Sanara MedTech Inc. reported third‑quarter 2025 results that included net revenue of $26.3 million, a 22% year‑over‑year increase, and operating income of $2.9 million, up 278% from the same period last year. The company posted a consolidated net loss of $30.4 million, largely driven by a $31.2 million loss from discontinued operations, while adjusted EBITDA rose to $4.9 million. Earnings per share from continuing operations were $0.09, beating the consensus estimate of a $‑0.24 loss by $0.33, a surprise of 137.5%.
Revenue growth was led by a 24% increase in soft‑tissue repair product sales and a 4% rise in bone‑fusion product sales, bringing total revenue up from $25.8 million in Q2 2025. The higher‑margin soft‑tissue portfolio, which includes CellerateRX® Surgical and BIASURGE®, accounted for the bulk of the lift, while the modest bone‑fusion growth helped offset a slight decline in other legacy lines.
Gross margin expanded to 93% of net revenue, up from 91% in the prior year’s third quarter. The improvement reflects a shift toward higher‑margin soft‑tissue products and ongoing cost‑control initiatives that reduced manufacturing and distribution expenses. The mix shift also helped cushion the impact of raw‑material price volatility that affected lower‑margin segments.
Sanara’s board decided to discontinue its Tissue Health Plus (THP) platform, reclassifying THP as discontinued operations. Management cited a lack of strategic partnership and limited market traction as reasons for the decision, stating that resources would be better deployed in the surgical business, which has shown consistent revenue growth and improving profitability. The move is expected to streamline operations and free capital for future product development in the core surgical segment.
Looking ahead, Sanara guided for Q4 2025 revenue growth in the high single‑digit to low‑teen percent range year‑over‑year, and it expressed confidence in continued margin expansion. The company also highlighted the need to draw on its $12.25 million borrowing capacity before year‑end to support working‑capital needs and potential capital expenditures. Investors view the EPS beat and margin improvement as evidence of effective cost discipline and a strong demand environment for the surgical portfolio.
Market participants responded positively to the results, with the EPS beat and margin expansion serving as key drivers of investor sentiment. The company’s focus on its high‑margin surgical business and the strategic divestiture of THP are seen as steps toward a more sustainable, growth‑oriented model.
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