SANUWAVE Health Inc(SNWV) - 2025 Q3 - Quarterly Results

Financial Performance - Q3 2025 revenues reached $11.5 million, a 22% increase from $9.4 million in Q3 2024, marking the highest quarterly revenues in company history [2][7] - Gross margin for Q3 2025 was 77.9%, up from 75.5% in Q3 2024 [3][22] - Operating income for Q3 2025 was $1.5 million, down from $2.0 million in Q3 2024, impacted by $1.4 million in stock-based compensation costs [4][22] - Net income for Q3 2025 was $10.3 million, compared to a net loss of $20.7 million in Q3 2024, primarily due to a non-cash gain of $6.1 million from derivative liabilities [7][22] - Adjusted EBITDA for Q3 2025 was $3.5 million, compared to $2.1 million in Q3 2024 [7][24] - Operating income for the nine months ended September 30, 2025, was $4,330,000, compared to $2,895,000 for the same period in 2024, reflecting a 49.5% increase [29] - Net income for Q3 2025 was $10,325,000, a substantial recovery from a net loss of $20,657,000 in Q3 2024 [29] - Net income for the nine months ended September 30, 2025, was $5,704, compared to a net loss of $18,624 in the same period of 2024 [32] - The company reported a basic earnings per share of $1.20 for Q3 2025, compared to a loss of $6.49 per share in Q3 2024 [29] Sales and Revenue Growth - The company sold 155 UltraMist® systems in Q3 2025, an all-time quarterly record, compared to 124 in Q3 2024 [7][8] - UltraMist® consumables revenue increased by 26% to $6.8 million in Q3 2025, up from $5.4 million in Q3 2024 [7] - The company provides guidance for Q4 2025 revenues of $13-$14 million, representing a 35-39% increase compared to full year 2024 [5][9] - Full year revenue guidance is set at $44-$45 million, reflecting significant growth compared to the previous year [9] - Total revenue for Q3 2025 was $11,451,000, representing a 22.2% increase from $9,360,000 in Q3 2024 [29] Financial Position and Assets - Total assets increased to $35,599,000 as of September 30, 2025, compared to $30,119,000 at the end of 2024, marking an 18.1% growth [25] - Current liabilities decreased to $19,577,000 from $42,345,000, showing a reduction of 53.8% [25] - Total stockholders' deficit improved to $(2,931,000) from $(12,717,000) at the end of 2024, indicating a positive shift in financial health [28] - Cash and cash equivalents were $9,602,000 as of September 30, 2025, down from $10,237,000 at the end of 2024 [25] Expenses and Cash Flow - Research and development expenses increased to $345,000 in Q3 2025 from $161,000 in Q3 2024, reflecting a focus on innovation [29] - Cash flows provided by operating activities decreased to $557, down from $1,714 in the prior year [32] - Cash paid for interest was $3,291, slightly up from $3,189 in the previous year [34] - The company capitalized interest into senior secured debt amounting to $549, compared to $3,850 in the prior year [34] - The net cash flows used in financing activities were $4,346, compared to $119 in the previous year, indicating increased financing outflows [33] Gains and Losses - The company reported a gain on the sale of patents amounting to $5,000, with no comparable figure in 2024 [32] - The change in fair value of derivative liabilities resulted in a loss of $2,186, contrasting with a gain of $17,633 in the prior year [32] - The company reported a loss on extinguishment of debt of $477, compared to a gain of $5,205 in the previous year [32] Future Outlook - The company anticipates a robust sales pipeline and increased inbound interest from customers following the recent CMS reimbursement rule [8]