Sanara MedTech Q2 net rev up 28% YoY, net loss narrows to $2mln.

• Sanara MedTech's Q2 net revenue up 28% YoY to $25.8mln • Net loss of $2.0mln, compared to $3.5mln in Q2 2024 • Adjusted EBITDA at $2.7mln, up from $0.6mln in Q2 2024 • Announced process to evaluate strategic alternatives for Tissue Health Plus subsidiary • Net revenue increased 27% YoY in first six months of 2025

Sanara MedTech Inc. (Nasdaq: SMTI) reported robust financial results for the second quarter of 2025, with net revenue surging 28% year-over-year (YoY) to $25.8 million. The company's Sanara Surgical segment played a pivotal role in this growth, generating $0.5 million in net income and $4.7 million in Segment Adjusted EBITDA. This segment's performance was bolstered by strong sales of products such as CellerateRX Surgical and BIASURGE, along with improved gross margins to 93%.

Despite the positive performance in the surgical segment, Sanara MedTech faced significant challenges in its Tissue Health Plus (THP) subsidiary. The THP segment reported a net loss of $2.5 million in Q2 2025, contributing to an overall net loss of $2.0 million for the quarter, compared to $3.5 million in Q2 2024. The company has announced a formal process to evaluate strategic alternatives for THP, with a projected cash investment of $5.5 to $6.5 million in the second half of 2025.

Operating expenses increased by 14% YoY to $23.9 million, primarily driven by expanded sales and marketing investments and THP-related costs. However, the company's operating loss narrowed significantly to just $31,000 from $2.9 million in Q2 2024, indicating improved operational leverage. Cash flow from operations strengthened to $2.7 million in Q2, up from $1.4 million in Q2 2024.

The company's debt position has increased to $44.2 million from $30.7 million at year-end 2024, suggesting higher financial leverage to fund growth and THP initiatives. The contrasting performance between the surgical and THP segments presents a complex picture, with the market closely monitoring Sanara MedTech's ability to address the THP challenges while maintaining momentum in its core surgical business.

References:
[1] https://www.stocktitan.net/news/SMTI/sanara-med-tech-inc-reports-second-quarter-2025-financial-results-p5lwnpehloog.html