Sanara MedTech reports Q2 revenue gains, says MIMEDX acquisition is expected
Sanara MedTech reported higher second-quarter and first-half 2026 revenue, gross profit and Adjusted EBITDA, and said an expected acquisition by MIMEDX remains subject to closing conditions.
Sanara MedTech Inc. reported higher second-quarter and first-half 2026 revenue on Aug. 11 and said it expects to be acquired by MIMEDX, a transaction that still needs to close.
The Fort Worth, Texas-based medical technology company also disclosed a strategic realignment and said Tissue Health Plus was treated as discontinued operations.
What happened
For the quarter ended June 30, 2026, Sanara said net revenue rose 9% to $28.1 million from $25.8 million a year earlier. Gross profit increased to $26.2 million from $23.9 million, and gross margin held at 93%, up from 92% in the second quarter of 2025.
Operating expenses increased to $24.4 million from $21.4 million. Operating income fell to $1.8 million from $2.5 million. Other expense rose to $2.2 million from $2.0 million.
Sanara reported a net loss from continuing operations of $0.4 million, or $0.05 per diluted share, compared with net income from continuing operations of $0.5 million, or $0.05 per diluted share, in the year-ago quarter. Net loss from discontinued operations was $41,720, compared with $2.5 million a year earlier. Adjusted EBITDA increased to $5.0 million from $4.7 million.
For the first six months of 2026, net revenue rose 14% to $55.9 million from $49.2 million in the same period of 2025. Gross profit increased to $52.0 million from $45.5 million, and gross margin was 93%, compared with 92% a year earlier. Adjusted EBITDA rose to $9.3 million from $7.4 million.
Operating income for the first half increased to $4.4 million from $3.3 million, while operating expenses rose to $47.6 million from $42.2 million. Net cash used in operating activities was $0.4 million, compared with $0.7 million of net cash provided by operating activities in the prior-year period.
Why it matters
The release shows Sanara is still adding revenue and keeping gross margin near 93%, even as higher selling, general and administrative expenses weighed on results. The company said those costs included more direct sales and marketing spending, compensation expense and legal and advisory services tied to corporate strategic initiatives.
Sanara also said higher other expense reflected interest expense on the CRG Term Loan and losses from equity method investments. In the second quarter and first half of 2026, interest on the loan was paid in cash, while in the comparable 2025 periods it was paid-in-kind and added to the loan balance.
Context and background
Sanara describes itself as a medical technology company focused on developing and commercializing technologies for the surgical market. It trades on Nasdaq under the ticker SMTI.
As of June 30, 2026, the company reported $15.4 million in cash and cash equivalents and $46.5 million in long-term debt. That compared with $16.6 million in cash and cash equivalents and $46.0 million in long-term debt at Dec. 31, 2025.
The company said Tissue Health Plus operations were classified as discontinued operations in its consolidated financial statements for the three and six months ended June 30, 2026 and 2025 because of a strategic realignment.
After the quarter ended, Sanara announced an agreement under which it is expected to be acquired by MIMEDX, which the release described as a provider of products for wound care, burn and surgical sectors. The transaction is subject to customary closing conditions.
What officials said
President and CEO Seth Yon said the company continued to drive revenue growth and cited the quarter’s gross margin and Adjusted EBITDA. He said the expected combination with MIMEDX would create a regenerative medicine company across multiple surgical subspecialties.
Yon also said Sanara remains focused on customer needs and on expanding penetration of its surgical products, including CellerateRX Surgical, BIASURGE and OsStic. The company said OsStic remains on track for introduction in the first quarter of 2027.
What happens next
Investors will be watching for progress on the MIMEDX transaction and for additional detail on Sanara’s post-realignment business mix. The company’s next public update may also provide more information on operating costs, debt service and the timing of OsStic’s planned market introduction.
Sources
Editorial note: This article was prepared with AI assistance and includes source attribution for reader review.
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