnout liabilities, share of losses from equity method investments, executive separation costs, legal and diligence expenses related to acquisitions, and gains/losses on the disposal of property and equipment, as each is applicable to the periods presented.
The Company believes Adjusted EBITDA is useful to investors because it facilitates comparisons of the Company’s core business operations across periods on a consistent basis. Accordingly, the Company adjusts certain items, such as change in fair value of earnout liabilities, when calculating Adjusted EBITDA because the Company believes that such items are not related to the Company’s core business operations.
The Company’s non-GAAP financial measures are not in accordance with, nor an alternative for, measures conforming to GAAP and may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. The Company continues to provide all information required by GAAP, but it believes that evaluating its ongoing operating results may not be as useful if an investor or other user is limited to reviewing only GAAP financial measures. The Company does not, nor does it suggest that investors should consider these non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Material limitations associated with the use of such measures include that they do not reflect all costs included in operating expenses and may not be comparable with similarly named financial measures of other companies. Furthermore, these non-GAAP financial measures are based on subjective determinations of management regarding the nature and classification of events and circumstances. The Company presents these non-GAAP financial measures to provide investors with information to evaluate the Company’s operating results in a manner similar to how management evaluates business performance. To compensate for any limitations in such non-GAAP financial measures, management believes that it is useful in understanding and analyzing the results of the business to review both GAAP information and the related non-GAAP financial measures. Whenever the Company uses a non-GAAP financial measure, it provides a reconciliation of the non-GAAP financial measure to the most directly comparable GAAP financial measure. Investors are encouraged to review and consider these reconciliations.
Reconciliation of Net income (loss) from continuing operations to Adjusted EBITDA:
ANNEX - Consolidated (reflecting our Surgical Business):
The following tables reflect results of operations of our surgical business for the periods indicated below (Unaudited):
ANNEX - Consolidated (reflecting our Surgical Business) (continued):
Reconciliation of Net income (loss) from continuing operations to Adjusted EBITDA (Unaudited):