Core Viewpoint - Sanara MedTech Inc. is participating in the Piper Sandler 37th Annual Healthcare Conference, presenting on December 3, 2025, to discuss its transformative technologies aimed at improving clinical outcomes and reducing healthcare costs in the surgical market [1] Company Overview - Sanara MedTech Inc. focuses on developing and commercializing technologies that enhance clinical outcomes while lowering healthcare expenditures in the surgical market [3] - The company markets and distributes a range of surgical products, including CellerateRX Surgical Activated Collagen Powder and FORTIFY TRG Tissue Repair Graft, primarily in the North American surgical tissue repair markets [3] - Sanara aims to be a leading provider of innovative surgical solutions and is committed to expanding its product offerings for patients in the United States [3]

Core Insights - Sanara MedTech Inc. reported disappointing financial results for Q3 2025, with an EPS of -$3.40, missing the estimated EPS of -$0.24 [1][6] - The company's revenue for the quarter was $26.3 million, which is a 22% increase from $21.7 million in Q3 2024, but fell short of the expected $29.9 million [2][6] Financial Metrics - The company has a negative price-to-earnings (P/E) ratio of approximately -18.30, indicating current losses [3][6] - The price-to-sales ratio is about 1.93, suggesting investors are willing to pay $1.93 for every dollar of sales, while the enterprise value to sales ratio is around 2.23 [3] - SMTI's enterprise value to operating cash flow ratio is notably high at approximately 59.33, indicating a premium valuation compared to its cash flow [4] - The company has a negative earnings yield of about -5.47%, further highlighting its unprofitability [4] - The debt-to-equity ratio stands at approximately 1.28, suggesting a moderate level of debt compared to equity [4] Liquidity and Stability - SMTI's current ratio is around 2.26, indicating a strong ability to cover short-term liabilities with short-term assets [5]

Financing and Loans - Sanara MedTech reported a senior secured term loan of up to $55.0 million under the CRG Term Loan Agreement, with the first borrowing of $15.0 million used to repay an existing loan[200]. - The CRG Term Loan has a maturity date of March 30, 2029, with the option for additional borrowings before December 31, 2025[200]. - The CRG Term Loan Agreement provides for a senior secured term loan of up to $55.0 million, with $42.8 million of principal outstanding as of September 30, 2025[240][243]. - The company anticipates sufficient cash flow to fund operations and capital expenditures for at least the next 12 months[236]. - As of September 30, 2025, the company was in compliance with all debt covenants[248]. Revenue and Profitability - For the three months ended September 30, 2025, the company generated net revenue of $26.3 million, a 22% increase from $21.7 million in the same period of 2024[218]. - For the nine months ended September 30, 2025, net revenue reached $75.6 million, reflecting a 25% increase compared to $60.4 million for the same period in 2024[218]. - Gross profit for the three months ended September 30, 2025, was $24.5 million, a 24% increase from $19.7 million in the prior year[220]. - Gross profit for the nine months ended September 30, 2025, was $69.9 million, representing a 28% increase from $54.5 million in the same period of 2024[220]. - Adjusted EBITDA for the three months ended September 30, 2025, was $4.9 million, compared to $2.6 million in the same period of 2024[216]. - Net income from continuing operations was $0.8 million for the three months ended September 30, 2025, compared to a net loss of $0.2 million for the same period in 2024[228]. Expenses and Costs - Cost of goods sold for the three months ended September 30, 2025, was $1.9 million, down from $2.0 million in the same period of 2024[219]. - Selling, general and administrative expenses for the three months ended September 30, 2025, were $19.9 million, compared to $17.4 million in the prior year[222]. - Research and development expenses for the three months ended September 30, 2025, were $1.0 million, up from $0.8 million in the same period of 2024[223]. - Net loss from discontinued operations totaled $31.2 million for the three months ended September 30, 2025, compared to $2.7 million for the same period in 2024[227]. Acquisitions and Partnerships - The company acquired CarePICS for $2.0 million on April 1, 2025, and assumed $1.65 million in existing indebtedness[203]. - The company completed an asset purchase for $15.25 million on August 1, 2023, including $9.75 million in cash and $3.0 million in stock[237]. - The Applied Purchase Agreement includes an additional potential earnout of up to $10.0 million based on performance thresholds[238]. - The company entered into a licensing agreement with Tufts University to develop and commercialize 18 unique collagen peptides, with a minimum annual royalty of $50,000 starting from the first anniversary of the first commercial sale[199]. - Sanara MedTech acquired exclusive U.S. marketing rights for OsStic Synthetic Injectable Structural Bio-Adhesive Bone Void Filler through a licensing agreement with Biomimetic Innovations Limited[201]. - The company entered into the BMI License Agreement on January 16, 2025, acquiring exclusive U.S. marketing rights for OsStic and ARC, with a 3% royalty on OsStic net sales[249][251]. - The company made an initial cash investment of approximately $3.1 million in BMI, increasing its ownership to approximately 12.499% as of October 2, 2025[253]. Product Development and Innovation - Sanara MedTech established a 50/50 strategic alliance with InfuSystem Holdings, focusing on delivering a complete wound care solution aimed at improving patient outcomes and lowering care costs[198]. - The company’s lead product, CellerateRX Surgical, is a hydrolyzed collagen used for managing surgical wounds, particularly beneficial for patients with comorbidities[192]. - BIASURGE, a sterile no-rinse surgical solution, is indicated for wound irrigation and contains an antimicrobial preservative effective against a broad spectrum of microorganisms[194]. - FORTIFY TRG and FORTIFY FLOWABLE are advanced wound care products designed for various wound types, including pressure ulcers and surgical wounds, and are 510(k) cleared[195][196]. - Sanara MedTech's in-house research and development team, Rochal Technologies, is focused on an extensive pipeline of innovative products under development[189]. - The company aims to expand its offerings in the U.S. surgical tissue repair and advanced wound care markets, emphasizing long-term strategic partnerships[190]. Cash Flow and Investments - For the nine months ended September 30, 2025, net cash provided by operating activities was $2.8 million, a significant increase from net cash used of $1.0 million in the same period of 2024[260]. - Net cash used in investing activities for the nine months ended September 30, 2025, was $12.5 million, primarily due to a $5.9 million investment in BMI and $2.1 million related to the CarePICS Acquisition[261]. - Net cash provided by financing activities decreased to $8.7 million for the nine months ended September 30, 2025, compared to $18.6 million in the same period of 2024[262]. - Total cash investment in THP was $4.0 million in Q3 2025, with projected winding down costs between $1.5 million and $2.5 million[234]. - Cash on hand as of September 30, 2025, was approximately $14.9 million, down from $15.9 million at December 31, 2024[234]. Impairments and Future Expectations - Following the discontinuation of the THP segment in September 2025, the carrying value of CarePICS technology was fully impaired to zero[204]. - The contingent earnout liability related to the CarePICS acquisition was assessed and reduced to zero due to the impairment of the technology developed by CarePICS[259]. - The company expects to incur additional costs related to potential acquisitions and product development in the future[235]. - The company anticipates annual minimum revenue of at least $60.0 million for the twelve-month period beginning January 1, 2024, increasing to $105.0 million for each twelve-month period thereafter[252]. - Inflation and changing prices have not had a material impact on the company's historical results and are not expected to affect future operations[267].

Core Insights - Sanara MedTech Inc. reported quarterly earnings of $0.09 per share, exceeding the Zacks Consensus Estimate of a loss of $0.24 per share, and showing improvement from a loss of $0.34 per share a year ago, resulting in an earnings surprise of +137.50% [1] - The company posted revenues of $26.33 million for the quarter ended September 2025, which was slightly below the Zacks Consensus Estimate by 1.19%, but an increase from $21.67 million in the same quarter last year [2] - Sanara MedTech has surpassed consensus EPS estimates three times over the last four quarters, indicating a positive trend in earnings performance [2] Future Outlook - The sustainability of the stock's price movement will largely depend on management's commentary during the earnings call and the company's earnings outlook for upcoming quarters [3][4] - The current consensus EPS estimate for the next quarter is -$0.19 on revenues of $31.45 million, and for the current fiscal year, it is -$0.98 on revenues of $107.37 million [7] - The estimate revisions trend for Sanara MedTech was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] Industry Context - The Medical - Products industry, to which Sanara MedTech belongs, is currently ranked in the bottom 33% of over 250 Zacks industries, which may impact the stock's performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which investors can track to gauge potential stock performance [5]

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Financial Data and Key Metrics Changes - In Q3 2025, the company achieved net revenue of $26.3 million, representing a 22% year-over-year growth, primarily driven by sales of soft tissue repair products [11][12] - Gross profit increased by $4.8 million, or 24%, to $24.5 million, with gross margin rising approximately 200 basis points to 93% of net revenue [21][22] - Net income from continuing operations was $800,000, or $0.09 per diluted share, compared to a net loss of $200,000, or $0.02 per diluted share in the previous year [23] Business Line Data and Key Metrics Changes - Sales of soft tissue repair products increased by 24% year-over-year to $23.4 million, significantly contributing to overall revenue growth [11][12] - The company expanded its network of independent distributors from over 300 to more than 400 in the last 12 months, enhancing its market reach [13][14] Market Data and Key Metrics Changes - The company sold products into more than 1,400 healthcare facilities over the last 12 months, up from over 1,200 in the prior year, indicating a significant expansion in customer base [14] - The products are approved or contracted for sale in over 4,000 facilities, suggesting substantial future growth potential [15] Company Strategy and Development Direction - The company announced the discontinuation of the Tissue Health Plus (THP) segment to focus resources on its core surgical business, aiming to enhance operational efficiency and long-term growth [9][10][11] - The strategic realignment is intended to capitalize on strengths in the surgical market and improve clinical outcomes while reducing healthcare expenditures [11][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to achieve strong revenue growth and profitability, emphasizing the effectiveness of their commercial strategy and the potential for further market penetration [26][27] - The company anticipates total cash investment related to THP will range from $5.5 million to $6.5 million in the second half of 2025, with no material cash spend expected after 2025 [10][25] Other Important Information - The company has made progress in expanding its portfolio of clinical evidence, with two studies published in peer-reviewed journals highlighting the efficacy of CellerateRX Surgical in complex surgical procedures [16][17] - The partnership with Biomimetic Innovations Limited for the OSTIC product is progressing well, with expectations for a U.S. commercial launch in Q1 2027 [18][19] Q&A Session Summary Question: Can you elaborate on initiatives to drive further penetration within existing facilities? - Management highlighted efforts to expand into new specialties and the importance of scientific and clinical evidence in supporting product value [28][29] Question: Should we expect cash savings outside of THP and leverage on sales and marketing? - Management indicated that the current model is working well, with flat headcount and evidence of operating leverage on the EBITDA line [30][31] Question: What are the expectations for growth and margins going forward? - Management expressed confidence in strong performance for the upcoming quarter, despite a significant growth quarter in the previous year [32][33] Question: Why was a strategic partner not considered earlier for THP? - Management explained that the pursuit of a strategic partner began in early 2024, but ultimately did not yield results, leading to the decision to discontinue THP [34][35] Question: What is the trend of total operating expenses following the discontinuation of THP? - Management refrained from providing forward-looking guidance but suggested that historical data could help model future trends [36]

Core Insights - Sanara MedTech Inc. reported a strong financial performance for Q3 2025, with net revenue growth of 22% year-over-year, driven primarily by a 24% increase in sales of surgical soft tissue products [3][6][10]. Financial Summary - Q3 2025 net revenue was $26.3 million, compared to $21.7 million in Q3 2024, marking an increase of $4.7 million [6][10]. - For the first nine months of 2025, net revenue reached $75.6 million, up 25% from $60.4 million in the same period of 2024 [10][16]. - Gross profit for Q3 2025 was $24.5 million, a 24% increase from $19.7 million in Q3 2024, with a gross margin of 93% [7][10]. - Operating income for Q3 2025 was $2.9 million, compared to $0.8 million in Q3 2024, reflecting a 278% increase [9][10]. Operational Developments - The company has ceased operations of its THP segment as part of a strategic realignment to enhance operational efficiency and focus on its core surgical business [3][5][10]. - The strategic realignment is expected to support sustained long-term growth and value creation [3][10]. Profitability Metrics - Net income from continuing operations for Q3 2025 was $0.8 million, compared to a net loss of $0.2 million in Q3 2024 [10][12]. - Adjusted EBITDA for Q3 2025 was $4.9 million, up from $2.6 million in Q3 2024, indicating improved profitability [10][13]. Cash Flow and Debt - As of September 30, 2025, the company had $14.9 million in cash and $45.1 million in long-term debt, compared to $15.9 million and $30.7 million, respectively, at the end of 2024 [14][10]. - Net cash provided by operating activities in Q3 2025 was $2.2 million, slightly up from $2.1 million in Q3 2024 [13][10].

Business Realignment - Sanara MedTech Inc. announced a strategic realignment of its business, discontinuing operations of its Tissue Health Plus[5] - The press release regarding the business realignment was issued on November 11, 2025[5] Company Information - The company is listed on the Nasdaq Capital Market under the trading symbol SMTI[3]

Core Insights - Sanara MedTech Inc. has completed its evaluation of strategic alternatives for the Tissue Health Plus (THP) segment and has decided to discontinue THP operations to enhance operational efficiency and focus on its core surgical business [1][2] - The strategic realignment aims to allocate resources to areas with the highest expected returns, particularly the surgical business, which has shown consistent net revenue growth in recent years [2] - The winding down of THP is expected to continue through the end of 2025, with total cash investment in THP projected to be between $5.5 million and $6.5 million in the second half of 2025 [2] Company Overview - Sanara MedTech Inc. is a medical technology company focused on developing and commercializing technologies that improve clinical outcomes and reduce healthcare costs in the surgical market [3] - The company offers a range of surgical products, including CellerateRX Surgical Activated Collagen Powder and various advanced biologic products, primarily targeting the North American surgical tissue repair markets [3] - Sanara aims to be a leading provider of effective surgical solutions and is committed to expanding its product offerings to meet patient needs in the United States [3]

Core Viewpoint - Sanara MedTech Inc. is set to report its third quarter 2025 financial results on November 12, 2025, before U.S. markets open, indicating ongoing transparency and communication with investors [1]. Company Overview - Sanara MedTech Inc. focuses on developing and commercializing transformative technologies aimed at improving clinical outcomes and reducing healthcare costs in surgical, chronic wound, and skin markets [4]. - The company markets and distributes a range of surgical, wound, and skin products primarily in the North American advanced wound care and surgical tissue repair markets [4]. - Key products include CellerateRX Surgical Activated Collagen, FORTIFY TRG Tissue Repair Graft, and various advanced biologic products [4]. - Sanara's pipeline includes product candidates targeting opportunistic pathogens, wound healing, and necrotic tissue debridement, showcasing its commitment to innovation [4]. Upcoming Events - A conference call and webcast will be held on November 12, 2025, at 8:00 a.m. Eastern Time to discuss the financial results and engage in a Q&A session [2]. - The conference call can be accessed via a toll-free number, with a replay available until November 26, 2025 [2]. Investor Relations - Investor relations contacts are provided for further inquiries, indicating the company's openness to communication with stakeholders [7].