Sanara MedTech Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net revenue increased 8% year-over-year to $28.4 million in Q3 2026, compared to $26.3 million in Q3 2025; for the first nine months of 2026, revenue rose 12% to $84.4 million from $75.6 million in the prior period.
• Gross profit was $26.3 million (93% margin) in Q3 2026 versus $24.5 million (93% margin) in Q3 2025; for the first nine months, gross profit reached $78.4 million (93% margin) compared to $69.9 million (93% margin) in 2025.
• Operating income was $0.7 million in Q3 2026, down from $2.9 million in Q3 2025; for the first nine months, operating income was $5.2 million compared to $6.3 million in 2025.
• Net loss from continuing operations was $1.3 million ($0.15 loss per diluted share) in Q3 2026, compared to net income of $0.8 million ($0.09 per share) in Q3 2025; for the first nine months, net loss was $1.3 million ($0.15 per share) versus net income of $0.7 million ($0.08 per share) in 2025.
• Adjusted EBITDA was $5.6 million in Q3 2026, up from $4.9 million in Q3 2025; for the first nine months, Adjusted EBITDA was $14.9 million compared to $12.3 million in 2025.
• Cash and cash equivalents were $16.8 million as of September 30, 2026, compared to $16.6 million as of December 31, 2025.
• Long-term debt stood at $46.7 million as of September 30, 2026, compared to $46.0 million as of December 31, 2025.
• Net cash provided by operating activities for the first nine months of 2026 was $3.5 million, compared to $2.8 million in the same period of 2025.

Guidance and Future Outlook:

• Full-year 2026 net revenue guidance was updated to a range of $110 million to $115 million, down from the previous range of $116 million to $121 million; this represents expected growth of approximately 7% to 12% compared to $103.1 million in full-year 2025.

Business Segments and Product Lines:

• Soft tissue repair product sales increased 10% in Q3 2026 to $25.7 million (up from $23.4 million in Q3 2025) and 14% for the first nine months to $75.8 million (up from $66.6 million in 2025).
• Bone fusion product sales decreased 5% in Q3 2026 to $2.8 million (down from $2.9 million in Q3 2025) and 5% for the first nine months to $8.5 million (down from $8.9 million in 2025).
• Key product drivers for revenue growth included CellerateRX Surgical Powder, BIASURGE Advanced Surgical Solution, and FORTIFY TRG Tissue Repair Graft.
• Research and development expenses decreased to $0.7 million (3% of revenue) in Q3 2026 from $1.0 million (4% of revenue) in Q3 2025, and to $2.6 million (3% of revenue) for the first nine months from $3.0 million (4% of revenue) in 2025.

Market and Competitive Landscape:

• Revenue growth was supported by increased market penetration and the expansion of the independent distribution network in new and existing U.S. markets.
• The Company focuses on the North American surgical tissue repair market.

Risks and Challenges:

• Operating expenses increased 19% in Q3 2026 and 15% for the first nine months of 2026, primarily driven by higher SG&A costs associated with the pending merger with MiMedx Group, Inc.
• Net loss from continuing operations was impacted by higher SG&A, higher share of losses from equity method investments, and increased interest expense related to the CRG Term Loan.
• The Company faces risks related to the timing of regulatory approvals, potential termination of the merger agreement, and disruption to management attention due to the proposed transaction.

Management Commentary and Tone:

• CEO Seth Yon described the quarter as one of "strong execution," highlighting 8% revenue growth, 93% gross margin, and $5.6 million in Adjusted EBITDA.
• Management expressed excitement regarding the pending acquisition by MIMEDX, noting shareholder approval was received in September and the company is currently working through regulatory and review processes.
• CellerateRX Surgical and BIASURGE were identified as strong drivers of revenue growth.

Other Key Points:

• The Company announced a transformational agreement to be acquired by MiMedx Group, Inc. (MIMEDX); shareholder approval was received in September 2026.
• Tissue Health Plus (THP) has been classified as discontinued operations and excluded from continuing operations for the three and nine months ended September 30, 2026 and 2025.
• Operating expenses for Q3 2026 included approximately $3.0 million in legal and advisory services related to the pending Merger; for the first nine months, this figure was approximately $4.1 million.
• The timing of a CRG Term Loan interest payment, remitted on October 1, 2026 rather than September 30, 2026, favorably affected the September 30, 2026 cash balance by approximately $1.6 million.
• Net loss from discontinued operations was $0.1 million for both Q3 and the first nine months of 2026, compared to $31.2 million and $36.7 million, respectively, in the prior year periods.