Sanara MedTech Inc. (SMTI) AI Stock Analysis
SMTI AI stock analysis summary
AI ResearchSanara MedTech Inc. (SMTI) develops and markets advanced wound and skin care products across the United States. Revenue reached $103.1M in FY2025, driven by a 5-year revenue CAGR of 45.9%, though net income stood at -$37.6M. The company generated $2.2M in free cash flow in FY2025 and trades at an EV/EBITDA of 36.0x.
- Market cap
- $304.7M
- Revenue (TTM)
- $109.8M
- P/E
- — fwd 217.4x
- 1Y return
- 13.2% S&P 500 16.8%
- Avg. target
- $35.00 5.5% vs last close
Bull case
- Revenue expanded from $24.1M in FY2021 to $103.1M in FY2025, reflecting a 5-year revenue CAGR of 45.9%.
- Operating cash flow reached $6.8M in FY2025, lifting free cash flow into positive territory at $2.2M.
- Gross margins have stayed consistently strong, ending at 90.1% in FY2025.
Bear case
- Net loss widened significantly in FY2025 to -$37.6M, resulting in an annual net margin of -36.4%.
- Valuation multiples remain elevated, with a forward P/E of 217.4x compared to the sector peer median of 17.3x.
- Debt-to-equity is elevated at 6.11, with total debt of $48.5M against $7.9M in shareholders' equity.
What Sanara MedTech does
Sanara MedTech Inc., headquartered in Fort Worth, Texas, develops, markets, and distributes advanced wound and skin care products throughout the United States. It serves healthcare settings such as physicians, hospitals, clinics, and post-acute care facilities. The company's portfolio features CellerateRX Surgical Activated Collagen in powder and gel forms, which is used across surgical specialties. It also distributes Biakos antimicrobial cleansers and wound gels designed to target mature biofilm microbes and planktonic microbes, as well as HYCOL Hydrolyzed Collagen for managing complex ulcers. In addition, Sanara develops wound care devices like FORTIFY TRG and FORTIFY FLOWABLE using freeze-dried extracellular matrix technology.
Growth and profitability
Annual revenue grew from $24.1M in FY2021 to $103.1M in FY2025, achieving a 5-year CAGR of 45.9%. Over that period, gross margin stayed near or above 86.1%, reaching 90.1% in FY2025. Operating margin turned positive at 8.9% in FY2025 after coming in at -7.7% in FY2024. However, net income fell to -$37.6M in FY2025 from -$9.7M in FY2024, resulting in diluted EPS of -$4.35. For the trailing twelve months ended June 30, 2026, revenue totaled $109.8M with an operating margin of 6.3% and a net profit margin of -29.1%. Quarterly revenue growth for the period ended June 30, 2026, was 9.0% year-over-year.
Balance sheet and cash flow
As of June 30, 2026, Sanara MedTech held $15.4M in cash and short-term investments against total debt of $48.5M, resulting in net debt of $33.1M. Shareholders' equity was $7.9M, giving the company a debt-to-equity ratio of 6.11 and a current ratio of 2.58. Total assets were $69.1M. In FY2025, operating cash flow turned positive at $6.8M, supporting capital expenditures of $4.6M and yielding free cash flow of $2.2M. Over the past five years, the company's share count increased by 15.2%.
Valuation and performance
At $33.16 per share, Sanara MedTech has a market capitalization of $304.7M and an enterprise value of $356.1M. SMTI trades at a forward P/E of 217.4x and an EV/EBITDA of 36.0x, both above the US-listed Healthcare median peers of 17.3x and 12.0x, respectively. Its price-to-sales ratio is 2.8x compared to the peer median of 4.1x, while price-to-book stands at 40.7x. Over the past year, SMTI shares gained 13.2%, trailing the S&P 500 (SPY) return of 16.8%, but have gained 42.0% year-to-date.
What analysts expect
Wall Street coverage includes 3 Hold ratings, with 0 Buy and 0 Sell ratings. The mean price target is $35.00, representing a 5.5% premium to the last close of $33.16. For the fiscal year ending December 31, 2026, consensus estimates project EPS of $0.20 on revenue of $116.6M. For FY2027, 1 analyst projects revenue of $133.2M, representing 14.2% growth, and EPS of $0.54. Over the last four quarters, the company beat EPS estimates 1 time. The next earnings date is November 11, 2026.
Key risks and what to watch
- Net debt stood at $33.1M as of June 30, 2026, which may strain the balance sheet if cash generation slows.
- The company beat EPS estimates in only 1 of the last 4 quarters, highlighting potential earnings variability.
- Quarterly revenue growth slowed to 9.0% year-over-year in the quarter ended June 30, 2026, down from 19.0% annual growth in FY2025.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this SMTI AI stock analysis
This page is an AI-written research summary of Sanara MedTech Inc. (SMTI). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: SMTI income statement, SMTI balance sheet, SMTI key metrics, SMTI analyst forecast, SMTI chart. See the SMTI stock overview for the latest quote and news.
SMTI AI stock analysis FAQ
What is Sanara MedTech's revenue growth profile?
Sanara MedTech generated $103.1M in revenue in FY2025, achieving a 5-year CAGR of 45.9% from FY2020 through FY2025. In the latest quarter ended June 30, 2026, revenue increased 9.0% year-over-year.
Does Sanara MedTech pay a dividend?
No, Sanara MedTech does not pay a dividend. Cash flow is directed toward operating activities and capital expenditures, which totaled $4.6M in FY2025.
What is SMTI's debt position?
As of June 30, 2026, Sanara MedTech had $48.5M in total debt and $15.4M in cash and short-term investments, resulting in net debt of $33.1M. Its debt-to-equity ratio was 6.11.
What are analysts forecasting for SMTI?
Analysts hold 3 Hold ratings with a mean price target of $35.00. For FY2026, consensus estimates project revenue of $116.6M and EPS of $0.20.