Earning Date, Transcript Summary & Report

Net Revenue Growth 33%: The company generated net revenue of $86.7 million for the full-year 2024 representing growth of 33% year-over-year.

Self-Tissue Product Sales Surge: Net revenue growth in 2024 was largely driven by strong sales of self-tissue products, which increased 39% year-over-year to $76.1 million.

Adjusted EBITDA Increase: Generated positive adjusted EBITDA in 2024 of $2.7 million, an increase of $2.6 million compared to 2023.

Adjusted EBITDA Surge: Sanara Surgical segment generated adjusted EBITDA of $9.1 million in 2024, an increase of $3.9 million or 73% year-over-year.

Debt Facility Acquisition: Secured a new debt facility for up to $55 million of potential borrowings to enhance balance sheet and provide increased financial flexibility.

Fourth Quarter Revenue Surge: Fourth quarter net revenue growth of 49% year-over-year to $26.3 million, fueled by sales of soft tissue repair products, which increased 56% year-over-year to $23.5 million.

Distributor Network Expansion: Increased distributor network to over 350 partners by year-end, up from more than 250 at the end of 2023, demonstrating continued momentum.

Facility Expansion Growth: Products were sold in over 1,300 facilities, up from more than 1,000 at the end of 2023, driven by gaining VAC approvals at new hospitals.

Chronic Wound Care Innovations: Developed and validated over 35 intervention playbooks for chronic wound ideologies, enhancing the clinical model for holistic wound care.

Strategic Partnership Announcement: Announced a strategic relationship with Biomimetic Innovations, including an exclusive license and distribution agreement for innovative products.

Breakthrough Device Designation: OsStic, a product under the partnership, has been granted breakthrough device designation by the FDA, underscoring its clinical value.

Gross Profit Surge: Fourth quarter gross profit increased $8.2 million or 51% to $24.1 million, with gross margin increasing to 91.4% of net revenue.

Tissue Health Plus Challenges: Despite a strong overall revenue growth of 33% year-over-year, the Tissue Health Plus segment reported a significant net loss of $2.6 million, compared to a net income of $0.5 million in the previous year, indicating challenges in this area.

Rising Operating Expenses: Operating expenses increased by 51% to $24.4 million, driven by a substantial rise in selling, general, and administrative expenses, which could raise concerns about cost management.

Operating Loss Comparison: The company reported an operating loss of $0.4 million in the fourth quarter, compared to a loss of $0.2 million in the same period last year, suggesting ongoing financial struggles despite revenue growth.

Low Adjusted EBITDA Performance: Adjusted EBITDA for the fourth quarter was only $0.9 million, or 3.6% of net revenue, which is relatively low and indicates limited profitability in the current operational model.

Debt Management Concerns: The increase in other expenses to $1.3 million, primarily due to higher interest expenses related to the CRG term loan, raises concerns about the company's debt management and financial health.

Rising Debt Obligations: The company had $30.5 million in principal debt obligations outstanding as of December 31, 2024, which is a significant increase from $9.8 million the previous year, indicating a growing debt burden that could impact future financial flexibility.