Sanuwave Health reported Q3 FY2025 revenue of $11.45 million, a 22% year‑over‑year increase that surpassed the consensus estimate of $11.43 million by $0.02 million. Earnings per share rose to $0.46, beating the Zacks consensus estimate of $0.32 by $0.14 per share, a 43.8% beat that reflects disciplined cost management and a favorable product mix.
Gross margin expanded to 77.9% from 75.5% in the same quarter a year earlier, driven by higher pricing power on its flagship UltraMIST system and improved cost efficiencies in the supply chain. GAAP operating income reached $1.5 million, up from a $2.0 million operating loss in Q3 2024, largely because revenue growth and margin expansion offset a new $1.4 million stock‑based compensation expense that was not recorded in the prior year.
System sales hit an all‑time quarterly record with 155 UltraMIST units sold, while consumable revenue climbed to $6.8 million, up 26% from the prior year. Segment‑level data show system revenue of $4.4 million and consumables and parts revenue of $7.0 million, underscoring the company’s strong demand for both hardware and recurring consumables.
Management guided for Q4 2025 revenue of $13–$14 million and full‑year revenue of $44–$45 million, a 35–39% increase over 2024 guidance. CEO Morgan Frank highlighted the “most qualitatively and quantitatively promising sales funnel” and noted that September was the best single month in company history, signaling confidence in sustained demand despite reimbursement uncertainty.
Investors reacted positively to the results, citing the record revenue, margin expansion, and net income turnaround—though the $10.3 million net income was significantly boosted by non‑operational items such as derivative liabilities and a patent sale. The market’s enthusiasm reflects the company’s ability to generate sustainable growth in a competitive regenerative wound‑care market.
Headwinds remain in the form of reimbursement uncertainty, but management indicated that recent CMS final rules for 2026 provide a slight increase for the 97610 code, easing market concern. The company’s recent refinancing of its senior secured debt to a $23 million term loan maturing in 2029 and a $5 million revolver also reduces debt‑service pressure, supporting near‑term financial flexibility.
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