Sanara MedTech Inc. Reports Second Quarter 2025 Financial Results
Net Revenue Increased 28% Year-Over-Year in Q2; Increased 27% Year-Over-Year in First Six Months of 2025
Announces Process to Evaluate Strategic Alternatives for its Tissue Health Plus, LLC Subsidiary
FORT 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.
Second 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.
First 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.
●Adjusted EBITDA(1) of $3.3 million, compared to $0.9 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.
(1) 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.
Management Comments
“We 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.”
Mr. 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.”
Mr. 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.”
(1) Segment Adjusted EBITDA is a non-GAAP financial measure. See the discussion and the reconciliations at the end of this release for additional information.
Second Quarter and Year-to-Date 2025 Revenue
The 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:
Net 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.
Gross 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.
Operating 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.
Operating loss for the second quarter of 2025 was $31 thousand, compared to operating loss of $2.9 million for the second quarter of 2024.
Other 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”).
Net 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.
Adjusted 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.
Cash 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.
As 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.
First Six Months of 2025 Financial Results
Net 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.
Net 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.
Adjusted 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.
Cash 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.
(1) 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.
Conference Call
Sanara 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.
A 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.
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, chronic wound and skin markets. The Company markets, distributes and develops surgical, wound and skin products for use by physicians and clinicians in hospitals, clinics and all post-acute care. Sanara’s products are primarily sold in the North American advanced wound care and surgical tissue repair markets. Sanara markets and distributes CellerateRX® Surgical Activated Collagen®, FORTIFY TRG® Tissue Repair Graft and FORTIFY FLOWABLE® Extracellular Matrix as well as a portfolio of advanced biologic products focusing on ACTIGEN™ Verified Inductive Bone Matrix, ALLOCYTE® Plus Advanced Viable Bone Matrix, BiFORM® Bioactive Moldable Matrix, TEXAGEN® Amniotic Membrane Allograft, and BIASURGE® Advanced Surgical Solution to the surgical market. In addition, the following products are sold in the wound care market: BIAKŌS® Antimicrobial Skin and Wound Cleanser, BIAKŌS® Antimicrobial Wound Gel, and BIAKŌS® Antimicrobial Skin and Wound Irrigation Solution. Sanara’s pipeline also contains potentially transformative product candidates for mitigation of opportunistic pathogens and biofilm, wound re-epithelialization and closure, necrotic tissue debridement and cell compatible substrates. The Company believes it has the ability to drive its pipeline from concept to preclinical and clinical development while meeting quality and regulatory requirements. Sanara is constantly seeking long-term strategic partnerships with a focus on products that improve outcomes at a lower overall cost. For more information, please visit www.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 performance of the Company’s Tissue Health Plus platform during and following the commercial launch of the pilot program, the Company’s ability to evaluate strategic alternatives for THP and maximize shareholder value therefrom, 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
