In This Article:
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Net Revenue: $23.4 million, 26% growth year over year.
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Soft Tissue Repair Products Revenue: $20.5 million, 28% growth year over year.
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Bone Fusion Products Revenue: $2.9 million, 18% growth year over year.
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Gross Profit: $21.6 million, 30% increase.
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Gross Margin: Increased by 240 basis points to 92% of net revenue.
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Operating Expenses: $23.7 million, 30% increase.
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Net Loss: $3.5 million or $0.41 per diluted share.
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Adjusted EBITDA: $0.7 million, 111% increase year over year.
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Cash: $20.7 million as of March 31, 2025.
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Debt Obligations: $42.8 million of principal debt outstanding.
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Available Borrowing Capacity: $12.25 million.
Release Date: May 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Sanara MedTech Inc (NASDAQ:SMTI) reported a 26% year-over-year increase in net revenue for the first quarter of 2025, driven by strong sales of soft tissue repair products.
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The company achieved a 30% increase in gross profit, with gross margins improving by 240 basis points to 92% of net revenue.
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Sanara MedTech Inc (NASDAQ:SMTI) expanded its distributor network significantly, securing agreements with over 400 distributor partners, enhancing sales coverage across the US.
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The launch of the THP technology platform, including the THP Co-pilot app, marks a pivotal milestone in the company's strategy to disrupt non-acute wound care.
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Sanara MedTech Inc (NASDAQ:SMTI) has secured distribution rights to two additional technologies, enhancing its product pipeline and growth potential.
Negative Points
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Operating expenses increased by 30% to $23.7 million, driven by higher selling, general, and administrative expenses.
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The company reported a net loss of $3.5 million for the first quarter, compared to a net loss of $1.8 million in the previous year.
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The Tissue Health Plus segment generated a net loss of $2.9 million, an increase from a net loss of $1.4 million last year.
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Interest expenses and fees related to the CRG term loan contributed to an increase in other expenses, totaling $1.4 million for the quarter.
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Despite revenue growth, the Sanara surgical segment still reported a net loss of $0.6 million, up from a net loss of $0.4 million last year.
Q & A Highlights
Q: Can you provide more details on your strategy to improve penetration at existing facilities and your vision for achieving profitability? A: Seth Yon, President and Chief Commercial Officer, explained that the strategy involves a combined approach using Regional Sales Managers (RSMs), territory managers, and distributor expansion. The significant increase in distributor partnerships over the last 18 months is aimed at accessing new accounts and deepening penetration in existing ones.