SANUWAVE Health’s Q2 2025 Earnings: Growth Amid Challenges

SANUWAVE Health Inc. ((SNWV)) has held its Q2 earnings call. Read on for the main highlights of the call.

SANUWAVE Health Inc. recently held its Q2 2025 earnings call, revealing a generally positive outlook despite some financial challenges. The company reported significant revenue growth and strong sales of its UltraMIST systems, alongside robust gross margins. However, decreased net income and increased operating expenses, primarily due to non-recurring items and stock compensation, were noted as challenges. The expansion of the sales team and improvements in applicator production further contributed to the positive sentiment expressed during the call.

Significant Revenue Growth

SANUWAVE reported a remarkable 42% year-over-year increase in revenue for Q2 2025, reaching $10.2 million. This growth was even more pronounced in the first half of 2025, with a 51% increase compared to the previous year. This substantial revenue growth underscores the company’s successful strategies and market demand for its products.

Strong Sales of UltraMIST Systems

The company achieved impressive sales figures for its UltraMIST systems, selling 116 units in Q2. This represents a 61% increase from the previous year and an 18% increase from Q1. The strong sales performance highlights the growing acceptance and demand for SANUWAVE’s innovative healthcare solutions.

High Gross Margins

SANUWAVE maintained robust gross margins at 78.3%, marking an increase of 510 basis points year-over-year. This improvement in gross margins reflects the company’s effective cost management and pricing strategies, contributing to its overall financial health.

Expansion of Sales Team

The company has successfully expanded its sales team, now covering all 12 national sales territories, up from 9 at the end of 2024. Additionally, SANUWAVE has added a full-time national and key accounts manager, which is expected to enhance its market reach and customer engagement.

Improved Applicator Production Process

SANUWAVE is on track to commence commercial production of a new applicator design in Q4. This development is anticipated to increase production capacity and reduce costs, further strengthening the company’s operational efficiency and product availability.

Decrease in Net Income

Net income for Q2 2025 was reported at $1.1 million, a decrease of $5.5 million from the same period in 2024. This decline is primarily attributed to non-recurring gains in the prior year, highlighting the impact of one-time financial events on the company’s profitability.

Increased Operating Expenses

Operating expenses rose to $6.1 million in Q2 2025, up from $3.2 million the previous year. This increase was largely due to higher non-cash stock-based compensation, reflecting the company’s investment in talent and long-term growth initiatives.

Challenges in Forecasting Large Sales

The company acknowledged challenges in timing and forecasting large sales with bigger customers, leading to conservative guidance for Q3. This cautious approach aims to manage expectations and align with market dynamics.

Forward-Looking Guidance

Looking ahead, SANUWAVE provided guidance for Q3 revenues between $12 million to $12.7 million, while maintaining its annual guidance. The company is also preparing to launch a significant outbound marketing campaign in October to boost awareness and adoption of its UltraMIST product. These initiatives reflect SANUWAVE’s strategic focus on growth and market expansion.

In summary, SANUWAVE Health Inc.’s Q2 2025 earnings call highlighted a positive trajectory with significant revenue growth and strong product sales, despite facing some financial challenges. The company’s strategic initiatives, including sales team expansion and production improvements, position it well for future growth. Investors and market observers will be keenly watching how SANUWAVE navigates its conservative guidance and capitalizes on upcoming marketing efforts.