Loading...
01/11 16:20
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings miss, increased operating expenses, and significant net loss, coupled with a lack of share repurchase program, negatively impact sentiment. Despite strong revenue growth, the increased debt and operating loss overshadow positive aspects like the gross profit increase. Management's vague responses in the Q&A add uncertainty. The absence of a shareholder return plan and increased expenses suggest a negative outlook for the stock price.
Net Revenue $23.4 million, representing 26% growth year-over-year, driven primarily by sales of soft tissue repair products which increased 28% year-over-year to $20.5 million.
Gross Profit $21.6 million, an increase of $5 million or 30% year-over-year, with gross margin increasing approximately 240 basis points to 92% of net revenue, driven by lower manufacturing costs related to CellerateRX Surgical.
Operating Expenses $23.7 million, an increase of $5.5 million or 30% year-over-year, largely driven by a $5.2 million increase in selling, general, and administrative expenses.
Operating Loss $2.1 million, compared to a loss of $1.5 million last year.
Net Loss $3.5 million, or $0.41 per diluted share, compared to a net loss of $1.8 million or $0.21 per diluted share last year.
Adjusted EBITDA $0.7 million, an increase of 111% year-over-year, with Sanara Surgical generating segment-adjusted EBITDA of $2.7 million, compared to $1.2 million last year.
Cash $20.7 million as of March 31, 2025, compared to $15.9 million as of December 31, 2024.
Principal Debt Obligations $42.8 million outstanding, compared to $30.5 million as of December 31, 2024.
Available Borrowing Capacity $12.25 million, down from $24.5 million as of December 31, 2024.
New Product Launch: THP CoPilot, a software offering designed to standardize wound care and reduce administrative burden for clinicians, was released on May 1, 2025.
Market Expansion: Secured selling agreements with over 400 distributor partners, up from over 250 in Q1 2024, enhancing sales coverage in key U.S. markets.
Healthcare Facility Expansion: Products sold in over 1,300 healthcare facilities, an increase from 1,080 facilities in the prior year.
Operational Efficiency: Gross profit increased by $5 million (30%) to $21.6 million, with gross margin rising to 92% of net revenue.
Debt Facility Amendment: Amended terms of CRG term loan to provide increased financial flexibility.
Strategic Shift: Focus on onboarding and training new distributor partners to increase sales effectiveness.
Investment Strategy: Investing approximately $7.5 million to $8.5 million in the Tissue Health Plus segment in the first half of 2025.
Earnings Miss: Sanara MedTech Inc. reported a net loss of $3.5 million, or $-0.41 EPS, missing earnings expectations of $-0.31 EPS.
Debt Obligations: As of March 31, 2025, the company had $42.8 million in principal debt obligations outstanding, which increased from $30.5 million at the end of 2024.
Operating Loss: The operating loss for the first quarter was $2.1 million, compared to a loss of $1.5 million in the previous year.
Increased Operating Expenses: Operating expenses increased by $5.5 million, or 30%, primarily due to a rise in selling, general, and administrative expenses.
Tissue Health Plus Segment Loss: The Tissue Health Plus segment reported a net loss of $2.9 million, an increase from a net loss of $1.4 million in the previous year.
Interest Expense: Other expenses increased to $1.4 million, primarily due to higher interest expenses related to the CRG Term Loan.
Cash Investment Expectations: The company expects cash investments in the Tissue Health Plus segment to be approximately $7.5 million to $8.5 million in the first half of 2025.
Regulatory and Competitive Pressures: The company is focused on securing financial partners for its Tissue Health Plus strategy, indicating potential challenges in funding and execution.
Net Revenue Growth: Sanara Surgical team delivered net revenue of $23.4 million, representing 26% growth year-over-year.
Product Sales Growth: Sales of soft tissue repair products increased 28% year-over-year to $20.5 million.
Distributor Network Expansion: Engaged and secured selling agreements with over 400 distributor partners, up from over 250 in Q1 2024.
Healthcare Facility Penetration: Products sold in over 1,300 facilities, compared to over 1,080 in the prior year.
Tissue Health Plus Strategy: Investing in the development of a value-based Wound Care strategy and preparing to launch a pilot program.
THP Technology Platform Launch: Released THP CoPilot technology platform to standardize wound care and reduce administrative burden.
2025 Revenue Expectations: Expect improvements in Sanara Surgical segment profitability and net revenue growth.
Cash Investment in Tissue Health Plus: Expected cash investment in the first half of 2025 is approximately $7.5 million to $8.5 million.
Future Borrowing Capacity: Loan agreement allows for an additional borrowing of up to $12.25 million on or before December 31, 2025.
Operational Flexibility: Amended terms of CRG term loan agreement to provide more flexibility with respect to future borrowings.
Tariff Impact: Do not anticipate a material impact from tariffs on results of operations in 2025.
Share Repurchase Program: None
The earnings call showed strong financial performance with 22% revenue growth and a significant increase in operating income and net income. The company is focusing on profitable growth and has reduced cash investment in non-core areas. Despite some uncertainties in OsStic's regulatory path and unclear forward guidance, the positive financial results and strategic focus on core areas suggest a positive stock price reaction.
The earnings call highlights strong financial performance with 28% YoY revenue growth, improved gross margins, and a significant increase in adjusted EBITDA. Despite a consolidated net loss, the surgical segment shows profitability and operational efficiency. The Q&A reveals strategic investments and growth in key products like Cellerate and BIASURGE. However, management's lack of clarity on future OpEx and R&D timelines is a slight concern. Overall, the positive financial metrics and growth prospects outweigh uncertainties, suggesting a positive stock price reaction in the short term.
The earnings miss, increased operating expenses, and significant net loss, coupled with a lack of share repurchase program, negatively impact sentiment. Despite strong revenue growth, the increased debt and operating loss overshadow positive aspects like the gross profit increase. Management's vague responses in the Q&A add uncertainty. The absence of a shareholder return plan and increased expenses suggest a negative outlook for the stock price.
The earnings call presents a mixed picture. The company has shown strong revenue growth and improved gross margins, but financial risks are evident with increasing net and operating losses. The lack of a share repurchase program and high debt obligations are concerning. The Q&A section revealed management's reluctance to provide specific performance metrics, which may cause investor uncertainty. However, the strategic initiatives, including new partnerships and investments, are positive. Overall, the sentiment is neutral as the positives are balanced by financial and operational concerns.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
