Sanuwave Announces Q3 FY2026 Financial Results

(NASDAQ:SNWV) Sanuwave Health, Inc. reported financial results for the three months ended September 30, 2026. Revenue for Q3 2026 was $8.6 million, representing a decrease of 24% compared to $11.3 million in Q3 2025. The company sold 40 Ultramist® systems in Q3 2026, down from 155 in Q3 2025 and 82 in Q2 2026. Ultramist® applicator revenue increased by 2% to $6.9 million in Q3 2026, compared to $6.8 million in the same quarter last year. Gross margin as a percentage of revenue was 77.3% for Q3 2026, versus 77.6% for Q3 2025. Operating loss for the quarter was $1.1 million, compared to operating income of $0.9 million in Q3 2025. Net loss for Q3 2026 was $1.4 million, compared to net income of $9.7 million in Q3 2025. The year-over-year change was primarily due to a $6.1 million non-cash gain on the change in fair value of derivative liabilities and a one-time $5.0 million gain on the sale of patents in the prior-year period, neither of which recurred, and an operating loss of $1.1 million in the current period versus operating income of $0.9 million in the prior period, partially offset by a $1.5 million decrease in interest expense. Adjusted EBITDA for Q3 2026 was $0.7 million, compared to $3.2 million in Q3 2025. As of September 30, 2026, Sanuwave had $6.6 million in cash and cash equivalents, which was affected by approximately $2.3 million paid out under sales tax voluntary disclosure agreements during the quarter. CEO Morgan Frank stated that the CMS proposed rule, including the proposal to maintain skin substitute pricing at 2026 levels for 2027 and changes to the 97610 code, impacted customer behavior and system sales. The company noted a 14% increase in HOPD rates for 97610 and the removal of Q1 status from the code, allowing it to be billed alongside other procedures. Sanuwave continues to focus on hospital and cost-saving users as a core opportunity. For the nine months ended September 30, 2026, revenue was $27.9 million, down from $30.7 million in the same period of 2025. Gross margin for the nine months was $21.5 million (76.9%), compared to $24.0 million (78.2%) in 2025. Operating loss for the nine months was $2.5 million, compared to operating income of $2.9 million in 2025. Net loss for the nine months was $3.5 million, compared to net income of $4.1 million in 2025. Adjusted EBITDA for the nine months was $3.0 million, compared to $8.7 million in 2025. As of September 30, 2026, total assets were $32.5 million and total liabilities were $29.7 million. Stockholders’ equity was $2.9 million at quarter end. The company will hold a business update conference call on November 11, 2026 at 8:30 a.m. EST.