Sanuwave Health (NASDAQ:SNWV), a leading provider of next-generation FDA-approved wound care products, today announced its financial results for the three months ended March 31, 2025, demonstrating significant growth and improved profitability.
The company reported total revenue of $9.34 million for the first quarter of 2025, a substantial 61% increase compared to $5.79 million in the same period of 2024.
This performance surpassed the company's previously issued guidance of 45-55% year-over-year growth for the quarter.
Key drivers of the revenue growth included robust sales of the UltraMist® system and strong consumables revenue.
Sanuwave sold 98 UltraMist® systems in Q1 2025, a significant rise from 43 units sold in Q1 2024.
While system sales were down from 135 units in Q4 2024, consumables revenue saw a healthy 43% increase, reaching $5.8 million in Q1 2025, up from $4.1 million in the prior year quarter.
UltraMist® revenue constituted 99% of Sanuwave's total revenues in the first quarter.
Gross margin as a percentage of revenue improved to 79% for the three months ended March 31, 2025, compared to 72.6% in the corresponding period last year, indicating increased efficiency in production and sales.
Sanuwave also reported a significant improvement in operating income, which totaled $1 million for Q1 2025.
This represents a $2 million increase from Q1 2024, primarily attributed to the company's focus on driving profitable growth and effective expense management.
The net loss for the first quarter of 2025 was $5.7 million, primarily driven by the change in the fair value of derivative liabilities.
This compares to a net loss of $4.5 million in Q1 2024.
Adjusted EBITDA showed a dramatic turnaround, reaching $2.3 million for the three months ended March 31, 2025, a significant improvement from a negative adjusted EBITDA of $59 thousand in the same period last year.
Looking ahead, Sanuwave provided guidance for revenue growth of 40-50% for the second quarter of 2025 compared to the second quarter of 2024.