Sanara Cuts 2026 Sales Outlook, Reports Merger Costs

The Tip Desk · November 13, 2026 · 3 min read

Third-quarter net revenue was $28.4 million, up 8%, as the company booked about $3.0 million of MiMedx-related legal and advisory fees and lowered its full-year range to $110 million to $115 million.

Sanara MedTech Inc. (SMTI) lowered its full-year 2026 net revenue outlook to a range of $110 million to $115 million from a prior range of $116 million to $121 million, a band the company said represents approximately 7% to 12% growth versus $103.1 million of full-year 2025 net revenue.

The surgical-technology company reported third-quarter net revenue of $28.4 million, up 8% from $26.3 million a year earlier, after 9% year-over-year growth in the second quarter and 19% growth in the first quarter. President and Chief Executive Officer Seth Yon said the team delivered another quarter of execution, with CellerateRX Surgical and BIASURGE continuing as strong drivers of revenue growth.

Soft tissue repair products, including CellerateRX Surgical Powder and BIASURGE Advanced Surgical Solution, rose 10% to $25.7 million. Bone fusion products fell 5% to $2.8 million. The company said the increases were supported by increased market penetration and a strategy to expand its independent distribution network in new and existing U.S. markets. Gross profit was $26.3 million, or 93% of net revenue, matching the 93% margin reported in the second quarter.

Operating income fell to $0.7 million from $2.9 million a year earlier. Third-quarter operating income included approximately $3.0 million in legal and advisory services associated with corporate strategic initiatives and the pending merger with MiMedx Group, Inc. Operating expenses rose 19% to $25.6 million, or 90% of net revenue, from $21.5 million, or 82% of net revenue, a year earlier. Higher selling, general and administrative expenses also included approximately $0.8 million of increased direct sales and marketing, approximately $0.4 million of legal and accounting expense and approximately $0.2 million of compensation.

Research and development expenses decreased to $0.7 million, or 3% of net revenue, from $1.0 million, or 4% of net revenue, a year earlier. The company attributed the decline primarily to the timing of product enhancement initiatives associated with its soft tissue repair products.

Net loss from continuing operations was $1.3 million, or $0.15 a share, compared with net income of $0.8 million, or $0.09 a share, a year earlier. The company said the loss was primarily due to higher SG&A, which included costs associated with the pending merger, and a higher share of losses from equity method investments, partially offset by net revenue growth. Adjusted EBITDA increased to $5.6 million from $4.9 million a year earlier. The company said higher Adjusted EBITDA was primarily due to net revenue growth offset by increases in SG&A.

Net loss from discontinued operations narrowed to $0.1 million from $31.2 million a year earlier. Tissue Health Plus, previously reported as a segment, has been classified as discontinued operations and excluded from continuing operations for the three and nine months ended September 30, 2026 and 2025.

In July, Sanara announced an agreement in which it is expected to be acquired by MiMedx. The company said it received shareholder approval for the pending combination in September and continues to work through the regulatory and review process. Yon said the company believes the transaction is a significant next step for Sanara’s growth.

Cash and cash equivalents were $16.8 million and long-term debt was $46.7 million at September 30, 2026.