The strong Q1 beat and reaffirmed guidance signal accelerating momentum in the surgical market. Watch for continued operating leverage as the company scales its 43-rep sales force and expands into over 4,000 contracted facilities. The Q2 guidance of $28.5M-$29.5M implies sequential growth, which is notable given Q1 is historically the slowest quarter. Monitor cash burn — operating cash flow was -$2.5M in Q1 due to commission timing, but the company is now GAAP profitable.
Price Chart
Executive Summary
Sanara MedTech reported Q1 2026 revenue of $27.8M (+19% YoY) and GAAP net income from continuing operations of $0.4M ($0.04/diluted share), a significant turnaround from a net loss of $0.6M in Q1 2025. The company reaffirmed its full-year 2026 revenue guidance of $116M-$121M (13-17% growth) and provided Q2 2026 revenue guidance of $28.5M-$29.5M. This is the first full quarter as a pure-play surgical business following the strategic realignment, and the results demonstrate improved profitability and operating leverage.
Key Financial Metrics
Key Facts
- Q1 2026 net revenue of $27.8M, up 19% YoY from $23.4M
- GAAP net income from continuing operations of $0.4M ($0.04/diluted share) vs net loss of $0.6M ($0.07 loss) in Q1 2025
- Gross margin improved to 93% from 92% YoY
- Operating income of $2.6M vs $0.8M in Q1 2025, a 3.2x increase
- Adjusted EBITDA of $4.3M, up 58% from $2.7M in Q1 2025
- Full-year 2026 revenue guidance reaffirmed at $116M-$121M (13-17% growth)
- Q2 2026 revenue guidance of $28.5M-$29.5M (10-14% growth)
- Cash of $13.6M and long-term debt of $46.2M at quarter end
- Soft tissue repair products drove growth (+21% YoY), offset by a 2% decline in bone fusion products
Financial Impact
Revenue grew 19% YoY to $27.8M; net income swung from -$0.6M to +$0.4M; Adjusted EBITDA up 58% to $4.3M
Risk Factors
- Long-term debt of $46.2M vs $13.6M cash creates leverage risk; interest expense of $1.8M per quarter is a significant fixed cost
- Bone fusion products declined 2% YoY, indicating potential competitive pressure in that segment
- Operating cash flow was negative $2.5M in Q1, though this was attributed to timing of commission payments
- The company is still in early stages of GAAP profitability — any revenue deceleration could quickly reverse earnings
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001493152-26-022291 |
| Document: form8-k.htm | 0001493152-26-022291 |
| Document: 0001493152-26-022291-index-headers.html | 0001493152-26-022291 |
| Document: 0001493152-26-022291-index.html | 0001493152-26-022291 |
| Document: 0001493152-26-022291.txt | 0001493152-26-022291 |
| 8-K Data (Synthetic) | 0001493152-26-022291 |
Track record builds as more directional reports settle.
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| Type | Now | ||||
|---|---|---|---|---|---|
Oct 16, 2026 11d ago | 425 | $33.16 $32.80 | ▲ +1.09% | ▲ +1.18% | $32.84 (+0.97%) |
Oct 16, 2026 11d ago | 8-K | $33.16 $32.80 | ▼ −1.09% | ▼ −1.18% | $32.84 (−0.97%) |
Jul 30, 2026 12w ago | 425 | $34.06 $34.09 | ▲ +0.09% | ▼ −3.53% | $32.84 (−3.58%) |
Jul 30, 2026 12w ago | 425 | $34.06 $34.09 | ▲ +0.09% | ▼ −3.53% | $32.84 (−3.58%) |
Jul 30, 2026 12w ago | 425 | $34.06 $34.09 | ▲ +0.09% | ▼ −3.53% | $32.84 (−3.58%) |
Jul 30, 2026 12w ago | 425 | $34.06 $34.09 | ▲ +0.09% | ▼ −3.53% | $32.84 (−3.58%) |
Jun 4, 2026 20w ago | 8-K | $22.44 $20.81 | ▼ −7.26% | ▼ −7.83% | $32.84 (+46.35%) |
May 11, 2026 24w ago | 8-K | $20.44 $21.89 | ▲ +7.09% | ▲ +7.02% | $32.84 (+60.67%) |
Apr 17, 2026 27w ago | DEFA14A | $20.62 $18.93 | ▼ −8.20% | ▼ −9.11% | $32.84 (+59.26%) |
Apr 17, 2026 27w ago | DEFA14A | $20.77 $19.22 | ▼ −7.46% | ▼ −8.02% | $32.84 (+58.11%) |
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