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1. Company Snapshot

1.a. Company Description

Sanara MedTech Inc.develops, markets, and distributes wound and skin care products to physicians, hospitals, clinics, and post-acute care settings in the United States.It offers CellerateRX Surgical Activated Collagen powder and gel that are used in a range of surgical specialties to help promote patient healing; Biako¯s Antimicrobial Skin and Wound Cleanser, a patented product that disrupts extracellular polymeric substances to eradicate mature biofilm microbes; Biako¯s Antimicrobial Wound Gel, an antimicrobial hydrogel wound dressing helps against planktonic microbes, as well as immature and mature biofilms; and Biako¯s Antimicrobial Skin and Wound Irrigation Solution.


The company also provides HYCOL Hydrolyzed Collagen Powder and Gel, a medical hydrolysate of Type I bovine collagen for the management of full and partial thickness wounds, including pressure ulcers, venous and arterial leg ulcers, and diabetic foot ulcers.In addition, it develops FORTIFY TRG, a freeze-dried, multi-layer small intestinal submucosa extracellular matrix sheet; FORTIFY FLOWABLE extracellular matrix, an advanced wound care device; and VIM Amnion Matrix, a single layer sheet of amnion tissue.The company was formerly known as WNDM Medical Inc.


and changed its name to Sanara MedTech Inc.in May 2019.Sanara MedTech Inc.


was incorporated in 2001 and is based in Fort Worth, Texas.

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1.b. Last Insights on SMTI

The recent 3-month performance of Sanara MedTech Inc. was negatively impacted by a lack of significant earnings estimate revisions, despite a 49% year-over-year increase in Q4 net revenue and a 33% year-over-year increase in 2024 net revenue. The company's preliminary Q4 results showed revenue up by 45-48% year over year, but underlying growth was still strong at 37%. However, the latest trend in earnings estimate revisions for the stock doesn't suggest further strength down the road.

1.c. Company Highlights

2. Sanara MedTech's Q3 2025 Earnings: A Step in the Right Direction

Sanara MedTech reported a net revenue of $26.3 million for Q3 2025, representing a 22% year-over-year growth, driven primarily by the sales of its soft tissue repair products, which increased 24% to $23.4 million. The company's gross margin also saw an improvement, rising by 200 basis points to 93% of net revenue. The net income from continuing operations was $800,000 or $0.09 per diluted share, compared to a net loss of $200,000 or $0.02 per diluted share in the prior year. Adjusted EBITDA increased $2.3 million to $4.9 million. The actual EPS of $0.09 beat estimates of -$0.24, indicating a positive surprise.

Publication Date: Nov -29

📋 Highlights
  • title: description with figures
  • Q3 2025 Revenue Growth:: Net revenue reached $26.3 million, up 22% YoY, driven by 24% increase in soft tissue repair sales to $23.4 million.
  • Gross Margin Improvement:: Margins rose 200 basis points to 93% of net revenue, reflecting operational efficiency.
  • Operating Income Expansion:: Rose $2.2 million to $2.9 million, reversing prior-year losses to a $800K net profit ($0.09 EPS).
  • THP Exit Cost:: $5.5–6.5 million investment in H2 2025 to discontinue the Tissue Health Plus segment, with no material cash outflows post-2025.
  • Surgical Business Momentum:: Trailing 12-month revenue hit $102 million, up 31% YoY, with EBITDA surging from $6.6 million to $16.4 million.

Operational Highlights

The company's focus on its core surgical business is evident in its progress in developing relationships with independent distributors, selling into new healthcare facilities, and penetrating existing facilities. As Seth Yon, Sanara MedTech's president and CEO, emphasized, the company is making strides in expanding its portfolio of clinical evidence and advancing new product initiatives, including its partnership with Biomimetic Innovations Limited.

Discontinuation of TissueHealth Plus (THP) Segment

The company recently announced the discontinuation of its THP segment, which is expected to result in a total cash investment of $5.5 million to $6.5 million in the second half of 2025. The company expects no material cash spend in THP after 2025, allowing it to focus on its Surgical business. In Q3 2025, the company invested $4 million in THP, with approximately $1.5 million to $2.5 million expected in Q4 2025.

Valuation and Outlook

With a P/S Ratio of 1.83 and an EV/EBITDA of -8.13, the market seems to be pricing in a certain level of growth for Sanara MedTech. Analysts estimate next year's revenue growth at 16.7%. The company's goal is to drive strong sustainable growth in 2025 and beyond, with a focus on its Surgical business. The discontinuation of THP is expected to help the company achieve this goal. The company's EBITDA margin was $16.4 million over the trailing 12 months, up from $6.6 million last year, indicating operating leverage in its financials.

Future Prospects

Excluding one-time benefits from last year, the company expects high single-digit to low teen growth in Q4 2025. With a strong sales force and a leaner organization, Sanara MedTech is well-positioned to drive growth in its Surgical business. The company's focus on executing its commercial plan, improving efficiency, and investing prudently in the Surgical business is expected to yield positive results in the long term.

3. NewsRoom

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Sanara MedTech: Too Cheap And Better Positioned After Earlier Strategic Missteps

Nov -27

Source: seekingalpha.com

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INVESTOR ALERT: Investigation of Sanara MedTech Inc. (SMTI) Announced by Holzer & Holzer, LLC

Nov -24

Source: globenewswire.com

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Securities Fraud Investigation Into Sanara MedTech Inc. (SMTI) Announced – Shareholders Who Lost Money Urged To Contact Glancy Prongay & Murray LLP, a Leading Securities Fraud Law Firm

Nov -20

Source: businesswire.com

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Sanara MedTech Inc. (SMTI) Shareholders Who Lost Money – Contact Law Offices of Howard G. Smith About Securities Fraud Investigation

Nov -20

Source: businesswire.com

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Securities Fraud Investigation Into Sanara MedTech Inc. (SMTI) Announced – Shareholders Who Lost Money Urged to Contact The Law Offices of Frank R. Cruz

Nov -19

Source: businesswire.com

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Sanara MedTech to Participate in the Piper Sandler 37th Annual Healthcare Conference on December 3rd

Nov -19

Source: globenewswire.com

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Sanara MedTech Inc. (SMTI) Tops Q3 Earnings Estimates

Nov -12

Source: zacks.com

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Sanara MedTech Inc. (SMTI) Q3 2025 Earnings Call Transcript

Nov -12

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.50%)

6. Segments

Soft Tissue Repair Products

Expected Growth: 8.5%

Sanara MedTech's Soft Tissue Repair Products segment growth of 8.5% is driven by increasing demand for minimally invasive procedures, advancements in biomaterials, and rising incidence of soft tissue injuries. Additionally, growing awareness of wound care management and expanding applications in orthopedic and sports medicine are contributing to the segment's growth.

Bone Fusion Products

Expected Growth: 8.5%

Sanara MedTech Inc.'s Bone Fusion Products segment growth of 8.5% is driven by increasing demand for minimally invasive spine surgeries, advancements in biomaterials and nanotechnology, growing prevalence of spinal disorders, and expanding healthcare infrastructure in emerging markets.

Royalty

Expected Growth: 8.9%

Sanara MedTech Inc.'s 8.9% royalty growth is driven by increasing adoption of its wound care products, expansion into new markets, and strategic partnerships. Additionally, growing demand for advanced wound care solutions, favorable reimbursement policies, and investments in research and development are contributing to the company's growth momentum.

7. Detailed Products

Wound Cleaning Debridement

A non-invasive, pain-free wound cleaning and debridement system that uses ultrasonic technology to remove dead tissue, bacteria, and other debris from wounds.

Wound Closure System

A minimally invasive system that uses micro-staples to close wounds, promoting faster healing and reducing the risk of complications.

Tissue Viability Imaging

A non-invasive, handheld device that uses near-infrared spectroscopy to assess tissue oxygenation and viability.

Wound Dressing with Antimicrobial Properties

A range of dressings that release antimicrobial agents to prevent infection and promote a healthy wound environment.

8. Sanara MedTech Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Sanara MedTech Inc. faces moderate threat from substitutes, as there are alternative medical devices available in the market, but they are not highly differentiated.

Bargaining Power Of Customers

Sanara MedTech Inc. has a diverse customer base, which reduces the bargaining power of individual customers, giving the company an upper hand in negotiations.

Bargaining Power Of Suppliers

Sanara MedTech Inc. relies on a few key suppliers for critical components, giving them some bargaining power, but the company's large order volumes and long-term contracts mitigate this risk.

Threat Of New Entrants

The medical device industry is highly regulated, and new entrants face significant barriers to entry, including high R&D costs and stringent regulatory approvals, making it challenging for new companies to enter the market.

Intensity Of Rivalry

The medical device industry is highly competitive, with several established players competing for market share, leading to intense rivalry and high marketing and R&D expenses.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 18.32%
Debt Cost 4.16%
Equity Weight 81.68%
Equity Cost 12.25%
WACC 10.77%
Leverage 22.43%

11. Quality Control: Sanara MedTech Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Warby Parker

A-Score: 4.5/10

Value: 3.3

Growth: 7.4

Quality: 4.1

Yield: 0.0

Momentum: 9.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
AtriCure

A-Score: 4.5/10

Value: 5.0

Growth: 6.0

Quality: 4.0

Yield: 0.0

Momentum: 7.5

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
Daxor

A-Score: 4.4/10

Value: 3.5

Growth: 6.7

Quality: 8.6

Yield: 0.0

Momentum: 4.5

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Retractable Technologies

A-Score: 4.0/10

Value: 9.4

Growth: 0.6

Quality: 3.9

Yield: 0.0

Momentum: 6.5

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
Stereotaxis

A-Score: 3.8/10

Value: 6.2

Growth: 1.7

Quality: 3.7

Yield: 0.0

Momentum: 9.0

Volatility: 2.3

1-Year Total Return ->

View Full Report
Stock-Card
Sanara MedTech

A-Score: 3.2/10

Value: 3.0

Growth: 6.8

Quality: 2.3

Yield: 0.0

Momentum: 4.0

Volatility: 3.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

21.69$

Current Price

21.69$

Potential

-0.00%

Expected Cash-Flows