Q1 2026 revenues were $9.6 million, up 3.1% from $9.3 million in Q1 2025. This represents the highest Q1 quarterly revenues in Company history.
Q1 2026 gross margin was 77.3%, versus 79.0% in Q1 2025.
GAAP Operating Loss was $1.1 million for Q1 2026, a swing of $1.7 million from operating income of $0.6 million in Q1 2025.
Company provides guidance for revenue growth of 10-15% for Q2 2026 as compared to Q2 2025
EDEN PRAIRIE, Minn., May 12, 2026 (GLOBE NEWSWIRE) -- Sanuwave Health, Inc. (the "Company" or "Sanuwave”) (NASDAQ: SNWV), a leading provider of next-generation FDA-approved wound care products, is pleased to provide its financial results for the three months ended March 31, 2026.
Q1 2026 ended March 31, 2026
- Revenue for the three months ended March 31, 2026, totaled $9.6 million, an increase of 3.1%, as compared to $9.3 million for the same period of 2025. This growth is consistent with guidance of 3-10% year on year for the quarter.
- 97 Ultramist® systems were sold in Q1 2026 down from 98 in Q1 2025, and down from 255 in Q4 2025.
- Ultramist® consumables revenue increased by 15.0% to $6.7 million in Q1 2026, versus $5.8 million for the same quarter last year and increased 3% sequentially vs Q4 2025.
- Ultramist® revenue represented 100% of Sanuwave’s overall revenues in Q1 2026.
- Gross margin as a percentage of revenue amounted to 77.3% for the three months ended March 31, 2026, versus 79.0% for the same period last year. This decrease in gross margin as a percentage of revenue was largely driven by a decrease in pricing on our Ultramist® systems and applicators resulting from wholesale pricing for sales to resellers.
- For the three months ended March 31, 2026, operating loss totaled $1.1 million, a $1.7 million swing from operating income of $0.6 million in Q1 2025.
- Net loss for the first quarter of 2026 was $1.4 million compared to a net loss of $6.1 million in the first quarter of 2025, which was primarily driven by the $4.9 million non-cash loss on the change in fair value of derivative liabilities recognized in the prior year period.
- Adjusted EBITDA [1] for the three months ended March 31, 2026, was $1.1 million versus Adjusted EBITDA of $2.3 million for the same period last year.
“The seemingly ubiquitous question in advanced wound care during Q1 was ‘When is the turn coming and when will the recovery start?’” said CEO Morgan Frank. “Speaking for Sanuwave, the recovery appears to have begun in February and to have continued thereafter. Q1 started with a sort of “shock pause” as many seemed surprised that the changes in reimbursement for skin subs had actually taken effect, and this seems to have contributed to a very slow first month of the year which, in turn, had a large effect on the overall quarter. The market appeared somewhat frozen. But, at least from our standpoint, we see the ice starting to break up and the quarter got better each month. Q1 applicator sales were up 3% sequentially from Q4 and 15% year over year (again, suppressed by a very slow January) and very nearly eclipsed the all-time applicator revenue figure from Q3 2025. Unit volumes on consumables for Q1 2026 set a new all-time record by a significant margin which we take to be a good sign with regard to utilization recovering. This was driven by both new placements of systems and by activity picking back up at existing users. Revenues lagged unit growth as a function of lower pricing resulting from more of our applicators sales running through resellers and therefore being priced at wholesale. We’re continuing to hire salespeople and to expand our reseller network. All in all, we exited the quarter with increasing optimism and a robust pipeline and we expect to see 2026 continue to get better from here.”
Financial Outlook
The Company forecasts Q2 2026 revenue of $11.1 to $11.6 million (10-15% increase from Q2 2025) and reiterates full year 2026 revenue guidance of $51.0-55.0 million (16-25% increase as compared to full year 2025 revenue).
As previously announced, a business update will occur via conference call on May 13, 2026 at 8:30 a.m. EST. Materials for the conference call are included on the Company’s website at http://www.sanuwave.com/investors.
Telephone access to the call will be available by dialing the following numbers:
Toll Free:1-833-316-1983
Toll/International: 1-785-838-9310
Conference ID: SANUWAVE
OR click the link below to access the live webcast.
https://viavid.webcasts.com/starthere.jsp?ei=1762392&tp_key=537d7338d6
A replay will be made available through May 27, 2026:
Toll-Free: 1-844-512-2921
Toll/International: 1-412-317-6671
Replay Access ID: 11161765
[1] This is a non-GAAP financial measure. Refer to “Non-GAAP Financial Measures” and the reconciliations in this release for further information.
About Sanuwave
Sanuwave Health is focused on the research, development, and commercialization of its patented, non-invasive and biological response-activating medical systems for the repair and regeneration of skin, musculoskeletal tissue, and vascular structures.
Sanuwave's end-to-end wound care portfolio of regenerative medicine products and product candidates helps restore the body’s normal healing processes. Sanuwave applies and researches its patented energy transfer technologies in wound healing, orthopedic/spine, aesthetic/cosmetic, and cardiac/endovascular conditions.
Non-GAAP Financial Measures
This press release includes certain financial measures that are not presented in our financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). These financial measures are considered "non-GAAP financial measures" and are intended to supplement, and should not be considered as superior to, or a replacement for, financial measures presented in accordance with U.S. GAAP.
The Company uses Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) and Adjusted EBITDA to assess its operating performance. Adjusted EBITDA is Earnings before Interest, Taxes, Depreciation and Amortization adjusted for the change in fair value of derivatives and any significant non-cash or infrequent charges. Adjusted Gross Margin Percentage is gross margin percentage adjusted for inventory write-off. Adjusted Operating Income is operating income adjusted for inventory write-off, sales tax expense and release of historical accrual. EBITDA, Adjusted EBITDA, Adjusted Gross Margin Percentage and Adjusted Operating Income should not be considered as alternatives to net income (loss), gross margin percentage or operating income, as applicable, as a measure of financial performance or any other performance measure derived in accordance with U.S. GAAP, and they should not be construed as an inference that the Company’s future results will be unaffected by unusual or infrequent items. These non-GAAP financial measures are presented in a consistent manner for each period, unless otherwise disclosed. The Company uses these measures for the purpose of evaluating its historical and prospective financial performance, as well as its performance relative to competitors. These measures also help the Company to make operational and strategic decisions. The Company believes that providing this information to investors, in addition to U.S. GAAP measures, allows them to see the Company’s results through the eyes of management, and to better understand its historical and future financial performance. These non-GAAP financial measures are also frequently used by analysts, investors, and other interested parties to evaluate companies in our industry, when considered alongside other U.S. GAAP measures.
EBITDA, Adjusted EBITDA, Adjusted Gross Margin Percentage and Adjusted Operating Income have their limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of the Company’s results as reported under U.S. GAAP. For example, some of these limitations are that EBITDA and Adjusted EBITDA:
- Do not reflect every expenditure, future requirements for capital expenditures or contractual commitments.
- Do not reflect all changes in our working capital needs.
- Do not reflect interest expense, or the amount necessary to service our outstanding debt.
As presented in the U.S. GAAP to Non-GAAP Reconciliations section below, the Company’s non-GAAP financial measures exclude the impact of certain charges that contribute to our net income (loss), gross margin percentage and operating income, as applicable.
Forward-Looking Statements
This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future financial results, production expectations, plans for future business development activities and expectations regarding the impact of changes in reimbursement levels and tariff rates. Forward-looking statements include all statements that are not statements of historical fact regarding intent, belief or current expectations of the Company, its directors or its officers. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company’s ability to control. Actual results may differ materially from those projected in the forward-looking statements. Among the key risks, assumptions and factors that may affect operating results, performance and financial condition are risks associated with regulatory oversight, the Company’s ability to manage its capital resources, competition and the other factors discussed in detail in the Company’s periodic filings with the Securities and Exchange Commission. The Company undertakes no obligation to update any forward-looking statement.
Contact: investors@sanuwave.com
| SELECTED FINANCIAL DATA FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025 | |||||||||
| (in thousands) | 2026 | 2025 | |||||||
| Revenue | $ | 9,619 | $ | 9,333 | |||||
| Cost of Revenues | 2,188 | 1,958 | |||||||
| Gross Margin | 7,431 | 7,375 | |||||||
| Gross Margin % | 77.3 | % | 79.0 | % | |||||
| Total Operating Expenses | 8,555 | 6,774 | |||||||
| Operating (Loss) Income | $ | (1,124 | ) | $ | 601 | ||||
| Total Other Expense, net | (315 | ) | (6,719 | ) | |||||
| Net Loss | $ | (1,439 | ) | $ | (6,118 | ) | |||
| NON-GAAP ADJUSTED EBITDA | |||||||
| Three Months Ended March 31, | |||||||
| (in thousands) | 2026 | 2025 (As Restated) | |||||
| Net Loss | $ | (1,439 | ) | $ | (6,118 | ) | |
| Non-GAAP Adjustments: | |||||||
| Interest expense | 546 | 1,909 | |||||
| Depreciation and amortization 1 | 294 | 209 | |||||
| EBITDA | (599 | ) | (4,000 | ) | |||
| Non-GAAP Adjustments for Adjusted EBITDA: | |||||||
| Change in fair value of derivative liabilities | - | 4,901 | |||||
| Other non-cash or infrequent charges: | |||||||
| Stock-based compensation | 1,472 | 975 | |||||
| State & local sales tax 2 | 339 | 376 | |||||
| Sale of excess inventory | (220 | ) | - | ||||
| Shares issued for services | 97 | - | |||||
| Adjusted EBITDA | $ | 1,089 | $ | 2,252 | |||
1 Depreciation and amortization excludes depreciation of right-of-use (ROU) leases. Prior period amounts have been retroactively revised to conform to this presentation. This change had no effect on previously reported GAAP results.
2 The charges represent a non-recurring state and local sales tax expense related to the restatement of prior period financial statements.
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| (In thousands, except share data) | March 31, 2026 | December 31, 2025 | |||||
| ASSETS | |||||||
| Current Assets: | |||||||
| Cash and cash equivalents | $ | 10,779 | $ | 11,959 | |||
| Accounts receivable, net of allowance of $1,305 and $1,265, respectively | 6,000 | 5,422 | |||||
| Inventory | 5,903 | 5,934 | |||||
| Prepaid expenses and other current assets | 1,274 | 1,312 | |||||
| Total Current Assets | 23,956 | 24,627 | |||||
| Non-Current Assets: | |||||||
| Property and equipment, net | 1,913 | 1,972 | |||||
| Right of use assets, net | 991 | 390 | |||||
| Intangible assets, net | 2,919 | 3,026 | |||||
| Goodwill | 7,260 | 7,260 | |||||
| Secured revolving credit facility debt issuance costs, net | 58 | 68 | |||||
| Total Non-Current Assets | 13,141 | 12,716 | |||||
| Total Assets | $ | 37,097 | $ | 37,343 | |||
| LIABILITIES | |||||||
| Current Liabilities: | |||||||
| Current portion of secured term loan | $ | 5,585 | $ | 5,638 | |||
| Accounts payable | 3,320 | 3,251 | |||||
| Accrued expenses | 8,584 | 8,382 | |||||
| Current portion of operating lease liabilities | 300 | 157 | |||||
| Current portion of contract liabilities | 487 | 388 | |||||
| Accrued interest | 23 | 24 | |||||
| Other | 5 | 7 | |||||
| Total Current Liabilities | 18,304 | 17,847 | |||||
| Non-Current Liabilities: | |||||||
| Secured term loan, net of current portion and debt issuance costs | 14,330 | 15,667 | |||||
| Secured revolving credit facility | 655 | 655 | |||||
| Operating lease liabilities, less current portion | 1,294 | 854 | |||||
| Contract liabilities, less current portion | 676 | 701 | |||||
| Total Non-Current Liabilities | 16,955 | 17,877 | |||||
| Total Liabilities | $ | 35,259 | $ | 35,724 | |||
| STOCKHOLDERS’ EQUITY | |||||||
| Preferred Stock, par value $0.001, 5,000,000 shares authorized; 6,175 shares Series A, 293 shares Series B, 90 shares Series C and 8 shares Series D designated, respectively; no shares issued and outstanding at March 31, 2026 and December 31, 2025 | $ | - | $ | - | |||
| Common stock, par value $0.001, 2,500,000,000 shares authorized; 8,594,209 and 8,588,876 issued and outstanding at March 31, 2026 and December 31, 2025, respectively | 9 | 9 | |||||
| Additional paid-in capital | 245,943 | 244,285 | |||||
| Accumulated deficit | (244,124 | ) | (242,685 | ) | |||
| Accumulated other comprehensive loss | 10 | 10 | |||||
| Total Stockholders’ Equity | 1,838 | 1,619 | |||||
| Total Liabilities and Stockholders’ Equity | $ | 37,097 | $ | 37,343 | |||
| CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | |||||||
| (In thousands, except share data) | Three Months Ended March 31, | ||||||
| 2026 | 2025 (As Restated) | ||||||
| Revenue | $ | 9,619 | $ | 9,333 | |||
| Cost of Revenues | 2,188 | 1,958 | |||||
| Gross Margin | 7,431 | 7,375 | |||||
| Operating Expenses: | |||||||
| General and administrative | 5,250 | 4,843 | |||||
| Selling and marketing | 2,399 | 1,531 | |||||
| Research and development | 660 | 208 | |||||
| Depreciation and amortization | 246 | 192 | |||||
| Total Operating Expenses | 8,555 | 6,774 | |||||
| Operating (Loss) Income | (1,124 | ) | 601 | ||||
| Other (Expense) Income: | |||||||
| Interest expense | (546 | ) | (1,909 | ) | |||
| Change in fair value of derivative liabilities | - | (4,901 | ) | ||||
| Other expense | (60 | ) | (1 | ) | |||
| Other income | 291 | 92 | |||||
| Total Other Expense, net | (315 | ) | (6,719 | ) | |||
| Net Loss | (1,439 | ) | (6,118 | ) | |||
| Other Comprehensive Loss | |||||||
| Foreign currency translation adjustments | - | - | |||||
| Total Comprehensive Loss | $ | (1,439 | ) | $ | (6,118 | ) | |
| Loss per Share: | |||||||
| Basic and Diluted | $ | (0.17 | ) | $ | (0.72 | ) | |
| Weighted average shares outstanding | |||||||
| Basic and Diluted | 8,591,098 | 8,547,675 | |||||
| CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) (In thousands, except share data) | ||||||||||||||||||||||
| Three Months Ended March 31, 2026 | ||||||||||||||||||||||
| Common Stock | ||||||||||||||||||||||
| Number of Shares Issued and Outstanding | Par Value | Additional Paid- in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total | |||||||||||||||||
| Balances as of December 31, 2025 | 8,588,876 | $ | 9 | $ | 244,285 | $ | (242,685 | ) | $ | 10 | $ | 1,619 | ||||||||||
| Stock-based compensation | - | - | 1,439 | - | - | 1,439 | ||||||||||||||||
| Stock options exercised | 1,333 | - | 19 | - | - | 19 | ||||||||||||||||
| Shares issued for services rendered | 4,000 | - | 97 | - | - | 97 | ||||||||||||||||
| Shares granted in lieu of board of director fees | - | - | 103 | - | - | 103 | ||||||||||||||||
| Net loss | - | - | - | (1,439 | ) | - | (1,439 | ) | ||||||||||||||
| Balances as of March 31, 2026 | 8,594,209 | $ | 9 | $ | 245,943 | $ | (244,124 | ) | $ | 10 | $ | 1,838 | ||||||||||
| Three Months Ended March 31, 2025 | ||||||||||||||||||||||
| Common Stock | ||||||||||||||||||||||
| Number of Shares Issued and Outstanding | Par Value | Additional Paid- in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total | |||||||||||||||||
| Balance as of December 31, 2024 (As Restated) | 8,543,686 | $ | 9 | $ | 238,685 | $ | (254,499 | ) | $ | 10 | $ | (15,795 | ) | |||||||||
| Stock-based compensation | 4,787 | - | 1,101 | - | - | 1,101 | ||||||||||||||||
| Net loss (As Restated) | - | - | - | (6,118 | ) | - | (6,118 | ) | ||||||||||||||
| Balances as of March 31, 2025 (As Restated) | 8,548,473 | $ | 9 | $ | 239,786 | $ | (260,617 | ) | $ | 10 | $ | (20,812 | ) | |||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| Three Months Ended March 31, | |||||||
| (in thousands) | 2026 | 2025 (As Restated) | |||||
| Operating Activities | |||||||
| Net loss | $ | (1,439 | ) | $ | (6,118 | ) | |
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities | |||||||
| Stock-based compensation | 1,611 | 975 | |||||
| Depreciation and amortization | 294 | 209 | |||||
| Amortization of right-of-use leases | 18 | 65 | |||||
| Provision for credit losses | 40 | 33 | |||||
| Shares issued for services | 97 | - | |||||
| Change in fair value of derivative liabilities | - | 4,901 | |||||
| Amortization of debt issuance and debt discounts | 57 | 530 | |||||
| Write-off of inventory | 69 | - | |||||
| Loss on disposal of assets | 6 | - | |||||
| Changes in operating assets and liabilities | |||||||
| Accounts receivable | (617 | ) | (570 | ) | |||
| Inventory | (39 | ) | (1,308 | ) | |||
| Prepaid expenses and other assets | 78 | (325 | ) | ||||
| Accounts payable | 54 | 423 | |||||
| Accrued expenses and contract liabilities | 205 | (332 | ) | ||||
| Operating leases | (37 | ) | - | ||||
| Net Cash Provided by (Used in) Operating Activities | 397 | (1,517 | ) | ||||
| Investing Activities | |||||||
| Purchase of property and equipment | (23 | ) | (162 | ) | |||
| Deposits on property and equipment | (66 | ) | - | ||||
| Investment in software development | (69 | ) | - | ||||
| Net Cash Used in Investing Activities | (158 | ) | (162 | ) | |||
| Financing Activities | |||||||
| Proceeds from exercises of stock options | 19 | - | |||||
| Repayment of principal secured term loan | (1,438 | ) | - | ||||
| Payments of principal on finance leases | - | (57 | ) | ||||
| Net Cash Used in Financing Activities | (1,419 | ) | (57 | ) | |||
| Effect of Exchange Rates on Cash and Cash Equivalents | - | - | |||||
| Net Change in Cash and Cash Equivalents During Period | (1,180 | ) | (1,736 | ) | |||
| Cash and Cash Equivalents at Beginning of Period | 11,959 | 10,237 | |||||
| Cash and Cash Equivalents at End of Period | $ | 10,779 | $ | 8,501 | |||
| Supplemental Information: | |||||||
| Cash paid for interest | $ | 401 | $ | 1,118 | |||
| Non-cash Investing and Financing Activities: | |||||||
| Right-of-use assets obtained in exchange for lease liabilities | $ | 619 | $ | 430 | |||
| Shares granted in lieu of board of director fees | 103 | - | |||||
| Stock options granted in lieu of cash bonus | 69 | 117 | |||||
| Shares issued in exchange for services | 97 | - | |||||
| Purchases of property and equipment in accounts payable | 16 | - | |||||
| Capitalize interest into senior secured debt | - | 202 | |||||
