$9.7 million in Q2 2026 revenue at Sanuwave Health (NASDAQ: SNWV) came in 3% below the prior-year $10.1 million, per the company's August 6, 2026 8-K filing. Ultramist applicator revenue of $7.3 million accounted for approximately 75% of that total; system sales absorbed the balance. Adjusted EBITDA fell 62% year-over-year to $1.2 million from $3.2 million, and GAAP operating income swung to a $(0.3) million loss from a $1.4 million gain.
Applicator volume and system unit counts diverge
Applicator momentum and system volumes ran in opposite directions. Ultramist applicator revenue grew 13% to $7.3 million from $6.4 million in Q2 2025, with unit volumes up 27% year-over-year and 13% sequentially from Q1 2026. System unit sales came in at 82 in Q2 2026, down from 116 in Q2 2025 and 97 in Q1 2026.
That mix shift pushed applicators to approximately 75% of quarterly revenue, above the company's stated target range of 60-65%. CEO Morgan Frank attributed the system-sales shortfall to financial stress among customers from CMS reimbursement recoupments on allografts and to the emergence of a secondary market in used Ultramist systems. Q2 revenue still landed slightly above the high end of the revised guidance Sanuwave issued on June 16, 2026.
Margin compression, EBITDA, and the net loss
Gross margin contracted to 76.2% in Q2 2026 from 78.1% a year earlier, roughly 190 basis points of compression. The GAAP operating line moved further: from $1.4 million in income in Q2 2025 to a $(0.3) million loss, a $1.7 million swing. Net loss for the quarter was $0.7 million, against net income of $0.6 million in Q2 2025.
Guidance withdrawn; CMS comment period ahead
Sanuwave withdrew its full-year 2026 guidance outright, citing the CMS proposed rule for 2027 reimbursement under procedure code 97610, published in July 2026. The company said it disputes the methodology and assumptions in that proposal and will participate actively in the comment period before a final rule. A final CMS rule is expected in Q4 2026, and Sanuwave said it will not issue new quarterly or annual guidance until after that publication.
Frank noted that a separate CMS proposal for the hospital outpatient department setting would raise 97610 reimbursement by 14% for 2027, a development he cited as context for the company's disagreement with the physician fee schedule proposal.
The Q2 earnings call is scheduled for August 7, 2026 at 8:30 a.m. EST.