Sanara MedTech Q2 rev up 28% YoY to $25.8mln.

Wednesday, Aug 13, 2025 8:12 am ET1min read

• Sanara MedTech's Q2 net revenue up 28% YoY to $25.8mln • Revenue increased 27% YoY in the first six months of 2025 • Company to evaluate strategic alternatives for Tissue Health Plus subsidiary • Sanara MedTech focuses on developing transformative technologies in surgical, chronic wound, and skin markets

Sanara MedTech (SMTI) reported its Q2 2025 financial results, revealing significant growth in net revenue and a strategic review for its Tissue Health Plus (THP) subsidiary. The company's net revenue increased by 28% year-over-year (YoY) to $25.8 million, outperforming analyst estimates [1]. This growth was primarily driven by the Sanara Surgical segment, which generated $0.5 million in net income and $4.7 million in Segment Adjusted EBITDA for the quarter [2].

The company's overall revenue increased by 27% YoY in the first six months of 2025, indicating sustained growth across its surgical and chronic wound care product lines. Gross margins improved to 93% from 90% a year ago, reflecting increased profitability and manufacturing efficiencies [2].

However, Sanara MedTech faces challenges in its THP segment, which reported a net loss of $2.5 million in Q2 2025, widening to $5.4 million for the first half of the year. To address these issues, the company has announced plans to evaluate strategic alternatives for its THP subsidiary, with management expecting to invest an additional $5.5 to $6.5 million in the second half of 2025 [1].

Looking ahead, Sanara MedTech will continue to focus on developing transformative technologies in the surgical, chronic wound, and skin markets. The company's strategic review of the THP segment will be crucial for maintaining momentum in its core surgical business while addressing the underperforming division. The market will closely watch how management navigates these challenges and whether it can successfully integrate strategic alternatives to improve the THP segment's performance.

References:
[1] https://www.mitrade.com/insights/news/live-news/article-8-1036115-20250813
[2] https://www.stocktitan.net/news/SMTI/sanara-med-tech-inc-reports-second-quarter-2025-financial-results-p5lwnpehloog.html

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