Q2 2025 revenues were $10.2 million, up 42% from $7.2 million in Q2 2024. This represents the highest Q2 quarterly revenues in Company history.
Q2 2025 gross margin was 78.3%, versus 73.2% in Q2 2024.
GAAP Operating Income was $1.9 million for Q2 2025 versus $2.0 million in Q2 2024. Q2 2025 included equity compensation costs of $1.1 million versus $0 in Q2 2024.
Company provides guidance for revenues of $12-$12.7 million for Q3 2025.
EDEN PRAIRIE, Minn., Aug. 08, 2025 (GLOBE NEWSWIRE) -- Sanuwave Health, Inc. (the "Company" or "Sanuwave”) (NASDAQ: SNWV), a leading provider of next-generation FDA-approved wound care products, is pleased to provide its financial results for the three months ended June 30, 2025.
Quarter ended June 30, 2025
- Revenue for the three months ended June 30, 2025, totaled $10.2 million, an increase of 42%, as compared to $7.2 million for the same period of 2024. This growth was within the Company's guidance of growth of 40-50% year on year for the quarter.
- 116 UltraMist® systems were sold in Q2 2025 up from 72 in Q2 2024, and from 98 in Q1 2025.
- UltraMist® consumables revenue increased by 37% to $6.4 million in Q2 2025, versus $4.7 million for the same quarter last year. UltraMist® revenue represented 99% of Sanuwave’s overall revenues in Q2 2025.
- Gross margin as a percentage of revenue amounted to 78.3% for the three months ended June 30, 2025, versus 73.2% for the same period last year.
- For the three months ended June 30, 2025, operating income totaled $1.9 million, compared to $2.0 million in Q2 2024. Q2 2025 operating expenses included $1.1 million of stock compensation expenses versus $0 in the same period in 2024.
- Net income for the second quarter of 2025 was $1.1 million. This compares to a net income of $6.6 million in the second quarter of 2024 which was primarily driven by a $5.3 million gain on extinguishment of debt that did not recur during the three months ended June 30, 2025 and the change in the fair value of derivative liabilities.
- Adjusted EBITDA [1] for the three months ended June 30, 2025, was $3.4 million versus Adjusted EBITDA of $1.5 million for the same period last year.
“We’re pleased to have put up strong results for Q2 and to have achieved 51% revenue growth in the first six months of 2025 vs the same period in 2024 ,” said Morgan Frank, CEO. “We sold 214 UltraMIST systems in the first six months of this year, more than we did in the full year of 2023 and an increase of 86% versus same period in 2024. Q1 and Q2 have been spent building and reshaping our sales and commercial operations teams, and as of mid July, the Company achieved full national sales coverage for the first time in my tenure as CEO. If Q1 and Q2 were the quarters of “max disruption” Q3 is expected to be the quarter of “max construction” as the Company builds up momentum around our new sales and marketing practices (including the launch of our first concerted marketing program) with an aim to set us up for breakout performance in Q4 2025 and 2026. The energy at our sales and commercial operations national meeting a couple of weeks ago was palpable. I think we’re all looking forward to seeing what Sanuwave can become as it starts firing on all cylinders.”
Certain percentages presented in this earnings release are calculated from the underlying whole-dollar amounts and therefore may not recalculate from the rounded numbers used for disclosure purposes.
Financial Outlook
The Company forecasts Q3 2025 revenue of $12-$12.7 million and reiterates full year 2025 revenue guidance of $48-$50 million (47-53% increase as compared to full year 2024 revenue).
As previously announced, a business update will occur via conference call on August 8, 2025 at 8:30 a.m. EST. Materials for the conference call are included on the Company’s website at http://www.sanuwave.com/investors.
Telephone access to the call will be available by dialing the following numbers:
Toll Free:1-800-245-3047
Toll/International: 1-203-518-9765
Conference ID: SANUWAVE
OR use the link for instant telephone access to the event.
https://viavid.webcasts.com/starthere.jsp?ei=1723341&tp_key=b9f972bf82
A replay will be made available through August 29, 2025:
Toll-Free: 1-844-512-2921 or 1-412-317-6671
Replay Access ID: 11159256
[1] This is a non-GAAP financial measure. Refer to “Non-GAAP Financial Measures” and the reconciliations in this release for further information.
About Sanuwave
Sanuwave Health is focused on the research, development, and commercialization of its patented, non-invasive and biological response-activating medical systems for the repair and regeneration of skin, musculoskeletal tissue, and vascular structures.
Sanuwave's end-to-end wound care portfolio of regenerative medicine products and product candidates help restore the body’s normal healing processes. Sanuwave applies and researches its patented energy transfer technologies in wound healing, orthopedic/spine, aesthetic/cosmetic, and cardiac/endovascular conditions.
Non-GAAP Financial Measures
This press release includes certain financial measures that are not presented in our financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). These financial measures are considered "non-GAAP financial measures" and are intended to supplement, and should not be considered as superior to, or a replacement for, financial measures presented in accordance with U.S. GAAP.
The Company uses Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) and Adjusted EBITDA to assess its operating performance. Adjusted EBITDA is Earnings before Interest, Taxes, Depreciation and Amortization adjusted for the change in fair value of derivatives and any significant non-cash or infrequent charges. EBITDA and Adjusted EBITDA should not be considered as alternatives to net income (loss) as a measure of financial performance or any other performance measure derived in accordance with U.S. GAAP, and they should not be construed as an inference that the Company’s future results will be unaffected by unusual or infrequent items. These non-GAAP financial measures are presented in a consistent manner for each period, unless otherwise disclosed. The Company uses these measures for the purpose of evaluating its historical and prospective financial performance, as well as its performance relative to competitors. These measures also help the Company to make operational and strategic decisions. The Company believes that providing this information to investors, in addition to U.S. GAAP measures, allows them to see the Company’s results through the eyes of management, and to better understand its historical and future financial performance. These non-GAAP financial measures are also frequently used by analysts, investors, and other interested parties to evaluate companies in our industry, when considered alongside other U.S. GAAP measures.
EBITDA and Adjusted EBITDA have their limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of the Company’s results as reported under U.S. GAAP. Some of these limitations are that EBITDA and Adjusted EBITDA:
- Do not reflect every expenditure, future requirements for capital expenditures or contractual commitments.
- Do not reflect all changes in our working capital needs.
- Do not reflect interest expense, or the amount necessary to service our outstanding debt.
As presented in the U.S. GAAP to Non-GAAP Reconciliations section below, the Company’s non-GAAP financial measures exclude the impact of certain charges that contribute to our net income (loss).
Forward-Looking Statements
This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future financial results, production expectations, and plans for future business development activities. Forward-looking statements include all statements that are not statements of historical fact regarding intent, belief or current expectations of the Company, its directors or its officers. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company’s ability to control. Actual results may differ materially from those projected in the forward-looking statements. Among the key risks, assumptions and factors that may affect operating results, performance and financial condition are risks associated with regulatory oversight, the Company’s ability to manage its capital resources, competition and the other factors discussed in detail in the Company’s periodic filings with the Securities and Exchange Commission. The Company undertakes no obligation to update any forward-looking statement, except as may be required by applicable law.
Contact: investors@sanuwave.com
| SELECTED FINANCIAL DATA FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025 AND 2024 | |||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
| (in thousands) | 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Revenue | $ | 10,164 | $ | 7,162 | $ | 19,506 | $ | 12,948 | |||||||||
| Cost of Revenues | 2,206 | 1,922 | 4,164 | 3,506 | |||||||||||||
| Gross Margin | 7,958 | 5,240 | 15,342 | 9,442 | |||||||||||||
| Gross Margin % | 78.3 | % | 73.2 | % | 78.7 | % | 72.9 | % | |||||||||
| Total operating expenses | 6,081 | 3,248 | 12,479 | 8,500 | |||||||||||||
| Operating Income | $ | 1,877 | $ | 1,992 | $ | 2,863 | $ | 942 | |||||||||
| Total other income (expense) | (822 | ) | 4,569 | (7,484 | ) | 1,091 | |||||||||||
| Net Income (Loss) | $ | 1,055 | $ | 6,561 | $ | (4,621 | ) | $ | 2,033 | ||||||||
| NON-GAAP ADJUSTED EBITDA | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| (in thousands) | 2025 | 2024 | 2025 | 2024 | |||||||||||
| Net Income (Loss) | $ | 1,055 | $ | 6,561 | $ | (4,621 | ) | $ | 2,033 | ||||||
| Non-GAAP Adjustments: | |||||||||||||||
| Interest expense | 1,874 | 3,783 | 3,726 | 7,343 | |||||||||||
| Depreciation and amortization | 299 | 262 | 573 | 480 | |||||||||||
| EBITDA | 3,228 | 10,606 | (322 | ) | 9,856 | ||||||||||
| Non-GAAP Adjustments for Adjusted EBITDA: | |||||||||||||||
| Change in fair value of derivative liabilities | (990 | ) | (3,717 | ) | 3,911 | (1,216 | ) | ||||||||
| Other non-cash or infrequent charges: | |||||||||||||||
| Stock-based compensation | 1,132 | - | 2,116 | - | |||||||||||
| Gain on extinguishment of debt | - | (5,310 | ) | - | (5,205 | ) | |||||||||
| Severance agreement and legal settlement | - | - | - | 585 | |||||||||||
| Release of historical accrued expenses | - | (579 | ) | - | (579 | ) | |||||||||
| License and option agreement | - | - | - | (2,500 | ) | ||||||||||
| Prepaid legal fees expensed from termination of Merger Agreement | - | 457 | - | 457 | |||||||||||
| Adjusted EBITDA | $ | 3,370 | $ | 1,457 | $ | 5,705 | $ | 1,398 | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| (In thousands, except share data) | June 30, 2025 | December 31, 2024 | |||||
| ASSETS | |||||||
| Current Assets: | |||||||
| Cash and cash equivalents | $ | 8,496 | $ | 10,237 | |||
| Accounts receivable, net of allowance of $1,278 and $1,147, respectively | 3,848 | 3,329 | |||||
| Inventory | 5,911 | 4,149 | |||||
| Prepaid expenses and other current assets | 1,913 | 682 | |||||
| Total Current Assets | 20,168 | 18,397 | |||||
| Non-Current Assets: | |||||||
| Property and equipment, net | 1,587 | 303 | |||||
| Right of use assets, net | 653 | 429 | |||||
| Intangible assets, net | 3,378 | 3,730 | |||||
| Goodwill | 7,260 | 7,260 | |||||
| Total Non-current Assets | $ | 12,878 | $ | 11,722 | |||
| Total Assets | 33,046 | 30,119 | |||||
| LIABILITIES | |||||||
| Current Liabilities: | |||||||
| Senior secured debt | $ | 26,774 | $ | 25,305 | |||
| Accounts payable | 4,002 | 3,728 | |||||
| Accrued expenses | 3,289 | 4,678 | |||||
| Warrant liability | 12,018 | 8,107 | |||||
| Current portion of operating lease liabilities | 82 | 126 | |||||
| Current portion of finance lease liabilities | 115 | 175 | |||||
| Current portion of contract liabilities | 221 | 193 | |||||
| Other | - | 33 | |||||
| Total Current Liabilities | 46,501 | 42,345 | |||||
| Non-current Liabilities: | |||||||
| Operating lease liabilities, less current portion, net of incentives | 974 | 125 | |||||
| Finance lease liabilities, less current portion | 11 | 66 | |||||
| Contract liabilities, less current portion | 301 | 300 | |||||
| Other | 34 | - | |||||
| Total Non-current Liabilities | 1,320 | 491 | |||||
| Total Liabilities | $ | 47,821 | $ | 42,836 | |||
| STOCKHOLDERS’ DEFICIT | |||||||
| Preferred Stock, par value $0.001, 5,000,000 shares authorized; 6,175 shares Series A, 293 shares Series B, 90 shares Series C and 8 shares Series D designated, respectively; no shares issued and outstanding at June 30, 2025 and December 31, 2024 | $ | - | $ | - | |||
| Common stock, par value $0.001, 2,500,000,000 shares authorized; 8,568,005 and 8,543,686 issued and outstanding at June 30, 2025 and December 31, 2024, respectively * | 9 | 9 | |||||
| Additional paid-in capital | 241,248 | 238,685 | |||||
| Accumulated deficit | (256,042 | ) | (251,421 | ) | |||
| Accumulated other comprehensive loss | 10 | 10 | |||||
| Total Stockholders’ Deficit | (14,775 | ) | (12,717 | ) | |||
| Total Liabilities and Stockholders’ Deficit | $ | 33,046 | $ | 30,119 | |||
* Reflects a one-for-three hundred seventy-five (1:375) reverse stock split of the outstanding shares of the Company's common stock effected on October 18, 2024.
| CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||||||||||||||
| (In thousands, except share data) | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Revenue | $ | 10,164 | $ | 7,162 | $ | 19,506 | $ | 12,948 | |||||||
| Cost of Revenues | 2,206 | 1,922 | 4,164 | 3,506 | |||||||||||
| Gross Margin | 7,958 | 5,240 | 15,342 | 9,442 | |||||||||||
| Operating Expenses: | |||||||||||||||
| General and administrative | 4,039 | 1,839 | 8,506 | 5,514 | |||||||||||
| Selling and marketing | 1,674 | 1,034 | 3,205 | 2,266 | |||||||||||
| Research and development | 194 | 195 | 402 | 358 | |||||||||||
| Depreciation and amortization | 174 | 180 | 366 | 362 | |||||||||||
| Total Operating Expenses | 6,081 | 3,248 | 12,479 | 8,500 | |||||||||||
| Operating Income | 1,877 | 1,992 | 2,863 | 942 | |||||||||||
| Other Income (Expense): | |||||||||||||||
| Interest expense | (1,874 | ) | (3,396 | ) | (3,726 | ) | (6,633 | ) | |||||||
| Interest expense, related party | — | (387 | ) | — | (710 | ) | |||||||||
| Gain on extinguishment of debt | — | 5,310 | - | 5,205 | |||||||||||
| Change in fair value of derivative liabilities | 990 | 3,717 | (3,911 | ) | 1,216 | ||||||||||
| Other expense | (27 | ) | (685 | ) | (28 | ) | (787 | ) | |||||||
| Other income | 89 | 10 | 181 | 2,800 | |||||||||||
| Total Other Income (Expense) | (822 | ) | 4,569 | (7,484 | ) | 1,091 | |||||||||
| Net Income (Loss) | 1,055 | 6,561 | (4,518 | ) | 2,033 | ||||||||||
| Other Comprehensive Income (Loss) | |||||||||||||||
| Foreign currency translation adjustments | — | 10 | — | 121 | |||||||||||
| Total Comprehensive Income (Loss) | $ | 1,055 | $ | 6,571 | $ | (4,621 | ) | $ | 2,154 | ||||||
| Earnings (Loss) per Share: | |||||||||||||||
| Basic * | $ | 0.12 | $ | 2.08 | $ | (0.54 | ) | $ | 0.65 | ||||||
| Diluted * | $ | 0.01 | $ | 1.77 | $ | (0.54 | ) | $ | 0.55 | ||||||
| Weighted average shares outstanding | |||||||||||||||
| Basic * | 8,561,737 | 3,152,595 | 8,554,706 | 3,126,000 | |||||||||||
| Diluted * | 9,167,846 | 3,699,501 | 8,554,706 | 3,663,730 | |||||||||||
* Reflects a one-for-three hundred seventy-five (1:375) reverse stock split of the outstanding shares of the Company's common stock effected on October 18, 2024.
| CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT (In thousands, except share data) | |||||||||||||||||||
| Three Months Ended June 30, 2025 | |||||||||||||||||||
| Common Stock | |||||||||||||||||||
| Number of Shares Issued and Outstanding* | Par Value | Additional Paid- in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total | ||||||||||||||
| Balances as of March 31, 2025 | 8,548,473 | $ | 9 | $ | 239,786 | $ | (257,097 | ) | $ | 10 | $ | (17,292 | ) | ||||||
| Stock-based compensation | - | - | 1,132 | - | - | 1,132 | |||||||||||||
| Stock options exercised | 17,008 | - | 253 | - | - | 253 | |||||||||||||
| Shares granted in lieu of board of director fees | 2,524 | - | 77 | - | - | 77 | |||||||||||||
| Net income | - | - | - | 1,055 | - | 1,055 | |||||||||||||
| Balances as of June 30, 2025 | 8,568,005 | $ | 9 | $ | 241,248 | $ | (256,042 | ) | $ | 10 | $ | (14,775 | ) | ||||||
| Three Months Ended June 30, 2024 | |||||||||||||||||||
| Common Stock | |||||||||||||||||||
| Number of Shares Issued and Outstanding* | Par Value | Additional Paid- in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total | ||||||||||||||
| Balances as of March 31, 2024 | 3,041,492 | $ | 3 | $ | 176,979 | $ | (224,577 | ) | $ | - | $ | (47,595 | ) | ||||||
| Shares issued for settlement of warrants | 14,440 | - | 6 | - | - | 6 | |||||||||||||
| Shares issued for settlement of debt | 94,130 | - | 1,412 | - | - | 1,412 | |||||||||||||
| Foreign currency translation adjustment | - | - | - | - | 10 | 10 | |||||||||||||
| Net income | - | - | - | 6,561 | - | 6,561 | |||||||||||||
| Balances as of June 30, 2024 | 3,150,062 | $ | 3 | $ | 178,397 | $ | (218,016 | ) | $ | 10 | $ | (39,606 | ) | ||||||
* Reflects a one-for-three hundred seventy-five (1:375) reverse stock split of the outstanding shares of the Company's common stock effected on October 18, 2024.
| Six Months Ended June 30, 2025 | ||||||||||||||||||||
| Common Stock | ||||||||||||||||||||
| Number of Shares Issued and Outstanding* | Par Value | Additional Paid- in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total | |||||||||||||||
| Balances as of December 31, 2024 | 8,543,686 | $ | 9 | $ | 238,685 | $ | (251,421 | ) | $ | 10 | $ | (12,717 | ) | |||||||
| Stock-based compensation | 4,787 | - | 2,233 | - | - | 2,233 | ||||||||||||||
| Stock options exercised | 17,008 | - | 253 | - | - | 253 | ||||||||||||||
| Shares granted in lieu of board of director fees | 2,524 | - | 77 | - | - | 77 | ||||||||||||||
| Net loss | - | - | - | (4,621 | ) | - | (4,621 | ) | ||||||||||||
| Balances as of June 30, 2025 | 8,568,005 | $ | 9 | $ | 241,248 | $ | (256,042 | ) | $ | 10 | $ | (14,775 | ) | |||||||
| Six Months Ended June 30, 2024 | ||||||||||||||||||||
| Common Stock | ||||||||||||||||||||
| Number of Shares Issued and Outstanding* | Par Value | Additional Paid- in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total | |||||||||||||||
| Balances as of December 31, 2023 | 3,041,492 | $ | 3 | $ | 176,979 | $ | (220,049 | ) | $ | (111 | ) | $ | (43,178 | ) | ||||||
| Shares issued for settlement of warrants | 14,440 | - | 6 | - | - | 6 | ||||||||||||||
| Shares issued for settlement of debt | 94,130 | - | 1,412 | - | - | 1,412 | ||||||||||||||
| Foreign currency translation adjustment | - | - | - | - | 121 | 121 | ||||||||||||||
| Net income | - | - | - | 2,033 | - | 2,033 | ||||||||||||||
| Balances as of June 30, 2024 | 3,150,062 | $ | 3 | $ | 178,397 | $ | (218,016 | ) | $ | 10 | $ | (39,606 | ) | |||||||
* Reflects a one-for-three hundred seventy-five (1:375) reverse stock split of the outstanding shares of the Company's common stock effected on October 18, 2024.
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| Six Months Ended June 30, | |||||||
| (in thousands) | 2025 | 2024 | |||||
| Cash Flows - Operating Activities: | |||||||
| Net income (loss) | $ | (4,621 | ) | $ | 2,033 | ||
| Adjustments to reconcile net income to net cash (used in) provided by operating activities | |||||||
| Stock-based compensation | 2,106 | - | |||||
| Depreciation and amortization | 388 | 393 | |||||
| Amortization of right-of-use assets | 185 | 87 | |||||
| Reserve for credit losses | 131 | 99 | |||||
| Gain on extinguishment of debt | - | (5,205 | ) | ||||
| Change in fair value of derivative liabilities | 3,911 | (1,216 | ) | ||||
| Amortization of debt issuance and debt discounts | 1,062 | 3,274 | |||||
| Accrued interest and accrued interest, related party | - | 1,859 | |||||
| Proceeds from tenant improvement funds | 429 | - | |||||
| Changes in operating assets and liabilities | |||||||
| Accounts receivable | (650 | ) | (340 | ) | |||
| Inventory | (1,762 | ) | 220 | ||||
| Prepaid expenses and other assets | (1,231 | ) | 118 | ||||
| Accounts payable | 274 | (1,259 | ) | ||||
| Accrued expenses and contract liabilities | (746 | ) | 369 | ||||
| Net Cash Flows (Used in) Provided by Operating Activities | (524 | ) | 432 | ||||
| Cash Flows - Investing Activities | |||||||
| Purchase of property and equipment | (1,321 | ) | (206 | ) | |||
| Net Cash Flows Used in Investing Activities | (1,321 | ) | (206 | ) | |||
| Cash Flows - Financing Activities | |||||||
| Proceeds from exercises of stock options | 253 | - | |||||
| Payment of note payable | - | (2,175 | ) | ||||
| Proceeds from convertible notes payable | - | 1,300 | |||||
| Proceeds from promissory note payable, related party | - | 500 | |||||
| Proceeds from factoring, net | - | 831 | |||||
| Payments of principal on finance leases | (149 | ) | (140 | ) | |||
| Net Cash Flows Provided by Financing Activities | 104 | 316 | |||||
| Effect of Exchange Rates on Cash | - | 121 | |||||
| Net Change in Cash During Period | (1,741 | ) | 663 | ||||
| Cash at Beginning of Period | 10,237 | 1,797 | |||||
| Cash at End of Period | $ | 8,496 | $ | 2,460 | |||
| Supplemental Information: | |||||||
| Cash paid for interest | $ | 2,255 | $ | 2,055 | |||
| Non-cash Investing and Financing Activities: | |||||||
| Capitalize interest into senior secured debt | 407 | 3,850 | |||||
| Shares granted in lieu of board of director fees | 77 | - | |||||
| Stock options granted in lieu of cash bonus | 117 | - | |||||
| Right-of-use assets obtained in exchange for lease liabilities | 430 | - | |||||
| RSUs granted in exchange for services | 10 | - | |||||
| Warrants issued in conjunction with convertible promissory notes | - | 3,633 | |||||
| Conversion of asset-backed secured promissory notes to convertible promissory notes | - | 4,584 | |||||
| Shares issued for settlement of debt | - | 1,412 | |||||
| Write off deferred merger costs | - | 1,226 | |||||
