SANUWAVE Health Reports 42% Revenue Growth to $10.2 Million in Q2 2025

SANUWAVE Health, Inc. reported significant financial performance improvements in its latest quarterly filing, with revenues for the three months ended June 30, 2025, reaching $10.2 million, a 42% increase from $7.2 million in the same period of 2024. For the six-month period, revenues totaled $19.5 million, marking a 51% rise compared to $12.9 million in the prior year. The growth was primarily driven by increased sales of the UltraMIST® system and disposables, with unit sales of disposables up 29% and system sales up 61% year-over-year. Despite the revenue growth, the company reported a net income of $1.1 million for the second quarter, down from $6.6 million in the previous year, largely due to a non-recurring gain on extinguishment of debt in 2024.

Operating income for the second quarter was $1.9 million, consistent with the previous year, while the six-month operating income improved to $2.9 million from $942,000 in 2024. The increase in operating income was attributed to higher revenues and gross margins, which improved to 78% for the second quarter and 79% for the first half of 2025, compared to 73% in both periods of 2024. However, total operating expenses surged, with general and administrative costs rising 120% in the second quarter due to increased headcount and stock-based compensation.

In terms of strategic developments, SANUWAVE has focused on enhancing its operational capabilities and addressing financial obligations, particularly a significant portion of debt maturing in September 2025. The company is actively engaged in discussions with lenders to refinance this debt, which is critical for maintaining liquidity and supporting ongoing operations. The company’s total liabilities increased to $47.8 million as of June 30, 2025, up from $42.8 million at the end of 2024, reflecting the ongoing financial pressures.

Operationally, SANUWAVE has seen a notable increase in customer engagement, with the UltraMIST® product line accounting for 99% of total revenue in the second quarter. The company has also expanded its inventory, which rose to $5.9 million from $4.1 million at the end of 2024, indicating a proactive approach to meet growing demand. The employee headcount has also increased, contributing to higher operational costs but positioning the company for future growth.

Looking ahead, SANUWAVE remains cautiously optimistic about its financial outlook, emphasizing the need for continued execution of strategic initiatives to ensure long-term stability. The management acknowledges the challenges posed by its accumulated deficit of $256 million and the necessity of effective debt management. The company is committed to enhancing its internal controls and financial reporting processes, which have been identified as areas needing improvement, to support its growth trajectory and operational efficiency.