SANUWAVE Health (SNWV): A Disruptive Razor-Blade Medical Device Company Growing 50%

Sebastian Krog joins me to have a conversation with Morgan Frank, CEO of SANUWAVE Health (SNWV). This MicroCap Business Breakdowns discussion took place live on April 16th, 2025, on the MicroCapClub Community. You can listen and participate live by joining our community.

Sanuwave is a medical device company that markets UltraMIST, a low frequency, non-contact, non thermal deep ultrasound system used in the treatment of complex and non-healing wounds. UltraMIST is an FDA cleared product that has schedule 1 CMS reimbursement under CPT code 97610 (one of only two companies entitled to use this code). The company has a classic “razor/razorblade” model of selling a system (list price $35,000) and then a disposable applicator (list price $100) for each procedure and its products are sold into hospitals, physician’s offices, wound care centers, mobile wound care providers, and nursing homes and skilled nursing facilities. 

Although system sales can be lumpy, the growing installed base has driven a steady increase in consumables sales which generally represent 55-65% of revenue. Full year 2024 revenues were $32.6 million, up 60% from full year 2023 revenues. The company initiated full year 2025 revenue guidance of $48-50 million for full year 2025 (an increase of 47-53% versus 2024).

The company underwent a significant capital restructuring in October 2024 consummating a note and warrant exchange, a $10.3 million PIPE transaction, debt paydown, and 375:1 reverse stock split. As a result, the cap table is now clean and the company has 8.5 million common shares outstanding. The balance sheet is relatively healthy, with about $11 million in net debt. The company has been profitable and cash generative and aims to continue paying down debt from operating cash flow going forward.

You can listen/watch this business breakdowns on Spotify, Apple Podcast, and YouTube below:

MicroCap Business Breakdowns (MCBB) is a monthly program where we invite leaders of unique microcap businesses to have in depth conversations with the MicroCapClub member/investor that knows the business best. In each conversation we look to drill down into the history, business, strategy, vision, and bull/bear case. The MicroCapClub community can tune in live and ask questions. We publicize each episode two weeks after the live discussion. Not part of the MicroCapClub community? Join Us.

_{Disclaimer: All content in this newsletter is for discussion, education, entertainment, and illustrative purposes only and SHOULD NOT be construed as professional financial advice, solicitation, or recommendation to buy or sell any securities, notwithstanding anything stated on this newsletter and MicroCapClub.com. There are risks associated with investing in securities. Loss of principal is possible. Past performance is not a predictor of future investment performance. Ian Cassel and MicroCapClub.com are not responsible for investment actions taken by viewers. Should you need such advice, consult a licensed financial advisor, legal advisor, or tax advisor. You agree to verify all information yourself before investing. Any past performance discussed on MicroCapClub.com is no guarantee of future results. Investing involves risk and possible loss of principal capital; please seek advice from a licensed professional. All views expressed are personal opinions as of the date of publication and are subject to change without the responsibility to update views. No guarantee is given regarding the accuracy of the information. FULL DISCLAIMER and TERMS OF USE}