SANUWAVE Q2 2025 presentation: 42% revenue growth drives stock surge

SANUWAVE Health Inc (OTC:SNWV) shares surged over 18% during regular trading on August 8, 2025, following the release of its second-quarter financial results that showed substantial revenue growth and margin improvement. The wound care technology company’s presentation highlighted continued momentum in its UltraMist system sales and provided optimistic guidance for the remainder of the year.

Quarterly Performance Highlights

SANUWAVE reported impressive financial results for Q2 2025, with revenue reaching $10.2 million, representing a 42% year-over-year increase. Gross profit grew even faster at 52% year-over-year to $8.0 million, while gross margin expanded significantly to 78.3%, an improvement of 513 basis points compared to the same period last year.

As shown in the following financial performance chart, the company demonstrated substantial growth across key metrics:

Operating expenses increased 87% year-over-year to $6.1 million, outpacing revenue growth as the company invested in expanding its sales infrastructure. Despite higher costs, operating income remained relatively stable at $1.9 million, a slight decrease of 6% compared to Q2 2024.

The company’s adjusted EBITDA showed significant improvement, reaching $3.37 million for the quarter compared to $1.46 million in the same period last year. This metric provides insight into SANUWAVE’s operational efficiency when excluding non-recurring items and non-cash expenses.

The following reconciliation table details the components of adjusted EBITDA:

Product Performance Analysis

SANUWAVE’s growth was primarily driven by its UltraMist system, with both device placements and consumable sales showing strong momentum. The company reported having 1,261 systems in the field by the end of Q2 2025, with 116 new systems sold during the quarter—a 60% increase compared to the 72 systems sold in Q2 2024 and a 5% sequential improvement over Q1 2025.

Consumable sales, which provide recurring revenue, grew 37% year-over-year and 10% sequentially, indicating increasing utilization of the installed base of UltraMist systems.

The following chart illustrates the consistent growth in both systems and consumables sales:

According to the earnings call transcript, CEO Morgan Frank highlighted significant changes to the company’s commercial infrastructure: "Q1 and Q2 were sort of max disruption as we’ve made some very significant changes to our sales leadership, sales force, our commercial ops, and our commercial strategy." These changes appear to be yielding positive results as evidenced by the accelerating system placements.

Forward Guidance

SANUWAVE provided an optimistic outlook for the remainder of 2025, projecting Q3 revenue between $12 million and $12.7 million, which would represent approximately 28-36% growth compared to Q3 2024 revenue of $9.36 million.

For the full fiscal year 2025, the company expects revenue to reach $48-50 million, up significantly from $32.6 million in FY 2024, representing annual growth of approximately 47-53%.

The guidance reflects management’s confidence in continued strong adoption of UltraMist systems and growing consumable usage:

The company also announced plans to launch a new applicator design in Q4 2025, which is expected to improve margins further. According to CEO Morgan Frank, "We suspect we can pick up probably 350-400 basis points of additional margin on the applicators with the new design."

Strategic Positioning

SANUWAVE emphasized that it is well-positioned to benefit from ongoing changes in the wound care industry, which is experiencing a payor-led shift toward evidence-based medicine and reimbursement models.

The company highlighted several competitive advantages, including approved products protected by strong intellectual property, established reimbursement pathways with room for improvement, an expanded and focused sales force, enhanced manufacturing capacity driving better margins, and a capital-light business model with high operating leverage.

These strategic advantages are summarized in the company’s presentation:

The market has responded positively to SANUWAVE’s performance and outlook, with the stock trading at $40.50 as of market close on August 8, 2025, representing an 18.01% increase for the day. This places the stock near its 52-week high of $41.00, reflecting strong investor confidence in the company’s growth trajectory.

With a market capitalization of approximately $338 million and a cash balance of $8.5 million as of June 30, 2025, SANUWAVE appears well-positioned to continue executing its growth strategy in the wound care market. However, investors should note that the company’s current ratio of 0.4 suggests potential liquidity challenges that may need to be addressed as the business continues to scale.

Full presentation:

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