Q1 2025 revenues were $9.3 million, up 61% from $5.8 million in Q1 2024. This represents the highest Q1 quarterly revenues in Company history.

Q1 2025 gross margin was 79.0%, versus 72.6% in Q1 2024.

GAAP Operating Income was $1.0 million for Q1 2025, an increase of $2.0 million from Q1 2024.

Company provides guidance for revenue growth of 40-50% for Q2 2025 as compared to Q2 2024

EDEN PRAIRIE, Minn., May  09, 2025  (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, 2025.

Q1 2025 ended March 31, 2025

Revenue for the three months ended March 31, 2025, totaled $9.34 million, an increase of 61%, as compared to $5.79 million for the same period of 2024. This growth exceeded guidance of growth of 45-55% year on year for the quarter.98 UltraMist® systems were sold in Q1 2025 up from 43 in Q1 2024, and down from 135 in Q4 2024.UltraMist® consumables revenue increased by 43% to $5.8 million in Q1 2025, versus $4.1 million for the same quarter last year. UltraMist® revenue represented 99% of Sanuwave’s overall revenues in Q1 2025.Gross margin as a percentage of revenue amounted to 79.0% for the three months ended March 31, 2025, versus 72.6% for the same period last year.For the three months ended March 31, 2025, operating income totaled $1.0 million, an increase of $2.0 million, compared to Q1 2024, primarily as a result of the Company’s continued efforts to drive profitable growth and manage expenses.Net loss for the first quarter of 2025 was $5.7 million, driven predominantly by the change in the fair value of derivative liabilities. This compares to a net loss of $4.5 million in the first quarter of 2024 which was primarily driven by interest expense and the change in the fair value of derivative liabilities.Adjusted EBITDA [1] for the three months ended March 31, 2025, was $2.3 million versus Adjusted EBITDA of negative $59 thousand for the same period last year.

“We’re pleased to come into 2025 with some strong year on year results for Q1, which is always a bit of a slower quarter seasonally for Sanuwave and for med device in general,” said Morgan Frank, CEO. “Placing 98 new systems in the quarter (128% more than same quarter last year) is a great start to the year and some nice momentum to take into the spring. We continue to hire salespeople and to expand our commercial operations and clinical teams to support our ongoing growth while maintaining our focus on sustaining and enhancing profitability. We spent Q1 shoring up inventory levels to the targets we had discussed on prior calls and now have, for the first time, a comfortable level of both systems and applicators in stock to allow us to aggressively pursue our ‘elephant hunting’ strategy of engagement with larger customers without fear of product constraint limiting our efforts. Our pipeline remains strong and we remain focused on and optimistic about 2025 as a breakout year for Sanuwave. We look forward to sharing our further progress with you in future quarters.”

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

The Company forecasts Q2 2025 revenue of $10.0 to $10.7 million (40-50% increase from Q2 2024) and reiterates full year 2025 revenue guidance of $48-50 million (47-53% increase as compared to full year 2024 revenue).

As previously announced, a business update will occur via conference call on May 9, 2025 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:1-800-245-3047
Toll/International: 1-203-518-9765
Conference ID: SANUWAVE

OR use the link for instant telephone access to the event.

https://viavid.webcasts.com/starthere.jsp?ei=1714486&tp_key=88406b4795

A replay will be made available through May 30, 2025:
Toll-Free: 1-844-512-2921
Toll/International: 1-412-317-6671
Replay Access ID: 11158734

[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 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.

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. 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 and Adjusted EBITDA 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. 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 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 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]

SELECTED FINANCIAL DATA
FOR THE THREE MONTHS ENDED MARCH 31, 2025 AND 2024

(in thousands) 2025   2024  Revenue$9,342  $5,786 Cost of Revenues 1,958   1,584  Gross Margin 7,384   4,202 Gross Margin % 79.0%  72.6% Total operating expenses 6,398   5,252 Operating Income (Loss)$986  $(1,050) Total other expense (6,662)  (3,478) Net Loss$(5,676) $(4,528)

NON-GAAP ADJUSTED EBITDA

Three Months Ended March 31,(in thousands) 2025   2024  Net (Loss) Income$(5,676) $(4,528)Non-GAAP Adjustments: Interest expense 1,852   3,560 Depreciation and amortization 274   218 EBITDA (3,550)  (750) Non-GAAP Adjustments for Adjusted EBITDA: Change in fair value of derivative liabilities 4,901   2,501 Other non-cash or infrequent charges: Stock-based compensation 975   - Loss on extinguishment of debt -   105 Severance agreement and legal settlement -   585 License and option agreement -   (2,500)Adjusted EBITDA$2,326  $(59)

CONDENSED CONSOLIDATED BALANCE SHEETS

March 31, 2025 December 31, 2024ASSETS Current Assets: Cash and cash equivalents$8,501  $10,237 Accounts receivable, net of allowance of $1,180 and $1,147, respectively 3,866   3,329 Inventory 5,457   4,149 Prepaid expenses and other current assets 1,007   682 Total Current Assets 18,831   18,397 Non-Current Assets: Property and equipment, net 449   303 Right of use assets, net 761   429 Intangible assets, net 3,554   3,730 Goodwill 7,260   7,260 Total Non-current Assets$12,024  $11,722  Total Assets 30,855   30,119  LIABILITIES Current Liabilities: Senior secured debt$26,037  $25,305 Accounts payable 4,151   3,728 Accrued expenses 3,581   4,678 Warrant liability 13,008   8,107 Current portion of lease liabilities 262   301 Current portion of contract liabilities 193   193 Other 36   33 Total Current Liabilities 47,268   42,345 Non-current Liabilities: Lease liabilities, less current portion, net of incentives 568   191 Contract liabilities, less current portion 311   300 Total Non-current Liabilities 879   491 Total Liabilities$48,147  $42,836  STOCKHOLDERS’ DEFICIT Preferred Stock, par value $0.001, 5,000,000 shares authorized; 6,175 shares Series A, 293 shares Series B, 90 shares Series C and 8 shares Series D designated, respectively; no shares issued and outstanding at March 31, 2025 and December 31, 2024$-  $- Common stock, par value $0.001, 2,500,000,000 shares authorized; 8,548,473 and 8,543,686 issued and outstanding at March 31, 2025 and December 31, 2024, respectively * 9   9 Additional paid-in capital 239,786   238,685 Accumulated deficit (257,097)  (251,421)Accumulated other comprehensive loss 10   10 Total Stockholders’ Deficit (17,292)  (12,717)Total Liabilities and Stockholders’ Deficit$30,855  $30,119

* Reflects a one-for-three hundred seventy-five (1:375) reverse stock split of the outstanding shares of the Company's common stock effected on October 18, 2024.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(In thousands, except share data)Three Months Ended March 31, 2025   2024  Revenue$9,342  $5,786 Cost of Revenues 1,958   1,584  Gross Margin 7,384   4,202  Operating Expenses: General and administrative 4,467   3,675 Selling and marketing 1,531   1,232 Research and development 208   163 Depreciation and amortization 192   182 Total Operating Expenses 6,398   5,252  Operating Income (Loss) 986   (1,050) Other Income (Expense): Interest expense (1,852)  (3,237)Interest expense, related party —   (323)Loss on extinguishment of debt —   (105)Change in fair value of derivative liabilities (4,901)  (2,501)Other expense (1)  (102)Other income 92   2,790 Total Other Expense (6,662)  (3,478) Net Loss (5,676)  (4,528) Other Comprehensive Loss Foreign currency translation adjustments —   111 Total Comprehensive Loss$(5,676) $(4,417) Loss per Share: Basic and Diluted *$(0.66) $(1.46)Weighted average shares outstanding Basic and Diluted * 8,547,675   3,099,335

* Reflects a one-for-three hundred seventy-five (1:375) reverse stock split of the outstanding shares of the Company's common stock effected on October 18, 2024.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT
(In thousands, except share data)

Common Stock  Number of Shares
 Issued and Outstanding* Par Value Additional Paid-
in Capital Accumulated 
Deficit Accumulated Other
Comprehensive
Loss Total Balances as of December 31, 2024 8,543,686 $9 $238,685 $(251,421) $10  $(12,717)Stock-based compensation 4,787  -  1,101  -   -   1,101 Net loss -  -  -  (5,676)  -   (5,676) Balances as of March 31, 2025 8,548,473 $9 $239,786 $(257,097) $10  $(17,292) Balances as of December 31, 2023 3,041,492 $3 $176,979 $(220,049) $(111) $(43,178)Shares issued for settlement of debt and warrants -  -  -  -   -   - Foreign currency translation adjustment -  -  -  -   111   111 Net loss -  -  -  (4,528)  -   (4,528) Balances as of March 31, 2024 3,041,492 $3 $176,979 $(224,577) $-  $(47,595)

* Reflects a one-for-three hundred seventy-five (1:375) reverse stock split of the outstanding shares of the Company's common stock effected on October 18, 2024.

CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended March 31,(in thousands) 2025   2024 Cash Flows - Operating Activities: Net loss$(5,676) $(4,528)Adjustments to reconcile net loss to net cash used by operating activities Stock-based compensation 975   - Depreciation and amortization 209   136 Amortization of right to use leases 65   82 Reserve for credit losses 33   147 Loss on extinguishment of debt -   105 Change in fair value of derivative liabilities 4,901   2,501 Amortization of debt issuance and debt discounts 530   1,553 Accrued interest and accrued interest, related party -   955 Changes in operating assets and liabilities Accounts receivable (570)  152 Inventory (1,308)  490 Prepaid expenses and other assets (325)  192 Accounts payable 423   (643)Accrued expenses and contract liabilities (774)  (42)Net Cash Flows (Used in) Provided by Operating Activities (1,517)  1,100  Cash Flows - Investing Activities Purchase of property and equipment (162)  (114)Net Cash Flows Used in Investing Activities (162)  (114) Cash Flows - Financing Activities Proceeds from factoring, net -   71 Payments of principal on finance leases (57)  (29)Net Cash Flows (Used in) Provided by Financing Activities (57)  42  Effect of Exchange Rates on Cash -   111  Net Change in Cash During Period (1,736)  1,139  Cash at Beginning of Period 10,237   1,797 Cash at End of Period$8,501  $2,936  Supplemental Information: Cash paid for interest$1,118  $971 Non-cash Investing and Financing Activities: Capitalize interest into senior secured debt 202   - Stock options granted in lieu of cash bonus 117   - Leased assets obtained in exchange for lease liabilities 430   - Warrants issued in conjunction with convertible promissory notes -   2,784 Conversion of asset-backed secured promissory notes to convertible promissory notes -   4,584