Total Revenue

Q1 2024: +19% (from $15.5M to $18.5M) " " " " ; Q1 2025: +26% (from $18.5M to $23.4M) " " " "

In Q1 2024, revenue growth was driven by increased sales of soft tissue repair products through deeper market penetration, geographic expansion, and a broader independent distribution network; in Q1 2025, further gains came from a 28% rise in soft tissue repair sales (adding $4.5M) and an 18% increase in bone fusion product sales (adding $0.4M), supported by more distributor partnerships (growing from 250 to over 400 partners) and wider facility coverage. " " " " " " " " "

Soft Tissue Repair Sales

Q1 2024: Increased from $12.9M to $16.1M " " ; Q1 2025: Grew by 28%, contributing an additional $4.5M " " " "

The Q1 2024 increase was fueled by strategic market initiatives and expanding geographic reach, while Q1 2025’s further growth reflects heightened demand for flagship products like CellerateRX Surgical Activated Collagen and BIASURGE Advanced Surgical Solution, along with improved distribution network effectiveness. " " " " " " " "

SG&A Expenses

Q1 2024: Increased from $13.0M to $16.2M " " ; Q1 2025: Rose by 32% (an increase of $5.2M overall) " " "

In Q1 2024, higher SG&A costs resulted mainly from a $1.6M jump in sales commissions and $0.6M attributable to sales force expansion; in Q1 2025, further increases came from elevated direct sales/marketing expenses in the Sanara Surgical segment and additional investments in corporate infrastructure and the Tissue Health Plus platform. " " " " "

Gross Margin

Q1 2024: Improved from 86% to 90% " ; Q1 2025: Advanced further to 92% " " "

The Q1 2024 improvement was due to higher margins on soft tissue products and the elimination of the CellerateRX Surgical royalty expense, while Q1 2025’s superior margin stemmed from even lower manufacturing costs for key products and continued operational efficiencies. " " " "

Net Loss

Q1 2024: Widened from $1.2M to $1.8M " " ; Q1 2025: Increased further to $3.5M " " "

The Q1 2024 net loss rise reflected increased SG&A costs and higher amortization of acquired intangibles, partially offset by gains in gross profit and lower R&D spending; in Q1 2025, the further deterioration was driven by higher operating expenses—including increased interest expenses under the CRG Term Loan Agreement—and heavier investments in the Tissue Health Plus segment. " " " " "

Segment Performance (Q1 2025)

Sanara Surgical: Revenue +26% to $23.4M, Gross Profit +30% to $21.6M with margin at 92%; Net Loss increased from $0.4M to $0.6M; Tissue Health Plus: Net Loss increased from $1.4M to $2.9M

In Q1 2025, the Sanara Surgical segment showed strong revenue and gross profit growth driven by robust soft tissue and bone fusion product demand, though net loss slightly increased due to a $2.4M rise in direct sales/marketing expenses; concurrently, the Tissue Health Plus segment saw larger losses (rising by $1.5M) as heavier SG&A investments were made for building out its value-based wound care strategy and infrastructure. " " " "