Sanara MedTech (NASDAQ:SMTI) held its first-quarter earnings conference call on Tuesday. Below is the complete transcript from the call.
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View the webcast at https://www.webcaster5.com/Webcast/Page/2758/53818
Summary
Sanara MedTech reported a 19% increase in revenue for Q1 2026 compared to Q1 2025, driven by strong sales of soft tissue repair products.
The company achieved GAAP net profitability with a net income of $0.4 million and improved gross margin to 93%.
Sanara MedTech expanded its sales team to 43 reps and increased its market presence in over 4,000 hospitals and 1,400 facilities.
The company expects Q2 2026 revenue to be between $28.5 million and $29.5 million, maintaining its full-year guidance of $116 million to $121 million.
Management highlighted their strategic focus on the surgical market and plans for organic growth, including the launch of a new product in 2027.
Full Transcript
OPERATOR
Good morning everyone and thank you for participating in today’s conference call to discuss Sanara MedTech’s financial results for the first quarter ended March 31st. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press Star0 on your telephone keypad. Please note that this conference call is being recorded and a replay will be available on the investor Relations page of the Company’s website shortly. The Company issued its earnings release yesterday evening. On today’s call are Seth Yahn, President and Chief Executive Officer, and Elizabeth Taylor, Chief Financial Officer. Before we begin, I would like to remind everyone that certain statements on today’s call include forward looking statements within the meaning of the Private Securities Litigation Reform act of 1995. For more information about the risks and uncertainties involving forward looking statements, statements and factors that could cause actual results to differ materially from those projected or implied by forward looking statements, please see the risk factors set forth in the Company’s most recent Annual report on Form 10-K. This call will also include references to certain non-GAAP financial measures. Reconciliations of those non-GAAP measures to the most comparable measures calculated and presented in accordance with GAAP are provided in the Earnings release available on the Investor Relations section of the Company’s website. I would now like to turn the call over to Mr. Yahn. Please go ahead sir.
Seth Yahn (President and Chief Executive Officer)
Thank you operator and welcome everyone to our first quarter 2026 earnings conference call. This was a strong quarter for us which exceeded our expectations. Q1 2026 was the first full quarter in which we were entirely focused on the surgical market and the results reflect our sharpened focus and enhanced financial model. We delivered 19% revenue growth compared to the first quarter of 2025 margin improvement and broke through to GAAP net profitability with net income from continuing operations of $0.4 million or $0.04 per diluted share. Our first quarter revenue growth was largely supported by increased sales of our soft tissue repair products, including Celerate RX and Biosurg. Demand for our products is strong and we’re particularly pleased with our first quarter results given that our first quarter is historically our seasonally slowest sales period of the year. The quarter was also impacted by a three day weather related shutdown in January which caused us to lose three days of shipping during this period. Despite these challenges, we closed out the first quarter with the strongest sales month in company history in March, excluding October 2024, which benefited from approximately 1.8 million of Biosurg sales due to the industry disruption caused by Hurricane Helene. During the end of 2025 and continuing into 2026, we began strengthening our sales team to support enhanced net revenue growth and our heightened focus on the surgical market. At quarter end, we had grown our sales team to a total of 43 reps. In addition to strengthening our sales team, we’re also very well positioned with a robust surgeon user network, a growing number of hospitals where our products are contract or approved to be sold, a growing number of facilities where our products were sold during the quarter, and a leading distributor network for our products that continues to expand. Let me dig into that a bit. As of quarter end, our products were contracted or approved to be sold in over 4,000 hospitals and ambulatory surgery centers throughout the United States. Our products were sold in over 1400 facilities throughout the United States, up from more than 1300 in the first quarter of last year, and we had agreements with more than 450 distributors compared to 400 at this time last year. Also, while it’s not our practice to disclose specifics related to our active surgeon user base, I’m pleased to share that we saw solid growth in the number of surgeon users on a year over year basis in Q1. While most of you know this, I want to reiterate that Senera is not subject to reimbursement risk. Given we are 100% focused on the surgical setting, this means that we have lower exposure to fluctuation in the cost of volume of patient care, which allows us to recognize a predictable and reliable revenue stream with consistently strong margins. Looking ahead, we believe we are well positioned with our strengthened sales team in our more refined pure place focus on the surgical operating setting to drive growth. In terms of capital allocation, we are focused on further strengthening our own business model. Our current capital allocation strategy is to drive organic growth, judiciously invest in R and D and grow our pipeline of new products that align with our pure play surgical focus. This includes Austication, our licensed synthetic injectable structural bioadhesive bone void filler which remains on track to be introduced to the market in the first quarter of 2027 as well as some …
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