Sanara MedTech Inc. (SMTI): Business Model Canvas [Dec-2025 Updated]

You're looking at Sanara MedTech Inc.'s playbook right after their late 2025 pivot to pure surgical solutions, and frankly, the structure reveals a focused growth story. This isn't just about new products; it's about a refined engine driving $75.6 million in net revenue through the first nine months of 2025, with soft tissue repair sales jumping 27%. We've broken down exactly how their 400+ independent distributors, key licensing deals, and high-value CellerateRX® are translating into clinical wins and revenue, all while servicing that $42.8 million term loan from Q1. See below for the full nine-block canvas that maps out their current operating reality.

Sanara MedTech Inc. (SMTI) - Canvas Business Model: Key Partnerships

You're looking at the core relationships Sanara MedTech Inc. relies on to get its specialized surgical and wound care products to market. These aren't just vendor agreements; they are strategic alliances that provide access to novel technology and critical sales channels. Honestly, the financing structure with CRG Servicing LLC is a big part of the near-term operational picture.

The Key Partnerships block is where Sanara MedTech Inc. secures its pipeline and market reach. You see a mix of exclusive rights for new, high-potential products and established licensing for current revenue drivers. The focus here is definitely on leveraging external innovation and established infrastructure.

Here's a look at the primary external relationships driving Sanara MedTech Inc.'s business:

• Secured exclusive U.S. marketing, sales, and distribution rights for OsStic® Synthetic Injectable Structural Bio-Adhesive Bone Void Filler from Biomimetic Innovations Ltd (BMI).
• Maintained licensing agreements with Cook Biotech Inc. for the FORTIFY TRG® Tissue Repair Graft and FORTIFY FLOWABLE® Extracellular Matrix products, both launched in 2021.
• Relies on relationships with National Group Purchasing Organizations (GPOs) to facilitate hospital contract access for its portfolio.
• Financing relationship with CRG Servicing LLC, which underpins growth initiatives.

The financial commitment to the BMI partnership is concrete. Sanara MedTech Inc. agreed to contribute up to €8.0 million in cash to BMI in exchange for approximately 12.5 percent of BMI's outstanding equity. The initial cash investment was €4.0 million, which included €1.0 million of converting debt. The remaining €4.0 million contribution is contingent upon hitting specific development, clinical, and regulatory milestones.

The OsStic® technology itself is positioned to address a significant market need, targeting an estimated 100,000+ procedures in the U.S. annually. The distribution agreement is set for an initial five-year period, with an option for Sanara MedTech Inc. to automatically renew for successive two-year periods at its discretion.

The financing structure is a key component of the operational plan. The term loan with CRG Servicing LLC is a non-dilutive capital source supporting growth. As of the end of the first quarter of 2025 (March 31, 2025), Sanara MedTech Inc. reported $42.8 million of principal debt obligations outstanding under this agreement. This facility, originally a $55.0 million term loan, was amended on March 19, 2025, extending the borrowing commitment period to December 31, 2025, and allowing for up to $40 million in additional borrowings in tranches.

Here's a quick summary of the product-centric partnerships:

Regarding the National Group Purchasing Organizations (GPOs), Sanara MedTech Inc.'s commercial execution in the Sanara Surgical segment for Q1 2025 reflects progress in developing its network of distributor partners and increasing penetration of existing facility customers. The company is focused on driving revenue growth through these channels, though specific contract values or penetration statistics related to GPOs aren't detailed in the latest public disclosures.

Sanara MedTech Inc. (SMTI) - Canvas Business Model: Key Activities

You're looking at the core engine of Sanara MedTech Inc. as they pivot to focus almost entirely on their Surgical segment following the Q3 2025 strategic realignment to discontinue Tissue Health Plus (THP). This is where the real value creation is happening now, driven by efficient commercial scale and high-margin product sales.

Developing and commercializing advanced surgical and orthobiologic products.

The focus here is clearly on the Surgical segment, which is delivering significant operating leverage. For the third quarter of 2025, Surgical net revenue grew 22% year-over-year to $26.33 million. This growth is being fueled by key product lines, with soft tissue repair products like CellerateRX Surgical and BiOSurge driving a 24% increase in that specific category in Q3 2025. Also, bone fusion products saw sales increase 25% year-over-year to $3.1 million in the second quarter of 2025. The company is also integrating new technologies, like the exclusive agreement with Biomimetic Innovations Ltd (BMI) for OsStic®, which addresses an estimated 100,000+ procedures in the U.S. annually.

Here's a quick look at the financial performance underpinning this activity through the first nine months of 2025:

Managing and expanding the independent distributor network, now over 400.

Sanara MedTech Inc. is achieving commercial scale without significantly increasing its direct sales force, relying on the distributor model for reach. As of the first quarter of 2025, the network had expanded to over 400 distributor partners. By the third quarter earnings call, management noted they were keeping their sales headcount flat, specifically mentioning ~40 reps and ~400 distributors. This structure is key to their operating leverage story, as they are simultaneously increasing facility penetration, selling into >1,400 facilities as of Q3 2025, up from >1,200 the prior year.

The network expansion milestones look like this:

• Distributor partners at Q1 2024: over 250.
• Distributor partners at end of 2024: over 350.
• Distributor partners as of Q1 2025: over 400.
• Facilities sold into as of Q3 2025: >1,400.

Generating clinical evidence and publishing peer-reviewed studies.

Demonstrating clinical efficacy and cost-effectiveness is a stated focus to support product adoption. In the first quarter of 2025, the company stated they looked forward to having multiple clinical manuscripts submitted for publication in key medical journals in 2025. By the third quarter of 2025, they were pleased to report the publication of two studies in peer-reviewed medical journals examining the use of CellerateRX Surgical in challenging procedures. These publications are critical for deepening professional knowledge and supporting evidence-based practice, defintely.

Manufacturing and supply chain management for high-margin products.

The shift in product mix towards higher-margin surgical products is directly impacting profitability metrics. The gross margin for the entire company in the first quarter of 2025 was 92% of net revenue, an improvement from 90% in Q1 2024. This margin expanded further by Q3 2025 to 93% of net revenue, with an approximate 200 basis points expansion year-over-year, which management attributed to the higher soft tissue sales mix. This efficiency is a direct result of manufacturing and supply chain management, as evidenced by the $24.1 million gross profit reported in Q1 2025.

Key margin and cost data points for the Surgical business:

• Gross Margin (Q1 2025): 92%.
• Gross Margin (Q3 2025): 93%.
• Gross Profit (Q1 2025): $24.1 million.
• Surgical Segment Adjusted EBITDA (Q2 2025): $4.7 million.

Sanara MedTech Inc. (SMTI) - Canvas Business Model: Key Resources

You're looking at the core assets Sanara MedTech Inc. (SMTI) relies on to execute its business strategy, especially now that they've refocused on the surgical segment. These aren't just things they own; they are the engines driving their revenue and competitive edge.

The foundation of the Key Resources block is the proprietary product portfolio. The flagship product here is CellerateRX® Surgical Activated Collagen®, which is hydrolyzed collagen made via a proprietary process, used for managing surgical and traumatic wounds, as well as burns. Sanara MedTech Inc. is heavily invested in this surgical line, especially after the strategic realignment in September 2025 to cease operations of the Tissue Health Plus ("THP") segment to reallocate resources to the core surgical business. The company also markets other key surgical products, including BIASURGE® Advanced Surgical Solution, FORTIFY TRG® Tissue Repair Graft, FORTIFY FLOWABLE® Extracellular Matrix, TEXAGEN® Amniotic Membrane Allograft, and ACTIGEN™ Verified Inductive Bone Matrix.

The commercial reach is supported by a significant distribution structure. Sanara MedTech Inc. maintains an expanded network of over 400 independent distributors, which is crucial for market penetration across new and existing U.S. markets for their surgical products. The company's commercial strategy in early 2025 focused on developing this network of distributor partners and adding new healthcare facility customers.

Financially, liquidity is a key resource, though it has shifted as the company managed its portfolio. As of March 31, 2025, Sanara MedTech Inc. reported a cash balance of $20.7 million. This compares to a more recent figure of $14.9 million as of September 30, 2025, following the strategic realignment. The company also had $12.25 million of available borrowing capacity as of September 30, 2025.

The value of the company is also locked up in its intellectual property and FDA clearances. Sanara MedTech Inc. has experience in obtaining and maintaining regulatory approvals. A concrete measure of their ongoing R&D commitment to IP is that during the year ended December 31, 2024, the team submitted 11 provisional patent applications covering innovations in proprietary antimicrobial technologies and hydrolyzed collagen. Several core products are backed by regulatory approval, with various products being 510(k) cleared by the FDA.

Here's a quick look at the key tangible and intangible assets:

The operational focus is clearly on leveraging these assets within the surgical market, as evidenced by the product portfolio composition:

• Proprietary product: CellerateRX® Surgical Activated Collagen® (Hydrolyzed Type I Bovine Collagen)
• Other key surgical products include FORTIFY TRG® and FORTIFY FLOWABLE®
• New license agreement executed January 21, 2025, for OsStic® Synthetic Injectable Structural Bio-Adhesive Bone Void Filler
• The company is working to increase contract opportunities and facility approvals for its licensed products.

Finance: draft 13-week cash view by Friday.

Sanara MedTech Inc. (SMTI) - Canvas Business Model: Value Propositions

You're looking at the core reasons why surgeons and facilities choose Sanara MedTech Inc. (SMTI) products. The value proposition here isn't just about a product; it's about a measurable impact on patient care and the economics of the operating room.

Improving clinical outcomes and reducing total healthcare expenditures. Sanara MedTech Inc. is focused on developing and commercializing transformative technologies that directly address this dual goal in the surgical, chronic wound, and skin markets. The company is constantly seeking long-term strategic partnerships centered on products that improve patient outcomes at a lower overall cost. This focus is evident in the financial performance of the surgical segment; for the trailing 12 months ended September 30, 2025, the surgical business generated nearly $102 million of net revenue, representing growth of 31%.

Activated Collagen (CellerateRX) reducing surgical site infections by 59%. This is a powerful, data-backed claim that drives adoption. A retrospective study involving 5,335 patients undergoing elective surgery demonstrated that using activated collagen, CellerateRX Surgical Powder, resulted in a 59% reduction in surgical site infection rates overall. If you look closer at the clean cases within that study, the reduction in surgical site infection rates was even more pronounced, hitting 69%. This kind of clinical efficacy directly translates to lower readmission costs for the healthcare system.

High-value niche products for complex surgical tissue repair. Sanara MedTech Inc. builds its surgical portfolio around differentiated and effective technologies that address specific clinical needs in the operating room. The company's commercial strategy is heavily weighted toward its soft tissue repair products, which are key to its financial success. In the third quarter of 2025, soft tissue repair product sales increased by 24% year-over-year, contributing $23.4 million to the total net revenue of $26.33 million. The gross margin for the company expanded to 93% of net revenue in Q3 2025, largely driven by this higher-margin soft tissue mix.

The core of the surgical value proposition rests on a comprehensive portfolio of soft tissue and bone fusion products. Here's a quick look at the key product lines and their recent growth contribution for the first six months of 2025:

The company's Sanara Surgical segment generated Segment Adjusted EBITDA of $7.4 million for the first six months of 2025, up from $2.5 million in the same period last year, showing the operating leverage of these high-value surgical sales. The bone fusion products, like BiFORM, are osteoconductive and bioactive, allowing for bony ingrowth across the graft site, which is a critical value-add in complex orthopedic procedures.

Sanara MedTech Inc. (SMTI) - Canvas Business Model: Customer Relationships

You're looking at how Sanara MedTech Inc. engages its customers in late 2025, which is almost entirely centered on the high-touch commercial execution of the Sanara Surgical segment, especially after the November 2025 discontinuation of the Tissue Health Plus (THP) operations. The commercial distribution model has been a core strength, enabling rapid growth.

Direct sales team engagement with surgeons and clinicians

The direct engagement model relies on a structure where Regional Sales Managers (RSMs) recruit, train, and support an independent sales team, which includes 1099 representatives. This team works directly with surgeons and facilities. To fuel this, the company increased its direct sales and marketing expenses in the Sanara Surgical segment by $2.4 million in the first quarter of 2025 alone. This investment supports the engagement needed to drive adoption of products like CellerateRX Surgical and BIASURGE.

Clinical education and support based on published evidence

Clinical education is a clear lever for Sanara MedTech Inc. to build trust and drive adoption among clinicians. The company actively uses published data to support its value proposition. For instance, Sanara MedTech Inc. published two studies in peer-reviewed medical journals, which directly supports the education of the medical community regarding the clinical efficacy of its key products. This evidence-based approach helps the sales force in their conversations with new physicians.

High-touch relationship management with independent distributors

The distributor network is critical to the go-to-market strategy, acting as an extension of the sales force. Sanara MedTech Inc. has aggressively scaled this relationship. As of the first quarter of 2025, the number of distributor partners had grown to over 400, a significant jump from over 250 in the first quarter of 2024 and over 350 at the end of 2024. By the second quarter of 2025, management confirmed the distribution network expansion continued, maintaining over 400 distributors. This high-touch management of a large partner base is essential for market reach.

Here's a quick look at the scale of the commercial network as of mid-to-late 2025:

Focused penetration of existing and new healthcare facilities

The penetration strategy targets both bringing new facilities into the fold and increasing usage within established accounts. The company has a clear near-term goal for facility expansion. Management outlined plans to aim to sell into more than 1,450 facilities by the end of 2025. To be fair, gaining initial facility approval and acceptance is not instant; historically, the sales team expected this process to take 6-9 months when entering a new care center. The focus now is on driving deeper utilization within the existing base, which contributed to the Sanara Surgical segment achieving net income of $0.5 million in the second quarter of 2025.

The key relationship drivers for the Surgical segment include:

• Expanding into new specialties for product use.
• Driving surgeon penetration in existing facilities.
• Securing new healthcare facility customers.
• Leveraging the expanded distributor network for local support.

Sanara MedTech Inc. (SMTI) - Canvas Business Model: Channels

You're looking at how Sanara MedTech Inc. gets its surgical products into the hands of clinicians as of late 2025. The focus has clearly sharpened on the core surgical business following the strategic realignment away from Tissue Health Plus (THP).

Independent distributor network for broad North American market reach

The independent distributor network is a major engine for Sanara MedTech Inc.'s market penetration. The company views partnering with these distributors for shared long-term growth as a core component of its approach.

• The network expanded to over 400 distributor partners as of Q1 2025.
• This represents growth from over 250 distributor partners in Q1 2024 and over 350 at the end of 2024.
• The company has secured over 4,000 healthcare facility approvals to date.
• The goal was to sell into more than 1,450 facilities by the end of 2025.

Direct sales force targeting hospitals and surgical centers

Sanara MedTech Inc. supports its channel strategy with a direct sales and marketing effort, though the focus appears to be on leveraging the distributor reps for activation and training.

The increase in Selling, General, and Administrative (SG&A) expenses in Q2 2025 included a $1.5 million increase in direct sales and marketing expenses. However, management noted that they kept their headcount and sales flat in Q2 2025, suggesting efficiency gains or a focus on distributor rep activation over adding direct employees.

National Group Purchasing Organization (GPO) contracts

While specific financial data on revenue derived directly from National GPO contracts isn't explicitly broken out, the channel strategy centers on gaining facility approvals and leveraging the expanded network to drive pull-through. The company's focus is on onboarding recently contracted distributors and training their representatives to position products successfully within facilities.

Specialty-focused sales into Ortho, Spine, and General Surgery

Sanara MedTech Inc.'s surgical business is concentrated on the North American surgical tissue repair markets, with specific product lines driving the revenue.

The Sanara Surgical segment generated net revenue of $75.6 million for the first nine months of 2025. Soft tissue repair products are the primary revenue driver, bringing in $23.4 million in Q1 2025 and $23.4 million in Q3 2025.

Here's a look at the surgical revenue components based on the latest available segment data:

Key products supporting these specialties include BIASURGE Advanced Surgical Solution and CellerateRX Surgical Activated Collagen.

Sanara MedTech Inc. (SMTI) - Canvas Business Model: Customer Segments

You're looking at a company that has clearly sharpened its focus, especially after the strategic realignment around the Tissue Health Plus (THP) segment, which is now classified as discontinued operations for Q3 2025 and 2024. This means the core customer base is now firmly rooted in the surgical side of the business.

Surgeons and clinicians across multiple surgical specialties are the primary users of Sanara MedTech Inc.'s products. The company has been actively scaling its commercial reach to serve these professionals, expanding its network of independent distributors from over 300 to more than 400 as of late 2025. This expansion is aimed at capturing share within what Sanara MedTech Inc. views as a surgical solutions market opportunity exceeding $10 billion.

Hospitals and Ambulatory Surgical Centers (ASCs) in North America represent the institutional buyers for Sanara MedTech Inc.'s surgical portfolio. The success in reaching individual clinicians translates directly into facility penetration. For the trailing 12 months ending September 30, 2025, the surgical business generated nearly $102 million of net revenue.

Orthopedic, spine, trauma, and general surgery departments are the specific areas seeing product adoption. The growth in sales for soft tissue repair products, which are key to these specialties, shows the direct engagement with these departments. For instance, in the third quarter of 2025, soft tissue repair product sales reached $23.4 million, marking a 24% year-over-year increase. Bone fusion products also saw growth, with sales increasing 25% year-over-year to $3.1 million in the second quarter of 2025.

Here's a quick look at the financial performance tied to this core surgical customer base for the first nine months of 2025:

Patients requiring advanced tissue repair and wound healing solutions are the ultimate beneficiaries. Sanara MedTech Inc.'s commercial strategy is explicitly focused on facilitating improved clinical outcomes for these patients through its surgical products, such as CellerateRX® Surgical and BIASURGE®. The company also completed milestones for its OsStic® product, an injectable structural bio-adhesive bone void filler, with a U.S. commercial launch anticipated in the first quarter of 2027.

The customer base is currently being served by a surgical team that achieved:

• Net revenue of $26.3 million in Q3 2025.
• Net income from continuing operations of $0.8 million in Q3 2025.
• Adjusted EBITDA of $4.9 million in Q3 2025.

Finance: draft 13-week cash view by Friday.

Sanara MedTech Inc. (SMTI) - Canvas Business Model: Cost Structure

You're looking at the cost side of Sanara MedTech Inc.'s (SMTI) operations as of late 2025, right after they made that big strategic pivot away from Tissue Health Plus (THP). The cost structure is clearly shifting to favor the surgical segment, but there are still significant overheads to manage.

The primary driver of operating expenses is the sales team and general overhead. For the third quarter of 2025, operating expenses hit \$21.5 million, which was up 14% compared to the third quarter of 2024. This increase was largely fueled by Selling, General, and Administrative (SG&A) expenses, which rose by \$2.5 million, or 14%, year-over-year.

Here's a quick breakdown of where that SG&A increase came from:

• Increased compensation and contract services: \$1.4 million.
• Higher direct sales and marketing expenses: approximately \$0.8 million.

That's where a good chunk of your cash is going to support the sales force pushing the core surgical products.

For manufactured and licensed products, the Cost of Goods Sold (COGS) story is actually looking quite strong in the surgical line. For the third quarter of 2025, the Gross Profit was \$24.5 million. This translated to a Gross Margin of 93% of net revenue for the quarter, which is an improvement from 91% in the third quarter of 2024, mainly due to better sales mix favoring soft tissue repair products.

The financial structure also includes debt servicing costs. Other expense for the third quarter of 2025 was \$2.1 million, up from \$1.0 million in the prior year period. This jump is directly tied to higher interest expense and fees associated with the CRG term loan.

Investment in future products, even with the THP wind-down, still requires R&D spending. Research and development (R&D) expenses saw an increase of \$0.2 million, or 31%, year-over-year in the third quarter of 2025, supporting surgical product enhancements.

The wind-down of the Tissue Health Plus (THP) segment is a distinct, non-recurring cost event you need to track. Sanara MedTech Inc. continues to expect the total cash investment for this wind-down in the second half of 2025 (H2 2025) to be between \$5.5 million to \$6.5 million. To be fair, they anticipate no material cash expenses related to THP after the year-end.

You can see the key cost drivers and related metrics from the Q3 2025 report in this table:

Also, remember the balance sheet impact from the debt taken on to fund growth and operations. As of September 30, 2025, Sanara MedTech Inc. reported long-term debt of \$45.1 million, up from \$30.7 million at December 31, 2024. That new debt load directly translates to the higher interest expense you see in the cost structure.

Finance: draft 13-week cash view by Friday.

Sanara MedTech Inc. (SMTI) - Canvas Business Model: Revenue Streams

You're looking at the core engine of Sanara MedTech Inc. (SMTI) as of late 2025-how the company actually brings in the money, which is almost entirely through product sales from its surgical focus area.

The top-line number for the first nine months of 2025 gives you a clear picture of the momentum: Sanara MedTech Inc. (SMTI) reported total net revenue of $75.6 million for the first nine months of 2025. This represented a year-over-year increase of 25% for that nine-month period. Honestly, that's solid growth, especially considering the strategic realignment to focus purely on the surgical business.

The primary driver behind this performance is the soft tissue repair portfolio. Sales of soft tissue repair products, which include key offerings like CellerateRX Surgical and BiOSurge, showed significant strength, achieving 27% growth in the first nine months of 2025, as you specified. This product line is definitely carrying the weight, which is why the gross margin improved to 93% in the third quarter of 2025.

Here's a look at how the surgical product lines contributed in the most recent quarter, Q3 2025, compared to the prior year's quarter:

Sales of bone fusion and orthobiologics products also contribute to the revenue base, though they are overshadowed by the soft tissue line. For the third quarter of 2025, bone fusion product sales saw an increase of $0.1 million, which translates to about 4% growth year-over-year. To be fair, for the first six months of 2025, this category saw a stronger 22% increase, so performance can fluctuate quarter-to-quarter.

The mechanism for getting these products into the operating room is heavily reliant on the external sales force structure. Sanara MedTech Inc. (SMTI) product sales to hospitals are executed via a broad distributor network. Management has been actively expanding this reach, growing the network of independent distributors from over 300 to more than 400 partners. This expansion is key to penetrating more facilities, which stood at over 1,400 facilities sold into as of September 30, 2025.

The revenue streams are clearly concentrated, which is a strategic choice following the discontinuation of the Tissue Health Plus (THP) segment. The current revenue generation is focused on:

• CellerateRX Surgical Activated Collagen sales.
• BiOSurge Advanced Surgical Solution sales.
• Sales of the portfolio of advanced biologic products, including orthobiologics.
• Revenue from bone fusion products like ACTIGEN Verified Inductive Bone Matrix.

The entire model is leaning on the surgical team's ability to drive utilization of these core products through their expanded distribution footprint.