Full Press Release Details
MedTech Inc. Reports Second Quarter 2025 Financial Results (Unaudited)
Revenue Increased 28% Year-Over-Year in Q2; Increased 27% Year-Over-Year in First Six Months of 2025
Process to Evaluate Strategic Alternatives for its Tissue Health Plus, LLC Subsidiary
WORTH, TX, August 13, 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, chronic wound and skin markets, today reported
its financial results for the second quarter ended June 30, 2025.
Quarter 2025 Financial Summary
| Net revenue increased 28% to $25.8 million, compared to $20.2 million in the second quarter of 2024. | ||
| Net loss of $2.0 million, compared to a net loss of $3.5 million in the second quarter of 2024. | ||
| Adjusted EBITDA (1) of $2.7 million, compared to $0.6 million in the second quarter of 2024. |
Six Months of 2025 Financial Summary
| Net revenue increased 27% year-over-year to $49.3 million, compared to $38.7 million in the first six months of 2024. | ||
| Net loss of $5.5 million, compared to a net loss of $5.3 million in the first six months of 2024. |
| Sanara Surgical segment net loss of $0.1 million, compared to a net loss of $2.7 million in the first six months of 2024. | ||
| Tissue Health Plus ("THP") segment net loss of $5.4 million, compared to a net loss of $2.6 million in the first six months of 2024. |
| Sanara Surgical segment generated Segment Adjusted EBITDA (1) of $7.4 million, compared to $2.5 million in the first six months of 2024. | ||
| THP segment generated Segment Adjusted EBITDA (1) of $(4.1) million, compared to $(1.6) million in the first six months of 2024. |
Adjusted EBITDA and Segment Adjusted EBITDA are non-GAAP financial measures. See the discussion and the reconciliations at the
end of this release for additional information.
are pleased to deliver impressive net revenue performance in our Sanara Surgical segment, with 28% growth year-over-year in the second
quarter of 2025, fueled by sales of CellerateRX Surgical, BIASURGE , and our portfolio of bone fusion
products," stated Ron Nixon, Sanara's Executive Chairman and CEO. "This performance was made possible by the Sanara
Surgical team's focused execution on our commercial strategy: to continue expanding our network of distributor partners, adding
new healthcare facilities to our customer base, and penetrating the existing facilities we serve."
Nixon continued: "In addition to our sales performance, we enhanced our gross margins and realized significant operating expense
leverage in our Sanara Surgical segment, generating $0.5 million of net income and $4.7 million of Segment Adjusted EBITDA(1)
in the second quarter of 2025, with strong improvements year-over-year. For the first six months of 2025, our Sanara Surgical segment
generated a net loss of $0.1 million and $7.4 million of Segment Adjusted EBITDA(1). In the second half of 2025, we look forward
to continuing our track record of strong sales performance in the Sanara Surgical segment, as we aim to capitalize on the large, untapped
growth opportunities for our key products, and continue to execute on our goal to facilitate improved clinical outcomes for clinicians
and their patients."
Nixon concluded: "In our THP segment, we launched our pilot program with a wound care provider group in late June 2025 and began
the first patient encounters under this program. We are pleased with the performance of our THP technology platform during the initial
months of this program, while being increasingly mindful of the cash used to support our THP-related initiatives. With this in mind,
we have initiated a formal process to evaluate strategic alternatives for our subsidiary Tissue Health Plus, LLC, with the goal of maximizing
shareholder value, and have engaged a strategic advisor to assist in this process. We expect to continue our investment in the THP strategy
and project our cash investment during the second half of 2025 to be between $5.5 and $6.5 million. In parallel, we are exploring a full
range of strategic alternatives for THP, with a focus on identifying and pursuing the best path forward to maximize value for our company
and its shareholders."
Segment Adjusted EBITDA is a non-GAAP financial measure. See the discussion and the reconciliations at the end of this release
for additional information.
Quarter and Year-to-Date 2025 Revenue
following table summarizes revenue streams from product sales, software as a service ("SaaS"), and royalties for the three
and six months ended June 30, 2025 and 2024:
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Soft tissue repair products | $ | 22,661,457 | $ | 17,641,318 | $ | 43,193,897 | $ | 33,723,610 | ||||||||
| Bone fusion products | 3,142,795 | 2,516,599 | 6,044,451 | 4,970,945 | ||||||||||||
| SaaS | 26,582 | - | 26,582 | - | ||||||||||||
| Royalties | - | 906 | - | 906 | ||||||||||||
| Total Net Revenue | $ | 25,830,834 | $ | 20,158,823 | $ | 49,264,930 | $ | 38,695,461 |
Quarter 2025 Financial Results
revenue for the second quarter of 2025 was $25.8 million, compared to $20.2 million for the second quarter of 2024, an increase of $5.7
million, or 28%, year-over-year. The increase in net revenue was primarily driven by an increase of $5.0 million, or 28%, in sales of
soft tissue repair products and an increase of $0.6 million, or 25%, in sales of bone fusion products. The increase in sales of soft
tissue repair products was driven primarily by increased demand for CellerateRX Surgical Activated Collagen
("CellerateRX Surgical") and, to a lesser extent, 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.
profit for the second quarter of 2025 was $23.9 million, compared to $18.2 million for the second quarter of 2024, an increase of $5.7
million, or 32%, year-over-year. The increase in gross profit was primarily driven by increased sales of soft tissue repair products.
Gross margin was 93% of net revenue for the second quarter of 2025, compared to 90% of net revenue for the second quarter of 2024. The
higher gross margin realized in the second quarter of 2025 was due to increased sales of soft tissue repair products and lower manufacturing
costs related to CellerateRX Surgical.
expenses for the second quarter of 2025 were $23.9 million, compared to $21.0 million for the second quarter of 2024, an increase of
$2.9 million, or 14%, year-over-year. The increase in operating expenses was primarily driven by an increase of $2.6 million, or 14%,
in selling, general and administrative ("SG&A") and an increase of $0.3 million, or 28%, in research and development,
due in part to the development of enhancements to the Sanara Surgical product portfolio. The increase in SG&A was primarily driven
by a $1.5 million increase in direct sales and marketing expenses offset by $0.2 million of lower costs in the Sanara Surgical segment,
and $1.3 million of additional SG&A in the THP segment.
loss for the second quarter of 2025 was $31 thousand, compared to operating loss of $2.9 million for the second quarter of 2024.
expense for the second quarter of 2025 was $2.0 million, compared to $0.6 million for the second quarter of 2024. Other expense for the
second quarter of 2025 primarily included higher interest expense and fees related to our term loan agreement with CRG Servicing LLC
(as amended, the "CRG Term Loan Agreement").
loss for the second quarter of 2025 was $2.0 million, compared to a net loss of $3.5 million for the second quarter of 2024. The Company's
Sanara Surgical segment generated a net income of $0.5 million for the second quarter of 2025, compared to a net loss of $2.2 million
for the second quarter of 2024. The Company's THP segment generated a net loss of $2.5 million for the second quarter of 2025,
compared to a net loss of $1.3 million for the second quarter of 2024.
EBITDA(1) for the second quarter of 2025 was $2.7 million, compared to $0.6 million for the second quarter of 2024. The Company's
Sanara Surgical segment generated Segment Adjusted EBITDA(1) of $4.7 million for the second quarter of 2025, compared to $1.4
million for the second quarter of 2024. The Company's THP segment generated Segment Adjusted EBITDA(1) of $(2.1) million
for the second quarter of 2025, compared to $(0.8) million for the second quarter of 2024.
flow from operating activities in the second quarter of 2025 was $2.7 million, compared to $1.4 million of cash used in operating activities
in the second quarter of 2024.
of June 30, 2025, the Company had $17.0 million of cash and $44.2 million of long-term debt, compared to $15.9 million and $30.7 million,
respectively, as of December 31, 2024. As of June 30, 2025, the Company had $12.25 million of available borrowing capacity, which must
be borrowed prior to December 31, 2025, if at all.
Six Months of 2025 Financial Results
revenue for the first six months of 2025 was $49.3 million, compared to $38.7 million for the first six months of 2024, an increase of
$10.6 million, or 27%, year-over-year. The increase in net revenue was primarily driven by an increase of $9.5 million, or 28%, in sales
of soft tissue repair products and an increase of $1.1 million, or 22%, in sales of bone fusion products.
loss for the first six months of 2025 was $5.5 million compared to a net loss of $5.3 million for the first six months of 2024. The Company's
Sanara Surgical segment generated a net loss of $0.1 million for the first six months of 2025, compared to a net loss of $2.7 million
for the first six months of 2024. The Company's THP segment generated a net loss of $5.4 million for the first six months of 2025,
compared to a net loss of $2.6 million for the first six months of 2024.
EBITDA(1) for the first six months of 2025 was $3.3 million, compared to $0.9 million for the first six months of 2024. The
Company's Sanara Surgical segment generated Segment Adjusted EBITDA(1) of $7.4 million for the first six months of 2025,
compared to $2.5 million for the first six months of 2024. The Company's THP segment generated Segment Adjusted EBITDA(1)
of $(4.1) million for the first six months of 2025, compared to $(1.6) million for the first six months of 2024.
flow from operating activities in the first six months of 2025 was $0.7 million, compared to $3.0 million of cash used in operating activities
in the first six months of 2024.
Adjusted EBITDA and Segment Adjusted EBITDA are non-GAAP financial measures. See the discussion and the reconciliations at the
end of this release for additional information.
will host a conference call on Wednesday, August 13, 2025, at 8:00 a.m. Eastern Time to discuss the results for the quarter ended June
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 132343. A telephonic replay of the conference call will be available through
Wednesday, August 27, 2025, by dialing 877-481-4010 (international callers: 919-882-2331) and entering the replay passcode: 52721.
live webcast of Sanara's conference call will be available under the "Events" section of the Company's Investor
Relations website, www.SanaraMedTech.com/investor-relations/. An online replay will be available for approximately one year following
the conclusion of the live broadcast.