SANUWAVE Health Q1 swings to operating loss as margins fall

Overview

• US wound care products provider's Q1 revenue rose 3.1% yr/yr to record Q1 level

• Company posted operating loss of $1.1 mln, compared to operating income last year

• Gross margin fell to 77.3% from 79.0% due to lower pricing for reseller sales

Outlook

• Company forecasts Q2 2026 revenue of $11.1-$11.6 mln, up 10-15% from Q2 2025

• SANUWAVE reiterates full-year 2026 revenue guidance of $51.0-$55.0 mln, up 16-25% from 2025

• Company expects 2026 to show continued improvement as market conditions recover

Result Drivers

• CONSUMABLES GROWTH - Ultramist consumables revenue rose 15% yr/yr, driven by both new placements and increased activity at existing users

• LOWER PRICING - Gross margin decline attributed to more sales through resellers at wholesale pricing

• SLOW START TO QUARTER - Company said January was particularly weak due to market disruption from reimbursement changes, with improvement seen in later months

Company press release: ID:nGNX9mhb1

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• Wall Street's median 12-month price target for SANUWAVE Health Inc is $43.50, about 171.9% above its May 11 closing price of $16.00

• The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 29 three months ago

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