Sanara MedTech Inc. reported a significant increase in financial performance for the first quarter of 2026, with net revenue reaching $27.8 million, a 19% increase from $23.4 million in the same period of 2025. The growth was primarily driven by a 21% rise in sales of soft tissue repair products, including the flagship CellerateRX Surgical and BIASURGE, while sales of bone fusion products saw a slight decline of 2%. The company achieved a gross profit of $25.9 million, reflecting a gross margin of approximately 93%, compared to 92% in the prior year.
In terms of profitability, Sanara MedTech reported a net income of $0.4 million from continuing operations, a notable recovery from a net loss of $0.6 million in the previous year. This turnaround was attributed to increased revenue and reduced research and development expenses, despite higher selling, general, and administrative costs, which rose to $21.9 million from $19.1 million. The company also recorded an Adjusted EBITDA of $4.3 million, up from $2.7 million in the prior year, indicating improved operational efficiency.
Strategically, Sanara MedTech has shifted its focus exclusively to its surgical product offerings following the discontinuation of its Tissue Health Plus (THP) segment in September 2025. This decision was made after unsuccessful attempts to find investors for THP, which had been incurring persistent losses. The company now operates as a single reportable segment, concentrating on its core surgical solutions. Additionally, Sanara has entered into a licensing agreement with Biomimetic Innovations Limited to market and distribute a new bone void filler product, further expanding its product portfolio.
Operationally, the company reported a decrease in cash reserves, with cash on hand at $13.6 million as of March 31, 2026, down from $16.6 million at the end of 2025. The decrease was primarily due to cash used in operating activities, which amounted to $2.5 million for the quarter. Sanara MedTech anticipates that its current cash position, combined with expected cash flows from operations, will be sufficient to support its growth strategy and meet operational expenses for at least the next 12 months.
Looking ahead, Sanara MedTech aims to continue expanding its market presence and product offerings in the surgical sector. The company is focused on enhancing its distribution network and developing new products to improve clinical outcomes and reduce healthcare costs. The recent award of an Innovative Technology contract for BIASURGE from Vizient is expected to facilitate broader access to its products within the healthcare system, further supporting its growth objectives.
About Sanara MedTech Inc.
Sanara MedTech Inc. develops and markets innovative medical technologies for surgical, wound, and skincare applications. Its core segments include Sanara Surgical, offering products like collagen and bone grafts, and Tissue Health Plus, providing value-based wound care services. The company focuses on improving clinical outcomes, reducing healthcare costs, and expanding its product pipeline through partnerships, proprietary innovations, and comprehensive care solutions across the U.S. healthcare continuum.
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