SANUWAVE Health, Inc. (NASDAQ: SNWV) posted a record fourth‑quarter 2025 revenue of $13.4 million, a 29.7% increase from the $10.3 million earned in Q4 2024. The growth was driven by a strong uptick in both UltraMIST system sales and consumable revenue, with the platform gaining traction among wound‑care providers.
Full‑year 2025 revenue reached $44.1 million, up 35% from $32.6 million in 2024, and the company achieved a gross margin of 77.1% versus 75.2% in the prior year. Q4 gross margin fell to 74.7% from 77.9% in Q4 2024, largely due to a $486,000 write‑off of PACE inventory as the product line was sunsetted. GAAP operating income for the quarter was $2.0 million, and the full‑year operating income climbed to $4.9 million.
Management raised its 2026 outlook, guiding first‑quarter revenue to $9.6 million–$10.3 million, a 3%–10% increase over Q1 2025, and full‑year revenue to $51.0 million–$55.0 million, representing 16%–25% growth versus 2025. The upward revision reflects confidence in continued demand for UltraMIST and the expected impact of new pricing initiatives, while acknowledging near‑term industry headwinds.
The margin compression in Q4 was offset by a higher mix of high‑margin consumables and the elimination of the lower‑margin PACE line. Management noted that CMS reimbursement changes, while not directly affecting UltraMIST’s 97610 code, are influencing overall wound‑care volumes. The company’s strategy to focus on reseller expansion and new customer segments is aimed at mitigating these headwinds.
During the earnings call, CEO Morgan Frank highlighted the record performance and emphasized that the company’s core platform is gaining market share. CFO Peter Sorensen underscored the contribution of consumables to margin improvement and reiterated that the write‑off was a one‑time charge. Investors reacted cautiously, citing concerns about CMS reimbursement changes and the strategic shift away from legacy product lines.
Overall, SANUWAVE’s record revenue and profitability demonstrate strong execution of its core strategy, while the guidance signals confidence in sustained growth. The company’s focus on UltraMIST, combined with proactive management of legacy lines and attention to reimbursement dynamics, positions it to navigate the evolving wound‑care landscape.
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