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…
Earnings analysis · 10-Q
SMTI earnings analysis
Filed August 11, 2026 · Our reading of the company's report
The latest report
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…
Read full summary
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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.05
What stood out
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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.
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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.
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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.
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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.
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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.
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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%.
What to watch
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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.
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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.
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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.
Management's outlook
No consolidated numeric revenue or EPS guidance was provided. The company previously stated that OsStic remains on track for market introduction in Q1 2027.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.