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What is SANUWAVE Health's gross profit margin?

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What were the key takeaways from SANUWAVE Health’s earnings call?

What guidance did SANUWAVE Health's management provide for the next earnings period?

What is SANUWAVE Health's latest dividend and current dividend yield?

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What factors drove the changes in SANUWAVE Health's revenue and profit?

- **Record Revenue Growth**: Q3 2025 revenue of $11.5 million (+22% YoY) driven by 155 UltraMIST systems and strong applicator sales.
- **Gross Margin Resilience**: 77.9% gross margin despite lower system ASPs, supported by cost reductions and strategic pricing.
- **CMS Regulatory Clarity**: Post-reimbursement rule changes, SANUWAVE expects to benefit from reduced market uncertainty and a strengthened sales pipeline.
- **Financial Strength**: $9.6 million cash balance and debt refinancing at 7.63% interest rate provide liquidity for growth initiatives.
- **Reseller Channel Expansion**: Distributors now account for 25% of sales, with efficient inventory management and rapid restock rates.

**【CEO Opening Remarks】**
- Q3 2025 revenue reached $11.5 million, a 22% year-over-year increase, driven by 155 UltraMIST system sales (up 25% YoY) and $6.8 million in applicator revenue (26% YoY growth). 
- Gross margin improved to 77.9%, despite lower system ASPs due to wholesale reseller agreements, offset by higher applicator pricing and cost reductions.
- CMS reimbursement changes for skin substitutes caused market uncertainty, but UltraMIST's 97610 code remained stable, positioning the company to capitalize on post-regulatory clarity opportunities.

**【CFO Financial Commentary】**
- GAAP net income was $10.3 million, up 31% YoY, driven by a $6.1 million non-cash gain from derivative liability revaluation and a $5 million patent licensing payment.
- Operating expenses rose 47% YoY to $7.5 million, primarily due to $1.4 million in stock-based compensation and increased headcount, marketing, and legal expenses.
- Cash reserves stood at $9.6 million, with no debt prepayment penalties post-refinancing, providing financial flexibility.

**【CEO Guidance】**
- Q4 2025 revenue guidance: $13-$14 million (26%-36% YoY growth), reflecting optimism from reduced CMS uncertainty and a robust sales pipeline.
- New applicator production process expected to launch in Q1 2026, potentially adding 2-3% margin by mid-2026.

**【Q&A Highlights】**
- **Reseller Model Success**: Distributors now account for 25% of sales (vs. 36% in 2024), with 15 systems sold to one distributor in Q3, all resold within 8 weeks. 
- **Inventory Management**: Targeting 8-12 week inventory turns to avoid channel stuffing, with strict monitoring of distributor stock levels.
- **International Strategy**: No international sales in Q3, but exploring partnerships in markets with clear regulatory pathways.
- **Mobile Wound Care Impact**: 55% of UltraMIST users do not bill skin substitutes, suggesting minimal overlap with mobile providers focused on high-volume skin sub applications.
- **Capital Access Strategy**: Considering rental models for hospitals with tight capital budgets, leveraging $5,000 system cost vs. $1,000/month applicator revenue potential.

SANUWAVE Health, Inc. (SNWV) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

SNWV

SNWV fundamentals

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