Hello. Good morning, everybody. My name is James McNichol from TD Cowen. It's my pleasure to introduce Seth Yon, Sanara MedTech's CEO. I'm happy to pass it over to him to lead the presentation.
Thanks so much. Good morning. Can you guys hear me okay without a mic?
I would think.
Is that all right? I'll go mic-less, or I can just stay from here. Again, I'm Seth Yon. I'm the CEO of Sanara MedTech. With me is Elizabeth Taylor, who's in the front as well. She's our CFO. I've been with the company for the last eight years and primarily into a commercial lead role over the first seven plus or so. Moved into the CEO position in fall of 2025, Really excited about the position, really excited about the opportunity that we've had and the opportunities that we have into the future as well. We'll talk about all those different things. I think Sanara's been a little bit of under-communicated over the last, you know, many years, so people just haven't known much of our story.
When they did hear our story, I think there was a little bit of confusion as well of what our true north was, and so I'm gonna talk about all those different things and how we function today as a company and how we'll continue to do that going forward as well. Before we get started, obviously our disclaimers, I'll let you take a look at that when you have time, but it's there. I just wanna jump into who we are as a company and how we've performed. You know, I think that first line is really critical. We're a med tech company that innovates products that's focused on treatment in surgical wound. I'll hold there for a second on surgical wound because I think a lot of times when people hear wound, they hear, is that through a DME?
Is that post-acute? Is there reimbursement risk? They ask all those questions. We've really kind of flipped that whole model on its head, specifically with a product called CellerateRX. We've moved that into the OR setting. It's really about prevention, not about just treatment. When you think about surgical wounds, anytime that they're cutting tissue, obviously they've created a wound, but it's different from what you hear with the skin subspace and some of those complications going on with reimbursement. We don't sit inside of that. We sit specifically into a cost inside the DRG. I think that's really important for everybody to understand. The numbers as they look, right? We've had a 51% CAGR over the last seven year of net revenue. Really proud of that performance.
On the trailing 12 at about $102 million, you'll see how we've grown here in a few slides as well. Our contracted facilities are over 4,000 that we have access to across the country. You know, back in 2018, you could count that on a few hands, where we had access into some markets in Texas and Florida, we hadn't quite given our technologies or our company a voice yet inside the healthcare system. Our EBITDA margin at about $16 million. Our net income from continued operations at about $1.6 million, our market cap at $183 million. Elizabeth will talk a little bit more about that at the end as well.
As we think about the highlights specific back to the investment community, you know, we've had a really strong track record over the last 7 years or 8 years in our performance, and that's been specifically into the surgical space. I think there's been some confusion around that. I wanna make sure that people are clear on that going forward. We feel that we're sitting in a very good position to continue to scale that business with what we've built, and that's both from the W-2 seller or that we employ, and also the 1099 distributor that we contract with as well. For the very first time in 2026, and you're gonna hear more about this in a few slides, we're going to be a pure play just into surgery with compelling margin profiles that are not subject to reimbursement risks.
Again, I think that's really, really important with the confusion that sits right now into that category which we don't fall to. We have some key technologies that represent differentiated solutions, advancing the treatment of surgical wounds and doing that at the same time with hopes to reduce that cost to the healthcare system. We're targeting a billion-dollar TAM with improved clinical outcomes, and you'll see the amount of time and energy we've put into clinical research, specific into those three categories of products that we offer. Ultimately, we have a very proven commercial strategy with scalable model to drive strong and profitable growth into the future. We've demonstrated our track record of generating cash flow from operations as well. That starts to shape our story.
Again, I think that story's been a little bit untold over the last years or so, but we're starting to get that message out in how we've performed up to date and how we'll continue to perform into the future. As you can see from the bar graph, this was a very small company in 2018. When I first got here, there was a handful of employees. We had one technology in CellerateRX, which was a surgical powder that was just starting to get a voice and some traction in a few key areas. Then you start to look at our performance over time. By 2022, you know, we'd grown about nine times that revenue. Then by 2025, an estimate of almost double that revenue as well at over $100 million for the very first time.
We've been on a very good trajectory of growth. We think we've got an opportunity for continued growth with what we've built, and that leads us into a lot of excitement for 2026 and beyond. When you think about Sanara MedTech, if you knew nothing about us or maybe you just kinda put your eyes on us at different times over the last couple of years, I think there was some confusion on what we were attempting to be. All of our revenue was coming from one thing, and that was surgery, right? There was focus on multiple sites of care, whether that was acute or post-acute or what have you. We had multiple segments. We had a capital intensive pre-revenue business that Elizabeth and I, ultimately with the board's support, moved into discontinued ops last fall and took that distraction away.
At the same time, it was a mix of surgical and post-acute wound care products, with multiple licensing ventures. Maybe as you think about that as a whole, and you think about some of the other rooms that you're going to visit throughout the day, you'll realize that for a larger group, that might not be overwhelming. For us, it was a lot in both time and resources that we wanted to address and get cleaned up. We've done that in short order. Fast-forward now to the start of 2026 and how we look as a business. It's really centered around being a singular focus into that OR setting, a single business segment, right? We'll stay true to that as well.
We have three key surgical technologies, two which are commercially driven or driving our business today, and one that we believe will launch at the start of 2027, that's equally as unique as well. Ultimately, we have a very compelling margin profile in those three products as well. Those three key products are these. You have CellerateRX, you have BIASURGE, and OsStic. Cellerate is kind of the mothership. This is where it started in 2018. It's a surgical powder. It's hydrolyzed, meaning it's already broken down and bioavailable to the body. Everything else in the market that we compete against today is all a native-based product, meaning the body still has to do something with that. Imagine a patient that's not terribly healthy to begin with.
They wanna get that body jump-started to heal at a different rate than it can on its own. A lot of times, native collagen has to go through that breakdown phase, it takes time to do that. It has a big TAM in that category. We're really proud of the fact that we ultimately created this category in 2017, 2018, the TAM is about $3.6 billion across the U.S. alone. BIASURGE we launched two years ago. It's a antimicrobial wash. It's the only no-rinse antimicrobial solution that's in the market today, it eliminates greater than six logs of bacteria tissue on tissue and implant, not harming healthy tissue as well. That makes that product really unique, it's very complementary to Cellerate.
I'll talk more about the access that we have now with that product here in the next couple of slides as well. The product OsStic that I mentioned. You know, we've heard from trauma surgeons for years, "If I only had a bone glue that I could use inside of a trauma procedure." Well, they will, right? That's coming with this bioadhesive technology that we've partnered with BMI out of Ireland with. We expect that launch to be at the start of 2027 and will be another category creator. When you think about really our overarching, you know, products that make up the lion's share of our revenue, you have a category creator in CellerateRX. You have a very category or you have a disruptor in BIASURGE. Ultimately, you have another category creator in OsStic.
A lot to be excited about with those three technologies alone. As you think about the whole offering, there's other things that complement that too. Just again, drawing some highlights to Cellerate. You know, it has more clinical evidence than anything in its category across the U.S. by a lot. You know, we have greater than 20 published papers, and I'll talk about those in a minute. We're contracted on most national GPOs and IDNs. Again, keep in mind, back in 2018, you could count on a few hands the number of contracts that we had across the entire country. We've grown sizably there as well. BIASURGE, as I mentioned, very unique and a no-rinse. Again, it's about time, energy, and effectiveness of a product inside the OR. This offers some really unique benefits as well.
Much so that Vizient, as a GPO, saw that as an innovative technology and actually put that on contract for the very first time for anybody in that wash category in January of this year. We're just starting to kinda get the momentum inside those 1,800 plus facilities or so. As you can imagine, when you first start with the technology, you're doing that at a local level, trying to get a product approved one at a time. This obviously gives us access to facilities at a much greater clip and something that we're really excited about as well. OsStic. You know, like I said, it's the first synthetic injectable bone bioadhesive in the U.S., again, once it's approved through the FDA. We anticipate that will happen in time to launch that at the start of 2027.
Again, it's a product, creator, as far as that category. Ultimately, it received Breakthrough Device designation from the FDA because of its uniqueness, and we think that will help keep it on schedule to get launched at the start of 2027. In addition to that, we have other products that complement that, from ECM sheets and flowable materials as well in FORTIFY. We have an amniotic product as well in TEXAGEN, and then three orthobiologic products specific into that bony space for specifically foot and ankle and then also spine as well. Here's just some of the papers that we talked about a few minutes ago. Again, we have a significant amount of clinical research.
Our focus at Sanara is always going to be about three things with those three unique technologies, it's scientific evidence, it's clinical evidence, it's also economic evidence. If you look at across these, most of these are specific into two specialties. Most are either ortho or spine, that was for a reason. That was the categories that we started in for a reason. When they have complication with those metal-like procedures in a hip or a spine, it's really expensive to the patient and what that means to them. It's really expensive to the system and to the surgeon as well. We wanted to come in and try to help provide value and protection to that procedure with products like CellerateRX and BIASURGE.
A lot of that is centered around those two specialties, but you're starting to see that reach get, you know, wider than that as well, and we'll talk more about that as we go forward. How do we do it? How do we do that from a sales and distribution side? We have a hybrid model that I think is pretty unique inside of ancillary companies like ours, that we have both and they coexist together. You usually have one or the other. You have a direct sales force or you have distribution, and that's it. We actually did both where they're very complementary to each other and they work well together. The field rep is actually the one that's employed by the company out, you know, covering maybe a state or two, depending on the region.
Their job is to really start to align with key distributors to make sure that they have a local presence at all times. It's about training, it's about education, it's about reoccurring education at the facility level and then also with the distributor partners so that they can act at any moment as a sales representative of ours, just as though they're a W-2 employee, kind of in the same way. That field rep then kinda sharpens the educational tools for them as well. At the same time, they're looking for fits in and around their areas where they need more support, and that support could be in spine, it could be in orthopedics, it could be in foot and ankle or what have you.
They're constantly looking for right fit and then building that out across the entire distributor channel. We have over 400 agreements that are signed with our distributors across the country. That's a significant number for us and quite honestly for most companies. That 400 is simply a contract, but then each contract has a different set number of sellers inside of it. One of you might have a distributor agreement with us that leads you to one seller, and somebody else might have a distributor agreement that leads us to 100 sellers. It's the work of that field sales representative to get wider into that group, to educate and get those individuals confident so that they can again act as a seller for us in those individual markets.
I'd mentioned that we have access into 4,000 contracted or approved facilities across the U.S. That continues to grow. Inside that 4,000, though, we're doing business on the trailing 12 in 1,400 of those. We've got a lot of work to do still in the 1,400 to get to more users, and again, get a greater voice with other specialties as well, and even the specialties that we're strong in orthopedics and spine. Also, we've got 2,600 accounts that we haven't accessed yet. That's a big priority for us as a sales organization on our execution in 2026, is how do we reach more in both of those two categories? As you can see on the map, we've got great representation with our distributor agreements across the country.
We still have a few pockets that we need to start to fill out. If you could think back with me back to 2018, 2019, there wasn't a lot of color on that map just yet. So we've made a great amount of progress in that same stretch of time, and we'll continue to do that. We've been very fortunate to partner with some great distributors and held them at, you know, a high level of retention as well, and we'll continue to do that, plus build out pockets where we need additional help. The key drivers for us to drive growth in this calendar year and really beyond is really around four key areas. How do we capitalize on the contracted hospitals that we have? You know, 4,000, we've got a lot of room to continue to grow there.
That still is only a fraction of the total number of facilities across the U.S., so we'll do more work there in 2026. We've got to increase our number of surgeon users as well. You know, I'd mentioned that we had a very focused approach into ortho and spine, and we'll continue to do that and let that be an anchor for us. At the same time, vascular in general and plastics are seeing great value in the technologies that we bring to them as well. We'll get wider into those 1,400 facilities and start to access more of the 2,600 or so that are still remaining. We'll continue to drive ongoing education with our distributor partners, and again, find pockets around the country where we need additional support to continue to expand. The introduction of new products.
You know, it really comes down to two things. OsStic will launch here in the next calendar year or so, next 12 months or so, likely to be at the start of 2027. At the same time, line extensions for existing products. What can we do with established products like CellerateRX and BIASURGE to enhance those technologies and start to think about them as platform technologies to expand our offering? Our financial performance in 2025, the preliminary results which we've communicated, net revenue between $102 million and $103.2 million. That's about a 19% increase. Cash position of $16.6 million at the end of the year, long-term debt of about $46 million.
Elizabeth can talk about that too, but a lot of that $46 million sat in things that weren't surgical. Again, we've cleaned those things up, and we'll address that $46 million as we go forward. Our revenues guidance, we've not given that prior to this year. This is the very first time we gave guidance. Our net revenue between $116 million and $121 million, which would give us an increase between 13% and 17% growth. Again, feel really strongly about that $116 million. It'll become about execution and how we perform in 2026 to go beyond that.
Again, we like the position that we sit with, one, our sellers, two, our distributor partners, and then three, the access that we have, not only with products like CellerateRX, OsStic, or soon to be OsStic, but certainly BIASURGE as well. Our priorities for this calendar year are pretty simple. You know, how do we drive continued growth with our internal sales force coupled with our distributors? That's a big push for us and will continue to be in this calendar year. The Vizient contract is a really significant thing for us as well. That gives us access into 1,800 facilities that we did not have. Again, nobody else has received that contract in this space as of yet.
R&D product enhancement projects, we've got a lot of things in the works already specific to the technologies that we keep today and how we enhance those products. We'll continue to make investments into that clinical research. We wanna prove out all of our products always, we'll do that with all three of those key products in CellerateRX, BIASURGE, and OsStic. Continue to strengthen our patent positioning, then prepare for commercialization with OsStic, which again, we believe starts at the calendar year 2027. All of that will maintain strong financial profile and a category ownership in not only, you know, CellerateRX, but looking to do that into those other three categories or total of three categories as well. That gives you a download, a little bit of where Sanara sits today, what we're excited about as well.
We look forward to sharing more of our story as we go forward. We've got our earnings call that's coming up at the end of this-- excuse me, at the end of this month. We'll give all final numbers at that time as well, and I'd encourage you to join us on that call. I'm gonna now turn it over to all of you for Q&A, and I'll ask Elizabeth to step forward as well in case you have some specific questions for her financially.
First question I would just have is first margin profile is very strong in the mid-90s%. What does it look like in more of a steady state? Also, in terms of bringing SG&A down as you go through this product launch?
Really what does the steady state operating profile of Sanara look like?
If you all hear me without the mic. We're very proud of our market profile. It's very strong, between 92% and 93%. We see no short-term change in that. you know, going forward many years out, if we did an acquisition that had a lower margin profile, it would just need to be accretive to the bottom line. That would just be an important criteria for us. That's sort of how we see the near term landscape changing.
Okay. On the SG&A line?
I think interesting about SG&A, our sales force has not grown significantly in headcount in the last.
Three years.
Three years.
Mm-hmm.
We think that there's definitely operating leverage there. Add a new product, don't necessarily need to add more heads. We feel like that's pretty well built out. Obviously, you know, maybe a few heads as you grow, but not huge increase. I do believe that the previous, you know, in previous years, they sort of built out the more G&A part maybe a little ahead of schedule.
Mm-hmm.
We have a really, really strong sort of corporate team. I don't see any need to add to that team for a long, long time. You know, the idea was sort of build it to be ready to double, triple in size without needing to change any of it.
Okay. Excellent. Just a quick follow-up. You mentioned potential M&A working out with callers. How do you guys view M&A capital allocation?
Go ahead.
Okay. Well, you know, I think we feel very strongly that going forward, all acquisitions need to fit into our Prepare, Promote, Protect strategy.
Okay.
It has to be sort of complementary to what we already have as products. We're really not interested in having 100 small products. We'd rather just invest in core products. We'd rather have fewer products that we consider pillar products. By pillar, we define as the ability to be a $100 million plus dollar product.
Okay.
We feel like we've built something unique in both that combination of RSM and also distributor. It's got one to fit in those three categories you just referenced. That's how we look at going into the operating room. You know, prepare the procedure, promote some type of healing, and protect that procedure. At the same time, that network we've built, we wanna also find things that fit specifically there, knowing that all of a sudden we're at 400 contracts. What are the products that match up well there? We know we have that in CellerateRX. We're gaining that traction with BIASURGE right now that we have this approval with Vizient, and we believe it's a great fit for OsStic as well. Now, I've been in the commercial game a long time, especially with distribution.
If all of a sudden you come out and you have 10, 15, 20 products, it becomes a little bit distractive, right? They don't even know where to send, you know, their focus. I think having that hyper-focus into those three categories, plus with how we'll start to branch off of those technologies with some uniqueness that we can drive with other products from that, I think that's more of what we look like. We'll look like or we'll look for things that are really good and unique fits inside those categories that complement the team that we've built to take it to market.
Okay.
Anybody else?
I just have another one if I can.
Yeah.
With such a large under-penetrated TAM, how do you guys view price versus volume as it relates to how much we'll leverage pricing in your growth strategy?
You know, we are very competitive price-wise, right? We think that's a lot of our success as well. You know, there's been other products that have come to market that are much more expensive. But again, we think in terms of could you get to standard of care, right? To get to standard of care, you've got to do that by cases, not by volume. That's gonna continue to be our approach, right? We'll do things selectively on where we sit with pricing. As you can imagine, once you've signed a contract with a GPO, that pricing is the pricing for the next three years without negotiating. IDN level can look a little bit different. Local level, it does as well. We like the position that we sit with our pricing for us to continue to scale to more specialties.
Anybody else have a question? Well, we really appreciate your time learning more about Sanara. We wanna stay in touch. If there's things that we can answer, not only today, but going forward, please let us know that. We think we've got a great story that we're gonna continue to build on. Thanks, everybody.