Sanara 2025 Q1 Earnings Misses Targets as Net Loss Widens 96%

Sanara MedTech Inc. reported its fiscal 2025 Q1 earnings on May 14th, 2025. The company witnessed a robust revenue increase of 26.4% to $23.43 million compared to Q1 2024. However, the net loss expanded significantly by 96.1% to $3.53 million, missing market expectations of a $0.48 loss per share. Sanara maintains its guidance for continued revenue growth, focusing on Sanara Surgical's performance. The company has the capital for strategic growth, with plans to raise awareness of its THP offering.

Revenue
Sanara's fiscal 2025 Q1 saw a notable revenue increase, driven primarily by the soft tissue repair products, which generated $20.53 million. Bone fusion products contributed $2.90 million, culminating in a total net revenue of $23.43 million.

Earnings/Net Income
Sanara's fiscal 2025 Q1 experienced a deepened loss of $0.41 per share, compared to a $0.21 per share loss in the previous year. The company's net loss widened to $3.53 million from $1.80 million, a 96.1% increase, indicating deteriorating earnings performance.

Price Action
The stock price of Sanara dropped 7.15% during the latest trading day, edged down 1.70% over the past week, yet climbed 7.75% month-to-date.

Post-Earnings Price Action Review
Investors adopting a buy-and-hold approach with Sanara MedTech Inc. (SMTI) for 30 days following revenue misses face considerable risks. Despite a 26% year-over-year revenue increase to $23.4 million, the company's significant financial challenges, including a widened net loss of $3.5 million, could lead to ongoing stock price volatility. The market's negative reaction, paired with expectations of a Q1 loss of $0.48 per share, indicates persistent negative sentiment. Although Sanara's revenue growth is promising, it may not be enough to counterbalance the financial losses in the short term. The stock's -32.26% earnings surprise suggests potential for further declines, with liquidity risks due to low trading volume and market capitalization. Analysts' average one-year price target of $48.50 suggests a slow recovery to pre-earnings levels. Investors should be cautious, especially those with low risk tolerance or seeking immediate returns.

CEO Commentary
Ron Nixon, Executive Chairman and CEO, highlighted a strong start to 2025 with Sanara achieving net revenue growth of 26% year-over-year, driven by a 28% increase in soft tissue repair product sales. Nixon expressed optimism about growth opportunities and noted ongoing investments in the Tissue Health Plus segment, emphasizing strategic capital allocation.

Guidance
Sanara anticipates continued net revenue growth mainly from the Sanara Surgical segment and aims to improve segment profitability. The company projects a cash investment between $7.5 million and $8.5 million in the Tissue Health Plus segment for the first half of 2025, excluding the CarePICS acquisition.

Additional News
On January 21, 2025, Sanara MedTech announced an exclusive license and distribution agreement with Biomimetic Innovations Ltd, acquiring U.S. rights for BMI’s OsStic® Bone Void Filler. Concurrently, Sanara expanded its executive team, appointing Elizabeth Taylor as CFO. Additionally, Sanara amended its term loan with CRG Servicing LLC, allowing for further borrowings and extending the borrowing period to December 31, 2025. The company borrowed an additional $12.25 million under this agreement, supporting acquisition opportunities and working capital needs.