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Full year 2024 ended December 31, 2024

• Revenue for the year ended December 31, 2024, totaled $32.6 million, an increase of 60%, as compared to $20.4 million for the same period of 2023. This growth exceeded full year guidance of growth of 50% year on year.

• 374 UltraMist® systems were sold in 2024 up from 211 in 2023.

• UltraMist® consumables revenue increased by 67% to $20.1 million (61% of revenues) in 2024, versus $12.0 million for the same period last year. UltraMIST systems and consumables remained the primary revenue growth driver and continued to represent over 98% of SANUWAVE’s overall revenues in 2024.

• Gross margin as a percentage of revenue amounted to 75.2% for the year ended December 31, 2024, versus 70.4% for the same period last year.

• For the year ended December 31, 2024, operating income totaled $5.4 million, an increase of $6.0 million compared to full year 2023.

• Net loss for 2024 was $31.4 million, driven predominantly by the change in the fair value of derivative liabilities. This compares to a net loss of $25.8 million in 2023, which was primarily driven by the change in the fair value of derivative liabilities.

• Adjusted EBITDA [1] for the twelve months ended December 31, 2024, was $7.2 million versus Adjusted EBITDA of negative $1.2 million for the same period last year, an improvement of $8.4 million.
  

“The fourth quarter once more setting an all-time record for quarterly revenue was a fitting end to a transformational year at Sanuwave,” said Morgan Frank, CEO. “Obviously, we’re very pleased with these results both for the quarter, and for the year as a whole. We're especially excited about our gains in gross margin and adjusted EBITDA, allowing us to continue the trend of having positive cash flows from operations even after cash interest expense that we began in Q3 2024. This feels like turning a corner. After the “pig through a python” quarter in Q3, Q4 was a quarter without any exceptionally large orders where no customer exceeded 7% of revenues and yet UltraMIST system sales in Q4 still exceeded those in Q3 and set another all-time quarterly record, increasing over 70% from Q4 2023. We are confident that our revenue pipeline is stronger than it has ever been and have been ramping up our sales force and sales strategy to meet this opportunity and to effectively manage the larger customers with whom we continue to engage. Having greatly simplified our capital structure in October 2024 and now having uplisted to the Nasdaq Global Market in March of this year, 2025 shows every sign of being a breakout year for Sanuwave. We look forward to sharing our further progress with you in future quarters.”

Financial Outlook

The Company forecasts Q1 2025 revenue of $8.4 to $9.0 million (45-55% increase from Q1 2024) and initiates full year 2025 revenue guidance of $48-50 million (47-53% increase as compared to full year 2024 revenue).

During Q4 2024, the Company effected a 1-for-375 reverse stock split on October 18, 2024, completed its note and warrant exchange, and raised $10.3 million in a private placement, simplifying the Company’s capital structure and leaving it with approximately 8.5 million basic shares outstanding. Details of this transaction can be found on the Sanuwave website https://sanuwave.com/investors/press-release-details?newsId=OxzYFl0t620enXp1VyUG or in its filings with the SEC.

As previously announced, a business update will occur via conference call on March 21, 2025 at 8:30 a.m. EST. Materials for the conference call are included on the Company’s website at http://www.sanuwave.com/investors.

Telephone access to the call will be available by dialing the following numbers:

Toll Free:1-800-245-3047
Toll/International: 1-203-518-9765
Conference ID: SANUWAVE

OR click the link for instant telephone access to the event.

https://viavid.webcasts.com/starthere.jsp?ei=1703280&tp_key=c099e4f4d9

A replay will be made available through April 11, 2025:
Toll-Free: 1-844-512-2921
Toll/International: 1-412-317-6671
Replay Access ID: 11157832

[1] This is a non-GAAP financial measure. Refer to “Non-GAAP Financial Measures” and the reconciliations in this release for further information.

About SANUWAVE
SANUWAVE Health is focused on the research, development, and commercialization of its patented, non-invasive and biological response-activating medical systems for the repair and regeneration of skin, musculoskeletal tissue, and vascular structures.

SANUWAVE's end-to-end wound care portfolio of regenerative medicine products and product candidates helps restore the body’s normal healing processes. SANUWAVE applies and researches its patented energy transfer technologies in wound healing, orthopedic/spine, aesthetic/cosmetic, and cardiac/endovascular conditions.

Non-GAAP Financial Measures
This press release includes certain financial measures that are not presented in our financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). These financial measures are considered "non-GAAP financial measures" and are intended to supplement, and should not be considered as superior to, or a replacement for, financial measures presented in accordance with U.S. GAAP.

The Company uses Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) and Adjusted EBITDA to assess its operating performance. Adjusted EBITDA is Earnings before Interest, Taxes, Depreciation and Amortization adjusted for the change in fair value of derivatives and any significant non-cash or infrequent charges. EBITDA and Adjusted EBITDA should not be considered as alternatives to net income (loss) as a measure of financial performance or any other performance measure derived in accordance with U.S. GAAP, and they should not be construed as an inference that the Company’s future results will be unaffected by unusual or infrequent items. These non-GAAP financial measures are presented in a consistent manner for each period, unless otherwise disclosed. The Company uses these measures for the purpose of evaluating its historical and prospective financial performance, as well as its performance relative to competitors. These measures also help the Company to make operational and strategic decisions. The Company believes that providing this information to investors, in addition to U.S. GAAP measures, allows them to see the Company’s results through the eyes of management, and to better understand its historical and future financial performance. These non-GAAP financial measures are also frequently used by analysts, investors, and other interested parties to evaluate companies in our industry, when considered alongside other U.S. GAAP measures.

EBITDA and Adjusted EBITDA have their limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of the Company’s results as reported under U.S. GAAP. Some of these limitations are that EBITDA and Adjusted EBITDA:

• Do not reflect every expenditure, future requirements for capital expenditures or contractual commitments.

• Do not reflect all changes in our working capital needs.

• Do not reflect interest expense, or the amount necessary to service our outstanding debt.
  

As presented in the U.S. GAAP to Non-GAAP Reconciliations section below, the Company’s non-GAAP financial measures exclude the impact of certain charges that contribute to our net income (loss).

Forward-Looking Statements

This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future financial results, production expectations, and plans for future business development activities. Forward-looking statements include all statements that are not statements of historical fact regarding intent, belief or current expectations of the Company, its directors or its officers. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company’s ability to control. Actual results may differ materially from those projected in the forward-looking statements. Among the key risks, assumptions and factors that may affect operating results, performance and financial condition are risks associated with regulatory oversight, the Company’s ability to manage its capital resources, competition and the other factors discussed in detail in the Company’s periodic filings with the Securities and Exchange Commission. The Company undertakes no obligation to update any forward-looking statement.

Contact: investors@sanuwave.com