Sanara MedTech (SMTI) Q1 2026 earnings summary

Executive summary

• Achieved 19% year-over-year revenue growth in Q1 2026, driven by strong sales of soft tissue repair products, notably CellerateRX Surgical and BIASURGE, with expanded market penetration and distribution network development.

• Reached GAAP net profitability with $0.4 million net income from continuing operations, or $0.04 per diluted share, reversing a net loss in Q1 2025.

• Completed strategic realignment by discontinuing the Tissue Health Plus (THP) segment in September 2025, resulting in a single reportable segment focused on surgical products.

• Expanded sales team to 43 representatives and increased presence in hospitals and facilities, with products approved in over 4,000 hospitals and surgery centers.

• Announced a Vizient Innovative Technology contract for BIASURGE and published a peer-reviewed study demonstrating cost savings and improved outcomes for CellerateRX Surgical.

Financial highlights

• Net revenue rose to $27.8 million, up from $23.4 million year-over-year.

• Gross profit increased 20% to $25.9 million, with gross margin improving to 93%.

• Operating expenses were $23.2 million, or 83.6% of sales, down from 88.6% in Q1 2025.

• Operating income increased to $2.6 million from $0.8 million in Q1 2025.

• Adjusted EBITDA rose 58% to $4.3 million, up from $2.7 million year-over-year.

• Cash at quarter end was $13.6 million, with $46.2 million in long-term debt.

Outlook and guidance

• Q2 2026 net revenue expected between $28.5 million and $29.5 million, representing 10%-14% year-over-year growth.

• Full-year 2026 net revenue guidance reaffirmed at $116 million-$121 million, or 13%-17% growth.

• Continued investment in sales team expansion, R&D, and new product introductions, with OsStic product launch on track for Q1 2027.

• Management expects cash on hand and operating cash flows to be sufficient to fund growth strategy and operating expenses for at least the next 12 months.