Sanara MedTech (NASDAQ:SMTI) reported fourth-quarter and full-year 2025 results highlighting record annual revenue, improved profitability, and progress in its transition to a “pure-play” surgical company following the wind-down of its Tissue Health Plus (THP) segment.
President and CEO Seth Yon said the company exceeded $100 million in net revenue for the first time, generating $103.1 million in 2025 net revenue, up 19% year over year. Yon emphasized that the company delivered this growth while keeping its field sales team steady at 40 representatives at year-end, citing the performance of its hybrid commercial model that combines direct reps with a growing network of independent distributors.
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Yon also pointed to improving profitability metrics in 2025, including an approximately 200 basis point improvement in gross margin to 93% for the full year. The company reduced its net loss from continuing operations by $1.5 million, or 80%, and improved adjusted EBITDA by $7.9 million, or 86%, to $17 million for the year, according to Yon.
Sanara generated $6.8 million in cash provided by operations in 2025, a marked change from $24,000 of cash used in operations in 2024. Management attributed the improvement to operating performance and working capital management.
For the fourth quarter, Sanara posted net revenue of $27.5 million, up 5% year over year. Yon said growth was largely driven by sales of soft tissue products, with a modest contribution from bone fusion products.
Management noted a comparison issue tied to the prior year: fourth-quarter 2024 results included approximately $1.8 million of BIASURGE sales related to an industry disruption caused by Hurricane Helene. Excluding that impact, Sanara said fourth-quarter 2025 net revenue increased 13% year over year. Yon added that revenue landed at the high end of the preliminary range the company provided in a January 23, 2026 press release and aligned with expectations discussed on its third-quarter call.
Yon outlined progress across three commercial initiatives the company views as key growth drivers:
Strengthening relationships with independent distributors: Sanara ended 2025 with over 450 contracted distributors, up from over 350 at the end of 2024. Yon said the company has increased its focus on onboarding, training, and joint surgeon education with new distributor partners.
Selling into new healthcare facilities: Sanara said it achieved its target of selling into over 1,450 healthcare facilities by the end of 2025, compared with over 1,300 in 2024. Yon noted that the company’s products were contracted or approved for sale in over 4,000 facilities at year-end, which management described as a runway for further expansion.
Expanding penetration within existing facilities: The company reported strong year-over-year growth in its surgeon customer base in both the fourth quarter and full year, with new surgeon users spanning specialties including spine and orthopedics as well as general, plastic, and vascular surgery. Yon said surgeon penetration in existing facilities remains “relatively low,” calling deeper penetration one of the company’s largest remaining opportunities.
Yon said the wind-down of THP operations was substantially complete at the end of 2025, consistent with prior expectations. Total cash use related to THP during the second half of 2025 was $5.3 million, below the $5.5 million to $6.5 million range previously provided. Management said it anticipates no material cash spend related to THP going forward and reiterated that THP results are classified as discontinued operations for the periods presented.
Sanara also highlighted a commercial milestone for BIASURGE: the company secured an Innovative Technology contract from Vizient, the largest group purchasing organization in the U.S. Yon said BIASURGE is a no-rinse irrigation solution designed to cleanse the wound bed more efficiently than saline alone while providing broad-spectrum antimicrobial effectiveness. Beginning January 1, 2026, BIASURGE became available to Vizient’s network, which management said represents approximately 1,800 healthcare facilities with access at contracted pricing and pre-negotiated terms.
Yon cited continued efforts to build clinical evidence, including an in vitro comparative study in the Journal of Arthroplasty that evaluated nine irrigation solutions and found BIASURGE exhibited high antimicrobial efficacy and low cytotoxicity, identifying it as one of two products most effective at preventing biofilm formation among those tested. He also highlighted a study in the Journal of Spine and Neurosurgery involving 10 patients treated with ALLOCYTE Plus as a standalone graft substitute in lumbar spinal fusion, with follow-up of 24 to 36 months, reporting solid bone healing within six months and no adverse events such as complications, graft failures, or revision surgeries during the follow-up period.
On intellectual property, Yon said Sanara converted 11 provisional patent applications from 2024 into non-provisional filings during 2025, and submitted corresponding U.S. and PCT applications for international protection. The company also filed an additional three provisional patent applications related to components and compositional aspects of CellerateRX Surgical products.
Yon reiterated progress on the company’s partnership with Biomimetic Innovations to bring OsStic, a synthetic injectable bone bioadhesive, to the U.S. market. He said the program remains on track for a first-quarter 2027 U.S. market introduction and noted OsStic’s FDA Breakthrough Device designation. He also referenced preclinical mechanical testing indicating OsStic bonded to bone 40 times stronger than traditional calcium phosphate bone cement.
CFO Elizabeth Taylor said fourth-quarter gross profit rose $1.6 million, or 7%, to $25.7 million, while gross margin increased about 175 basis points to 93% of net revenue. She attributed the margin performance primarily to sales mix in soft tissue repair products and lower manufacturing costs related to CellerateRX Surgical.
Fourth-quarter operating expenses increased $2.8 million, or 13%, to $24.6 million, driven by a $1.8 million non-cash impairment charge tied to a write-down of certain IP assets connected to the company’s strategic shift, and a $1.2 million increase in R&D expenses tied primarily to product enhancement initiatives for soft tissue repair products.
Operating income was $1.1 million versus $2.3 million in the prior-year quarter. Excluding the impairment charge, Taylor said operating income would have been $2.9 million, up 28%. Other expense rose to $2.2 million from $1.3 million, driven primarily by higher interest expense and fees related to the CRG term loan and higher share of losses from equity method investments.
Net loss from continuing operations was $1.1 million, or $0.13 per diluted share, compared with net income from continuing operations of $0.9 million, or $0.10 per diluted share, a year earlier. Adjusted EBITDA for the quarter was $4.7 million, up from $4.1 million.
On the balance sheet, Taylor said Sanara ended 2025 with $16.6 million in cash and $46.0 million in long-term debt, compared with $15.9 million in cash and $30.7 million in long-term debt at the end of 2024.
Sanara reaffirmed its full-year 2026 net revenue guidance of $116 million to $121 million, representing expected growth of approximately 13% to 17% over 2025. Taylor also provided an update for the first quarter of 2026, with expected net revenue of approximately $26.7 million to $27.2 million, implying expected year-over-year growth of about 14% to 16%.
In the Q&A, management was asked about the potential contribution of the Vizient contract to 2026 growth. Yon said the agreement was a “major step forward,” but noted adoption would still take time as the company educates facilities and works “one facility at a time.” He said Sanara continues to focus on soft tissue repair growth broadly and has not provided product-specific guidance.
Yon also said the company will continue investing in clinical, scientific, and economic evidence to support its products, and reiterated that it does not view its anchor products as having reimbursement risk because they are supply costs within the DRG framework.
Sanara MedTech is a medical technology company focused on developing and commercializing innovative devices for ear, nose and throat (ENT) healthcare. The company’s core offering centers on minimally invasive sinus dilation systems designed to treat chronic sinusitis and related conditions. These products leverage balloon catheter technology to expand sinus pathways and improve patient outcomes while reducing recovery times. In addition to sinus solutions, the portfolio extends to procedural tools and implants for otology and cranial applications.
With its legacy rooted in the assets of a former Johnson & Johnson business, Sanara MedTech combines decades of research and development in ENT therapies.
