SNWV

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Record applicator unit volumes, up 27% year-over-year, demonstrate strong customer confidence in UltraMIST despite significant industry-wide financial distress. System sales significantly diverged from expectations due to unprecedented cannibalization from a secondary market of used UltraMIST devices following customer bankruptcies. Management attributes the customer base instability to CMS changes in skin substitute reimbursement, which resulted in a 95% market contraction and significant clawbacks for practitioners. The shift toward a reseller model and wholesale pricing has impacted average selling prices, leading to a divergence between unit volume growth and revenue growth. Strategic focus is shifting toward stickier, long-term institutional customers in hospital inpatient, outpatient, and pediatric settings to mitigate volatility in the mobile wound care sector. Management is actively contesting a proposed CMS rule that would reclassify UltraMIST as a mispriced code, arguing that current assumptions use incomplete practitioner cost data. The company has withdrawn its fiscal year 2026 revenue guidance and will not provide updates until there is clarity following the final CMS rule expected in November 2026. Management is executing a 60-day advocacy strategy through September 14 to provide CMS with accurate data regarding the systemic cost savings of UltraMIST in preventing amputations. Future growth is predicated on expansion into new clinical indications including burns, hospital-acquired pressure injuries, and long-term care facilities. Financial modeling for 2027 assumes a potential reimbursement drop from $397 to approximately $316 if the proposed Physician Fee Schedule is finalized without modification. Operating leverage is expected to improve as revenue scales, supported by a disciplined cost management approach, while interest expenses have decreased following a 2025 refinancing. The company finalized several Voluntary Disclosure Agreements (VDAs) for sales tax, resulting in some settlements coming in below previously accrued amounts. A shift in revenue mix toward lower-margin consumables and wholesale pricing contributed to a 183 basis point year-over-year decline in gross margin. Operating expenses increased by $1.3 million, driven by investments in headcount, R&D, and a $0.4 million non-cash stock-based compensation charge. The used equipment market created by practitioner closures makes active system counts difficult to calculate precisely, with an estimated 40 to 60 units sold outside company channels. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted that the distinction is often fuzzy as many customers operate hybrid models combining brick-and-mortar, mobile, and outpatient services. While mobile has historically been the largest use case, institutional customers like Healogics provide 'supertanker momentum' once they are fully onboarded. The estimate is derived from proposed Relative Value Units (RVUs) for work (0.39), practice expense (9.24), and malpractice (0.01) multiplied by a projected conversion factor of 32.8409. Management expressed disagreement with the underlying assumptions CMS used to reach these RVU figures. The formal comment period ends September 14, with a final rule typically announced during the first week of November. The company intends to seek direct meetings with CMS to present data intended to overturn or reassess the proposed rate reduction.

This article first appeared on GuruFocus. Revenue: $9.7 million for Q2 2026, a decrease of 3% versus $10.1 million in the prior year quarter. UltraMIST Applicator Revenue: Grew 13% year-over-year, with unit volume up 27% year-over-year. UltraMIST System Revenue: Declined approximately 34% to $2.3 million from $3.4 million, reflecting weaker capital sales and increased availability of used systems. Consumables, Parts, and Accessories Revenue: Increased approximately 12% to $7.3 million from $6.5 million. Gross Margin: 76.2% for Q2 2026, a decrease of approximately 183 basis points year-over-year from 78.1%. Operating Loss: $0.3 million for Q2 2026, compared to operating income of $1.4 million in the same period last year. Operating Expenses: $7.7 million for Q2 2026, compared to $6.4 million in the prior year quarter, an increase of approximately $1.3 million. Net Loss: $0.7 million for Q2 2026, compared to net income of $0.6 million for the same period in 2025. EBITDA: Positive $0.1 million for Q2 2026. Adjusted EBITDA: Positive $1.2 million for Q2 2026, compared to $3.2 million for the same period last year. Cash and Cash Equivalents: Totaled $9.4 million as of June 30, 2026. Active Systems: 1,411 at the end of Q2, up 29 from 1,382 at the end of Q1. Warning! GuruFocus has detected 7 Warning Signs with SNWV. Is SNWV fairly valued? Test your thesis with our free DCF calculator. Release Date: August 07, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Applicator sales set a new all-time record in Q2 2026, with unit volumes up 27% year-over-year and revenues up 13% year-over-year, indicating strong recurring demand. The company's recurring applicator business, which is the core of its model, grew 13% year-over-year, partially offsetting weakness in system sales. CMS proposed a 14% increase in reimbursement for UltraMIST in the hospital outpatient setting for 2027, which could benefit a growing customer segment. The company finalized Voluntary Disclosure Agreements with several states, with settlements coming in below previously accrued amounts, leading to a net benefit in the quarter. Interest expense fell by approximately $1.4 million year-over-year following the September 2025 refinancing with JPMorgan, improving below-the-line results. The company remains in compliance with all covenants under its JPMorgan credit agreement and maintains a sound liquidity position with $9.4 million in cash. The company is seeing early success in expanding into new indications like burns, hospital-acquired pressure injuries, and long-term care, which are expected to be sticky, high-usage customers. The company received significant support from users and academics for its comment period on the CMS proposed rule, indicating strong product loyalty and advocacy. Adjusted EBITDA remained positive at $1.2 million for the quarter, despite the challenging environment. The company is optimistic about the long-term potential of UltraMIST, citing its role in preventing amputations and saving systemic costs, which supports its value proposition. Total revenue decreased 3% year-over-year to $9.7 million, driven by a 34% decline in system sales due to financial pressure in the industry. The market for used UltraMIST devices, created by customer closures, had a profound cannibalization effect on new system sales, with an estimated 40-60 used systems sold in the quarter. CMS proposed a reduction in reimbursement for UltraMIST under the Physician Fee Schedule, potentially dropping from $397 to $316 in 2027, with further cuts in 2028, creating significant uncertainty. The company withdrew its fiscal year 2026 revenue guidance due to market conditions and reimbursement uncertainty, and will not provide guidance until after the final CMS rule is announced. Operating loss for the quarter was $0.3 million, a swing of $1.7 million from operating income of $1.4 million in the prior year, due to lower gross margin and higher operating expenses. Gross margin declined 183 basis points year-over-year to 76.2%, driven by a mix shift toward lower-margin consumables and reseller pricing. Operating expenses increased by $1.3 million year-over-year, including higher personnel costs, legal fees, bad debt expense, and R&D investment, with about a third of the increase from non-cash stock-based compensation. The company faces ongoing financial pressure in its customer base, with many wound care providers going bankrupt or closing due to CMS changes in skin substitute reimbursement, impacting system sales. Net loss for the quarter was $0.7 million, compared to net income of $0.6 million in the prior year, reflecting the challenging operating environment. The company's active system count growth was modest, with only 29 new systems added in Q2, and the count may be understated due to the used market, indicating slower capital adoption. Q: Can you provide more color on how you arrived at the estimated $316 reimbursement figure for UltraMIST under the CMS proposed rule, down from the current $397 average?A: Morgan Frank (Chairman and CEO) explained that the calculation is based on CMS's proposed Relative Value Units (RVUs) for work, practice expense, and malpractice. He detailed the proposed RVUs (0.39 work, 9.24 practice expense, 0.01 malpractice) which sum to 9.64 total RVUs. This is then multiplied by the anticipated 2027 non-QP conversion factor of 32.8409, resulting in the estimated reimbursement of $316.59. Q: What is the breakdown of your customer base between for-profit mobile wound care providers and non-profit or hospital-based entities?A: Morgan Frank (Chairman and CEO) noted that the company has been hesitant to provide a precise breakdown because the delineation is "fuzzy" due to many customers operating hybrid models that combine brick-and-mortar facilities, mobile units, and HOPD settings. He acknowledged that mobile wound care has historically been a large use case, but the customer complexion is shifting as they grow relationships with hospital groups like Healogics, which tend to ramp up slower but offer more sustainable momentum. Q: What is the timeline for receiving feedback on the company's efforts to challenge the CMS proposed reimbursement cut?A: Morgan Frank (Chairman and CEO) stated that the 60-day comment period ends on September 14th. The company plans to seek a meeting with CMS and will submit comments alongside its customers. The final rule is expected to be announced in or around the first week of November, which is the traditional timeline for such announcements. Q: Can you quantify the impact that the influx of used UltraMIST systems on the market had on system sales during the quarter?A: Morgan Frank (Chairman and CEO) explained that the cannibalization from used systems was significant and a major divergence from plan. He estimated that used systems accounted for 40 to 60 system sales during the quarter, but emphasized this is a "best guess" as it is difficult to be precise. The company cannot track all transactions, especially those involving resellers or existing customers adding systems, which also makes calculating the active system count challenging. Q: Why did the company decide to withdraw its fiscal year 2026 revenue guidance?A: Morgan Frank (Chairman and CEO) stated that due to market conditions, specifically the Medicare reimbursement developments and the impact of used systems, the company is adopting a cautious stance. Sanuwave is withdrawing its previously issued guidance and will not provide new quarterly or annual guidance until there is greater clarity, expecting to reassess after CMS publishes its final rule in Q4 2026. Q: What were the primary drivers of the year-over-year decline in gross margin?A: Peter Sorensen (CFO) explained that gross margin decreased by 183 basis points to 76.2%. The decline was driven primarily by a shift in revenue mix toward consumables (applicators) and away from higher-margin system sales, combined with lower average selling prices resulting from a higher mix of reseller or wholesale pricing. Q: Can you elaborate on the increase in operating expenses and the impact of the sales tax resolution?A: Peter Sorensen (CFO) noted that OpEx increased by $1.3 million year-over-year to $7.7 million, with roughly a third of that being non-cash stock-based compensation. The increase was driven by higher personnel costs, legal and professional fees, and bad debt expense. This was partially offset by an approximately $0.9 million favorable year-over-year swing in state and local sales tax, as final VDA settlements came in below previously accrued balances, providing a net benefit in the quarter. Q: How did the company's cash position and debt obligations fare during the quarter?A: Peter Sorensen (CFO) reported that cash and cash equivalents totaled $9.4 million as of June 30th, 2026. During the first half of the year, the company made $2.9 million in scheduled principal payments on its term loan and remained in full compliance with all covenants under its JPMorgan credit agreement, indicating sound balance sheet liquidity. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Sanuwave Health Inc.? Here are five stocks we like better. Second-quarter revenue fell 3% year over year to $9.7 million, as a 34% decline in UltraMIST system sales offset continued growth in recurring applicator revenue. Applicator units rose 27% year over year, while active systems increased to 1,411 from 1,382 in the first quarter. Profitability weakened as gross margin fell to 76.2%, the company posted a $0.7 million net loss versus prior-year income of $0.6 million, and adjusted EBITDA declined to $1.2 million from $3.2 million. Used UltraMIST equipment from wound-care provider closures pressured new system sales. Sanuwave withdrew its 2026 revenue guidance because of uncertainty surrounding proposed CMS reimbursement changes. The company estimates physician-office reimbursement could decline from about $397 currently to $316 in 2027 if the proposal is finalized, while hospital outpatient reimbursement could rise 14%. 3 Lesser-Known Healthcare Names With Major Upside in Store Sanuwave Health (NASDAQ:SNWV) reported second-quarter 2026 revenue of $9.7 million, down 3% from $10.1 million a year earlier, as lower UltraMIST system sales offset continued growth in the company’s recurring applicator business. Chairman and Chief Executive Officer Morgan Frank said applicator sales remained strong throughout the quarter, with unit volume rising 13% sequentially from the prior record set in the first quarter and 27% year over year. Applicator revenue increased 8% sequentially and 13% year over year, surpassing the company’s prior quarterly revenue record set in the third quarter of 2025. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Frank said the difference between growth in applicator unit volume and revenue reflected a greater mix of reseller sales, in which products are sold at wholesale prices. He characterized applicator performance as broadly in line with the company’s plans and as an indication of customer confidence in UltraMIST despite disruption among wound-care providers. The company’s capital-equipment sales were affected by the availability of used UltraMIST devices following closures among wound-care providers. Frank said the market disruption followed changes to Medicare reimbursement for skin substitutes and reimbursement clawbacks, which have put financial pressure on practitioners that used both UltraMIST and Allograft. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High UltraMIST system revenue fell about 34% year over year to $2.3 million from $3.4 million. Frank said the company estimates that used systems may have accounted for 40 to 60 system sales during the quarter, though he cautioned that the estimate is difficult to measure precisely. “Obviously, the bad news is that they weren’t buying them from us,” Frank said of purchasers acquiring used equipment. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Based on systems that had ordered within the prior six months, excluding customers known to have closed, Sanuwave estimated it had 1,411 active systems at the end of the second quarter, compared with 1,382 at the end of the first quarter. Chief Financial Officer Peter Sorensen said consumables, parts and accessories revenue increased about 12% to $7.3 million from $6.5 million. The category is primarily composed of applicators, along with parts and other items. Gross margin declined to 76.2% from 78.1% a year earlier. Sorensen attributed the 183-basis-point decrease to a revenue mix shift toward consumables and away from higher-margin system sales, as well as lower average selling prices from a higher reseller and wholesale mix. The company reported an operating loss of $0.3 million, compared with operating income of $1.4 million in the prior-year quarter. Operating expenses increased to $7.7 million from $6.4 million, reflecting higher general and administrative expense, sales and marketing costs, research and development spending, and depreciation and amortization. Approximately $0.4 million of the operating-expense increase was related to non-cash stock-based compensation, Sorensen said. The company also recorded a favorable year-over-year state and local sales-tax swing of about $0.9 million as voluntary disclosure agreement settlements in several states came in below previously accrued amounts. Net loss was $0.7 million, compared with net income of $0.6 million a year earlier. EBITDA was positive $0.1 million, while adjusted EBITDA was positive $1.2 million, down from $3.2 million in the prior-year quarter. As of June 30, Sanuwave had $23.2 million in current assets and $9.4 million in cash and cash equivalents. The company made $2.9 million in scheduled principal payments on its term loan during the first half and remained in compliance with covenants under its JPMorgan credit agreement. Frank said a proposed 2027 Hospital Outpatient Prospective Payment System rule would increase reimbursement for UltraMIST by 14% when used in hospital outpatient settings. However, the proposed 2027 Physician Fee Schedule includes potential changes to reimbursement under billing code 97610. Under Sanuwave’s reading of the proposed physician-fee rule, average UltraMIST reimbursement could decline from approximately $397 currently to about $316 in 2027, with additional reductions expected in 2028. Frank emphasized that the proposal is not final and said Sanuwave and UltraMIST users plan to participate in the CMS comment process. The comment period runs through Sept. 14, and the company expects CMS to issue a final rule around the first week of November. Frank said Sanuwave disagrees with some of CMS’s assumptions and intends to advocate for data that it believes more fully reflects practitioner costs and the broader benefits of treatment. Given market conditions and reimbursement uncertainty, Sanuwave withdrew its previously issued full-year 2026 revenue guidance. The company said it will not provide quarterly or annual guidance until there is greater clarity regarding the reimbursement developments and expects to reassess the decision after CMS publishes its final rule in the fourth quarter. Frank said Sanuwave continues to pursue adoption in burns, hospital-acquired pressure injuries, post-acute and inpatient hospital settings, pediatric care, and long-term care facilities. He said these customer groups can take longer to adopt the product but may become long-term, high-usage users. Sanuwave Health, Inc is a medical technology company specializing in the development and commercialization of non-invasive acoustic wave therapies designed to stimulate tissue regeneration and accelerate healing. The company's proprietary Extracorporeal Pulse Activated Technology (EPAT) delivers focused acoustic pressure waves to injured or chronic wound sites, activating the body's natural repair mechanisms. Sanuwave's primary therapeutic areas include advanced wound care for diabetic and venous ulcers, as well as orthopedic and musculoskeletal conditions. The company's lead product, the dermaPACE® system, holds clearance from the U.S. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Sanuwave Health Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Q2 2026 revenues were $9.7 million, down 3% from $10.1 million in Q2 2025. Q2 2026 gross margin was 76.2%, versus 78.1% in Q2 2025. GAAP Operating (Loss) Income was $(0.3) million for Q2 2026 versus $1.4 million in Q2 2025. EDEN PRAIRIE, Minn., Aug. 06, 2026 (GLOBE NEWSWIRE) -- Sanuwave Health, Inc. (the "Company" or "Sanuwave”) (NASDAQ: SNWV), a leading provider of next-generation FDA-cleared wound care products, is pleased to provide its financial results for the three months ended June 30, 2026. Quarter ended June 30, 2026 Revenue for the three months ended June 30, 2026, totaled $9.7 million, an decrease of 3%, as compared to $10.1 million for the same period of 2025. Revenue for the three months ended June 30, 2026 was slightly above the high end of the revised guidance provided on June 16, 2026. 82 Ultramist® systems were sold in Q2 2026 down from 116 in Q2 2025, and from 97 in Q1 2026. Ultramist® applicator revenue increased by 13% to $7.3 million in Q2 2026, versus $6.4 million for the same quarter last year. Gross margin as a percentage of revenue amounted to 76.2% for the three months ended June 30, 2026, versus 78.1% for the same period last year. For the three months ended June 30, 2026, operating (loss) income totaled $(0.3) million, compared to $1.4 million in Q2 2025. Net loss for the second quarter of 2026 was $0.7 million. This compares to net income of $0.6 million in the second quarter of 2025. Adjusted EBITDA [1] for the three months ended June 30, 2026, was $1.2 million versus Adjusted EBITDA of $3.2 million for the same period last year. “2026 has been a challenging period for the advanced wound care market,” said Morgan Frank, CEO. “Despite this, Q2 was another all time record for Ultramist applicator unit volumes, which increased 13% sequentially from Q1 and 27% year on year. We take this to be a strong sign of ongoing demand for and confidence in the Ultramist system as a treatment modality for complex and non-healing wounds. As previously discussed, system sales were negatively impacted in the quarter both by ongoing stress in our customer base from CMS reimbursement changes and recoupments around allografts and by the emergence of a significant market for used Ultramist systems, which led to lower than expected sales by the Company. As a result, applicator sales accounted for approximately 75% of revenues in the quarter, a number above our target range of 60-65%. The silver lining on that seems to be that demand for systems during the quarter remained fairly robust if one includes our estimation of used sales on top of those sold by the Company. Moving on to the CMS proposed rule for 2027 97610 reimbursement announced this July, obviously, this is neither what we were hoping for nor what we expected, especially in light of having just had a 14% increase in our proposed reimbursement rate in the HOPD setting come out a couple of weeks prior. While Sanuwave wholeheartedly supports CMS’s goal of accurate, data driven payment, we have some material disagreements with the methodology, process, and assumptions utilized by CMS in their proposed rule for 2027 and, as one might expect, will be active in the comment period to seek reconsideration before a final rule is issued. Our goal in this comment period will be to ensure that the data that drives this decision is both accurate and complete and that it reflects the full practitioner costs (and the systemic benefits) of providing treatment under 97610, which is, of course, the intent of these rules. We believe that we have a strong case to make and, with the support of a great many customers and academic institutions and thought leaders who have reached out with gracious offers to help, we plan to make it vigorously.” Certain percentages presented in this earnings release are calculated from the underlying whole-dollar amounts and therefore may not recalculate from the rounded numbers used for disclosure purposes. Financial Outlook Owing to market conditions including the Medicare reimbursement developments discussed above, Sanuwave is withdrawing its previously issued fiscal year 2026 guidance which should no longer be relied upon. The Company will not provide quarterly or annual guidance until there is greater clarity on these topics and expects to reassess after CMS publishes its final rule which is anticipated in the fourth quarter of 2026. As previously announced, a business update will occur via conference call on August 7, 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:1-800-274-8461Toll/International: 1-203-518-9814Conference ID: SANUWAVE OR use the link for instant telephone access to the event. https://viavid.webcasts.com/starthere.jsp?ei=1771327&tp_key=110b588de5 A replay will be made available through August 21, 2026:Toll-Free: 1-844-512-2921 Toll/International: 1-412-317-6671Replay Access ID: 11162356 [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 MeasuresThis 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. EBITDA and Adjusted EBITDA should not be considered as alternatives to net income (loss), 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). Forward-Looking StatementsThis 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, and plans for future business development activities. Forward-looking statements include all statements that are not statements of historical fact regarding the 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: reductions, clawbacks, or recoupments of CMS reimbursement for skin substitutes, allografts, or other advanced wound care products, and their effect on customer behavior and capital budgets; the financial distress, closure, or liquidation of wound care practices and the resulting impact on demand for the Company's systems; the emergence and growth of a secondary market for used Ultramist systems and the cannibalizing effect of such resales on sales of new systems; the Company's ability to qualify, train, and support new users acquiring systems through the secondary market, and the related regulatory, quality, and product-liability considerations; the Company's ability to sustain applicator and consumable volumes and convert system placements into recurring consumable revenue; 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: [email protected] 1 Depreciation and amortization excludes amortization 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.

EDEN PRAIRIE, Minn., July 30, 2026 (GLOBE NEWSWIRE) -- Sanuwave Health, Inc. (the "Company" or "Sanuwave”) (NASDAQ: SNWV), a leading provider of next-generation FDA-approved wound care products, will host a live conference call on Friday, August 7, 2026, at 8:30 AM (ET) to present its Q2 2026 financial results. Telephone access to the call will be available by dialing the following numbers: Participant Dial-in Information Toll Free: 1-800-274-8461Toll/International: 1-203-518-9814Conference ID: SANUWAVE OR click the link below to access the live webcast:https://viavid.webcasts.com/starthere.jsp?ei=1771327&tp_key=110b588de5Materials for the conference call will be included on the Company’s website atwww.sanuwave.com/investors. A replay will be made available through Friday, August 21, 2026: Toll-Free: 1-844-512-2921Toll/International: 1-412-317-6671Replay Access ID: 11162356 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 help 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. 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 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:[email protected]

Sanuwave updates guidance for Q2 2026 to $8.5 - $9.5 million Company on pace for record unit sales of applicators in Q2 Market disruption impacting Ultramist system sales EDEN PRAIRIE, Minn., June 16, 2026 (GLOBE NEWSWIRE) -- Sanuwave Health, Inc. (the "Company" or "Sanuwave”) (NASDAQ: SNWV), a leading provider of FDA-cleared directed energy systems used in advanced wound care, today announced that revenues for the second quarter of 2026 are expected to be in the range of $8.5 to $9.5 million, below the guidance provided on the Q1 earnings call on May 13 of this year. “In the time since we had our Q1 call, we have seen material changes in the conditions in the capital equipment market for the Ultramist system,” said CEO Morgan Frank. “While March and April had shown signs of market improvement, May and the first part of June saw a reversal of these trends.” “Widespread clawbacks of CMS reimbursement for skin sub and allograft usage have been coming in far worse than many seem to have expected and this has been driving a number of wound care practices out of business. Some of these closures/liquidations appear to be resulting in used Ultramist systems for sale in the marketplace and this has had a significant cannibalization effect on the market for new systems.” “Sanuwave will always seek to do what’s best for the patients. As such, we will seek to lean in to qualify, train, and support new users in order to help ensure that they are able to provide the highest possible standard of care. We also believe that this is the best choice for the company: in the end, we’re in the applicator business, and patients, providers, and Sanuwave all win from increased levels of treatment.” “On a positive note, applicator volumes remain robust and the company is on pace for a record quarterly unit volume of consumables shipments in Q2. We remain optimistic about our pipeline and about our forward potential, but from a capital sales standpoint, this is going to be some near-term wood to chop.” About Sanuwave Sanuwave Health is focused on the research, development, and commercialization of its patented, non-invasive directed energy systems used in 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 help restore the body’s normal healing processes. Sanuwave applies and researches its patented and FDA approved/cleared energy transfer technologies in wound healing, orthopedic/spine, aesthetic/cosmetic, and cardiac/endovascular conditions. 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, and plans for future business development activities. Forward-looking statements include all statements that are not statements of historical fact regarding the 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: reductions, clawbacks, or recoupments of CMS reimbursement for skin substitutes, allografts, or other advanced wound care products, and their effect on customer behavior and capital budgets; the financial distress, closure, or liquidation of wound care practices and the resulting impact on demand for the Company's systems; the emergence and growth of a secondary market for used Ultramist systems and the cannibalizing effect of such resales on sales of new systems; the Company's ability to qualify, train, and support new users acquiring systems through the secondary market, and the related regulatory, quality, and product-liability considerations; the Company's ability to sustain applicator and consumable volumes and convert system placements into recurring consumable revenue; any differences between updated guidance and final reported results following completion of the quarter; 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: [email protected]

This article first appeared on GuruFocus. Revenue: $9.6 million for Q1 2026, a 3% increase from $9.3 million in Q1 2025. Gross Margin: 77.3% for Q1 2026, a decrease of 177 basis points year-over-year. Operating Loss: $1.1 million for Q1 2026, compared to an operating income of $0.6 million in Q1 2025. Operating Expenses: $8.6 million for Q1 2026, up from $6.8 million in Q1 2025. Net Loss: $1.4 million for Q1 2026, an improvement from a net loss of $6.1 million in Q1 2025. EBITDA: Negative $0.6 million for Q1 2026. Adjusted EBITDA: Positive $1.1 million for Q1 2026, down from $2.3 million in Q1 2025. Cash and Cash Equivalents: $10.8 million as of March 31, 2026. Active Systems: Increased to 1,382 from 1,292 at year-end 2025. Consumables Utilization: Grew 22% year-over-year and 4% sequentially from Q4 2025. Warning! GuruFocus has detected 8 Warning Signs with SNWV. Is SNWV fairly valued? Test your thesis with our free DCF calculator. Release Date: May 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. SANUWAVE Health Inc (NASDAQ:SNWV) achieved the highest Q1 revenues in company history, surpassing the previous year's record by 3%. Consumables utilization grew by 22% year-over-year and 4% sequentially from Q4 2025, indicating strong demand. The company sold 97 systems in Q1, increasing the number of active systems to 1,382 from 1,292 at year-end. There is renewed interest and progress in mobile wound care, with SANUWAVE Health Inc (NASDAQ:SNWV) seeing opportunities in long-term care and nursing facilities. The company is experiencing increased engagement from large systems, which could lead to significant growth opportunities in the second half of the year. The advanced wound care market experienced a shock pause in January due to unexpected CMS pricing changes, affecting initial performance. Gross margin decreased by 177 basis points year-over-year, primarily due to a shift to wholesale pricing for resellers. Operating loss for Q1 2026 was $1.1 million, a significant swing from the operating income of $0.6 million in the same period last year. Operating expenses increased by $1.8 million year-over-year, driven by higher non-cash stock-based compensation, payroll, and R&D expenses. The rural market poses challenges due to lower pay rates and high travel costs, which may require re-indexing or payment adjustments. Q: You grew 3% year-over-year in Q1 and expect 10% to 15% growth in Q2. What gives you confidence in significant growth in the back half of the year? A: Morgan Frank, CEO: Historically, SANUWAVE experiences a seasonal trend with the second half of the year showing a 48% increase over the first half. This year, we anticipate better-than-average growth due to recovery from market challenges. Additionally, we are seeing increased engagement from large national accounts, which typically leads to expanded adoption once they experience the product's effectiveness. Q: Are there any advancements in the Ultramyth product or evidence-based trials that excite you for the next 24 months? A: Morgan Frank, CEO: Yes, we are investing in research and development for incremental improvements and exploring adjacent areas. We are also working with users to generate data on cost-effectiveness and validate new use cases. Expect to see papers and white papers in the coming quarters that could expand the use of Ultramyth. Q: Can you provide more details on the financial results for Q1 2026? A: Peter Sorensen, CFO: Q1 2026 revenue was $9.6 million, a 3% increase from the previous year. Gross margin was 77.3%, slightly down due to wholesale pricing. Operating loss was $1.1 million, impacted by increased operating expenses, including non-cash stock-based compensation and R&D investments. Net loss improved to $1.4 million from $6.1 million in Q1 2025. Q: What are the current challenges and opportunities in the mobile wound care market? A: Morgan Frank, CEO: Mobile wound care is evolving due to tighter CMS and MAC standards, requiring more sophisticated providers. This is leading to market consolidation, which benefits SANUWAVE as it allows us to work with larger, more sophisticated companies. However, rural areas face challenges due to lower pay rates and high travel costs, which may require re-indexing or travel time compensation. Q: What is your guidance for Q2 and the full year 2026? A: Morgan Frank, CEO: For Q2, we project 10% to 15% year-on-year growth, translating to $11.1 million to $11.6 million in revenue. We maintain our full-year guidance of $51 million to $55 million, driven by increased engagement from large systems and ongoing evaluations that could lead to significant opportunities in the second half of the year. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Sanuwave Health Inc.? Here are five stocks we like better. Sanuwave posted record first-quarter revenue of $9.6 million, up 3% year over year, as consumables utilization rose 22% and Active Systems increased to 1,382. Management said the advanced wound care market began recovering after a January slowdown tied to new CMS reimbursement changes. Margins and operating results were pressured by wholesale/reseller mix and higher spending. Gross margin fell to 77.3%, operating expenses rose to $8.6 million, and the company reported a $1.1 million operating loss, though net loss improved sharply from a year ago because prior one-time derivative and interest expenses did not repeat. Management kept full-year 2026 guidance unchanged at $51 million to $55 million and expects second-quarter revenue growth of 10% to 15%. CEO Morgan Frank said the company is seeing stronger hospital, long-term care and national account interest, and still expects a stronger second half of the year. 3 Lesser-Known Healthcare Names With Major Upside in Store Sanuwave Health (NASDAQ:SNWV) reported record first-quarter revenue and rising consumables utilization, while management said the advanced wound care market began to recover after a difficult start to the year tied to changes in reimbursement for skin substitutes. Chairman and CEO Morgan Frank said the first quarter of 2026 began with what he described as a “shock pause” in January, as the advanced wound care market “seemed to sort of lock up for a moment.” He said many market participants appeared to have expected that new CMS pricing for skin substitutes would be rescinded or modified before taking effect, which did not happen. → Rocket Lab Just Hit a New All-Time High—Time to Buy or Let It Breathe? “It took the market a little time to come to terms with this, but at least from where we sit, it seems to have started doing so in February,” Frank said. He added that Sanuwave saw improvement throughout the quarter, with each month better than the prior month. CFO Peter Sorensen said revenue for the three months ended March 31, 2026, totaled $9.6 million, up 3% from $9.3 million in the same period of 2025. He said the result marked the highest first-quarter revenue in company history, though it came in at the low end of the company’s guidance range for 3% to 10% growth. → MercadoLibre Boldly Invests in Growth: Discount Deepens Sorensen said consumables utilization grew 22% year over year and 4% sequentially from the fourth quarter of 2025. Frank said Sanuwave sold 97 systems in the quarter despite a slow January and ongoing elevated churn tied to financial stress among practitioners. The company’s Active Systems count rose to 1,382 from 1,292 at year-end, a net increase of 90. Frank said the metric is intended to reflect systems owned by customers that have ordered applicators in the trailing six months, while accounting for churn, reactivation, new customer acquisitions and reseller sell-through. → MP Materials Is Quietly Building a Rare Earth Powerhouse Frank said the increase in Active Systems, along with some recovery in usage rates among existing customers, drove the company to an all-time record for applicator unit sales. However, he said that did not translate into an all-time record for applicator revenue because a greater share of sales went through resellers that purchase at wholesale prices. He also noted that some long-standing distributors transitioned into resellers, moving related customers from retail pricing with commissions to wholesale pricing. Gross margin was 77.3% in the first quarter, down 177 basis points from the year-earlier period. Sorensen attributed the decline to lower pricing on UltraMIST systems and applicators due to wholesale pricing for resellers. Sanuwave reported an operating loss of $1.1 million for the quarter, compared with operating income of $0.6 million a year earlier. Operating expenses rose to $8.6 million from $6.8 million. Sorensen said the increase reflected several factors, including: $380,000 of higher non-cash stock-based compensation; $384,000 of higher payroll-related expenses due to increased headcount; $346,000 of higher non-personnel research and development spending; About $300,000 of non-recurring expenses tied to restatement work on the 10-K, including tax, legal and audit fees; About $400,000 of higher sales and marketing costs to support UltraMIST outreach. The company reported a net loss of $1.4 million, compared with a net loss of $6.1 million in the prior-year quarter. Sorensen said the improvement was primarily due to a $4.9 million non-cash loss from the change in fair value of derivative liabilities that did not recur in the first quarter of 2026. Interest expense was also $1.4 million lower year over year, mainly reflecting the company’s senior debt refinancing with JPMorgan at the end of the third quarter of 2025. EBITDA was negative $0.6 million, while adjusted EBITDA was positive $1.1 million, compared with $2.3 million in the year-earlier period. Sorensen said the adjusted EBITDA decline reflected planned investments in headcount, research and development, and commercial expansion. Frank said Sanuwave remains focused across hospitals, wound centers, physicians’ offices and long-term care settings. He said the company is seeing renewed interest from long-term care and nursing facilities seeking to perform their own wound care, as well as “particular strength” in hospitals and encouraging progress in mobile wound care. Frank pushed back on the idea that mobile wound care is going away, saying patients and wounds “are not going away” and that many patients are not interested in or capable of traveling to a wound center. He said the market is changing as CMS and Medicare Administrative Contractor documentation standards tighten, which he said favors more sophisticated providers. He also said the mobile wound care market is experiencing consolidation because lower allograft reimbursement has made some prior business models harder to support. “The patient count stays the same, but the market adapts,” Frank said. Frank identified rural care as one area of concern, citing long travel times and lower pay rates indexed to local wages. He said the payer system has an incentive to address the issue because the cost of not treating wounds could become much higher than the cost of providing care. For the second quarter, Frank said Sanuwave expects year-over-year revenue growth of 10% to 15%, representing $11.1 million to $11.6 million. The company maintained full-year 2026 guidance of $51 million to $55 million. In response to a question from Ian Cassel of IFCM about confidence in stronger second-half growth, Frank said Sanuwave has historically benefited from seasonality, with the second half typically stronger than the first half in prior years. He said the company is also seeing more engagement from large accounts and national accounts than it has previously, including first placements and demonstrations with large systems. Frank said the company has had success when customers evaluate UltraMIST and see results, which can lead to broader adoption across their practices. He also said the company is investing in research and development, including incremental improvements to the existing product, line extensions and adjacent areas, though he said Sanuwave is not yet ready to discuss those initiatives publicly. On clinical evidence, Frank said Sanuwave is working with users to generate data on cost effectiveness and additional use cases. He said UltraMIST has a broad label and that investors could expect papers and white papers in coming quarters outlining potential expanded use cases. Sorensen said Sanuwave had $24 million in current assets as of March 31, 2026, compared with $24.6 million at year-end 2025. Cash and cash equivalents totaled $10.8 million at quarter-end. He also said the company has entered into voluntary disclosure agreements with almost all applicable states related to a sales tax issue previously discussed in its 10-K, with the goal of limiting potential tax exposure look-back periods and abating potential penalties in some states. Sanuwave Health, Inc is a medical technology company specializing in the development and commercialization of non-invasive acoustic wave therapies designed to stimulate tissue regeneration and accelerate healing. The company's proprietary Extracorporeal Pulse Activated Technology (EPAT) delivers focused acoustic pressure waves to injured or chronic wound sites, activating the body's natural repair mechanisms. Sanuwave's primary therapeutic areas include advanced wound care for diabetic and venous ulcers, as well as orthopedic and musculoskeletal conditions. The company's lead product, the dermaPACE® system, holds clearance from the U.S. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Sanuwave Health Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

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: [email protected] 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.

SANUWAVE Health Inc (OTC:SNWV) released first-quarter financial results and hosted an earnings call on Wednesday. Read the complete transcript below. This transcript is brought to you by Benzinga APIs. For real-time access to our entire catalog, please visit https://www.benzinga.com/apis/ for a consultation. The full earnings call is available at https://viavid.webcasts.com/starthere.jsp?ei=1762392&tp_key=537d7338d6 SANUWAVE Health Inc reported record Q1 revenues of $9.6 million, a 3% increase from the previous year, driven by a 22% year-over-year increase in consumables utilization. The company saw a rise in active systems to 1382, up from 1292 at year-end, despite initial market challenges due to new CMS pricing for skin substitutes. Guidance for Q2 is set at 10-15% year-over-year growth, with a full-year target of $51 to $55 million, supported by increased engagement with large systems and potential expansion into new market areas. Operational loss for Q1 was $1.1 million, with increased expenses in R&D, sales, and marketing, but a significant reduction in net loss from $6.1 million to $1.4 million year-over-year. The company is focusing on maintaining operational discipline, expanding the adoption of Ultramist, and addressing challenges in rural healthcare delivery. OPERATOR Hello and welcome everyone joining today's SANUWAVE Health Inc earnings call. At this time all participants are in a listen only mode. Later you will have the opportunity to ask questions during the question and answer session. To register to ask a question at any time, please press star 1 on your telephone keypad. Please note this call is being recorded. We are standing by if you should need any assistance. It is now my pleasure to turn the meeting over to Morgan Frank, Chairman and CEO of SANUWAVE Health Inc. Please go ahead. Morgan Frank (Chairman and CEO) Thank you Nikki welcome to SANUWAVE Health Inc's first quarter 2026 earnings call. Our Form 10Q was filed with the SEC last night along with our earnings release and our updated presentation was made available on our website in the Investor section. Please refer to that during the presentation. Joining me on the call is Peter Sorensen, our CFO and after the presentation we will open up for Q&A. So let's begin with the forward looking statements and disclosures. This call may contain forward looking statements 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. Investors are cautioned that any such forward looking statements are not guarantees of future performance and involve certain risks and uncertainties, many of which are beyond the Company's ability to control. Description of these risks and uncertainties and other factors that could affect our financial results is included in our SEC filings. Actual results may differ materially from those projected in the forward looking statements. The Company undertakes no obligation to update any forward looking statement. Certain percentages discussed in this call are calculated in the underlying whole dollar amounts and therefore may not recalculate from the rounded numbers used for disclosure purposes. As a reminder, our discussion today will include non Generally Accepted Accounting Principles (GAAP) numbers. Reconciliations between our Generally Accepted Accounting Principles (GAAP) and non Generally Accepted Accounting Principles (GAAP) results can be found in our recently filed 10Q for the period of March 31, 2026. Okay, so as we mentioned in our press release, Q1 basically started out with sort of a shock pause in January in which the whole advanced wound care market seemed to sort of lock up for a moment and basically freeze solid. It was pretty dramatic and in essence it seemed like a great many market participants were not expecting the new Centers for Medicare & Medicaid Services (CMS) pricing for skin subs to actually be applied and we're confident in some sort of kind of 11th hour rescission or modification. Obviously this did not come, so it took the market a little time to come to terms with this, but at least from where we sit, it seems to have started doing so in February and we saw improvement all quarter with each month beyond being better than the one before. So despite a very slow first 30 days and some ongoing elevated churn rates due to financial stress at practitioners, the company sold 97 systems in Q1 and our active systems number rose to 1382 up from 1292 at year end. Quick reminder on our methodology here. Active Systems is a measure of systems owned by customers who have ordered applicators in the trailing six months or according to a specific schedule. In a few corner cases this figure includes churn customer loss, customer reactivation, which is to say churn customers who began ordering again, new customer acquisition of machine, new customer acquisitions of machines and then sell throughout of resellers while netting out sales into reseller inventory. So because channel inventory obviously are not systems that are in use, so the goal here is to give you as good a sense as we can of how many systems are actually being used in the field. So essentially this change in active systems number is a flow number and it's just showing you the number of systems in the market whose owners are actively ordering. Net change in active systems during Q1 was 90. This increase and a bit of recovery in usage rates from some existing customers drove Q1 to an all time record in applicator unit sales. This did not translate into an all time record for applicator revenues, owing predominantly to a greater quantity of sales going through resellers who buy at wholesale price. This trend was accentuated by the transition of a couple of our long standing distributors becoming resellers. Therefore the customers they serve moving to wholesale pricing from what was previously retail with commission paid on the back end. This worked out pretty similarly for us on the operating line, but obviously that does affect revenues and asp, so there was a bit of a step function there, but one that's also behind us. We take this record unit volume as a good sign for the market and after some suppression over the last six or seven months a sign that patient counts are starting to trend better again. Many have asked about a number of markets for us and sort of where our current focus lies. So we remain committed to serving all of advanced wound care and are expanding our presence in hospitals, wound centers, physicians offices, and in particular we're seeing a lot of renewed interest in long term care and nursing facilities seeking to perform their own wound care. The hospitals are showing a particular strength as well, but we're also seeing some meaningful and encouraging progress in mobile wound, a space that a number of folks seem to have had a lot of questions and concerns about so there seems to be a misconception that mobile wound is going away or would need to be de emphasized. But from where we sit, we simply don't believe this to be the case. As with the market as a whole, the patients in the wounds there are not going away and most of them are neither interested in, nor in many cases capable of jumping up and heading to a wound center. The care to the edge philosophy of Centers for Medicare & Medicaid Services (CMS) remains very much alive and mobile wound care will remain an important part of that. But like a lot of this industry, mobile wound care is changing because the needs of the market have changed. We're seeing sort of a reevaluation and a consolidation. Centers for Medicare & Medicaid Services (CMS) and Mac standards for documentation have tightened. This is selecting for more sophisticated providers. This issue is compounded by the expense of the significant back office staff that's required to run a mobile wound care system properly. That takes scale and revenues dropping from mobile wound as a result of lower allograph reimbursement models that once worked, these models can no longer support themselves. So the new reality is that you need enough revenue to cover the back office nut and you need a high enough root density so that you can cover the expense of practitioners and that's driving consolidation. Like you just, you need more revenue and more patients per practitioner. So I mean, look, I'm making these numbers up, but if you have 30 patients being covered by 10 mobile wound care companies, you know, now perhaps you're going to need, you know, now perhaps you're going to have those 30 covered by five or maybe even three companies. Like the patient count stays the same, but the market adapts. So in many ways this is favorable to Sanuwave, both because Ultramist remains such an effective treatment modality that generates strong clinical outcomes and for Saintewaver as a company, because working with a smaller number of larger, more sophisticated companies is actually easier for us. And this allows us to provide more engagement and more individual attention. The one place we have some concern is rural where the patients are far apart and the pay rates are often paradoxically lower. Pay rate in rural areas gets indexed to the low local wages. And so the reward for 90 minutes of windshield time to reach a patient in an underserved community with no other healthcare options, often lower payout and something's going to need to give around that. We suspect that a re indexing or payment for travel time may be required and that the payer system has a great deal of incentive to figure this out. Because I mean honestly, the cost of not treating these wounds would rapidly swell to many multiples of any cost to provide care. So overall the market freeze seems to be beginning to thaw out and we expect this ice to sort of break up further as we get temporally further from the aggressive Centers for Medicare & Medicaid Services (CMS) skin substitute audits and clawbacks of claims made in Q4 which have been freezing capital budgets as providers sort of play it cautious until they're sure they're not going to face large recoupments. We've been seeing some more movement there. We've been seeing a lot more movement around requests and inquiries, but sales cycles do still remain a bit extended. We expect this to improve as customer clarity into their own finances improves. So you know, as we mentioned in the past, we had a very successful SAWC in April and we really started to sense that the question in the industry is shifting from, you know, is the sky falling? To you know, so what now? And an increasing, you know, move to thoughts of kind of more holistic and unified patient care, the development of more rigorous wound care protocols and a general focus on evidence based medicine. All of which we see as incrementally very positive development that will be beneficial to Saniwave in the long run. With that, I'll now turn you over to Peter Sorensen, our CFO who can walk you through the quarter's financials. Peter Sorensen (Chief Financial Officer) Thank you Morgan. We delivered the highest Q1 revenues and company history, surpassing last year's previous record by three percent. We're encouraged by consumables utilization which grew 22% year over year and 4% sequentially from the fourth quarter of 2025. Before turning to the financials in more detail, I want to provide an update on the sales tax issue. As discussed in the 10-K on our prior call, we've entered into voluntary disclosure agreements with almost all the applicable states. The benefits of these Voluntary Disclosure Agreements (BDAs) are limiting the look back period of potential tax exposure and abating potential penalties in some states. We continue to push forward in this process at full speed and have made meaningful progress in our remediation activities with our third party tax advisors. With that, let's take a closer look at the financial results for the quarter. Revenue for the three months ended March 31, 2026 totaled $9.6 million, an increase of three percent as compared to $9.3 million for the same period of 2025. This growth was on the low end of our guidance for the quarter of three to ten percent Gross margin as a percentage of revenue for the three months ended March 31, 2026 came in at 77.3%, a decrease of 1.77 percentage points Year over year driven by a decrease in pricing on Ultramist system and applicators resulting from wholesale pricing to resellers. For the three months ended March 31, 2026, operating loss totaled $1.1 million, which is a $1.7 million swing compared to the same period last year which had operating income of $0.6 million. Operating expenses for the three months ended March 31, 2026amounted to $8.6 million compared to $6.8 million for the same period last year, an increase of $1.8 million. The change in operating expenses was driven by several key factors. Non cash stock based Compensation increased by $380,000. Payroll related headcount expenses were $384,000 higher in Q1 compared to Q1 2025 due to increased headcount and R and D. Non personnel expenses increased by $346,000 reflecting investments in ongoing product development initiatives. We also had non recurring expenses of about $300,000 in restatement work on the 10K from tax, legal and audit fees in the first quarter of 2026. Sales and marketing costs increased about $400,000 year over year as well to support increased outreach of Altramid. Despite these expense increases, we remain focused on disciplined cost management and expect operating leverage to improve as revenue scale throughout the year. Net loss for the three months ended March 31, 2026 was $1.4 million compared to net loss of $6.1 million for the same period in 2025, an improvement of $4.7 million. The improvement was primarily attributable to the $4.9 million non cash loss and the change in fair value of derivative not recur in the first quarter of 2026. Interest expense was also $1.4 million lower year over year, primarily reflecting the senior debt refinancing with JP Morgan at the end of Q3 2025. EBITDA for the three months ended March 31, 2026 was negative $0.6 million. Adjusted EBITDA was positive $1.1 million versus $2.3 million for the same period last year. The year over year decline reflects planned investments in headcount, R and D and commercial expansion. Total current assets amounted to $24 million as of March 31, 2026 versus $24.6 million as of December 31, 2025. Cash and cash equivalents totaled $10.8 million as of March 31, 20 26. We're grateful for the continued trust and support of our stakeholders. Q1 26 was a record start to the year for Sanuwave with all time Q1 revenue, continued momentum and consumable utilization and growing traction across our commercial channels. As we move through the balance of 2026, we remain focused on operational discipline, expanding adoption of Ultramist and positioning Sandoway for sustained profitable growth. With that, I'll turn the call back over to Morgan. Morgan Frank (Chairman and CEO) Thanks, Peter. So our guidance for Q2 is 10 to 15% year on year growth which represents 11.1 to 11.6 million for the quarter. We are maintaining our guidance of 51 to 55 million for the year. We've been seeing a great deal of engagement from some large systems right now. We have several evaluations ongoing that we hope will flower into bigger opportunities as the year goes on. These things take some time to bring to fruition, but this is what's making us optimistic about the second half. As ever, I want to express my gratitude to the SANUWAVE Health Inc team for all the hard work and the commitment and the trust. This has just been incredibly steady crew to take into the recent rough seas and I really look forward to seeing what it can do once the waves calm down a little bit. So thanks team. Like really. So that's it for the prepared remarks. Can we please open it up for questions? OPERATOR Absolutely. And if you would like to ask a question, please press star one on your keypad to leave the queue at any time. Press star 2 once again, that is star 1 to ask a question. And we will pause for a moment to allow everyone a chance to join the queue. And we will take our first question from Ian Castle with ifcm. Please go ahead. Your line is open. Ian Castle (Equity Analyst) Yes, my question is kind of relates to your closing remarks there. You grew 3% year over year in Q1, expecting to grow 10 to 15% in Q2. And you obviously have seen a nice rebound in activity. You kept your guidance the same. I think it was 16 to 25 percent growth for the year. You obviously expect some significant growth in the back half of the year. Can maybe give a little bit more color on what you're seeing and what gives you that confidence. The back half. Morgan Frank (Chairman and CEO) Yeah, okay, fair enough. Thanks, Ian. It's a good question. So one, this is traditionally a fairly seasonal business and so accepting last year where the back half was unusually affected by the slowdown in the industry, if you look at sort of the average difference between the first half and the second half of a year for SANUWAVE Health Inc going back so 20, 21, 22, 2324. The second half is usually up about 48%. Average is an increase of 48% versus the first half. So in general, we have a seasonal trend that's favorable to us. That's the average. So obviously in a year like this where we're seeing significant suppression in the first half, as we kind of come out of the, as we kind of come out of the skin substitute market challenges, I think there's a possibility that we do better than typical in terms of that back half versus front half growth rate. That's the top down. The bottom up is we're seeing a larger amount of large account national account engagement than we've ever had where we're finding our way into, we're getting first placements, demos with a lot of very large systems. Traditionally, we've had great success with evaluations and early trial purchases where once systems get a look at Ultramist and get a chance to use the product, see the results, they tend to gain confidence and come back internally. We refer to this as the magic phaser gun problem, where, you know, people think you're trying to sell them a magic phaser gun and then, you know, once they've used it and gained some confidence with the actual results that the product can deliver, they tend to become a lot more enthusiastic and want to spread the system through, you know, through their practices. So, you know, it's sort of, I mean, both kind of from a top down standpoint and from a bottom up standpoint. We're just, we're seeing a lot of, we're seeing a lot of progress that we think should drive a significantly better seg. Ian Castle (Equity Analyst) Thanks for the color on that. I have kind of a combination of two questions, but kind of the same type of trajectory with both of them. You know, when you're looking at Ultramist today, you know, are you excited about any advancements you're making to the product itself, you know, over the next 24 months? You know, first question, second question. You know, are there any kind of evidence based trials you're doing with perhaps large customers or groups that kind of will give more evidence to entering into new areas of the market? Morgan Frank (Chairman and CEO) Sure. The answer to sort of all of your questions is yes. We're, you know, I mean, as you probably saw, like, you know, we're, we're starting to get to a more normalized spend on research and development and you know, that flows in a number of directions. Some of them are, some of what we're doing involves incremental improvement to the existing product. Some of what we're doing involves some line extension and some work into some adjacent areas. We're not really at a point where we want to talk about that publicly right now from a data standpoint. Yeah, we're working with a number of our, our users to both generate data, to generate some data about cost effectiveness and then to sort of push and validate into additional use cases. Ultramist has a very broad label. It has a lot of use cases in virtually any sort of wound. I think you can probably. I don't want to spill, I don't want to steal people's thunder, but I think you can probably, you can expect to see some papers and white papers over the coming quarters that will outline some interesting use cases for ultramist that I think could be, you know, could be an expansion relative, you know, as compared to existing use. Thank you. OPERATOR Thank you. And once again, that is star N1 on your telephone keypad. If you would like to join the queue. We will pause for another moment. And Once more, that is Star N1 to join the queue. And it appears that we have no further questions in queue at this time. I will now turn the meeting back to Morgan for closing comments. Morgan Frank (Chairman and CEO) Great. Well, I'll take that as a sign that we covered most of the concerns. So thanks everyone. We appreciate your continued interest and support and we will speak to you next quarter. Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice. UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga: SANUWAVE HEALTH (SNWV): Free Stock Analysis Report This article SANUWAVE Health Inc Reports Q1 2026 Results: Full Earnings Call Transcript originally appeared on Benzinga.com ﾩ 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.