Sanara Medtech | 10-Q: FY2025 Q3 Revenue Misses Estimate at USD 26.33 M

Revenue: As of FY2025 Q3, the actual value is USD 26.33 M, missing the estimate of USD 26.63 M.

EPS: As of FY2025 Q3, the actual value is USD 0.09, beating the estimate of USD -0.215.

EBIT: As of FY2025 Q3, the actual value is USD 4.759 M.

Segment Revenue

• Net Revenue: $26,333,819 for the three months ended September 30, 2025, compared to $21,671,599 for the same period in 2024. For the nine months ended September 30, 2025, net revenue was $75,572,167, compared to $60,367,060 for the same period in 2024.

Operational Metrics

• Gross Profit: $24,459,605 for the three months ended September 30, 2025, compared to $19,679,612 for the same period in 2024. For the nine months ended September 30, 2025, gross profit was $69,925,704, compared to $54,476,341 for the same period in 2024.
• Operating Income (Loss): $2,941,240 for the three months ended September 30, 2025, compared to $778,537 for the same period in 2024. For the nine months ended September 30, 2025, operating income was $6,254,079, compared to an operating loss of - $1,001,579 for the same period in 2024.
• Net Income (Loss) from Continuing Operations: $834,493 for the three months ended September 30, 2025, compared to a net loss of - $180,488 for the same period in 2024. For the nine months ended September 30, 2025, net income was $714,186, compared to a net loss of - $2,872,286 for the same period in 2024.
• Adjusted EBITDA: $4,908,257 for the three months ended September 30, 2025, compared to $2,563,521 for the same period in 2024. For the nine months ended September 30, 2025, Adjusted EBITDA was $12,323,142, compared to $5,095,670 for the same period in 2024.

Cash Flow

• Net Cash Provided by (Used in) Operating Activities: $2,841,568 for the nine months ended September 30, 2025, compared to - $955,831 for the same period in 2024.
• Net Cash Used in Investing Activities: - $12,528,613 for the nine months ended September 30, 2025, compared to - $6,481,649 for the same period in 2024.
• Net Cash Provided by Financing Activities: $8,748,396 for the nine months ended September 30, 2025, compared to $18,567,453 for the same period in 2024.

Unique Metrics

• Soft Tissue Repair Products Revenue: $23,424,126 for the three months ended September 30, 2025, compared to $18,863,335 for the same period in 2024. For the nine months ended September 30, 2025, revenue was $66,618,023, compared to $52,586,945 for the same period in 2024.
• Bone Fusion Products Revenue: $2,909,693 for the three months ended September 30, 2025, compared to $2,808,264 for the same period in 2024. For the nine months ended September 30, 2025, revenue was $8,954,144, compared to $7,779,209 for the same period in 2024.

Future Outlook and Strategy

Core Business Focus

• Revenue Growth: The company aims to continue increasing its market penetration and geographic expansion, particularly for its soft tissue repair products like CellerateRX Surgical and BIASURGE.
• Product Development: Continued investment in research and development, particularly for products like CellerateRX and new technologies under development by Rochal Technologies.
• Financial Targets: The company has set annual minimum revenue targets, including $75 million for the twelve-month period ending December 31, 2025, and $85 million for the twelve-month period ending December 31, 2026.

Non-Core Business

• Discontinued Operations: The company has decided to discontinue the THP segment due to persistent losses and lack of investor interest. The winding down process is expected to continue through the end of 2025.