SMTI earnings analysis
What we found in SMTI's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Sanara delivered $28.1 million of second-quarter revenue, up approximately 8.1% year over year, with gross margin of 93.0% and diluted EPS of negative $0.05. Profitability improved materially versus the prior-year quarter, but operating margin declined from approximately 9.5% in Q1 2026 to 6.4% in Q2, and EPS turned negative from $0.05. Free cash flow recovered to $902,652, while the newly disclosed MiMedx merger introduces significant completion, litigation, expense, and strategic-flexibility risks. No consolidated numeric guidance was provided.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue increased year over year
- Second-quarter revenue was $28.1 million, up $0.1 million, or approximately 0.4%, from $28.0 million in the prior quarter and up $2.1 million, or approximately 8.1%, from $26.0 million in the year-earlier quarter.
- Gross margin remained above 93%
- Gross margin was 93.0%, down 0.1 percentage point from 93.1% in Q1 2026 but up 0.5 percentage point from 92.5% in Q2 2025.
- EPS improved year over year
- Diluted EPS was a loss of $0.05, improving from a loss of $0.23 in Q2 2025 but declining from $0.05 of diluted EPS in Q1 2026.
- Operating profitability improved year over year
- Operating income was $1.8 million, equivalent to an operating margin of approximately 6.4%, compared with a $0.03 million operating loss, or approximately negative 0.1%, in Q2 2025.
- Free cash flow recovered sequentially
- Free cash flow was $902,652, compared with negative $3.0 million in Q1 2026 and $902,652 in Q2 2025.
- Soft tissue products led growth
- Soft tissue products were identified as the primary driver of revenue growth, while adjusted EBITDA increased to $5.0 million and gross margin reached 93.0%.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Merger completion is not assured
- The newly disclosed MiMedx merger may not close even if shareholders approve it. If the merger is terminated under specified circumstances, Sanara may be required to pay a $9,660,336 termination fee, in addition to incurring merger-related costs.
- Merger may constrain strategic flexibility
- The merger agreement dated July 29, 2026 restricts certain business and financial actions without MiMedx consent, while management must devote resources to the transaction. The filing states these restrictions could limit pursuit of other opportunities and adversely affect growth prospects.
- Merger litigation could delay closing
- The filing newly identifies merger-related litigation and injunction risk. A lawsuit that obtains an injunction could prevent or delay completion of the transaction, while Sanara may bear defense costs and other adverse effects.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.05
- Gross margin
- 93.0%
- Operating margin
- 6.4%
What they said about what is next.
No consolidated numeric revenue or EPS guidance was provided. The company previously stated that OsStic remains on track for market introduction in Q1 2027.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 12, 2026
- Sanara MedTech delivered strong Q1 2026 results, with revenue rising 19% year-over-year to $27.8 million and a return to profitability with a net income of $0.4 million, contrasting a net loss in the prior year. The…
- 10-K · March 24, 2026
- Sanara MedTech shifted strategy in 2025 to focus exclusively on its surgical product portfolio after discontinuing its Tissue Health Plus (THP) value‑based wound care program (classified as discontinued operations as of…
- 10-Q · November 12, 2025
- Sanara MedTech reported Q3 revenue of $26.33M, up versus both the prior quarter and prior-year Q3, driven by growth in soft tissue repair and bone fusion products. Continuing operations delivered operating income of…
- 10-Q · August 13, 2025
- Sanara MedTech reported Q2 revenue of $25.83M (vs $20.16M a year ago), a 28.1% YoY increase and a 10.2% increase vs Q1 2025. Gross margin expanded to ~92.6% and operating loss narrowed to $31k (operating margin ~-0.1%),…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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