The gross margin for Q4 2025 was reported at 74.7%, slightly down from 77.9% in Q4 2024, primarily due to a $486,000 write-off of inventory associated with the discontinuation of the PACE product line. Despite this, the company reported a GAAP operating income of $2.0 million for Q4 2025, consistent with the previous year, while net income surged to $7.7 million, driven by changes in the fair value of derivative liabilities.
Looking ahead, SANUWAVE has provided guidance for Q1 2026 revenues between $9.6 million and $10.3 million, indicating a growth of 3-10% compared to Q1 2025. The company also initiated full-year 2026 revenue guidance of $51.0 million to $55.0 million, reflecting a growth rate of 16-25% compared to 2025. CEO Morgan Frank expressed optimism about the company's performance, stating, "We’re pleased to be, once more, announcing an all-time record quarter for Sanuwave on both revenues and adjusted EBITDA, especially during such challenging times in the wound care space." The company is set to hold a conference call on March 27, 2026, to discuss these results further.
