SANUWAVE Health 2025 Q2 Earnings Strong Performance as Revenue Surges 42% but Net Income Drops 84%

SANUWAVE Health delivered a strong revenue performance in Q2 2025 while missing the EPS mark. The company reported revenue of $10.16 million, exceeding the $9.5 million analyst estimate and within its guidance range. It maintained its full-year 2025 revenue guidance of $48 million to $50 million, indicating confidence in continued growth.

Revenue
Driven by strong demand across key product lines, SANUWAVE Health generated $10.16 million in total revenue for Q2 2025, a 41.9% increase compared to the same period in 2024. Product revenue accounted for the bulk of the performance, with $10.15 million from consumables and parts and an additional $3.44 million from system sales. Smaller contributions came from rental income of $17,000 and license fees and other income of $10,000, rounding out the revenue profile.

Earnings/Net Income
Despite the impressive top-line growth, SANUWAVE Health’s earnings performance weakened significantly. The company’s net income declined to $1.05 million in Q2 2025, down 83.9% from $6.56 million a year ago. Earnings per share also fell sharply to $0.12, a 94.2% drop from $2.08 in 2024 Q2. The continued decline in profitability over three consecutive years underscores ongoing financial challenges.

Price Action
SNWV’s stock price has been under pressure, falling 4.32% on the latest trading day and 10.79% over the past week. Month-to-date, the stock is down 1.63%, reflecting investor caution amid mixed earnings results.

Post-Earnings Price Action Review
A backtested trading strategy of buying SNWV when revenues exceed expectations and holding for 30 days yielded robust returns, delivering a 32.72% gain and outperforming the 11.93% benchmark by 20.80%. The strategy posted a CAGR of 102.66% over its tested period, with a Sharpe ratio of 1.34 indicating a favorable risk-adjusted return. Notably, the strategy experienced no maximum drawdown, suggesting low downside risk.

CEO Commentary
CEO Morgan Frank described Q2 as a “max transition” period, marked by strategic leadership additions and a rapidly expanding team. He emphasized the company’s ability to scale while maintaining operational agility, noting that all national sales territories are now covered and a national accounts manager has been added to target large market opportunities.

Guidance
SANUWAVE Health reaffirmed its full-year 2025 revenue guidance of $48 million to $50 million, projecting a 47% to 53% increase over 2024.

Additional News
On August 5, 2025, a news alert titled “SANUWAVE Health (SNWV) Projected to Post Quarterly” was posted, though no specific metrics were provided. The placeholder suggested potential market anticipation ahead of the earnings report. While no M&A activity or buybacks were disclosed, the appointment of key leadership roles, including the head of sales and commercial operations, highlights the company’s strategic focus on scaling its commercial infrastructure.