Sanara MedTech (SMTI) Q2 2025 earnings summary

Executive summary

• Net revenue for Q2 2025 increased 28% year-over-year to $25.8 million, driven by strong demand for soft tissue and bone fusion products, with continued geographic and distributor network expansion.

• Q2 2025 gross profit rose 32% to $23.9 million, with gross margin improving to 93% due to increased sales and lower manufacturing costs.

• Net loss for Q2 2025 narrowed to $2.0 million ($0.23 per share), improved from $3.5 million ($0.41–$0.42 per share) last year, reflecting higher gross profit offset by increased SG&A and interest expense.

• Adjusted EBITDA for Q2 2025 was $2.7 million, up from $0.6 million in Q2 2024, primarily due to higher revenue and gross profit in the Sanara Surgical segment.

• Initiated a formal process to evaluate strategic alternatives for the THP segment, including engaging a strategic advisor.

Financial highlights

• Q2 2025 net revenue: $25.8 million (Q2 2024: $20.2 million); six months ended June 30, 2025: $49.3 million (2024: $38.7 million).

• Q2 2025 gross profit: $23.9 million (Q2 2024: $18.2 million); gross margin: 93%.

• Q2 2025 net loss: $2.0 million (Q2 2024: $3.5 million); Q2 net loss per share: $0.23 (Q2 2024: $0.41–$0.42).

• Q2 2025 Adjusted EBITDA: $2.7 million (Q2 2024: $0.6 million); margin: 10.3% (Q2 2024: 2.9%).

• Cash flow from operations was $2.7 million in Q2; cash on hand at June 30, 2025: $17.0 million; long-term debt: $44.2 million.

Outlook and guidance

• Management expects continued strong net revenue growth and profitability in the Sanara Surgical segment for full year 2025.

• THP segment cash investment to be reduced to $5.5–$6.5 million in H2 2025; no material cash investments in THP anticipated after year-end.

• Confident in sufficient financial resources to support growth initiatives and future acquisitions.

• Exploring a full range of strategic alternatives for THP to maximize shareholder value.