Sanara MedTech (SMTI) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 8% YoY to $28.43M; Adjusted EBITDA increased to $5.62M, while continuing operations recorded a $1.29M net loss amid higher SG&A and investment losses.

• 9M revenue grew 12% to $84.37M and Adjusted EBITDA reached $14.90M; continuing operations recorded a $1.30M net loss.

• Following THP’s discontinuation, continuing operations focus on surgical soft-tissue repair and bone-fusion products and are managed as one reportable segment.

Financial highlights

• Q3 gross profit was $26.33M vs. $24.46M; operating income was $0.74M vs. $2.94M, and continuing-operations net loss was $1.29M vs. income of $0.83M.

• 9M gross profit was $78.36M vs. $69.93M; operating income was $5.16M vs. $6.25M, and continuing-operations net loss was $1.30M vs. income of $0.71M.

• SG&A was $24.25M in Q3 and $68.74M for 9M, including ~$3.0M and ~$4.1M, respectively, in strategic-initiative and pending-merger legal and advisory costs.

• Operating expenses rose 19% YoY to $25.6M in Q3 and 15% to $73.2M for 9M; R&D declined to $0.7M and $2.6M, respectively, due mainly to product-enhancement timing.

Outlook and guidance

• FY2026 net revenue guidance was reduced to $110M–$115M from $116M–$121M, implying 7%–12% growth versus FY2025 revenue of $103.1M.

• Cash and operating cash flows are expected to fund growth, operating expenses, merger costs and capital expenditures for at least the next 12 months; expense reduction and streamlining remain priorities.

• Expected cash needs include merger expenses, product development, clinical studies, debt repayment and general corporate purposes; THP’s October sale is expected to eliminate material wind-down cash spending for the rest of 2026.