Sanara MedTech Revenue Rises 8% to $28.4 Million in Third Quarter
Key Facts
Sanara MedTech reported on November 12 results for the quarter ended September 30, posting revenue of $28.4 million, up 8% from $26.3 million in the third quarter of 2025. But sales growth coincided with continuing operations swinging to a net loss of $1.3 million, or $0.15 per diluted share. The company recorded net income from continuing operations of $0.8 million, or $0.09 per diluted share, in the year-earlier period. Sanara also lowered its revenue outlook for the year, indicating that quarterly growth did not prevent it from revising its annual sales estimate. The figures set rising revenue against a decline in net profitability compared with last year.
Gross profit rose to $26.3 million from $24.5 million in the third quarter of 2025, while the gross margin held at 93% in both periods. Despite the stable margin, operating income fell to $0.7 million from $2.9 million a year earlier. The company said quarterly operating income included about $3.0 million in legal and consulting costs. The expenses were related to strategic initiatives and the proposed merger with MiMedx Group. Thus, higher gross profit coincided with lower operating income and a net loss from continuing operations.
Revenue growth came primarily from soft tissue repair products, whose sales increased by $2.2 million, or 10%, compared with the third quarter of 2025. By contrast, sales of bone fusion products fell by $0.1 million, or 5%, year over year. The company attributed revenue growth to market penetration and expansion of its independent distribution network. The CEO said, "CellerateRX Surgical and BIASURGE continue to support our revenue growth." The products the company cited in the soft tissue repair category include CellerateRX Surgical and BIASURGE, while higher sales in that category partly offset the decline in bone fusion products.
Adjusted earnings before interest, taxes, depreciation and amortization were $5.6 million in the third quarter, compared with $4.9 million in the same period of 2025. Sanara classifies this measure as non-GAAP. Its increase reflects improvement in this adjusted metric alongside lower operating income and a swing to a net loss from continuing operations. Profitability therefore varies by measure: adjusted earnings before interest, taxes, depreciation and amortization rose, while operating income fell from its year-earlier level. Net income from continuing operations, meanwhile, turned to a loss after income in the comparable quarter.
Revenue for the first nine months of 2026 was $84.4 million, up 12% from $75.6 million in the same period of 2025. Even so, the company cut its fiscal 2026 revenue outlook to $110–115 million from a previous estimate of $116–121 million. It said the new range represents growth of about 7–12% compared with 2025 revenue of $103.1 million. The outlook revision comes despite revenue growth in the first nine months and year-over-year growth in the third quarter. The updated range sets the sales level the company expects for the rest of the year following the September-quarter results.
The proposed merger with MiMedx remains under regulatory review after Sanara shareholders approved it in September. Sanara said the Federal Trade Commission sent the parties an additional request for information as part of its review of the transaction. The request extends the waiting period until 30 days after substantial compliance, unless the parties voluntarily extend it or the commission ends it earlier. Under the terms of the proposed merger, each eligible Sanara share will convert upon completion of the transaction into $33 in cash and 0.4735 MiMedx shares, subject to the agreement's conditions. Regulatory review and completion of the transaction remain anticipated developments for the company.