Sanara MedTech (SMTI) Q1 2025 earnings summary

Executive summary

• Net revenue grew 26% year-over-year to $23.4 million in Q1 2025, driven by strong sales in soft tissue repair and bone fusion products, with expanded market penetration and distribution.

• Gross profit increased 30% to $21.6 million, with gross margin rising to 92% from 90% due to lower manufacturing costs and favorable product mix.

• Adjusted EBITDA for Q1 2025 was $0.7 million, up 111% year-over-year, with the Sanara Surgical segment profitable and THP segment incurring planned losses.

• Net loss widened to $3.5 million ($0.41 per share) from $1.8 million, primarily due to higher SG&A, R&D, and interest expenses, with most losses from the Tissue Health Plus segment.

• Cash at quarter-end was $20.7 million, supported by $12.25 million in new term loan borrowings, with liquidity expected to cover growth and investment needs for at least the next 12 months.

Financial highlights

• Soft tissue repair product sales grew 28% year-over-year to $20.5 million; bone fusion products rose 18% to $2.9 million.

• Operating expenses increased 30% to $23.7 million, mainly from higher SG&A and R&D costs.

• Net loss: $3.5 million in Q1 2025 (vs. $1.8 million prior year); net loss margin was (15.1)% in Q1 2025 versus (9.7)% in Q1 2024.

• Sanara Surgical segment Adjusted EBITDA rose to $2.7 million; Tissue Health Plus segment Adjusted EBITDA loss increased to $2.0 million.

• Cash flow from operations was negative; investing activities used $5.2 million, mainly for BMI investment and THP platform development; financing activities provided $12.0 million.

Outlook and guidance

• Net revenue growth expected to continue, led by the Sanara Surgical segment, with profitability improvements anticipated for 2025.

• THP pilot program launch planned for Q2 2025; continued investment in THP expected, with $4–5 million in Q2 2025.

• Cash and available credit expected to fund operations and growth for at least the next 12 months.

• Ongoing pursuit of financial partners to support THP strategy execution.

• No material impact from tariffs or inflation expected in 2025.