Sanuwave Health (SNWV) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue grew 42% year-over-year to $10.2 million, setting a new Q2 record and reflecting strong demand for UltraMIST systems and consumables.

• 116 UltraMIST systems sold in Q2, up from 72 in Q2 2024 and 98 in Q1 2025, with 1,261 systems deployed by end of Q2.

• Applicator/consumable revenue reached $6.4 million, 63% of total revenue, growing 37% year-over-year and over 10% sequentially.

• Achieved full national sales coverage by mid-July 2025, with expanded commercial team and new leadership.

• Benefiting from industry shift toward evidence-based medicine and reimbursement, supported by strong IP and expanded manufacturing.

Financial highlights

• Gross margin improved to 78.3% in Q2 2025 from 73.2% in Q2 2024, attributed to reduced UltraMIST production costs and strategic pricing.

• Operating income was $1.9 million, including $1.1 million in stock compensation expenses, flat year-over-year.

• Net income was $1.1 million, down from $6.6 million in Q2 2024 due to non-recurring prior-year gains.

• Adjusted EBITDA was $3.4 million, up from $1.5 million in Q2 2024.

• Cash and cash equivalents stood at $8.5 million as of June 30, 2025; total current assets were $20.2 million.

Outlook and guidance

• Q3 2025 revenue guidance is $12 million to $12.7 million, with annual guidance reiterated at $48–$50 million, representing 47–53% growth over 2024.

• Q3 faces a tough comparison due to a large one-time sale in Q3 2024; guidance excludes potential large deals.

• New applicator design expected to improve gross margin by 350-400 basis points, with impact phased in starting early 2026.

• Management anticipates Q3 as a period of momentum building, with breakout performance targeted for Q4 2025 and 2026.