Oct 28, 2026 earnings call — Sanara acquisition progress and Surgical growth focus
Net sales were $62 million and GAAP gross profit was 80% for Q3.
Revenue $0.1B (est $0.1B) · EPS $-0.01 (est $0.00)
Key quotes
"However, as previously announced, the FTC has issued a second request for information, which extends the Hart-Scott-Rodino waiting period."
"We received a significant ruling in our favor from a U.S. District Court in our challenge to the FDA's regulatory classification of AXIOFILL."
"Our Wound Care Center volume grew more than 20% year-over-year and 7% sequentially."
Analyst Q&A 3
rebates and Sanara acquisition timing
Q (Frank Takkinen · Lake Street): The analyst asked why the company offered rebates and how rebate activity will behave going forward. He also asked for any update on the Sanara closing timeline and about gross margin durability into 2027.
A: Management said the higher rebates in the quarter came from short-term promotional activity through year-end and some accounts catching up to targets, so rebates were higher than typical. On Sanara, they received a second request from the FTC, are working through it, and said interaction with the FTC has been very positive though they cannot give timeline details. Management also said manufacturing efficiencies and cost reductions have improved gross margin, but future margin depends on product mix.
"But if you look at it in the period, it was higher than what we typically record." — Joseph Capper (CEO)
Wound stabilization, Surgical one-timers, synergies timing
Q (Chase Knickerbocker · Craig-Hallum Capital Group): The analyst asked whether the Wound business has better visibility to where it will stabilize and when, and whether Q4 growth implies stabilization. He also asked if there are more one-time items in Surgical for Q4. Finally, he asked how the FTC second request affects timing to reach the synergy and 20% EBITDA targets.
A: They said Wound is hard to predict after only three quarters of reset; the company lost 42% of 2025 revenue (about $145 million) and the industry is still resetting, but they believe they are in a strong relative position, especially in Wound Care Centers. For Surgical, they expect less noise in Q4 and fewer rebate-driven one-timers than last year. On synergies, management still views the previously stated first-year targets as achievable when the deal closes, and they are targeting $20 million plus of OpEx synergies, mostly from G&A, though timing depends on when the acquisition can begin.
"We do think we're in a good strong relative position, especially in Wound Care Centers where our message tends to resonate more." — Joseph Capper (CEO)
clinical studies and Wound recovery
Q (Bradley Bowers · Mizuho): The analyst asked whether the company will continue investing in clinical studies and about R&D timing. He also asked how much Wound must recover to reach the 20% EBITDA target and whether there is any calendar inflection point or political catalyst expected.
A: Management confirmed they are still investing in clinical studies and committed to evidence generation; they have 2 active randomized controlled trials on their latest products and are funding them, with some spend tied to enrollment. They said they like Wound to grow but believe the 20% target is within sight in a fairly short time. The only scheduled event they noted is the Medicare fee schedule publication in November, and they do not expect much change from the proposed schedule.
"I think I mentioned in the script that we have 2 active randomized controlled trials on our latest products." — Joseph Capper (CEO)