Sanuwave Announces Q3 FY2025 Financial Results

Core Insights - Sanuwave Health, Inc. reported record revenues of $11.5 million for Q3 2025, marking a 22% increase from $9.4 million in Q3 2024, the highest quarterly revenues in the company's history [1][6][5] - The gross margin for Q3 2025 was 77.9%, up from 75.5% in Q3 2024 [1][6] - The company anticipates Q4 2025 revenues between $13 million and $14 million, projecting full-year revenues of $44 million to $45 million, representing a 35-39% increase compared to the full year 2024 [2][7] Financial Performance - Q3 2025 operating income was $1.5 million, down from $2.0 million in Q3 2024, with stock-based compensation costs of $1.4 million included in Q3 2025 [2][6] - Net income for Q3 2025 was $10.3 million, a significant recovery from a net loss of $20.7 million in Q3 2024, primarily due to a non-cash gain of $6.1 million from the change in fair value of derivative liabilities [6][25] - Adjusted EBITDA for Q3 2025 was $3.5 million, compared to $2.1 million for the same period last year [6][25] Sales and Market Dynamics - The company sold 155 UltraMist® systems in Q3 2025, an all-time quarterly record, compared to 124 in Q3 2024 [5][6] - UltraMist® consumables revenue increased by 26% to $6.8 million in Q3 2025, representing 99% of Sanuwave's overall revenues [6][5] - Despite industry headwinds related to proposed reimbursement changes, Sanuwave's sales pipeline remains robust, with increased inbound interest from customers and distribution partners [5][6] Industry Context - The CEO noted that the industry experienced a cautious approach due to uncertainty regarding reimbursement changes, but the final rule for 2026 Medicare physician fees provided some clarity, which is expected to positively influence market adaptation [5][6] - The company is focused on the research, development, and commercialization of non-invasive medical systems for wound care and regenerative medicine [9][10]