Sanuwave Health, Inc. reported financial results for the third quarter ended September 30, 2026, showing a significant decline in revenue compared to the prior year. Total revenue for the quarter was $8.6 million, a decrease of 24% from $11.3 million in Q3 2025.
The company attributed the revenue drop to the impact of a proposed Centers for Medicare & Medicaid Services (CMS) rule. According to CEO Morgan Frank, the proposal to maintain skin substitute pricing at 2026 levels for 2027 caused mobile wound care practitioners, particularly those in rural home care, to exit operations. Additionally, proposed changes to the 97610 billing code led to a "wait and see" approach in the market. These factors, combined with an ongoing market for used Ultramist systems, resulted in a decrease in system sales. Specifically, 40 Ultramist systems were sold in Q3 2026, down from 155 in Q3 2025 and 82 in Q2 2026.
Despite the revenue decline, the company reported a gross margin of 77.3% for the quarter, slightly down from 77.6% in the prior year. Applicator revenue, however, increased by 2% to $6.9 million in Q3 2026.
On the income statement, Sanuwave recorded a GAAP operating loss of $1.1 million for Q3 2026, compared to operating income of $0.9 million in Q3 2025. Net loss for the quarter was $1.4 million, compared to net income of $9.7 million in the same period last year. The company noted that the prior year's net income included a $6.1 million non-cash gain on the change in fair value of derivative liabilities and a $5.0 million gain on the sale of patents, neither of which recurred in the current year.
Adjusted EBITDA for the quarter was $0.7 million, down from $3.2 million in Q3 2025. As of September 30, 2026, the company had $6.6 million in cash and cash equivalents, a figure affected by approximately $2.3 million paid out under sales tax voluntary disclosure agreements during the quarter.
Sanuwave announced that a business update conference call is scheduled for November 11, 2026, at 8:30 a.m. EST.
