Sanara MedTech crosses $100M revenue milestone
Adjusted EBITDA surges 87% as wound care company reaffirms 2026 growth outlook despite elevated debt
Sanara MedTech Inc. reported fourth-quarter and full-year 2025 financial results that exceeded analyst expectations, with the medical device maker crossing the $100 million annual revenue threshold for the first time even as its stock continues to trade well below key moving averages.
The Fort Worth-based company reported fourth-quarter revenue of $27.5 million, representing a 5% increase from the prior year and 3.5% above the consensus estimate of $26.6 million. When excluding $1.8 million of BIASURGE sales related to Hurricane Helene in the fourth quarter of 2024, revenue grew 13% year-over-year.
For the full year 2025, Sanara generated net revenue of $103.1 million, up 19% from $86.7 million in 2024 and marking the first time the company has surpassed the $100 million milestone. Excluding the hurricane-impacted sales, annual revenue increased 22% year-over-year.
The company's profitability metrics showed substantial improvement. Adjusted EBITDA nearly doubled to $17.0 million from $9.1 million in the prior year, representing an 87% increase. Gross margin expanded to 93% of net revenue for both the fourth quarter and full year, up from 91% in the fourth quarter of 2024.
"We are pleased to report another quarter of solid revenue growth and significant margin expansion, which enabled us to achieve the important milestone of surpassing $100 million in annual revenue," said Zachary Fleming, chief executive officer of Sanara. "Our surgical soft tissue repair products continue to demonstrate strong demand, and we believe our recent strategic decisions have positioned the company for sustainable long-term growth."
Despite the earnings beat and revenue milestone, Sanara shares have struggled in recent months. The stock closed at $18.34 on March 24, well below its 50-day moving average of $20.74 and 200-day moving average of $26.16. The shares have declined approximately 22% since the beginning of 2026 and are trading near their 52-week low of $18.29, far below the 52-week high of $35.95 reached last year.
Investor concerns center on the company's balance sheet. Long-term debt increased to $46.0 million as of December 31, 2025, up from $30.7 million a year earlier, a 50% increase that has raised questions about financial flexibility. The company reported a net loss from continuing operations of $0.4 million for the full year, though this represented an improvement from the $1.9 million loss in 2024.
Sanara reaffirmed its 2026 financial guidance, projecting full-year net revenue of $116 million to $121 million, which represents 13% to 17% growth over 2025 levels. The guidance aligns with analyst expectations that the surgical segment could achieve approximately $125 million in revenue and $25 million in EBITDA in 2026.
The company operates in the competitive advanced wound care and surgical technology markets, competing against larger players including Organogenesis, Integra LifeSciences, Smith & Nephew, Medtronic, Stryker, and Johnson & Johnson. Sanara differentiates itself through its proprietary CellerateRX and BIASURGE products, along with specialized clinical support services.
Analysts remain broadly optimistic despite the recent share price decline. The consensus 12-month price target stands at $36.00, suggesting potential upside of more than 90% from current levels, with targets ranging from $36 to $44. Zacks upgraded the stock to "Strong Buy" in January 2026, citing the strategic discontinuation of the Tissue Health Plus segment as a positive move for financial clarity.
The company's recent securing of a contract with Vizient, the largest group purchasing organization in the United States, is expected to improve market access and drive additional revenue growth. However, analysts have flagged potential risks including lower-than-expected revenue growth, challenges in customer acquisition, and difficulties in new product launches.
With market capitalization of approximately $164 million, Sanara trades at a price-to-sales ratio of 1.61 times trailing twelve-month revenue and an enterprise value-to-EBITDA multiple of 41.2 times. Insiders own 65% of outstanding shares, while institutional ownership stands at 22%.
The company's ability to reduce its debt burden while maintaining revenue growth and margin expansion will be key factors for investors watching whether the stock can reclaim ground lost over the past three months. The 2026 guidance reaffirmed Tuesday suggests management remains confident in the underlying business momentum despite recent market skepticism.